The EDI 850 is also known as an EDI Purchase Order or EDI PO is part of Common EDI Transactions and Codes. EDI 850 is usually sent to a vendor as the first step in the ordering process. Once the retailer sends the Purchase Order, the supplier must acknowledge they received the document.  EDI 855 (Purchase Order Acknowledgement) is used for this purpose.

What does EDI 850 include

• Interchange control header

• Purchase Order Number

• Vendor address -  name, address, contact details 

• Customer address  -  name, address, contact details 

• Item details - SKU number, description, quantity, price

• Shipping details - shipping method, preferred carrier, delivery date

• Payments terms

Purchase Order Processing Procedure

In most retail environments, the edi messaging routine is as follows:

1. EDI 850 Purchase Order - receiving EDI Purchase Order from the trading partner.

2. EDI 997 Functional Acknowledgement - send confirmation of receipt of the Purchase Order.

3. EDI 855 Order Acknowledgement –sending a message confirming your agreement to comply with the requirements of the Purchase Order

4. EDI 856  Advanced Shipping Notice – sending a message with delivery information: carrier, delivery date, package, tracking number

5. EDI 810 Invoice – sending an invoice

Specification

"This X12 Transaction Set contains the format and establishes the data contents of the Purchase Order Transaction Set (850) for use within the context of an Electronic Data Interchange (EDI) environment. The transaction set can be used to provide for customary and established business and industry practice relative to the placement of purchase orders for goods and services. This transaction set should not be used to convey purchase order changes or purchase order acknowledgment information." Stated by x12.org

Source: Accredited Standards Committee X12. ASC X12 Standard [Table Data]. Data Interchange Standards Association, Inc., Falls Church, VA. https://x12.org/products/transaction-sets

Example of EDI 850 Purchase Order