--- title: "What Is an EDI 820 (Payment Order/Remittance Advice)?" url: https://www.uncap.com/glossary/edi-820 author: "Denis Dyli" published: 2026-10-11 updated: 2026-10-11 summary: "An EDI 820 is the X12 Payment Order/Remittance Advice transaction set, the last step in X12's basic supply chain process. A buyer uses it to pay for delivered goods and services. It can be an order to a financial institution to make a payment, a remittance advice telling the seller which invoices the payment covers, or both together." --- # What Is an EDI 820 (Payment Order/Remittance Advice)? > An EDI 820 is the X12 Payment Order/Remittance Advice transaction set, the last step in X12's basic supply chain process. A buyer uses it to pay for delivered goods and services. It can be an order to a financial institution to make a payment, a remittance advice telling the seller which invoices the payment covers, or both together. **EDI 820 (Payment Order/Remittance Advice)**: An EDI 820 is the X12 Payment Order/Remittance Advice transaction set, the last step in X12's basic supply chain process. A buyer uses it to pay for delivered goods and services. It can be an order to a financial institution to make a payment, a remittance advice telling the seller which invoices the payment covers, or both together. ## How it works X12 describes three ways to use the 820: - Payment order only. The 820 goes to a financial institution, directing funds from the payer (the buyer) to the payee (the seller). The most common mechanisms are check, ACH (Automated Clearing House) and Federal Reserve Wire Transfer. - Remittance advice only. The 820 goes from payer to payee, saying payment is pending or will be received for the identified invoices. The seller can pre-apply the payment to open invoice lines before the money arrives. - Payment order and remittance advice. Payment and remittance data travel through the payment network together, for example through ACH. X12 notes that sending "dollars and data" together typically means fewer reconcilement issues when applying the payment. Unless the payment is for invoices in full, X12 says the payer needs to tell the payee how the money is to be applied. Without that information, it may be impossible for the seller to clear the invoice from its system. X12 adds that a faxed or emailed remittance advice typically requires manual processing, which adds time and possible errors. **Where the EDI 820 sits in the order cycle** ### 1. 850, Purchase order The buyer places the order, which establishes the contract for the purchase. ### 2. 856, Ship notice The seller advises the buyer about product being shipped. ### 3. 810, Invoice Based on the terms of sale or delivery, the seller transmits an invoice requesting payment. ### 4. Buyer, Invoice check The buyer validates the invoice against its open orders, then schedules it for payment under the agreed terms. ### 5. 820, Payment The buyer pays with a payment order, a remittance advice, or both. ### 6. Seller, Cash application With the remittance detail, the seller can apply the payment to open invoice lines and clear the invoices from its system. ## What it contains The Federal Reserve's Fundamentals of Financial EDI deck (revised 2021) explains a sample 820 carried with an ACH payment: - ST identifies the transaction set as an 820. - BPR is the beginning segment for Payment Order/Remittance Advice. It carries the payment instructions, such as the total payment amount, ACH as the funds transfer method, the payment format, both banks' routing numbers and accounts, and the effective entry date. - N1 names the payor and the payee. In the sample, the payee's address follows in the N3 and N4 segments. - RMR is the remittance advice for one invoice: the invoice number, the amount paid, the invoice amount and any discount taken. In the deck's sample, the 820 travels in the addenda records of a CTX (Corporate Trade Exchange) ACH entry. ## Example A buyer pays two invoices in one 820: - Invoice 1001: $1,200.00, paid in full - Invoice 1002: $800.00, with a $16.00 discount taken, so $784.00 paid The BPR total is $1,200.00 + $784.00 = $1,984.00. Two RMR lines, one per invoice, show the seller why $16.00 less than the $2,000.00 invoiced arrived. ## On Shopify Shopify B2B supports payment terms on company locations and draft orders: no payment terms, net terms (net 7, 15, 30, 45, 60 or 90, starting from the day the order is placed), due on fulfillment, and a fixed date on individual draft orders. B2B customers can pay an order on terms from their customer account, and after the terms expire the order displays as Overdue. Shopify notes that payments aren't automatically captured when payment terms expire. For money received outside the standard checkout, such as a check or bank transfer, the GraphQL Admin API's orderCreateManualPayment mutation records a manual payment on an order that isn't fully paid, with the amount, method name and processed date. Shopify notes that the API client must be installed on a Shopify Plus store to use the amount field. That is one way an EDI integration can record a payment that an 820 reports. ## How Uncap helps Uncap's [Shopify EDI integration guide](/post/shopify-edi-integration) advises you to verify that the integration handles all document types your trading partners require. For wholesale operations, integration design starts with all three systems mapped together before a single document transmits: the EDI network, Shopify, and the ERP. ## Related terms - EDI (electronic data interchange) - EDI 810 - Net 30 - Payment terms - Trade credit - Order to cash ## Sources - X12 Transaction Sets - X12 Supply Chain Transaction Flow - Federal Reserve Financial Services: Fundamentals of Financial EDI ## Frequently asked questions ### What is an 820? In EDI, the 820 is the X12 Payment Order/Remittance Advice. It can order a payment, send a remittance advice, or do both, and the remittance detail lets the seller apply the cash to its accounts receivable. ### What is an EDI 810 invoice? The 810 is the X12 Invoice, used to bill for goods and services provided. At a minimum, X12 says it must include a purchase order reference and the total invoice amount. ### What is EDI 850 used for? The 850 Purchase Order is used to place orders for goods and services.