Retail
EDI for Retail
Connecting retailers, suppliers, and distribution centers with EDI
Business Process
Retail Order-to-Cash EDI
From purchase order through supplier fulfillment to retail distribution center receiving and payment.
EDI Process Flow
Retail Order-to-Cash Flow
From purchase order through supplier fulfillment to retail distribution center receiving and payment.
Buyer
Receiving
Accounts Payable
Physical / Business Flow
Systems Involved
Key Benefits of EDI
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Ask EDI AI →Retail Order-to-Cash Flow. Steps: Retailer, Purchase Order, Supplier, Order Acknowledgment, Supplier Distribution Center, Advance Shipping Notification, Retailer Distribution Center, Invoice, Payment / Remittance, Retailer.
Common EDI Transactions
The X12 and EDIFACT transaction sets that appear in this flow.
Purchase Order
The X12 850 is the electronic purchase order a buyer sends to a supplier to request goods or services, replacing paper or PDF POs with a structured, machine-readable document.
Purchase Order Message
UN/EDIFACT ORDERS is the international equivalent of the X12 850 — a structured purchase order used widely across Europe and global trade lanes.
Purchase Order Acknowledgment
The X12 855 is the supplier's formal response to an 850 Purchase Order, confirming, changing, backordering, or rejecting each line item.
Purchase Order Response Message
UN/EDIFACT ORDRSP is the supplier's response to an ORDERS message, confirming, amending, or rejecting the purchase order — the EDIFACT counterpart to the X12 855.
Advance Ship Notice
The X12 856 (ASN) tells the buyer exactly what was shipped, how it was packed (pallet/case/item hierarchy), and when it will arrive — before the truck reaches the dock.
Despatch Advice Message
UN/EDIFACT DESADV is the international equivalent of the X12 856 Advance Ship Notice, describing what was shipped and how it is packed.
Invoice
The X12 810 is the electronic invoice a supplier sends after (or with) a shipment, billing the buyer for goods or services delivered.
Invoice Message
UN/EDIFACT INVOIC is the electronic invoice message, the EDIFACT counterpart to the X12 810, used to bill for goods or services delivered.
Payment Order/Remittance Advice
The X12 820 instructs a financial institution to make a payment and/or advises the payee which invoices a payment covers.
Systems Involved
EDI Standards
Step-by-Step Explanation
- 1
Retailer
Trading partner role: Buyer.
- 2
Purchase Order (850 / ORDERS)
Communicates a buyer's request for goods or services.
- 3
Supplier
A trading partner in this flow.
- 4
Order Acknowledgment (855 / ORDRSP)
Confirms, changes, or rejects the line items on a purchase order before fulfillment begins.
- 5
Supplier Distribution Center
A trading partner in this flow.
- 6
Advance Shipping Notification (856 / DESADV)
Tells the buyer what was shipped, how it was packed, and when it will arrive, before the truck reaches the dock.
- 7
Retailer Distribution Center
Trading partner role: Receiving.
- 8
Invoice (810 / INVOIC)
Communicates billing information for goods or services delivered.
- 9
Payment / Remittance (820)
Instructs a payment and/or advises which invoices a payment covers. The exact transaction used depends on the trading partner's implementation.
- 10
Retailer
Trading partner role: Accounts Payable.
Common EDI Documents
Business Benefits
- Enables automated, scan-based receiving at the distribution center via ASN/SSCC matching.
- Reduces vendor compliance chargebacks for late or inaccurate shipment notifications.
- Speeds supplier payment through automated 3-way invoice matching.
- Gives merchandising teams earlier visibility into order confirmation and backorders.
Related Articles
X12 850 Purchase Order: Complete EDI Guide
A complete, segment-by-segment walkthrough of the X12 850 Purchase Order — what it is, how it's structured, how to map it, and how to troubleshoot the errors that show up most often in production.
X12 856 Advance Ship Notice: The Complete EDI Guide
Everything you need to build, validate, and troubleshoot an X12 856 ASN — including the HL hierarchy that trips up almost every new implementation.
EDI Mapping Explained: From ERP Fields to X12 and EDIFACT Segments
A practical guide to how EDI mapping actually works — the concepts, common source formats, and a worked example translating SAP IDoc fields into an X12 850.
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