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X12 transaction guide · Communications

EDI 504 Clauses and Provisions

The bi-directional X12 document used to request, or respond to requests for, contract clauses and special provisions.

Sent by
Buyer or vendor
Received by
Vendor or buyer
Standard
ANSI ASC X12

What is an EDI 504?

The EDI 504 Clauses and Provisions is the bi-directional ANSI X12 transaction set used to request clauses and special provisions, or to respond to such requests.

Government and large commercial contracts incorporate many standard clauses by reference. Vendors need the full text to understand their obligations, and buyers need to communicate special provisions that apply to a particular contract. Exchanging them electronically keeps contract documents complete and consistent. Clauses can be standard or specific to one contract, and special provisions may change with contract modifications.

How the EDI 504 worksDiagram of the EDI 504 Clauses and Provisions. Buyer or vendor sends it to vendor or buyer. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment). 2 optional loops are listed by their first segment.How the EDI 504 worksClauses and Provisions: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 504SENDERBuyer or vendorRECEIVERVendor or buyer997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code CCGS … GETransaction set 504ST … SEHEADINGBGNBeginning Segment+ 2 optional loops, starting with:N1REFBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 504. Your trading partner's implementation guide adds its own requirements.
How the EDI 504 worksDiagram of the EDI 504 Clauses and Provisions. Buyer or vendor sends it to vendor or buyer. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment). 2 optional loops are listed by their first segment.How the EDI 504 worksClauses and Provisions: who sends it, where itfits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 504SENDERBuyer or vendorRECEIVERVendor or buyer997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code CC (GS … GE)Transaction set 504 (ST … SE)HEADINGBGNBeginning Segment+ 2 optional loops, starting with:N1REFBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 504. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 504, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 504 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Requesting the text of referenced clauses
  • Sending special provisions for a contract
  • Updating clauses for contract modifications

Where it fits in the document flow

This document 504 Clauses and Provisions
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 504 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • N1
  • LM
  • LQ
  • REF
  • SE

Practical example

The 504 in practice

A vendor receives a solicitation referencing several clauses by number. Its contracts system sends the buying office a 504 requesting their full text. The office responds with the clauses and the special provisions for this contract, which the vendor's legal team reviews.

Implementation

Implementation considerations for the 504

  • Identify clauses by number and version date.
  • Keep clause libraries current with regulation changes.
  • Route clauses to contracts or legal staff for review.
  • Record which clauses apply to each contract.

How ECOM helps

Automate the 504 with ECOM

Solution

Procure-to-Pay Automation

Automate purchasing, receiving and supplier invoicing across EDI, portals and documents.

Solution

B2B Integration

Connect every customer, supplier, carrier and bank across EDI, API, file and portal channels.

Industry

Industrial Manufacturing

Distributor, OEM customer and supplier integration for industrial manufacturers.

More general questions about EDI are answered in the EDI FAQ.

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