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X12 transaction guide · Finance

EDI 844 Product Transfer Account Adjustment

The X12 document a distributor uses to request a credit or adjustment, such as a chargeback, for products sold under a pre-authorized price agreement.

Sent by
Distributor or wholesaler
Received by
Manufacturer or vendor
Standard
ANSI ASC X12

What is an EDI 844?

The EDI 844 Product Transfer Account Adjustment is the ANSI X12 transaction set used to send a debit, credit or request for credit relating to pre-authorized product transfers. Its most common use is the chargeback: a distributor sells a product to a contracted end customer at a price lower than its own cost and claims the difference from the manufacturer.

Each 844 references the contract or price authorization, the end customer, the products, quantities and the amount claimed per line. The manufacturer validates the claim against its contracts and answers with an 849 response, accepting or rejecting each line. The 844 is used heavily in pharmaceutical, medical, electrical and industrial distribution.

How the EDI 844 worksDiagram of the EDI 844 Product Transfer Account Adjustment. Distributor or wholesaler sends it to manufacturer or vendor. It usually follows 845. It is usually followed by 849 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BAA (Beginning Segment for Product Transfer Account Adjustment), detail: the required CON loop with CON (Contract Number Detail) and summary: CTT (Transaction Totals). 3 optional loops are listed by their first segment.How the EDI 844 worksProduct Transfer Account Adjustment: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWS845Price AuthorizationAcknowledgment/StatusEDI 844SENDERDistributor orwholesalerRECEIVERManufacturer orvendor997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY849Response to ProductTransfer AccountAdjustment997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code CFGS … GETransaction set 844ST … SEHEADINGBAABeginning Segment forProduct Transfer AccountAdjustment+ 1 optional loop, starting with:N1DETAILRequired loop CON · repeats up to10,000CONContract Number Detail+ 2 optional loops, starting with:N1PADSUMMARYCTTTransaction TotalsBlue 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 844. Your trading partner's implementation guide adds its own requirements.
How the EDI 844 worksDiagram of the EDI 844 Product Transfer Account Adjustment. Distributor or wholesaler sends it to manufacturer or vendor. It usually follows 845. It is usually followed by 849 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BAA (Beginning Segment for Product Transfer Account Adjustment), detail: the required CON loop with CON (Contract Number Detail) and summary: CTT (Transaction Totals). 3 optional loops are listed by their first segment.How the EDI 844 worksProduct Transfer Account Adjustment: whosends it, where it fits and what the standardmarks required1 WHERE IT FITSUSUALLY FOLLOWS845Price AuthorizationAcknowledgment/StatusEDI 844SENDERDistributor orwholesalerRECEIVERManufacturer orvendor997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY849Response to Product Transfer AccountAdjustment997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code CF (GS … GE)Transaction set 844 (ST … SE)HEADINGBAABeginning Segment forProduct Transfer AccountAdjustment+ 1 optional loop, starting with:N1DETAILRequired loop CON · repeats up to10,000CONContract Number Detail+ 2 optional loops, starting with:N1PADSUMMARYCTTTransaction TotalsBlue 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 844. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 844, 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 844 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

  • Claiming chargebacks for contract sales to end customers
  • Requesting credit under a manufacturer's price authorization
  • Resubmitting corrected chargeback lines after a rejection

Where it fits in the document flow

Usually follows 845 Price Authorization Acknowledgment/Status
This document 844 Product Transfer Account Adjustment
Usually followed by 849 Response to Product Transfer Account Adjustment997 Functional Acknowledgment

Structure

Mandatory segments in the 844 (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
  • BAA
  • N1
  • CON
  • SII
  • PAD
  • CTT
  • SE

Practical example

The 844 in practice

A medical supplies distributor sells gloves to a hospital group at the manufacturer's contract price, which is below the distributor's acquisition cost. At the end of each day the distributor's system sends the manufacturer an 844 listing each contract sale, the contract number, the hospital's identifier, quantities and the credit claimed per unit. The manufacturer validates the lines and returns an 849 with the approved and rejected amounts.

Implementation

Implementation considerations for the 844

  • Keep contract numbers and eligible customer lists synchronized with the manufacturer, since mismatches are the main rejection cause.
  • Use the product and customer identifiers the manufacturer's contract system expects.
  • Track each claim line through to the 849 response and the resulting credit.
  • Build a process to correct and resubmit rejected lines within the manufacturer's deadline.

How ECOM helps

Automate the 844 with ECOM

Industry

Wholesale Distribution

Customer orders, supplier purchasing, catalogs and drop-ship for distributors.

Industry

Pharmaceuticals

Orders, ship notices, chargebacks and sales data exchange for pharma manufacturers and distributors.

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

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

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