EDI-850
Purchase Order
What is an EDI 850?
EDI 850, also known as an Electronic Purchase Order, is a standard EDI transaction used to initiate an order between a buyer and a seller. This document communicates the buyer’s intent to purchase goods or services and includes all relevant order details in a digital format. An EDI 850 can be used for single purchases, recurring orders, or to modify or cancel previously submitted orders.
EDI 850 documents are formatted according to the ANSI X12 EDI standard, governed by the American National Standards Institute (ANSI). As one of the most common and critical documents in EDI workflows, the 850 helps eliminate paper-based communication and supports faster, more accurate procurement processes.
Key Components of an EDI 850 Purchase Order
The EDI 850 transaction set mirrors the information found in a traditional paper or PDF purchase order, but delivers it in a structured, machine-readable format. Typical data elements include:
Purchase Order (PO) Number
A unique reference number to track the order.
Order Date & Requested Delivery Date
Specifies when the order was placed and when delivery is expected.
Buyer and Vendor Details
Includes company names, addresses, and contact information.
Billing and Shipping Information
Defines where the invoice is to be sent and where the goods should be delivered.
Additional Charges
Includes freight costs, handling charges, or any applicable fees.
Product Information
Item SKUs, UPCs, quantities, unit of measure, and item descriptions.
Pricing
Unit price, extended line totals, discounts, and allowances.
Shipping Terms
Preferred shipping method, carrier instructions, and delivery terms (FOB, etc.).
Payment Terms
Specifies terms like Net 30, early payment discounts, and other conditions.
What is the Use of EDI 850?
The EDI 850 Purchase Order is typically the first step in the electronic procurement process. It automates the initiation of a purchase and eliminates the need for phone calls, emails, or manual forms. Once the seller receives an EDI 850, they can confirm the order using an EDI 855 Purchase Order Acknowledgment, followed by order fulfillment and invoicing through an EDI 810 Invoice.
With this streamlined workflow, businesses benefit from real-time order processing, reduced manual work, faster order cycles, and fewer data entry errors.
Benefits of EDI 850 – Faster, Smarter Ordering for Buyers and Sellers
Instant Purchase Order Transmission
Send complete, structured POs to suppliers without delays.
Accurate Product & Pricing Data
Eliminate discrepancies in item codes, quantities, and prices.
Faster Supplier Acknowledgment
Receive EDI 997 confirmations quickly so fulfillment can start sooner.
Quick Order Updates & Cancellations
Modify or cancel POs before shipment to avoid wasted costs.
Improved Inventory Planning
Give suppliers real-time visibility for better stock management.
ERP Integration
Auto-create sales orders in systems like Odoo, removing manual data entry.
Vraja Technologies – Direct EDI 850 Integration Without Middleware
At Vraja Technologies, we offer end-to-end EDI 850 integration for both buyers and suppliers, enabling real-time electronic order communication. With our Odoo-based EDI solutions, you can connect directly with your trading partners—no third-party middleware required.
Our solution allows you to:
- Send and receive EDI 850 purchase orders automatically
- Sync EDI data directly with your Odoo ERP
- Eliminate manual PO entry
- Ensure data accuracy and speed across your supply chain
- Stay fully compliant with EDI standards