What is 850 Purchase Order | X12 850 Transaction Set in EDI | Different between EDIFACT and ANSI X12

Electronic Data Interchange (EDI) is one of the fundamental protocols of business documents exchange, for companies collaborating in today’s business world.
Electronic Data Interchange (EDI) is an electronic exchange of business information between companies in a standardized format. This technology is used by businesses around the world as their main method to exchange business documents. Thus, EDI is a modern and effective document exchange standard and sometimes the only way to exchange documents between trading partners.
What is an EDI Purchase Order?
ANSI X12 EDI 850 Purchase Order Transaction Set simply named as EDI 850 or EDI X12 850 or just PO is a fundamental document in EDI. EDI 850 is a formal request sent by the buyer (purchasing company) to the supplier (seller) for demand of delivery of goods and/or services at an agreed price.
What information an EDI Purchase Order contains?
A typical EDI 850 Purchase Order includes the following information:
Purchase order date
Purchase order number
Item description
Item price and quantities
Payment terms
Discounts
Shipping details
Requested delivery date
Location(s) where the goods should be delivered to
How does an EDI service provider manage the EDI 850?
Typically, the buyer creates a Purchase Order in his internal ERP system (i.e. SAP, Microsoft Dynamics, JD Edwards, etc.). The Purchase Order can be created in the ERP system automatically or manually, depending on the business process of the company. Then, the generated Purchase Order is transferred to the EDI provider, or the provider will pick it up directly from the ERP system of the company. The EDI service provider than converts the PO document to the ANSI X12 EDI 850 transaction set. After conversion, the EDI 850 is sent to the supplier (or the destination).
Useful information:
If you are looking for an EDI Service provider or you are not satisfied with your current provider and want to get the best EDI services, find out here how to choose the right EDI Service Provider.
EDI Communication Protocols to transfer EDI 850
For the exchange of EDI documents, including EDI 850, there are various communication Protocols:
VAN (Value-Added Network) is a private, hosted service and a secure way to exchange EDI data between trading partners.
AS2 (Applicability Statement 2) is a secure messaging over the Internet using digital certificates and encryption.
FTP (File Transfer Protocol) is a standard network protocol built on a client-server architecture.
sFTP (Secure File Transfer Protocol) secure version of FTP for data transfer over the Internet.
HTTPS (Hypertext Transfer Protocol Secure) is an extension of the HTTP and a secure way for communication over the Internet.
Moreover, one company may use different protocols to exchange EDI documents with its various trading partners. This usually happens because suppliers have to meet the requirements of their trading partners.
A typical set of EDI documents involved in EDI X12 850 workflow
For a trading relationship between business partners, a single EDI 850 transaction is not enough. Although a purchase order is a basic document, business partners generally would exchange the additional following documents:
EDI 997 Functional Acknowledgement - sent by the receiver of the transaction as a response to confirm receipt of EDI 850 or any other EDI document
EDI 855 Purchase Order Acknowledgment used by sellers to accept, reject, or modify a Purchase Order.
EDI 860 Purchase Order Change Request - used by buyer if necessary to make changes to a previously submitted Purchase Order; or to accept change initiated by the seller.
EDI 856 Advance Ship Notice -send by a seller to a buyer to describe the shipped items and type of packaging. ASN is sent immediately after the goods left the seller’s location.
EDI 810 Invoice -request for payment of goods or services
EDI X12 850 Transaction Set Structure
An EDI X12 850 (Purchase Order), as well as all other EDI X12 documents, consists of different segments where the initial segments are called Header, and the final segment is called Trailer:
Interchange Control Header (ISA) /Trailer (IEA)
Functional Group Header (GS) Trailer (GE)
Transaction Set Header (ST) / Trailer (SE)
Although EDI 850 must comply with ANSI ASC X12 standard, a Purchase Order can vary greatly depending on industry and trading partners. Even in the same industry, EDI 850 may vary, as it is customized to the specific needs of the company.
EDI 850 Benefits and Opportunities
Profitability
speeds up the supply chain
saves on printing and document delivery
increases the speed of payment
saves resources for duplication, sorting and storage of documents
Efficiency
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[@qianyingliu-s6r]

Thank you so much! Good video!

[@AfterFXtemplates]

this video Helped me in interview.. Thank you !!

[@techbsp4456]

Welcome,
Please keep in touch with this YT channel. We will upload such kind of video for EDI

[@saipraneethreddy2]

thank you so much

[@techbsp4456]

You're welcome!

[@srssayed6358]

Sir explain as topic vise, full real time work

[@techbsp4456]

Sure, I will create more video in upcoming week

[@sharang5642]

If possible explain practical ways will be appreciated

[@souravkarmakar4342]

Hi have you worked to generate EDi 850 order file ? I need to ignore N2 address property as the value is null . How to ignore from Edivalue or any trick ?

[@techbsp4456]

You can apply the mapping for the particular segment which you want to ignore or you can delete that.

[@mxmdc80]

Is it possible to make a barcode of each purchase order? That way we don’t have to type it every character and we can just scan it with a scanner.

[@mxmdc80]

Btw I’m using truecommerce software

[@techbsp4456]

Yes, it's possible. It's depends on the specific software what they are having functionality to perform.