In this article, we cover the questions:
What is an EDI 894 delivery/return base record?
How does it support direct store delivery?
How does it differ from an EDI 856 and EDI 810?
What information does an EDI 894 typically contain?
The EDI 894, also known as the delivery/return rase Record, supports direct store delivery (DSD) by communicating the details of a delivery made directly to a retail location. While many retailers route products through a distribution center, DSD fulfillment sends products straight to individual stores, which makes timely inventory updates, acknowledgments, and payment reconciliation especially important. The EDI 894 supports this fulfillment model by documenting deliveries and communicating key shipment information electronically.
Related Reading: EDI Structure Explained: Segments, Elements, and Transaction Sets
Support Within the DSD Model
As part of the DSD process, suppliers visit each store location on a cadence set with the retailer, traditionally at least once a week and often more frequently. The supplier reviews shelf stock levels and backroom inventory to identify and remove obsolete or expired products and to replenish inventory, helping maintain stock levels throughout the order-to-delivery process. Retailers that share point of sale (POS) data also allow suppliers to better align replenishment with actual store demand.
How Suppliers Transmit the EDI 894
Two common methods support DSD data exchange:
Direct exchange (DEX) allows information to transfer directly between the supplier's handheld device and the retailer's in-store system while the delivery is taking place.
Network exchange (NEX) transmits EDI documents electronically through an EDI network. In this model, the EDI 894 communicates delivery details, while acknowledgment documents confirm receipt and acceptance.
Under the NEX model, the EDI 894 is often referred to as a pre-delivery invoice. The supplier transmits the 894 EDI document to the store to document a pending or completed delivery, including product, pricing, quantity, and other shipment information.
What Information Does an EDI 894 Contain?
There are a number of possible fields a company can include on a delivery/return base record. The most typical fields are:
Typical EDI 894 Field | Purpose |
Purchase order (PO) number | Associates the delivery with the corresponding PO. |
Delivery date | Records when the delivery was made. |
Product identifiers | Identifies the products included in the delivery. |
Quantities | Confirms the quantity of each item delivered. |
Pricing | Supports invoicing, payment, and reconciliation. |
Return information | Documents product returns, exchanges, or adjustments. |
Store location | Identifies the retail location receiving the delivery. |
After the retailer receives the EDI 894, it typically returns either an EDI 997 Functional Acknowledgment or an EDI 895 delivery/return acknowledgment or adjustment. These documents confirm whether the transaction was received, accepted, adjusted, or rejected. The information then flows into the retailer's DSD system for reconciliation and payment approval.
Related Reading: EDI for First-Time Suppliers: A Plain-English Guide to the Documents You'll Send
What Does an EDI 894 Look Like?
An EDI 894 is not a paper form or PDF. Like other EDI transactions, it's a structured electronic document that business systems exchange automatically using standardized data fields.
Although the exact format varies by retailer and EDI version, a typical EDI 894 includes information such as:
Delivery or transaction number
Delivery date and time
Store or delivery location
Supplier information
Product identifiers (SKU, UPC, or GTIN)
Quantities delivered
Unit of measure
Pricing or adjustments, when required
Instead of being read by people, an EDI 894 is designed for computer systems to process automatically, allowing retailers and suppliers to reconcile deliveries and update inventory without manual data entry.
How is the EDI 894 Used?
The EDI 894 shares some characteristics with the EDI 856 advanced shipment notice (ASN) and the EDI 810 invoice, but each transaction supports a different stage of the retail fulfillment process.
EDI Transaction | Primary Purpose | Sent When |
EDI 856 (ASN) | Announces a shipment before it arrives and provides shipment details. | Before the shipment arrives |
EDI 894 (delivery/return base record) | Documents a DSD and supports delivery confirmation and reconciliation. | At or immediately after delivery |
EDI 810 (invoice) | Requests payment for goods delivered. | After the goods are delivered or invoiced |
Depending on the retailer's requirements, the EDI 894 can serve functions similar to both the EDI 856 and the EDI 810:
As an invoice, the EDI 894 helps resolve totals discrepancies in pricing or promotions, along with product exchange details, before payment is processed.
At the point of delivery, the supplier and store personnel confirm the products delivered and approve the delivery. The supplier's representative transmits the EDI 894 data, which includes signature authorization.
The delivery/return base record can also serve as a reference document in the purchase order-to-invoice reconciliation process. This three-way matching system compares the original PO to the invoice, and the invoice to whatever documents were used to confirm delivery.
Although the EDI 894 is not widely used across all retail relationships, some retailers require the transaction to be transmitted within hours of delivery, according to their compliance requirements. Meeting these timelines helps support accurate inventory records and timely reconciliation, and EDI integration can help suppliers meet that turnaround.
Frequently Asked Questions Regarding EDI 894
What is an EDI 894?
An EDI 894 is an EDI transaction set used to document direct store deliveries and returns. Also known as the delivery/return base record, it communicates shipment details, product quantities, pricing, and other information needed to support delivery confirmation, inventory updates, and payment reconciliation.
What is the Delivery/Return Base Record?
The delivery/return base record is another name for the EDI 894 transaction set. Suppliers use it to electronically transmit the details of a direct store delivery, including products delivered, quantities, pricing, returns, and other information that helps retailers confirm receipt and reconcile transactions.
What's the difference between EDI 894 and EDI 856?
The EDI 894 documents a direct store delivery, while the EDI 856 ASN announces a shipment before it arrives. The EDI 856 prepares the retailer for an incoming shipment, whereas the EDI 894 records the delivery itself and supports confirmation, reconciliation, and payment.
What is DSD?
Direct store delivery (DSD) is a fulfillment model in which suppliers deliver products directly to individual retail stores instead of shipping them through a retailer's distribution center. DSD is commonly used for products such as food, beverages, and other consumable goods that require frequent replenishment, fresh inventory, or route-based deliveries.
Related Reading: What is Direct Store Delivery Consolidation?
Supporting Accurate Retail Deliveries
The EDI 894 creates a shared source of truth between suppliers and retailers. It helps confirm what was delivered, reconcile inventory, support payment, and reduce manual follow-up. For businesses operating DSD programs, accurate and timely EDI 894 transmissions help keep products moving efficiently while supporting stronger retail relationships.
To learn more about automating EDI transactions and meeting retailer requirements, explore how SPS Commerce Fulfillment helps suppliers onboard quickly and exchange EDI documents with thousands of retail trading customers.