The EDI 810 contains the format and establishes the data content of the Invoice Transaction Set for use within the context of an EDI environment. The transaction set can be used to provide for customary and established business and industry practice relative to the billing for goods and services offered. In typical business practices, a paper invoice is produced to receive payment. When working within an EDI environment, an EDI 810 is sent instead. The 810 document set (EDI invoice) is the electronic invoice that is sent in response to an EDI 850 (Purchase Order) once goods or services have been provided. The two parties exchanging these particular transactional sets are often referred to as “trading partners.”
An EDI 810 is an electronic document that complies with the ANSI X12 EDI specification. An 810 EDI invoice is not formatted in a way that an average buyer or supplier would understand, but instead is meant to be sent, received and interpreted by EDI software. This "computer-to-computer" communications allows for the rapid and error-free exchange of electronic documents between companies. The 810 EDI document is one of the most popular forms of exchange along with the 850 EDI document (purchase order).
Just like a paper invoice for goods or services rendered, an EDI 810 includes details relating back to the initial request. An EDI 810 will often include the following:
Depending on the provided goods or services, there may be additional information that is required within an EDI 810. Please refer to your company’s EDI guide or mapping document to determine the correct data values that are required.
The purpose for creating an 810 EDI invoice is to ensure the smooth exchange of transaction information between companies following the rules and regulations established for the exchange of EDI data like the 810 EDI invoice. The EDI transmission process begins by the employee creating a regular invoice, which is submitted into the computer system and translated into an 810 EDI document. The 810 EDI invoice is then transmitted to the receiving party (in this case a customer) where the translation process happens in reverse, transforming the 810 EDI document into a human readable form.
The 810 EDI invoice document is submitted through the preferred method of EDI interchange. Usually, a value added network (VAN) is the preferred EDI communication method because of its many specialized services that are bundled in with its capabilities. In its basic form, the VAN receives the 810 EDI invoice document, reviews and stores the information, and, assuming the information is approved and secure, submits the final correspondence (the 810 EDI invoice document) to the intended recipient. The VAN can also provide security for the EDI communication, offer e-mail services, manipulate and transform data into usable formats, and a number of other benefits.
Whether the system chooses to submit the 810 EDI on a VAN, modem, bulletin board system (BBS) or via Internet, the 810 EDI invoice is taken to a gateway facility where it intersects with the destination system’s method of transmission (this method must be the same as the original party for the transmission to be successful). The intended recipient will review the 810 EDI document to make sure it is at the correct destination and its format is intact. Once everything is approved, the 810 EDI document is ready to be processed on the new system. The translation of an EDI 810 document is done through EDI translation software. Through a series of reformatting, translations and mapping, the 810 EDI invoice document ceases to become an EDI document and is now a usable invoice that the company can process accordingly.
After a party has sent an EDI 810 to receive payment for goods or services rendered, the receiving party (or payor) will send a response to the payee. The payor will transmit one of two transactional sets within the EDI environment. They will either send an EDI 997 of Fundamental Acknowledgement to confirm that they have received the EDI 810 or an EDI 864 Text Message to communicate any errors detected within the EDI 810. If the EDI 810 is approved, then the payor will send an EDI 820 Remittance Advice to communicate the payment of the invoice.
Ready to get started with EDI? Get in touch!