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X12 transaction guide · Ordering

EDI 850 Purchase Order

The X12 document a buyer uses to order goods or services from a supplier. It starts most B2B order-to-cash cycles.

Sent by
Buyer (retailer, distributor, manufacturer)
Received by
Supplier or vendor
Standard
ANSI ASC X12
EDIFACT equivalent
ORDERS

What is an EDI 850?

The EDI 850 Purchase Order is the ANSI X12 transaction set a buyer sends to a supplier to order goods or services. It carries the same information as a paper or emailed purchase order, including who is buying, where to ship, what items and quantities are needed, agreed prices, dates and terms, but in a standardized structure that software can process without re-keying.

For most suppliers, the 850 is the first document in the order-to-cash cycle. Once received and validated, it typically becomes a sales order in the supplier's ERP, and it triggers the documents that follow, such as an acknowledgment, a ship notice and an invoice.

How the EDI 850 worksDiagram of the EDI 850 Purchase Order. Buyer (retailer, distributor, manufacturer) sends it to supplier or vendor. It usually starts the exchange. It is usually followed by 997, 855, 856 and 810. Inside the ISA, GS and ST envelopes, X12 release 004010 requires, in the heading: BEG (Beginning Segment for Purchase Order) and detail: the required PO1 loop with PO1 (Baseline Item Data). 20 optional loops are listed by their first segment.How the EDI 850 worksPurchase Order: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 850SENDERBuyer (retailer,distributor,manufacturer)RECEIVERSupplier or vendor997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment855Purchase OrderAcknowledgment856Advance Ship Notice810Invoice2 WHAT X12 RELEASE 004010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code POGS … GETransaction set 850ST … SEHEADINGBEGBeginning Segment forPurchase Order+ 7 optional loops, starting with:SACAMTN9N1LMSPIADVDETAILRequired loop PO1 · repeats up to100,000PO1Baseline Item Data+ 12 optional loops, starting with:CTPPIDSACQTYSCHPKGLDTN9N1SLNAMTLMSUMMARY+ 1 optional loop, starting with:CTTBlue 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 004010 listing for the 850. Your trading partner's implementation guide adds its own requirements.
How the EDI 850 worksDiagram of the EDI 850 Purchase Order. Buyer (retailer, distributor, manufacturer) sends it to supplier or vendor. It usually starts the exchange. It is usually followed by 997, 855, 856 and 810. Inside the ISA, GS and ST envelopes, X12 release 004010 requires, in the heading: BEG (Beginning Segment for Purchase Order) and detail: the required PO1 loop with PO1 (Baseline Item Data). 20 optional loops are listed by their first segment.How the EDI 850 worksPurchase Order: who sends it, where it fits andwhat the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 850SENDERBuyer (retailer,distributor,manufacturer)RECEIVERSupplier orvendor997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment855Purchase Order Acknowledgment856Advance Ship Notice810Invoice2 WHAT X12 RELEASE 004010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code PO (GS … GE)Transaction set 850 (ST … SE)HEADINGBEGBeginning Segment forPurchase Order+ 7 optional loops, starting with:SACAMTN9N1LMSPIADVDETAILRequired loop PO1 · repeats up to100,000PO1Baseline Item Data+ 12 optional loops, starting with:CTPPIDSACQTYSCHPKGLDTN9N1SLNAMTLMSUMMARY+ 1 optional loop, starting with:CTTBlue 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 X12004010 listing for the 850. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 850, to whom, and which documents usually come before and after it. The lower part shows what X12 release 004010 itself requires: the envelopes around the 850 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

  • Retailers ordering merchandise for stores, distribution centers or online customers
  • Distributors and manufacturers buying materials or components from suppliers
  • Drop-ship programs sending consumer orders to vendors for direct fulfillment
  • Bulk, stand-alone or release orders, depending on the purchase order type code

Where it fits in the document flow

This document 850 Purchase Order
Usually followed by 997 Functional Acknowledgment855 Purchase Order Acknowledgment856 Advance Ship Notice810 Invoice

Structure

Key segments in the 850

The segments most implementations use, described in plain language. The last column shows what X12 release 004010 itself requires: "Required" marks a segment the standard requires in every 850; "Optional, common" marks a segment the standard leaves optional, or that sits in an optional loop, but that implementations often use. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, makes some optional segments mandatory and restricts the values, and requirements can differ between releases. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

SegmentNameWhat it carriesIn X12 004010
BEGBeginning Segment for Purchase OrderPurpose of the order, purchase order type, purchase order number and order date.Required
REFReference IdentificationAdditional references such as department, vendor number or internal order references.Optional, common
DTMDate/Time ReferenceRequested delivery, ship or cancel-after dates.Optional, common
N1 loopParty IdentificationBuyer, ship-to and bill-to parties with names and location codes, often followed by N3 and N4 address segments.Optional, common
PO1Baseline Item DataOne line per item with quantity, unit of measure, unit price and product identifiers such as UPC, buyer item and vendor item numbers.Required
PIDProduct/Item DescriptionFree-form or coded description of the item on the preceding line.Optional, common
CTTTransaction TotalsNumber of line items, used as a control total.Optional, common

Example

Sample EDI 850

A stand-alone order (SA) for 24 units of one item, delivered to store 1234 by the requested date. BEG carries the purchase order number, REF the department and PO1 the quantity, price, UPC and vendor item number.

Illustrative data only, not tied to one X12 release or trading partner. The interchange (ISA/IEA) and functional group (GS/GE) envelopes are omitted for readability.

ST*850*0001~
BEG*00*SA*PO123456**20261015~
REF*DP*042~
DTM*002*20261101~
N1*ST*Example Store 1234*92*1234~
PO1*1*24*EA*12.50**UP*012345678905*VN*ABC-100~
PID*F****Blue widget~
CTT*1~
SE*9*0001~
Reading a sample EDI 850, line by lineAnnotated sample EDI 850 with 9 lines. Notes explain the ST, BEG, REF, DTM, N1, PO1, PID, CTT and SE segments.Reading a sample EDI 850, line by lineEach numbered note explains the segment on that line. The data is illustrative.ST*850*0001~11Transaction Set Header. Opens the 850 and gives it a controlnumber, which SE repeats.BEG*00*SA*PO123456**20261015~22Beginning Segment for Purchase Order. Purpose of the order,purchase order type, purchase order number and order date.REF*DP*042~33Reference Identification. Additional references such asdepartment, vendor number or internal order references.DTM*002*20261101~44Date/Time Reference. Requested delivery, ship or cancel-afterdates.N1*ST*Example Store 1234*92*1234~55Party Identification. Buyer, ship-to and bill-to parties withnames and location codes, often followed by N3 and N4 addresssegments.PO1*1*24*EA*12.50**UP*012345678905*VN*ABC-100~66Baseline Item Data. One line per item with quantity, unit ofmeasure, unit price and product identifiers such as UPC, buyeritem and vendor item numbers.PID*F****Blue widget~77Product/Item Description. Free-form or coded description of theitem on the preceding line.CTT*1~88Transaction Totals. Number of line items, used as a control total.SE*9*0001~99Transaction Set Trailer. Closes the set with the number ofsegments, including ST and SE, and the same control number.Illustrative data only, not tied to one trading partner. Envelopes (ISA/GS) are omitted for readability.
Reading a sample EDI 850, line by lineAnnotated sample EDI 850 with 9 lines. Notes explain the ST, BEG, REF, DTM, N1, PO1, PID, CTT and SE segments.Reading a sample EDI 850, lineby lineEach numbered note explains the segment onthat line. The data is illustrative.ST*850*0001~Transaction Set Header. Opens the 850 andgives it a control number, which SE repeats.BEG*00*SA*PO123456**20261015~Beginning Segment for Purchase Order.Purpose of the order, purchase order type,purchase order number and order date.REF*DP*042~Reference Identification. Additionalreferences such as department, vendornumber or internal order references.DTM*002*20261101~Date/Time Reference. Requested delivery,ship or cancel-after dates.N1*ST*Example Store 1234*92*1234~Party Identification. Buyer, ship-to and bill-toparties with names and location codes, oftenfollowed by N3 and N4 address segments.PO1*1*24*EA*12.50**UP*012345678905*VN*ABC-100~Baseline Item Data. One line per item withquantity, unit of measure, unit price andproduct identifiers such as UPC, buyer itemand vendor item numbers.PID*F****Blue widget~Product/Item Description. Free-form or codeddescription of the item on the preceding line.CTT*1~Transaction Totals. Number of line items,used as a control total.SE*9*0001~Transaction Set Trailer. Closes the set withthe number of segments, including ST and SE,and the same control number.Illustrative data only, not tied to one trading partner.Envelopes (ISA/GS) are omitted for readability.

The sample is the same one shown above, with a note beside each segment the first time it appears. Segment IDs are highlighted at the start of each line; the fields after them are separated by asterisks, and each segment ends with a tilde.

Expand diagram Download SVG

Avoid problems

Common 850 errors and how to prevent them

Unknown item identifiers

Orders fail to post when the buyer's UPC or item number is not cross-referenced in the supplier's ERP. Maintain item cross-references for every partner.

Ignoring purchase order type

Stand-alone, bulk and release orders behave differently. Mapping them the same way can create duplicate or missing sales orders.

Missing ship-to mapping

Store and distribution center codes in the N1 loop must map to valid ship-to locations, or orders route to the wrong place.

Price discrepancies not flagged

Prices on the 850 should be validated against agreed pricing so differences are caught before shipment and invoicing.

Trading partners

Integration guides that include the 850

  • Amazon EDI integration
  • AT&T EDI integration
  • Cardinal Health EDI integration
  • Caterpillar EDI integration
  • Cencora EDI integration
  • Costco EDI integration
  • Dollar General EDI integration
  • Ford EDI integration
  • John Deere EDI integration
  • Kroger EDI integration
  • Lowe's EDI integration
  • Marriott Bonvoy Boutiques EDI integration
  • McKesson EDI integration
  • Starbucks EDI integration
  • Target EDI integration
  • The Home Depot EDI integration
  • Verizon EDI integration
  • Walgreens EDI integration
  • Walmart EDI integration
  • Wayfair EDI integration

How ECOM helps

Automate the 850 with ECOM

Solution

Order-to-Cash Automation

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

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

Product

PRISM-WebEDI

Browser-based transaction management for trading partners without traditional EDI systems, on the supplier side and the customer side.

EDI 850 FAQs

What is an EDI 850 used for?

The EDI 850 is used by a buyer to place an order with a supplier electronically, specifying items, quantities, prices, dates and shipping locations.

What is the response to an EDI 850?

The receiver usually returns a 997 functional acknowledgment to confirm receipt, and many partners also require an 855 purchase order acknowledgment to confirm the order details.

What is the EDIFACT equivalent of the 850?

The UN/EDIFACT equivalent is the ORDERS message, which is widely used outside North America.

How does an 850 get into an ERP?

An EDI translator converts the 850 into the ERP's import format, such as an SAP IDoc, API call or staging table, where it is validated and created as a sales order.

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

Related transactions

Related ordering documents

All 13 ordering documents

Need help with the EDI 850?

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