EDI 857 Shipment and Billing Notice

What is an EDI 857 Shipment and Billing Notice?

EDI 857 transaction set is used for providing the recipient of the shipment with the data for both planning of receipt as well as the generation of payment. Certain efficiencies have been suggested regarding the processing of business data by EDI and many telecommunication technologies. For example, the shipment sender may send a receiving function of receiving a Ship Notice/Manifest (856) as well as the payable function invoice (810), and the contents of both of these documents may largely be useless or repeating at times. In specific environments of business, the shipment and billing notice allows the consideration of these both documents into one.

EDI 857 is especially appropriate where the data of shipment, when it contains item prices and terms, can be used for planning receipts and for generating payments. In this kind of environment, the actual prices for the shipped item may not be known in advance by both parties. The transaction set is inappropriate in Evaluated Receipts Settlement (ERS) settings. In which the exact prices have been decided for shipped items, and are in the knowledge of both of the parties in advance.

EDI 857 is not be used as a replacement for the ship Manifest/Notice (856) or Invoice (810) individually, but only to replace them both, when used together. For example, do not use this transaction set in lieu of an Invoice (810) while also continuing to send a Ship Notice/Manifest either electronically or on paper.

The data contents and format of EDI 857 Shipment and Billing Notice are used for the electronic interchange of information. It is divided into various segments and data elements.

Workflow for the Exchange of an EDI 857 Shipment and Billing Notice

EDI 857 falls under the category of X12M Supply Chainransaction set. This transaction set provides receipts of shipment along with the data for both planning of receipt and generation of payment. Whereas, in specific business environments EDI 857 is used in lieu of a ship Notice/Manifest (856) and the payable function invoice (810) when both of these are used together.

Stay EDI Compliant with EDIConnect

EDIConnect is designed to handle EDI X12 and EDIFACT transaction sets. EDIConnect, bundled with its built-in parser, validator, and transaction builder, makes the process of sending and receiving EDI messages quick and easy. It also enables businesses and trade partners to communicate seamlessly and achieve EDI compliance.