What Is the EDI 850?
The EDI 850 Purchase Order is one of the most widely used EDI transaction sets. It communicates the buyer's intent to purchase goods or services, including item details, quantities, pricing, shipping instructions, and payment terms. For most suppliers, the 850 is the starting point of the order-to-cash cycle.
Key Data Elements
A typical EDI 850 includes the following critical information:
- BEG segment - Purchase order number, date, and type (new, change, cancel).
- PO1 segments - Line items with UPC/SKU, quantity, unit of measure, and price.
- N1/N3/N4 segments - Ship-to, bill-to, and buying party addresses.
- DTM segments - Requested ship date, cancel date, and delivery windows.
- CTT segment - Transaction totals including line item count and hash total.
Common Compliance Requirements
Retailers enforce strict requirements for how 850s are processed:
- PO acknowledgment (855) must be returned within 24 hours.
- All line items must be validated against current catalog/price lists.
- Ship dates must fall within the specified delivery window.
- Any changes require an 860 Purchase Order Change before fulfillment.