Purchase Order

EDI 850 or EDI 875

graphic showing raw EDI data for EDI 997, EDI 850, and EDI 852 transactions

What is a purchase order 850 or 875?

A purchase order is used by the buyer to request goods and/or services from a supplier. There are two electronic documents that support the purchase order: The 850 and the 875.

  • The 850 is more widely used in general merchandise.
  • The 875 is grocery focused.

The key data elements included in a purchase order:

  • Purchase order number
  • Purchase order date
  • Location(s) where the product or services should
  • be supplied to
  • Requested ship and/or delivery date
  • Product item identifiers/services such as
  • UPC/EAN/GTIN needed with their respective quantities

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

  • Carrier and service levels
  • Vendor number
  • Item price
  • Expected charges and/or allowances
  • Additional item identifiers such as buyer item number and vendor part number
  • Item description
  • Additional dates (Ex: cancel by dates)

Benefits of using an 850

There are benefits to both the purchaser and the supplier of implementing electronic trading of the purchase order. Many of these are dependent on how automated and integrated the transaction is for both parties. Some of the benefits that can be realized include:

  • Reduction in volume of paper flow and gain operating efficiencies through reduced time requirements to complete transactions by both parties
  • Reduction in administrative time spent manually submitting orders (buyer) and manually  receiving and entering purchase orders (supplier) allowing for resources to focus on value added work
  • Elimination of data entry errors associated with manual processes
  • Potentially increases the speed of fulfillment and supports the ability for the retailer to lower their on hand inventory

Want to learn more about specific EDI files?

Here’s a long list of EDI transactions commonly used in retail.

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