EDI 891: Deduction Research Report
EDI 891 Definition
The EDI 891 transaction set is utilized primarily in the retail and financial sectors to communicate details regarding deductions or adjustments made to invoices. This document allows a seller to report or inquire about specific deductions taken by a buyer from invoice payments. The EDI 891 facilitates the resolution of disputes related to invoice payments by providing a standardized format for detailing the reasons for deductions, such as merchandise returns, allowances, or pricing discrepancies.
What is EDI 891 Used for?
Sellers use the EDI 891 to submit detailed reports or inquiries to buyers concerning deductions made from invoice payments. This can include requests for clarification on short payments, documentation of authorized deductions, or adjustments for returned goods. Buyers, in response, can use the information provided in the EDI 891 to research, validate, and resolve the reported deductions, ensuring accurate financial records and maintaining good supplier relationships.
Key Elements of EDI 891
An EDI 891 document typically includes key elements to effectively convey deduction research information:
- Transaction Set Header and Trailer: Marks the beginning and end of the EDI 891 document, encapsulating the deduction research report details.
- Report Information: Details about the deduction research report, including report date, identification numbers, and the type of deductions being reported or inquired about.
- Deduction Details: Specific information regarding each deduction, including deduction amounts, reasons for deductions, and related invoice or purchase order numbers.
- Adjustment Information: Details of any adjustments or corrections related to the deductions, including adjustment amounts and reasons.
- Contact Information: Information for the contact person or department responsible for the deduction research report, facilitating follow-up and resolution.
Benefits of EDI 891
Utilizing the EDI 891 document offers several advantages:
- Efficient Dispute Resolution: Streamlines the process of researching and resolving invoice deduction disputes, saving time and administrative effort.
- Improved Financial Accuracy: Enhances the accuracy of financial records by providing detailed documentation of deductions and adjustments.
- Enhanced Communication: Facilitates clear and structured communication between buyers and sellers regarding invoice deductions, improving transparency.
- Stronger Relationships: Supports the maintenance of positive buyer-seller relationships by ensuring disputes are resolved efficiently and effectively.
EDI 891 Document Example
Here’s a simplified example of what an EDI 891 might look like in raw data format:
ST*891*0001
BGN*00*DeductionReportNumber*20241130
N1*SE*Seller Name*1*123 Seller Street*City*ST*12345
N1*BY*Buyer Name*2*456 Buyer Avenue*City*ST*67890
DED*100*EA*DeductionReasonCode*20241101*InvoiceNumber
DED*150*EA*DeductionReasonCode*20241102*InvoiceNumber
CTT*2
SE*7*0001
Guide to EDI 891 Terms and Elements:
- ST (Transaction Set Header): Initiates the EDI 891 document, identified by a unique control number.
- BGN (Beginning Segment): Provides basic information about the deduction research report, including the report number and date.
- N1 (Name): Identifies the seller (SE) and buyer (BY), including address information.
- DED (Deduction): Details each deduction being reported or inquired about, including amounts, reasons, and related invoice numbers.
- CTT (Transaction Totals): Summarizes the total number of deductions reported in the document.
- SE (Transaction Set Trailer): Concludes the EDI 891 document, ensuring completeness and accuracy.
This example is designed to give a basic understanding of how an EDI 891 document might look, including the types of information it conveys. Remember, the actual implementation might vary based on specific business needs and partnerships.
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