972-836-7750 Request a demo Talk to an expert
Talk to an expert Request a demo Call sales 972-836-7750

X12 transaction guide · Catalogs and pricing

EDI 845 Price Authorization Acknowledgment/Status

The X12 document a manufacturer uses to send distributors the status of, or changes to, price authorizations and contract pricing.

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

What is an EDI 845?

The EDI 845 Price Authorization Acknowledgment/Status is the ANSI X12 transaction set a vendor or manufacturer uses to transmit the status of, or changes to, outstanding price authorizations. A price authorization is an agreement that lets a distributor sell to specified end customers at a special price, with the manufacturer covering the difference.

The 845 tells the distributor which contracts exist, which customers are eligible, which products are covered, the contract prices and the effective and expiry dates. Distributors load it to price sales correctly and to calculate the chargebacks they later claim with the 844.

How the EDI 845 worksDiagram of the EDI 845 Price Authorization Acknowledgment/Status. Manufacturer or vendor sends it to distributor or wholesaler. It usually starts the exchange. It is usually followed by 844 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BPA (Beginning Segment for Price Authorization Acknowledgment/Status), 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 845 worksPrice Authorization Acknowledgment/Status: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 845SENDERManufacturer orvendorRECEIVERDistributor orwholesaler997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY844Product Transfer AccountAdjustment997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code PAGS … GETransaction set 845ST … SEHEADINGBPABeginning Segment for PriceAuthorizationAcknowledgment/Status+ 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 845. Your trading partner's implementation guide adds its own requirements.
How the EDI 845 worksDiagram of the EDI 845 Price Authorization Acknowledgment/Status. Manufacturer or vendor sends it to distributor or wholesaler. It usually starts the exchange. It is usually followed by 844 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BPA (Beginning Segment for Price Authorization Acknowledgment/Status), 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 845 worksPrice Authorization Acknowledgment/Status:who sends it, where it fits and what thestandard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 845SENDERManufacturer orvendorRECEIVERDistributor orwholesaler997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY844Product Transfer Account Adjustment997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code PA (GS … GE)Transaction set 845 (ST … SE)HEADINGBPABeginning Segment for PriceAuthorizationAcknowledgment/Status+ 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 845. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 845, 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 845 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

  • Publishing new contract pricing to distributors
  • Adding or removing eligible end customers on a contract
  • Notifying distributors of contract renewals or expirations
  • Acknowledging a distributor's request for a price authorization

Where it fits in the document flow

This document 845 Price Authorization Acknowledgment/Status
Usually followed by 844 Product Transfer Account Adjustment997 Functional Acknowledgment

Structure

Mandatory segments in the 845 (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
  • BPA
  • N1
  • CON
  • PAD
  • LIN
  • CTP
  • CTT
  • SE

Practical example

The 845 in practice

A manufacturer of electrical products signs a one-year pricing agreement with a regional contractor. It sends its distributors an 845 naming the contractor as an eligible customer, the covered catalog numbers, the contract prices and the start and end dates. The distributors load the contract, price the contractor's orders at the agreed rates and claim the difference through 844 chargebacks.

Implementation

Implementation considerations for the 845

  • Load contracts with their effective dates, and expire them on time, so sales are priced correctly.
  • Reconcile eligible customer identifiers between manufacturer and distributor systems.
  • Process changes in order, since a later 845 can amend or replace an earlier authorization.
  • Keep the 845 and the chargeback validation rules consistent to avoid disputed claims.

How ECOM helps

Automate the 845 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

Order-to-Cash Automation

Automate the flow from purchase order to payment across every customer channel.

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

Related transactions

Related catalogs and pricing documents

All 21 catalogs and pricing documents

Need help with the EDI 845?

ECOM maps, tests and monitors X12 documents for your trading partners and integrates them with your ERP.

Request a Demo Contact us