CREADV EDIFACT

Credit Advice

How Do I Use a CREADV EDIFACT Message?

When a supplier makes a monetary adjustment for the amount of products purchased, the buyer will receive a credit advice (CREADV) message.  A CREADV EDIFACT may involve one or multiple trade deals, including invoices, credit notes, and debit notes. The result of these messages is a change in the financial amount owed between trading partners.

Common reasons why a trading partner might issue a CREADV EDIFACT include:

  • The buyer received damaged goods.
  • The buyer received inexact quantities.
  • The buyer has backdated volume discounts.

What Are the Key Data for Credit Advice Messages?

Credit advice messages follow a standardized format in EDIFACT. The supplier's system will generate and send a message with all the vital data needed to perform a credit change. Upon receiving the message, the buyer's EDI software will interpret the information.

CREADV EDIFACT messages can include a vast amount of data, including:

  • The supplier's and buyer's information
  • The previous credit transaction number
  • Previous invoice or order details
  • The credit or debit monetary amount
  • The credit or debit date
  • Reasons for credit or debit changes

How Do I Process a CREADV EDIFACT Message?

The buyer's system will receive and verify a CREADV EDIFACT message. After sending out one of these messages, the trading partners can make the necessary arrangements to settle their accounts.

Where Do CREADV EDIFACT Messages Fit in the EDI Workflow?

Buyers will send a receiving advice (RECADV) message wherein they notify the seller about which products were received and which were not delivered. This message provides the necessary information for the supplier to prepare and send an invoice (INVOIC). If the buyer needs to amend the invoice, they'll send a CREADV EDIFACT message.

What Are the Benefits of CREADV EDIFACT Messages?

An efficient EDI platform can transform your supply chain management system, and utilizing CREADV EDIFACT messages can result in the following:

  • Enhanced transparency: CREADV EDIFACT messages give trading partners complete visibility and control over monetary adjustments.
  • Smoother operations: Trading processes do not have to halt because of monetary discrepancies. Trading partners can utilize CREADV EDIFACT messages to finalize debit and credit changes quickly.
  • Less processing errors: EDI systems reduce input errors, as employees do not need to enter information manually. CREADV EDIFACT messages can send out accurate debit or credit amounts.
  • Accelerated cash flow: CREADV EDIFACT messages can ensure suppliers send amended invoices faster, resulting in quicker payments.
  • More time to focus on core business strategies: CREADV EDIFACT messages free up your workforce's time, allowing you to direct your energy toward core business goals.
  • Simplified amendment processes: EDI systems remove the complexities of changing credit or debit amounts.
  • Safer transactions: EDI protocols like the Secure File Transfer Protocol (SFTP), ODETTE File Transfer Protocol 2 (OFTP2), and Applicability Statement 2 (AS2) protect trading partners' data.

Simplify Your Trading Process

Harness the power of TrueCommerce's exceptional EDI solutions for a simplified and streamlined trading process. With fully managed EDI services, we'll ensure smooth and accurate operations while you focus on your core business goals. Fill out our form to book a demo!