Different Types of Acknowledgments

EDI acknowledgments are essential for confirming receipt, processing, and acceptance of transmitted EDI documents. 

Here are the different types of acknowledgments commonly used in EDI:

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1. Functional Acknowledgment (FA) - ANSI X12 997

• Description: Confirms the receipt of an EDI document and verifies its syntactical correctness (e.g., no missing or incorrect segments or elements).
• Purpose:
  • Indicates whether the EDI document has been received successfully.
  • Notifies the sender of errors in the document structure.
• Key Document: 997 Functional Acknowledgment
• Example: When a sender transmits an 850 Purchase Order, they might receive a 997 confirming that the file was received and syntactically correct.

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2. Application Acknowledgment

• Description: Confirms that the content of the EDI document was successfully processed by the application.
• Purpose:
  • Validates business-level data (e.g., purchase order was accepted or rejected).
• Key Documents:
  • 855 (Purchase Order Acknowledgment): Confirms the status of a purchase order.
  • 865 (Purchase Order Change Acknowledgment/Request): Responds to a request for changes to an order.
  • 824 (Application Advice): Provides feedback about errors in the application data.
• Example: After sending an 850 Purchase Order, the buyer receives an 855 indicating whether the order was accepted or modified.

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3. Technical Acknowledgment

• Description: Confirms that a transmission has been received at the communication level (e.g., network or protocol level).
• Purpose:
  • Verifies the communication layer without validating EDI syntax or business content.
• Key Protocols:
  • AS2 MDN (Message Disposition Notification): Confirms receipt of a message in AS2 communication.
  • FTP Response: Confirms successful file transfer in FTP-based communications.

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4. Control Acknowledgment (CONTRL) - EDIFACT

• Description: The EDIFACT equivalent of the 997 Functional Acknowledgment in X12.
• Purpose:
  • Acknowledges receipt of an EDI document.
  • Indicates syntactical correctness.
• Key Document: CONTRL Message
• Example: A CONTRL message is sent to confirm receipt of an EDIFACT ORDERS document and indicate whether there were structural issues.

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5. MDN (Message Disposition Notification) - AS2

• Description: A protocol-level acknowledgment confirming receipt of an AS2 message.
• Purpose:
  • Confirms secure message delivery.
  • Provides a digital receipt with success or failure status.
• Key Document: MDN
• Example: After sending an invoice via AS2, the sender receives an MDN confirming successful receipt.

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6. TA1 Interchange Acknowledgment

• Description: Provides feedback about the interchange envelope structure (ISA/IEA segments) in X12 documents.
• Purpose:
  • Identifies errors in the interchange header or trailer.
  • Validates the integrity of the EDI envelope.
• Key Document: TA1 Interchange Acknowledgment
• Example: If there is an issue with the ISA segment in an 850 document, a TA1 will be sent to notify the sender of the specific error.

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7. Acknowledgment for Reconciliation

• Description: Used in processes like inventory management or financial reconciliation.
• Purpose:
  • Confirms successful reconciliation of documents like invoices, payments, or inventory adjustments.
• Key Documents:
  • 820 (Payment Order/Remittance Advice): Confirms payment and reconciliation.
  • 861 (Receiving Advice/Acceptance Certificate): Confirms receipt of goods.
• Example: A seller sends an 810 Invoice and receives an 820 Payment Advice as an acknowledgment of payment.

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8. Negative Acknowledgments

• Description: Indicates a failure in processing, either at the syntactical or application level.
• Purpose:
  • Highlights errors in transmission, structure, or business validation.
• Key Documents:
  • Negative 997: Indicates syntactical errors.
  • 824: Indicates application data errors.
• Example: A 997 with "R" (Rejected) status informs the sender of structural issues in the transmitted document.

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9. Business Process-Specific Acknowledgment

• Description: Custom acknowledgments designed to meet specific business or trading partner requirements.
• Purpose:
  • Provides detailed feedback on the status of a specific transaction or workflow.
• Key Documents: Varies based on business needs.
• Example: A retailer might send a custom acknowledgment for a unique order processing scenario.

Overview of Shipment Hierarchical Levels (HL segments)

In EDI (Electronic Data Interchange), particularly in documents like 856 (Advance Ship Notice) shipments are often organized using hierarchical levels (HL segments) to represent different levels of detail. 

These levels are used to structure and describe the contents of a shipment, from the overall shipment down to individual items. 

Here are the common hierarchical levels of a shipment:

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1. Shipment Level

• Purpose: Represents the entire shipment as a whole.
• HL Code: S (for Shipment).
• Details Included:
  • Shipment identifiers (e.g., bill of lading, tracking number, shipment ID).
  • Carrier details (e.g., carrier name, mode of transport).
  • Shipping dates (e.g., ship date, estimated delivery date).
  • Origin and destination addresses.

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2. Order Level

• Purpose: Represents individual orders within the shipment.
• HL Code: O (for Order).
• Details Included:
  • Purchase order number (PO number).
  • Customer reference number.
  • Details specific to the order, such as order type and buyer information.

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3. Tare Level (Optional)

• Purpose: Represents packaging that contains multiple cartons or pallets.
• HL Code: T (for Tare).
• Details Included:
  • Pallet or container identifiers (e.g., pallet ID, shipping container code).
  • Physical dimensions and weight.
  • Additional packing instructions, if any.

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4. Pack Level

• Purpose: Represents individual cartons, boxes, or other packaging units within a shipment.
• HL Code: P (for Pack).
• Details Included:
  • Carton or package ID (e.g., tracking label or SSCC-18).
  • Dimensions and weight of the carton.
  • Packaging type (e.g., box, crate, bag).

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5. Item Level

• Purpose: Represents the individual items within a carton, pallet, or container.
• HL Code: I (for Item).
• Details Included:
  • Item identifiers (e.g., SKU, UPC, or FNSKU).
  • Quantity shipped.
  • Product descriptions.
  • Serial numbers or lot numbers.
  • Unit of measurement (e.g., cases, pieces, kilograms).

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Hierarchy Structure

The levels are nested in a parent-child relationship, defining the structure of the shipment. For example:

1. Shipment contains one or more Orders.
2. Each Order may have multiple Tares (if applicable).
3. Each Tare contains multiple Packs.
4. Each Pack contains multiple Items.

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Example HL Segment Hierarchy

Here’s a simplified example in EDI format:

HL*1**S~          (Shipment Level)
HL*2*1*O~         (Order Level under Shipment)
HL*3*2*P~         (Pack Level under Order)
HL*4*3*I~         (Item Level under Pack)
HL*5*3*I~         (Another Item under the same Pack)
HL*6*2*P~         (Another Pack under the same Order)

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Common Applications

• 856 - Advance Ship Notice: Specifies shipment structure for logistics and inventory purposes.
• 214 - Shipment Status Message: Tracks shipment updates at various levels.
• 940 - Warehouse Shipping Order: Instructs the warehouse on how to prepare the shipment.

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Benefits of Using Hierarchical Levels

1. Flexibility: Handles complex shipment structures with varying levels of packaging.
2. Traceability: Tracks items from shipment to individual products.
3. Efficiency: Enables efficient scanning and handling in supply chain operations.

Different Types of Shipments

There are different types of shipments based on the nature of the goods, logistics arrangements, and business requirements. 

In the context of EDI and logistics, shipments can be categorized in various ways. Below are the common types of shipments:

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1. Full Truckload (FTL) Shipment

• Description: A single shipment that fills an entire truck. The truck is dedicated to one shipment or customer.
• EDI Documents:
  • 204 (Motor Carrier Load Tender)
  • 214 (Shipment Status Message)
• Use Case: Large quantities of goods shipped directly to a destination.

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2. Less-than-Truckload (LTL) Shipment

• Description: A shipment that does not require a full truckload. Goods from multiple customers are consolidated into one truck.
• EDI Documents:
  • 204 (Motor Carrier Load Tender)
  • 211 (Motor Carrier Bill of Lading)
• Use Case: Smaller quantities of goods, often cost-effective for small-to-medium businesses.

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3. Parcel Shipment

• Description: Small packages shipped through parcel carriers like FedEx, UPS, or USPS.
• EDI Documents:
  • 210 (Motor Carrier Freight Details and Invoice)
  • 214 (Shipment Status)
• Use Case: E-commerce shipments or small-sized packages sent directly to consumers.

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4. Intermodal Shipment

• Description: Shipments that use multiple modes of transportation, such as rail, truck, ship, and air, within a single delivery.
• EDI Documents:
  • 204 (Load Tender for each mode)
  • 322 (Intermodal Ramp Activity)
• Use Case: Long-distance shipments with cost and efficiency considerations.

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5. Drop Shipment

• Description: Goods are shipped directly from a supplier or manufacturer to the end customer, bypassing the retailer's warehouse.
• EDI Documents:
  • 850 (Purchase Order)
  • 856 (Advance Ship Notice)
• Use Case: E-commerce or just-in-time inventory systems.

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6. Direct Shipment

• Description: Goods are shipped directly from the supplier to the customer, without intermediate warehousing or stops.
• EDI Documents:
  • 856 (Advance Ship Notice)
  • 940 (Warehouse Shipping Order)
• Use Case: Simplified logistics for perishable or high-demand items.

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7. Consolidated Shipment

• Description: Multiple shipments from different customers are combined into a single transport to optimize cost and efficiency.
• EDI Documents:
  • 210 (Motor Carrier Freight Invoice)
  • 214 (Shipment Status)
• Use Case: Cost-efficient transport for small orders.

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8. Split Shipment

• Description: A single order shipped in multiple shipments, typically due to inventory or shipping constraints.
• EDI Documents:
  • 856 (Advance Ship Notice) for each shipment.
• Use Case: Ensuring timely delivery for incomplete inventory.

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9. International Shipment

• Description: Shipments that cross international borders, involving customs documentation and regulations.
• EDI Documents:
  • 309 (Customs Manifest)
  • 315 (Ocean Shipment Status)
  • 750 (Air Freight Details)
• Use Case: Global trade and exports/imports.

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10. Blind Shipment

• Description: A shipment where the recipient does not know the origin, or the shipper does not know the final recipient.
• EDI Documents:
  • 850 (Purchase Order)
  • 856 (Advance Ship Notice)
• Use Case: Used in drop-shipping or cases where anonymity is required.

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11. Expedited Shipment

• Description: A shipment arranged to be delivered as quickly as possible, often with premium costs.
• EDI Documents:
  • 214 (Shipment Status Message)
• Use Case: Time-sensitive deliveries, such as medical equipment or emergency supplies.

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12. Temperature-Controlled Shipment

• Description: Shipments requiring specific temperature conditions, such as refrigerated or frozen goods.
• EDI Documents:
  • 856 (Advance Ship Notice)
  • 210 (Freight Invoice)
• Use Case: Food, pharmaceuticals, and chemicals.

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13. Return Shipment

• Description: Goods shipped back to the supplier or manufacturer, often due to defects or customer returns.
• EDI Documents:
  • 180 (Return Merchandise Authorization)
  • 210 (Motor Carrier Freight Details and Invoice)
• Use Case: Handling product returns or recalls.

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14. Bulk Shipment

• Description: Unpackaged goods shipped in large quantities, such as liquids, grains, or chemicals.
• EDI Documents:
  • 204 (Load Tender)
• Use Case: Industries like agriculture, petroleum, or chemicals.

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15. Multistop Shipment

• Description: A shipment delivered to multiple destinations during a single route.
• EDI Documents:
  • 214 (Shipment Status Message)
• Use Case: Optimized delivery for retailers with multiple locations.

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Shipment Table

Shipment Type	Key Use Case	Key EDI Documents
Full Truckload (FTL)	Large shipments for one customer	204, 214
Less-than-Truckload (LTL)	Smaller shipments combined	204, 211
Parcel Shipment	Small packages	210, 214
Intermodal Shipment	Long-distance with multiple modes	204, 322
Drop Shipment	Direct from supplier to customer	850, 856
Direct Shipment	Supplier to customer, no intermediates	856, 940
Consolidated Shipment	Combined small orders	210, 214
Split Shipment	Single order, multiple deliveries	856
International Shipment	Cross-border shipments	309, 315
Blind Shipment	Origin or destination hidden	850, 856
Expedited Shipment	Time-sensitive	214
Temperature-Controlled	Perishables requiring specific temps	856, 210
Return Shipment	Handling product returns	180, 210
Bulk Shipment	Large quantities of unpackaged goods	204
Multistop Shipment	Multiple destinations in one route	214

Different Types of EDI Invoices

EDI invoices are electronic documents used to communicate billing information between trading partners. 

Different types of invoices exist based on the nature of the transaction, industry-specific requirements, and the EDI standard being used. 

Below is an overview of the main types of EDI invoices:

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1. Standard Invoice

A regular invoice for goods or services delivered.

• Purpose: Provides details like item descriptions, quantities, prices, and payment terms.
• EDI Standards:
  • EDIFACT: INVOIC
  • X12: 810 (Invoice)
  • TRADACOMS: INVFIL

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2. Credit Note (Credit Memo)

Issued when a buyer is credited for a returned product, overpayment, or pricing error.

• Purpose: To adjust a previously issued invoice.
• EDI Standards:
  • EDIFACT: INVOIC with credit indicators.
  • X12: 812 (Credit/Debit Adjustment).

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3. Debit Note (Debit Memo)

Issued when the seller needs to charge the buyer for an additional amount not included in the original invoice.

• Purpose: To recover undercharged amounts or fees.
• EDI Standards:
  • EDIFACT: INVOIC with debit indicators.
  • X12: 812 (Credit/Debit Adjustment).

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4. Proforma Invoice

A preliminary invoice issued before goods or services are delivered, often used for customs or as a quotation.

• Purpose: Provides an estimate or declaration for the transaction.
• EDI Standards:
  • EDIFACT: INVOIC with proforma indicators.

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5. Self-Billing Invoice

Issued by the buyer on behalf of the supplier, often in industries like retail or automotive.

• Purpose: Simplifies invoicing in recurring or high-volume transactions.
• EDI Standards:
  • EDIFACT: INVOIC (self-billing setup).

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6. Consolidated Invoice

Combines multiple orders or shipments into a single invoice for convenience.

• Purpose: Reduces the number of invoices for high-volume transactions.
• EDI Standards:
  • EDIFACT: INVOIC with consolidated line items.

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7. Electronic VAT Invoice

Includes tax details in compliance with VAT regulations, especially in countries with strict tax reporting requirements.

• Purpose: Meets tax authority requirements for invoicing.
• EDI Standards:
  • EDIFACT: INVOIC with VAT segments.

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8. Corrective Invoice

Issued to correct errors in a previously sent invoice.

• Purpose: Fixes mistakes such as incorrect pricing or quantities.
• EDI Standards:
  • EDIFACT: INVOIC with correction indicators.

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9. Freight Invoice

Issued by logistics providers to bill for transportation or shipping services.

• Purpose: Details freight costs and associated charges.
• EDI Standards:
  • EDIFACT: IFCSUM (Freight Invoice).
  • X12: 210 (Motor Carrier Freight Details and Invoice).

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10. Utility Invoice

Used by utility providers to bill for services like electricity, water, or gas.

• Purpose: Provides consumption and charge details.
• EDI Standards:
  • EDIFACT: UTILMD (Utility Meter Data).
  • X12: 810 with utility-specific details.

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11. Customs Invoice

Required for cross-border shipments to provide necessary information for customs clearance.

• Purpose: Ensures compliance with import/export regulations.
• EDI Standards:
  • EDIFACT: INVOIC with customs-related segments.

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12. Advance Invoice

Issued before goods are shipped or services are rendered, typically for prepayments.

• Purpose: Secures payment before completing the transaction.
• EDI Standards:
  • EDIFACT: INVOIC with advance payment details.

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13. Rental/Lease Invoice

Issued for rental services like equipment, vehicles, or properties.

• Purpose: Bills for periodic rental or leasing charges.
• EDI Standards:
  • EDIFACT: INVOIC with rental terms.

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14. Subscription Invoice

Used for recurring services like software, memberships, or utilities.

• Purpose: Simplifies billing for subscription-based services.
• EDI Standards:
  • EDIFACT: INVOIC with recurring terms.

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15. Intercompany Invoice

Used within the same organization for transactions between different subsidiaries or divisions.

• Purpose: Helps track internal transactions for accounting purposes.
• EDI Standards:
  • EDIFACT: INVOIC with intercompany indicators.

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Key Benefits of EDI Invoices

• Efficiency: Eliminates manual data entry and accelerates payment cycles.
• Accuracy: Reduces errors in invoicing and reconciliation.
• Compliance: Meets legal and industry-specific requirements.
• Integration: Seamlessly integrates with ERP systems for automated processing.

Different Types of EDI Orders

In EDI (Electronic Data Interchange), ORDERS refer to the electronic purchase order documents used for placing orders between trading partners. 

Different types of orders are defined based on the industry, business process, and standards like EDIFACT, X12, and TRADACOMS. 

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1. Standard Purchase Orders (PO)

These are the most common orders where a buyer specifies the goods or services to be purchased.

• EDI Document Types:
  • EDIFACT: ORDERS
  • X12: 850 (Purchase Order)
  • TRADACOMS: ORDHDR

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2. Blanket Purchase Orders

Used when a buyer agrees to purchase a large quantity of items over a period, with specific deliveries scheduled later.

• Purpose: Reduces repetitive ordering for recurring purchases.
• EDI Document Types:
  • EDIFACT: ORDERS with specific blanket order references.
  • X12: 850 (Blanket Order with release schedules sent separately).

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3. Call-Off Orders

Used to request the release of specific quantities from a blanket order.

• Purpose: To fulfill parts of the blanket agreement as needed.
• EDI Document Types:
  • EDIFACT: DELFOR or CALL-OFF (Delivery Forecast/Call-Off).
  • X12: 830 (Planning Schedule with Release Capability).

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4. Consignment Orders

These orders are issued for goods that remain the supplier's property until sold or used.

• Purpose: Reduces inventory risks for the buyer.
• EDI Document Types:
  • EDIFACT: ORDERS with consignment terms specified.

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5. Drop-Ship Orders

Orders where goods are shipped directly from the supplier to the end customer.

• Purpose: Common in e-commerce and retail to reduce handling.
• EDI Document Types:
  • EDIFACT: ORDERS with drop-ship addresses in NAD segments.
  • X12: 850 with ship-to details for the end customer.

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6. Return Orders

Issued when goods are returned to the supplier.

• Purpose: To reverse an earlier purchase order for defective or incorrect items.
• EDI Document Types:
  • EDIFACT: RETANN (Return Notification).
  • X12: 180 (Return Merchandise Authorization).

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7. Service Orders

These are issued for services rather than physical goods.

• Purpose: Covers requests for services like installation, maintenance, or consulting.
• EDI Document Types:
  • EDIFACT: SERVREQ (Service Request).
  • X12: 850 with service-related details.

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8. Rush Orders

Used when goods or services are required urgently.

• Purpose: Expedited processing and delivery.
• EDI Document Types:
  • EDIFACT: ORDERS with priority delivery instructions.
  • X12: 850 with expedited delivery flags.

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9. Pre-Orders

Issued before goods or services are available, usually for upcoming product launches.

• Purpose: To secure stock in advance.
• EDI Document Types:
  • EDIFACT: ORDERS with future delivery dates.

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10. Standing Orders

Recurring orders placed at regular intervals for the same quantity and items.

• Purpose: To simplify repetitive purchasing for items like office supplies or raw materials.
• EDI Document Types:
  • EDIFACT: ORDERS with recurring terms specified.

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11. Change Orders

Issued to modify an existing purchase order (e.g., quantity, delivery date, or item details).

• EDI Document Types:
  • EDIFACT: ORDCHG (Order Change).
  • X12: 860 (Purchase Order Change Request).

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12. Cancel Orders

Used to cancel a previously issued order.

• EDI Document Types:
  • EDIFACT: ORDCHG with cancellation indicators.
  • X12: 865 (Purchase Order Change Acknowledgment/Request).

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13. Cross-Dock Orders

Goods are sent to a distribution center and immediately transferred to outbound transportation.

• Purpose: To reduce warehousing time and costs.
• EDI Document Types:
  • EDIFACT: ORDERS with cross-dock instructions.

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14. Promotional or Sample Orders

Orders for promotional items or free samples.

• Purpose: Often used for marketing purposes or testing.
• EDI Document Types:
  • EDIFACT: ORDERS with promotional indicators.

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15. Build-to-Order (BTO) Orders

Orders where products are manufactured or assembled after receiving the order.

• Purpose: Common in industries like automotive or electronics.
• EDI Document Types:
  • EDIFACT: ORDERS with production specifications.

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Key Benefits of EDI Orders

• Accuracy: Reduces manual errors in processing orders.
• Speed: Enables faster communication and processing.
• Compliance: Ensures adherence to industry standards.
• Visibility: Provides real-time tracking and status updates.