What Is an EDI 810 (Invoice)?
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Talk to our experts- EDI 810 (Invoice)
- An EDI 810 is the X12 Invoice transaction set: the electronic document a seller sends a buyer to bill for goods or services provided. At a minimum it carries a purchase order reference and the total invoice amount, so the buyer's system can match it to the open order and schedule payment under the agreed terms.
Also called: 810 Invoice
How it works
The price of each product is agreed during the purchase order process. Then, upon delivery or at another agreed-upon time, the seller provides an invoice indicating the monies due. In EDI, that invoice is the 810.
- Validation. The buyer's systems check the invoice against their open order database. If there is a problem, the buyer contacts the seller about the discrepancy.
- Matching. The invoice must be complete enough for the buyer to match its lines to the order. Unique product identifiers plus a unique purchase order number help clear open order lines.
- Payment. Once processed, the validated invoice may be scheduled for payment according to the agreed terms. The payment process that follows uses the 820 Payment Order/Remittance Advice.
Where the EDI 810 sits in the order cycle
The buyer's system places the order for goods or services.
The seller reports back after processing the order, affirming it or indicating changes.
The delivery process advises the buyer about product that is being shipped.
Based on the terms of sale or delivery, the seller transmits an invoice requesting payment.
Based on the agreed terms of sale, the buyer pays for the delivered products.
What it contains
X12's supply chain flow sets the minimum: a purchase order reference and the total invoice amount, including charges, less allowances, before any terms discount. An 810 may also carry:
- A description of the product or service, plus measurements and packaging
- Purchase order or contract references and other reference data
- Pertinent dates, tax data and tariff data
- The names of the parties to the purchase, delivery locations and a destination quantity breakout
- Subline data and, where relevant, port and vessel information
The segment names and purposes below come from NIST's 1997 federal implementation guideline for the 810, written for X12 version 003040 and for invoices sent to federal agencies:
- BIG (Beginning Segment for Invoice): starts the invoice and carries identifying numbers and dates, such as the invoice date and number and the purchase order date and number.
- N1 to N4: identify a party by type of organization, name and code, with address details where needed.
- ITD (Terms of Sale/Deferred Terms of Sale): the terms of sale.
- IT1 (Baseline Item Data): the basic line item data for the invoice.
- SAC (Service, Promotion, Allowance, or Charge Information): identifies a service, promotion, allowance or charge and its amount or percentage.
- TDS (Total Monetary Value Summary): the total invoice discounts and amounts.
- CTT (Transaction Totals): hash totals, such as the number of line items, used to validate that the transaction is complete and correct.
Example
A seller ships 40 cases at $25 each against an 850: 40 x $25 = $1,000. It adds a $50 freight charge in a SAC segment, so the invoice total is $1,000 + $50 = $1,050. The BIG segment repeats the buyer's purchase order number, which lets the buyer match the invoice to the open order.
On Shopify
Shopify's Order object lists generating invoices, receipts and shipping labels among its uses. Several of its fields hold data an 810 carries:
- poNumber: the purchase order number associated with the order, typically provided by business customers who require a PO number for their procurement.
- paymentTerms: the payment terms for the order, such as net payment due dates or early payment discounts. They are created from templates that specify net terms or fixed schedules with due dates.
- lineItems and totalPriceSet: the individual products and quantities that make up the order, and the order's total price, including taxes and discounts.
When the buyer pays outside the checkout, the orderMarkAsPaid mutation records the payment, including payments received offline.
How Uncap helps
Uncap's Shopify EDI integration guide lays out the last step of the flow: after fulfillment, the connector generates an 810 Invoice and sends it to the trading partner's accounts payable system. Enterprise buyers match the 810 against the 850 and 856 before authorizing payment, and invoice discrepancies create payment delays.
Sources
Frequently asked questions
What is EDI 810 and 850?
The 850 is the buyer's purchase order and the 810 is the seller's invoice for the goods or services. X12's supply chain flow says the invoice must include a purchase order reference, which ties the two together.
What is the EDI code for an invoice?
In X12, the invoice is transaction set 810. The grocery industry has its own 880 Grocery Products Invoice, and in certain business environments the 857 Shipment and Billing Notice can combine a ship notice and an invoice into one document.
What is an EDI 820 document?
The 820 is the X12 Payment Order/Remittance Advice. It can make a payment, send a remittance advice that tells the seller which invoices are being paid, or do both.
