EDI 860 - Purchase Order Change

EDIFACT ORDCHG

The EDI 860 may also be used by buyers to confirm their acceptance of changes to purchase orders made by the supplier. This document provides information describing the original purchase order, as well as changes to that purchase order. Changes may include adding items, changing items, changing dates, changing quantity, changing prices or rescheduling an order.

The EDI 860 transaction is widely used in general merchandise retail. The grocery industry has its own buyer initiated purchase order change document: the EDI 876.

EDI Documents

Benefits of using an EDI 860 Purchase Order Change (Buyer Initiated)

Both the buyer and the seller benefit from implementing the EDI Purchase Order Change. The EDI 860 can prevent invoicing issues because it enables the supplier to invoice the retailer for the correct amount, and ensures that the retailer doesn’t overpay for items that weren’t delivered. Many of these benefits are dependent on how automated and integrated the transaction is for both parties.

Benefits of the EDI 860 include:

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Allow the purchaser to modify an order quantity based on current inventories to enable future demand planning.

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Improve efficiency of executing purchase order changes.

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Ensure accuracy of final order.

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Update the buyer’s and supplier’s system to create a record of the change, should any discrepancies arise. This provides an audit trail.

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Gain consensus between buyer and supplier on order details.

Key data elements in an EDI Purchase Order Change document include:

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Purchase order number

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Purchase order date

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Type of order change (change/cancellation)

Additional data that may also be included in the purchase order change:

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Additional item/services identifiers such as buyer item number and/or vendor part number

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Product item/services identifiers such as UPC/EAN/GTIN

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Item additions and/or deletions

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Vendor number

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Item price

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Pertinent dates (i.e. cancel by dates, requested ship and/or delivery date)

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Location(s) where products or services should be supplied to

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Sender and recipient codes

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Item quantity

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Item description

Common issues regarding EDI 860

PO changes can occur at different times within the order cycle.

The purchase order change can be sent if a portion of the order has been shipped, but the balance of the order needs a quantity adjustment, new ship date or has to be outright canceled.

 A retailer might send an EDI Purchase Order Change after an order is shipped to correct pricing before billing happens.

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A full-service provider, like SPS Commerce, has an expert team that handles ongoing management of your EDI solution so you can prevent EDI errors and chargebacks.

SPS communicates directly with your trading partners to manage connectivity, setup, requirements, updates and support efforts. Our team takes ownership of understanding your trading partner requirements and making map changes. We actively manage 9,000 changes from retailers each year.

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