What is EDI 810? Complete Guide to Electronic Invoicing Standards

EDI 810s are essential electronic data interchange documents for invoicing and billing. Whether you’re a downstream retailer, supply chain manager, finance expert, or logistics professional, familiarizing yourself with the ins and outs of this transaction set is a must.

Strategically incorporating EDI 810 transactions and other types of EDI documents into your workflow can help you improve accuracy, accelerate the flow of information between you and your trading partners, and enhance the overall efficiency of your operations. 

What is an EDI 810?

An EDI 810 is a digital invoice a seller sends to a buyer. The document indicates the amount the buyer owes and requests payment according to agreed-upon terms. An EDI 810 provides an alternative to PDF, email, and paper invoices. 

Although an EDI 810 contains similar information to several other types of invoicing EDIs, it can be applied to multiple order types.

This is important when deciding between EDI documents, such as an EDI 880 versus 810. An EDI 880 can only be used for grocery suppliers, whereas an EDI 810 can be used for both food and non-food-related suppliers.

The EDI 810 transaction set follows the X12 format provided by the American National Standards Institute (ANSI). This standard defines when an EDI 810 should be used, what information it must contain, and what recipients should do upon receiving one.

An EDI 810 in Practice

Here’s how an EDI 810 fits into the ordering process:

1. When a buyer inquires about a seller’s stock, the seller responds with an EDI 846, which provides information about their available inventory.
2. If the buyer wants to proceed with the purchase, they submit an EDI 850, or Purchase Order. This document can be used to initiate a single purchase or arrange recurring purchases.
3. The seller replies with an EDI 855 — Purchase Order Acknowledgement.
4. After the order is shipped, the seller sends an EDI 810 to formally request payment.
5. The buyer provides an EDI 997 to confirm receipt of the EDI 810.
6. Finally, the buyer sends an EDI 820, typically accompanied by the payment.

What is an EDI 820, exactly? Aside from an EDI 810, an EDI 820 is among the EDI framework’s most vital billing- and invoicing-related documents. It communicates payment details and confirms the buyer is sending the requested funds.

EDI 810 Specifications & Components

The primary components of an EDI 810 document include the following:

• Beginning Segment for Invoice (BIG): This segment includes the invoice date (BIG02) and invoice number (BIG01).
• Name (N1): This segment, combined with qualifiers in N101, identifies various parties like buyer (BY), seller (SE), and the entity where payment is to be sent (RI – Remit To). The name and address of these entities are contained in the subsequent N2, N3, and N4 segments that follow each N1 segment.
• Total Monetary Value Summary (TDS): This segment contains the total invoice amount, among other monetary values. TDS01 typically holds the invoice amount.
• Terms of Sale/Deferred Terms (ITD): This segment defines the terms by which the sale was made. For example, ITD02 might specify the terms type and ITD03 might specify the terms basis date.
• Tax Reference (TAX) and Tax Information (TXI): These segments provides information about tax details, including tax type, amount, and rate.
• Service, Promotion, Allowance, or Charge Information (SAC): This segment specifies any additional charges, discounts, or allowances that apply.
• Baseline Item Data (IT1): This segment contains details about individual items, their quantities, and unit prices.

This data is required by the standardized ANSI X12 format. If the EDI 810 lacks any of this information, it cannot be processed.

Advantages of EDI 810s

EDI 810s provide many benefits to sellers and buyers. By integrating these documents into your workflow, you can accomplish the following:

• Streamlined invoice processing: You’re more likely to experience processing delays when sending invoices via email, fax, or traditional mail. An EDI 810 accelerates this process by automating the exchange of information and minimizing manual data entry.
• Accelerated payment cycles: EDI 810s eliminate the need to reproduce, print, or physically store documents, streamlining payment processes and decreasing the likelihood of cash flow disruptions.
• Enhanced accuracy and data integrity: When you create, send, and process invoices manually, you’re more likely to introduce errors. An EDI 810 mitigates this risk and promotes better data integrity.
• Improved relationships: EDI 810s — and the entire EDI framework — enable seamless information exchange between you and your trading partners. This expediency can strengthen your relationships and support your organization's long-term growth.

Challenges of EDI 810s

Although there are many benefits associated with using EDI 810s, there are also a few potential challenges you should be aware of. Potential challenges include:

• Expensive set-up: Historically, setting up an EDI framework has been tedious, time-consuming, and costly. In some cases, implementing the framework takes five months or more.
• Lengthy onboarding process: Similarly, onboarding trading partners to the EDI framework can be a protracted process. Excessive onboarding times may cause friction between trade partners.

Fortunately, you can avoid both of these mishaps by leveraging a modern, cloud-based EDI solution like Orderful. With Orderful, businesses can onboard and implement EDI frameworks in days, not months. 

EDI 810 Format Example

Like all EDI transactions, EDI 810 data is sent in a raw, code-like format. The receiving application then translates this machine-readable format into a decipherable digital document. 

Here’s a snippet of a raw EDI 810 example:

ISA*00*          *00*          *12*9622309900     *ZZ*TESTRETAILER   *      *    *U*00401*         *0*T*> 

GS*IN*9622309900*TESTGRAINGERLD*20200623*1637**X*004010 

ST*810 

BIG*20200623*INV00000156**0473289***DR 

REF*IA*98098 

N1*ST*Test Retailer*92*04783 

N3*123 Main Street 

N4*Columbus*OH*43212*USA 

DTM*011*20200415 

IT1*1*25*EA*25.22**CB*048392*VN*180432*PO*0473289 

TDS*69050 

SAC*C*D240***5000**********Freight Charge 

SAC*C*F050***1000**********Handling Fee 

Your EDI solution will read this jumble of data and translate it into a digestible digital document with all the above information, including the order details, invoice date, and tax information.

Quick Comparison: EDI 810 vs Related Documents

Orderful: Modern EDI Solutions to Support Your Business

The EDI framework and standardized forms like the EDI 810 can streamline communication between you and your trading partners, boost your operational efficiency, and support the ongoing growth of your organization. Thanks to partners like Orderful, you can condense EDI onboarding times to just a few days.

Talk to one of our experts today to learn more about how to implement EDI solutions into your workflow.

Frequently Asked Questions About EDI 810

What is an EDI 810 invoice?

An EDI 810 is a digital invoice that a seller sends to a buyer to request payment according to agreed-upon terms. It follows the ANSI X12 format standard and provides an electronic alternative to PDF, email, and paper invoices. The EDI 810 contains essential billing information including invoice number, date, line items, quantities, prices, tax details, and payment terms.

What is the difference between EDI 810 and EDI 820?

An EDI 810 is an invoice sent by the seller to request payment, while an EDI 820 is a payment remittance advice sent by the buyer to confirm payment details and that funds are being sent. The EDI 810 initiates the payment process, and the EDI 820 accompanies the actual payment to provide payment details and confirm the transaction.

What is the difference between EDI 810 and EDI 880?

An EDI 810 is a general invoice that can be used for both food and non-food-related suppliers across multiple industries. An EDI 880 is a grocery products invoice specifically designed for grocery suppliers only. If you work with grocery products exclusively, EDI 880 may be required, but EDI 810 is the more versatile option for multi-category suppliers.

When is an EDI 810 sent in the order process?

An EDI 810 is sent after the order is shipped to formally request payment. The typical flow is: buyer sends EDI 850 (purchase order), seller responds with EDI 855 (acknowledgment), goods are shipped, seller sends EDI 810 (invoice), buyer sends EDI 997 (functional acknowledgment), and finally buyer sends EDI 820 (payment remittance) with the payment.

What information is required in an EDI 810?

An EDI 810 must contain: invoice number and date (BIG segment), buyer and seller identification (N1 segment with names and addresses), line item details including quantities and prices (IT1 segment), total invoice amount (TDS segment), payment terms (ITD segment), tax information (TAX and TXI segments), and any charges, discounts, or allowances (SAC segment). Missing any required data prevents processing.

How long does it take to implement EDI 810 invoicing?

Implementation time varies by approach. Traditional EDI setup can take five months or more due to complex infrastructure requirements and manual mapping. Modern cloud-based EDI solutions like Orderful can implement EDI 810 invoicing in days rather than months by providing pre-configured connections, automated mapping, and streamlined partner onboarding.

What are the benefits of using EDI 810 instead of paper invoices?

EDI 810 invoices provide streamlined processing by automating information exchange and eliminating manual data entry, accelerated payment cycles by removing printing and physical storage needs, enhanced accuracy by reducing human error, and improved trading partner relationships through seamless electronic communication. These benefits reduce processing costs by 30-40% compared to manual paper-based invoicing systems.