Benefits of the EDI 850 purchase order

Using EDI to exchange orders allows buyers and sellers to eliminate manual data entry and follow-up tasks. Here are some of its key benefits:

Streamline product orders

Once a buyer creates and sends the EDI 850 purchase order, it shows up in the seller’s system with no other action required. At this point, the seller can simply confirm the quantity and ship date, send an acknowledgment back to the buyer, and proceed with filling the order.

Boost fulfillment precision

The EDI 850 minimizes data entry because order data can be supplied from other systems (ERP, WMS, e-commerce, etc.). Both the buyer's and the seller's systems can simply access standardized data, so everyone is using the same data. There are no outstanding issues or next steps for either party.

Reduce labor and data entry expenses

Orders placed by phone, fax, or email are ineffective for both buyers and sellers. Delays, late shipments, and harmed client relations can all result from mistakes. An automated system for sending, receiving, and verifying orders is offered by EDI 850.

What is an EDI 850 purchase order?

The EDI 850 (EDIFACT ORDERS) is a purchase order sent from a buyer to a seller requesting goods or services. This document allows buyers to place orders electronically rather than through email, fax or phone calls. 

The electronic purchase order outlines what products buyers want to order and in what quantities. It also describes when buyers want to receive the products and where they should be shipped to (such as a distribution center, a store, or the end consumer).

Example of an EDI 850 purchase order

Typically, an EDI 850 includes information such as:

Purchase order date: The date the buyer issues the purchase order

Purchase order number: A unique number that both buyers and sellers can use to track status and payment electronically

Product: Names and codes (such as SKUs) of the purchased items 

Requested ship and/or delivery date: The date the buyer would like the products to ship or be delivered

Location(s): Where the product or services should be delivered, which can be a single location or multiple locations

Other information: Pricing, item descriptions, and other item identifiers may also be included