EDI 820 – Payment Order / Remittance Advice

EDI 820 is the electronic option for sending a payment remittance advice. This EDI transaction notifies the seller that payment from the buyer for good or services rendered has been issued (usually through an Automated Clearing House (ACH) transfer or sometimes via check). EDI 820 helps sellers reconcile their accounts receivables (AR). Like the paper version, EDI 820 usually contains:

• Payer and payee identification
• Invoice number(s)
• Amounts billed and paid
• Bank account information
• Any adjustments to the invoice

Transaction before

EDI 846 – Inventory Inquiry / Advice

Format

ASC X12 Standard

Transaction after

None

EDI 820 - Sample File

ISA*00* *00* *01*123456789 *12*9999697299 *150524*1200*U*00401*000000001*0*T*>~
GS*RA*123456789*9999697299*150524*120050*1*X*004010~
ST*820*0001~
BPR*I*0.00*C*ZZZ~
CUR*VN*USD~
DTM*999*20150524~
N1*PE*Department A*G*656162~
N1*PR*CompanyA.com*PI*2677~
ENT*1~
RMR*PO*554681037*PI*10.49~
REF*1J*65616202*Department A Greenville UT~
DTM*173*20150523~
RMR*PO*554841872*PI*17.99~
REF*1J*65616202*Department A Greenville UT~
DTM*173*20150523~
RMR*PO*554719617*PI*8.98~
REF*1J*65616203*Department A Greenville UT~
DTM*173*20150523~
RMR*PO*554648526*PI*20.24~
REF*1J*65616203*Department A Greenville UT~
DTM*173*20150523~
SE*20*0001~
GE*1*1~
IEA*1*000000001~

Segments of Interest

For general information purposes only. Your trading partner’s specifications may vary.

Specifies details of accounts receivable open item(s) to be included in the cash application

RMR01 element

Code identifying the reference type (e.g. invoice) for RMR02

RMR02 element

Unique identifier (e.g. invoice number) for item referenced in RMR01

RMR03 element

Payment action code to specify how funds are applied to open items

RMR04 element

Amount paid

Used to specify identifying information

REF01 element

Identifies the type of information (could be anything from a check number to a code associated with a trading partner) given in REF02

REF02 element

Unique identifier for item specified in REF01

REF03 element

Free-form description to clarify preceding elements

Other Things to Know About EDI 820

EDI 820 and CTX Format

The Corporate Trade Exchange (CTX) is a type of ACH format that allows for remittance of several invoices simultaneously. CTX format offers companies nearly 10,000 lines of data that can handle roughly 800,000 characters altogether. Before using the CTX in your EDI 820 transaction set, check to make sure your trading partner can handle the CTX format.

EDI 820 vs 823

EDI 823 represents a lockbox, or an arrangement with a bank to streamline the receipt of incoming payments on behalf of an organization’s AR. When payment is received and processed by the seller’s bank, information regarding the deposit, including originating company, monetary amount, batch reference, and date/time posted is issued to the seller through EDI 823.

X12 fundamentals

Free X12 file viewer

Transmission methods

Change Language To: English French