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EDI 875 Transaction

The EDI 875 transaction set is an electronic version of paper grocery industry-specific purchase orders. Grocery wholesalers and retailers use this form to place orders for finished goods from suppliers.

Businesses are drawn to EDI, or electronic data interchange, to expedite purchase order submission and receipt. It also curbs errors and reduces costs associated with manual data entry.

Prospective buyers use the EDI 875 purchase order to communicate all information required for the supplier to adequately fill the order. This includes information such as:

  • Item description
  • Line item number
  • Item quantity
  • Item price
  • Discounts, if any
  • Total order cost
  • Shipping instructions

After receiving an EDI 875 purchase order, suppliers typically submit an EDI 997 functional acknowledgement to prospective buyers. This electronic form confirms they received the purchase order successfully. Next, the supplier will fulfill the purchase order by picking, packing and shipping the requested items.

The EDI 875 purchase order is similar to the EDI 850 purchase order, but it has a more industry-specific approach. While both purchase order types include line item numbers, price, quantity, discounts and shipping notes, the EDI 875 purchase order was specifically designated for grocery EDI transactions. Some grocers support both 850 and 875 orders.

Sending and receiving EDI 875 transactions

Electronic orders and invoices are faster and more accurate than paper, e-mails or fax messages. That’s why many grocers require their suppliers to use EDI and be EDI compliant.

Easily connect to any trading partner around the world with web-based, cloud EDI solutions from CovalentWorks, an EDI supply chain service provider for companies of all sizes. With our MyB2B solution, suppliers can immediately begin collaborating with their grocer customers.

MyB2B is an affordable but complete web-based EDI software solution for small businesses, entrepreneurs or newcomers who need fast compliance with their larger-company customers. It includes web-based software, barcode labels, VAN and technical support available from our United States of America-based solutions team. Operated entirely on secure web servers and not requiring EDI software or hardware, an Internet connection is the only thing you need. There are no hidden costs, and monthly fees are as reasonable as a mobile phone bill.

Benefits of MyB2B include translating inbound EDI transactions into easy-to-read documents viewable on any device and improved customer communication. You can generate, edit and send purchase order acknowledgements, prepare advanced shipping notices and create, modify and submit invoices without hassle.

EDI is a mature electronic document format that has been carefully defined both by the companies that require their trading partners to use EDI and by recognized standardizing bodies. Two primary EDI standards are ANSI X.12 and UN/EDIFACT. ANSI X.12 is the most widely used standard in the United States, whereas UN/EDIFACT is generally more popular outside the United States.

Every EDI 875 purchase order document has data organized into segments and data elements. Each segment contains at least one data element, and each data element is a data field. EDI 875 purchase order data element examples include vendor number, item, quantity, price per item, street address, city, state and zip code, which are similar to a paper purchase order.

VAN, or value-added network, is a secure network where EDI documents can be exchanged between business partners. Sellers and buyers are provided mailboxes, where documents are sent and received.

For more information about the EDI 875 purchase order and how the form can benefit your business, contact CovalentWorks.

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