EDI 861 Receiving Advice/Acceptance Certificate

What is EDI 861 Receiving Advice/Acceptance Certificate?

EDI 861, also known as the Receiving Advice/Acceptance Certificate, is an electronic document format used for transmitting information related to the acceptance of goods or services in B2B transactions.  The document is particularly used in industries where the receipt of goods is critical, such as retail, manufacturing, and distribution.

EDI 861 notifies the sender that the receiver has accepted the goods or services mentioned in the accompanying transaction. The content of this documemnt usually include information such as a sender’s and receiver’s identification, date and time of receipt,  associated purchase order number, item details (such as item number, description, and quantity), and acceptance or rejection information (e.g., reason codes if goods are rejected or discrepancies are found).

EDI 861 Benefits

1. Increased Efficiency: EDI 861 automates the process of acknowledging the receipt of goods or services, streamlining the receiving process, and eliminating the need for manual paperwork, phone calls, or email exchanges. By automating the acknowledgement process, businesses can reduce administrative tasks, save time, and accelerate the overall order processing cycle.
2. Improved Inventory Management: The timely and accurate information provided by EDI 861 enables better inventory management. It helps businesses update their inventory records in real-time and consequently maintain accurate stock levels, minimize stockouts, and optimize replenishment processes.
3. Reduced Errors and Discrepancies: It reduces the likelihood of errors that can occur during manual data entry or when relying on paper-based documents. It provides clear and structured information about the goods received, including quantities and any discrepancies or rejections, which helps a business identify and resolve issues more quickly.
4. Faster Order Processing: EDI 861 speeds up the entire supply chain as it accelerates order processing time, leading to quicker invoice generation.
5. Enhanced Visibility and Traceability: EDI 861 provides increased visibility into the status of goods or services being received. By enabling prompt exchange of information on receipt, acceptance, and discrepancies, it gives trading partners real-time visibility into the progress of the order.

Workflow for the Exchange of EDI 861 Receiving Advice/Acceptance Certificate

This document falls under the category of X12M Supply Chain transaction set. This transaction set provides for established business, customary, and industry practices linked with the notification of receipt or formal approval of goods and services.

Implementation

To exchange EDI 861 documents, trading partners must agree on the specific version of the EDI standards they will use, such as ANSI X12 or EDIFACT, and the communication protocol (e.g., AS2, FTP, or VAN) for transmitting the documents. They need to establish a trading partner relationship and set up the necessary technical infrastructure to send and receive EDI messages.