EDI X12 Transaction Codes
EDI X12 820
What is EDI X12 820?
EDI X12 820 is the electronic option for sending a Payment Order / Remittance Advice. This EDI transaction notifies the seller that payment from the buyer for good or services rendered has been issued (usually through an Automated Clearing House (ACH) transfer or sometimes via check). EDI 820 helps sellers reconcile their accounts receivables (AR). Like the paper version, EDI 820 usually contains:
A functional acknowledgement contains:
- Payer and payee identification
- Invoice number(s)
- Amounts billed and paid
- Bank account information
- Any adjustments to the invoice
Transaction BEFORE
EDI 846
820
Format
ASC X12 Standard
Transaction AFTER
None
Sample file
Copy the code of EDI 820 from this sample file
ISA*00* *00* *01*123456789 *12*9999697299 *150524*1200*U*00401*000000001*0*T*>~ GS*RA*123456789*9999697299*150524*120050*1*X*004010~ ST*820*0001~ BPR*I*0.00*C*ZZZ~ CUR*VN*USD~ DTM*999*20150524~ N1*PE*Department A*G*656162~ N1*PR*CompanyA.com*PI*2677~ ENT*1~ RMR*PO*554681037*PI*10.49~ REF*1J*65616202*Department A Greenville UT~ DTM*173*20150523~ RMR*PO*554841872*PI*17.99~ REF*1J*65616202*Department A Greenville UT~ DTM*173*20150523~ RMR*PO*554719617*PI*8.98~ REF*1J*65616203*Department A Greenville UT~ DTM*173*20150523~ RMR*PO*554648526*PI*20.24~ REF*1J*65616203*Department A Greenville UT~ DTM*173*20150523~ SE*20*0001~ GE*1*1~ IEA*1*000000001~
Other things to know about EDI 820
EDI 820 and CTX Format
The Corporate Trade Exchange (CTX) is a type of ACH format that allows for remittance of several invoices simultaneously. CTX format offers companies nearly 10,000 lines of data that can handle roughly 800,000 characters altogether. Before using the CTX in your EDI 820 transaction set, check to make sure your trading partner can handle the CTX format.
EDI 820 vs 823
EDI 823 represents a lockbox, or an arrangement with a bank to streamline the receipt of incoming payments on behalf of an organization’s AR. When payment is received and processed by the seller’s bank, information regarding the deposit, including originating company, monetary amount, batch reference, and date/time posted is issued to the seller through EDI 823.
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Specifies details of accounts receivable open item(s) to be included in the cash application
- RMR01 element: Code identifying the reference type (e.g. invoice) for RMR02
- RMR02 element: Unique identifier (e.g. invoice number) for item referenced in RMR01
- RMR03 element: Payment action code to specify how funds are applied to open items
- RMR04 element: Amount paid
Used to specify identifying information:
- REF01 element: Identifies the type of information (could be anything from a check number to a code associated with a trading partner) given in REF02
- REF02 element: Unique identifier for item specified in REF01
- REF03 element: Free-form description to clarify preceding elements