Explaining EDI: EDI 810 Invoice

By The SupplyPike Team, Retail Rockstars

Last Updated July 2, 2020

3 min read

In this article, learn about:

Definition and purpose of EDI 810
Components included in an EDI 810
Process of exchanging EDI 810 documents
Benefits of using EDI 810 in business operations

What is an EDI 810?

Typically, when one party needs to bill another, they produce an invoice. Think of the EDI 810 document as the electronic version of an invoice for use in EDI transactions. EDI 810 is the format and data content for the Invoice Transaction Set, commonly utilized for general services and merchandise. Other invoice sets include EDI 880 for grocery-specific invoices and EDI 894 for vendor-managed inventory models.

What is Included in an EDI 810?

An EDI 810 always includes details relating to the initial order. While the data values in each exchange may vary depending on the items/services provided, every document will include the following:

Invoice number
Date of the invoice
Services/items rendered
Date that the items shipped out on
Payment terms

Related Reading: What is EDI (Electronic Data Interchange)?

How Does an EDI 810 Exchange Work?

Let's walk through a scenario.

A retailer transmits an EDI 850 (Purchase Order) to a vendor of toothpaste products, requesting 10,000 boxes of toothpaste. The retailer and the vendor are considered "trading partners."
The vendor accepts the EDI 850 and ships the requested product to the retailer on the requested date.
The vendor sends an electronic transmission of their invoice -- an EDI 810 -- to request payment for the products, based on the previously agreed-upon payment terms.
The retailer receives the EDI 810 and sends back an EDI 997 (Functional Acknowledgement) confirming they have received the document. If there are any errors within the 810, the retailer may send an EDI 864 (Text Message) to get the errors corrected. Then, once the 810 is accepted and approved, the retailer will send an EDI 820 (Payment Remittance Advice). This alerts the vendor that the invoice has been paid, along with an EDI 812 (Credit/ Debit Adjustments) if there are any deductions or chargebacks.

Why Use an EDI 810?

As with any EDI document, it allows for faster communication and lowers the risk of errors. It is much easier than the use of traditional mail and paper documents. In addition, payments are reconciled quickly, which allows business between trading partners to operate with fewer mistakes. Everybody wins.

To learn more about other EDI transaction sets, check out SupplierWiki's articles on the 800 series and 200 series.

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