X12 transaction guide · Finance

EDI 890 Contract & Rebate Management Transaction

The X12 document used to exchange contract and rebate program information between manufacturers, distributors and customers.

Sent by
Manufacturer, distributor or group purchasing organization
Received by
Distributor, manufacturer or customer
Standard
ANSI ASC X12

What is an EDI 890?

The EDI 890 Contract and Rebate Management transaction is the ANSI X12 transaction set that establishes the format for exchanging contract and rebate management information between trading partners.

Rebate programs pay distributors or customers back for purchases or sales that meet agreed conditions, such as volume tiers or eligible products. Tracking them requires shared data on the contracts, eligible items and qualifying transactions. The 890 gives that information a structured form, alongside the price authorization (845) and chargeback (844, 849) transactions used in distribution.

How the EDI 890 worksDiagram of the EDI 890 Contract & Rebate Management Transaction. Manufacturer, distributor or group purchasing organization sends it to distributor, manufacturer or customer. 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: CTH (Beginning Segment for Contract Transaction Set). 5 optional loops are listed by their first segment.How the EDI 890 worksContract & Rebate Management Transaction: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 890SENDERManufacturer,distributor or grouppurchasingorganizationRECEIVERDistributor,manufacturer orcustomer997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional groupGS … GETransaction set 890ST … SEHEADINGCTHBeginning Segment for Contract Transaction Set+ 4 optional loops, starting with:NM1AMTQTYN1DETAIL+ 1 optional loop, starting with:CPLBlue 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 890. Your trading partner's implementation guide adds its own requirements.
How the EDI 890 worksDiagram of the EDI 890 Contract & Rebate Management Transaction. Manufacturer, distributor or group purchasing organization sends it to distributor, manufacturer or customer. 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: CTH (Beginning Segment for Contract Transaction Set). 5 optional loops are listed by their first segment.How the EDI 890 worksContract & Rebate Management Transaction:who sends it, where it fits and what thestandard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 890SENDERManufacturer,distributor orgrouppurchasingorganizationRECEIVERDistributor,manufacturer orcustomer997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group (GS … GE)Transaction set 890 (ST … SE)HEADINGCTHBeginning Segment forContract Transaction Set+ 4 optional loops, starting with:NM1AMTQTYN1DETAIL+ 1 optional loop, starting with:CPLBlue 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 890. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 890, 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 890 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.

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When it is used

  • Sharing rebate program terms with partners
  • Reporting qualifying sales for rebate calculation
  • Reconciling rebate amounts due

Where it fits in the document flow

This document 890 Contract & Rebate Management Transaction
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 890 (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
  • CTH
  • NM1
  • N1
  • AMT
  • QTY
  • DTM
  • CPL
  • SEF
  • LX
  • FX2
  • FX3
  • FU1
  • FU2
  • FX4
  • FX5
  • SE

Practical example

The 890 in practice

A foodservice manufacturer runs a volume rebate for distributors. Each quarter, distributors send the manufacturer their qualifying sales, and the manufacturer returns the calculated rebates through 890 transactions referencing the program. Both sides reconcile the amounts before the rebate is paid.

Implementation

Implementation considerations for the 890

  • Define program identifiers both parties use.
  • Agree the qualifying rules and calculation basis in advance.
  • Reconcile rebates with sales and chargeback data.
  • Track accruals and payments for each program.

Need help with the EDI 890?

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