EDI Documents: The 820

Often referred to as the Payment Remittance Advice, the Order Remittance Advice or simply The Remittance Advice, the EDI 820 informs the supplier that the retailer has received an invoice, otherwise known as the EDI 810.

What Information is in an EDI 820?

Good question. An EDI 820 will have the following information: 

• Payer and payee information including company name and address
• The invoice or PO number found on the corresponding EDI 810
• The invoiced and payment amounts
• Invoice adjustments
• Tax information
• Banking information authorizing the electronic transfer of funds (if previously approved)

When it comes to the EDI 820, suppliers are mainly looking for one thing: that the payment amount matches what was invoiced. If those amounts don’t match, the supplier expects the EDI 820 to explain why. 

What are the Business Benefits of the EDI 820?

The EDI 820 helps supplier accounting departments manage retailer account reconciliation. And the electronic transfer of funds is authorized, the EDI 820 can help suppliers get paid faster, improving cash flow. 

When the EDI 810 and EDI 820 process is automated between supplier and retailer, both organizations benefit from a more streamlined, more accurate process, which in turn, strengthens the business relationship. 

EDI 820 Formats

There are two formats for the EDI 820: raw and readable. The raw version contains lines of what looks to be meaningless code. That is until an ERP system translates it into a “readable by humans” format, ready for reconciliation. 

What Happens After the Supplier Gets the EDI 820?

First, they’ll know money is on the way. From there, their EDI solution will crank back to the retailer an EDI 997, otherwise known as a Functional Acknowledgement. This document tells the retailer that an EDI document has been received. 

Do All Retailers Send EDI 820s?

Unfortunately, the answer is no. A retailer that doesn’t send an EDI 820 likely does not do so simply because that’s the way they do things. If you work with multiple retailers, this can create headaches. Is this retailer supposed to send me an 820? That’s where an EDI platform powered by people who know different (and often changing) requirements across the retailer landscape can be a huge help. And yes, we’re talking about ourselves. All self-flattery aside, keeping a finger on the pulse of the industry is a top priority here at eZCom. It’s how we are able to constantly improve our EDI platform, Lingo. And it’s also how we keep our customer support as strong as it is. 

To learn more about the EDI 820 and all things EDI, send us a message and we’ll be in touch.