820 | FreightKB

Electronic Data Interchange (EDI) - 820

Published: 2023-DEC-13

Published by: Christopher Schoeder

EDI 820, also known as the Electronic Funds Transfer (EFT) Payment Order/Remittance Advice, is a transaction set used in Electronic Data Interchange (EDI) to facilitate the electronic transfer of payment and remittance information between trading partners. It is commonly used in business-to-business (B2B) transactions, particularly in the financial and banking sectors.

The EDI 820 transaction provides a structured format for transmitting payment-related information from a payer (such as a company or organization) to a payee (such as a vendor or supplier). It typically includes details about the payment amount, payment date, invoice numbers, and any additional remittance advice or explanations related to the payment.

The purpose of the EDI 820 is to streamline and automate the payment and reconciliation process. By exchanging payment information electronically, organizations can improve efficiency, reduce costs, and minimize errors associated with manual processing. The EDI 820 format adheres to the standards and guidelines set by the Accredited Standards Committee (ASC) X12, which is responsible for developing and maintaining the EDI standards in the United States.

Overall, the EDI 820 transaction facilitates the seamless transmission of payment information between trading partners, enabling faster and more accurate processing of payments and remittances.