EDI 850 - Purchase Order

The EDI 850 Purchase Order places an order for goods or services and contains information like items, prices, and quantities ordered. 

If you need to send or receive EDI 850s, contact our team of EDI experts today.


What is an EDI 850 Purchase Order?

An EDI 850 is an electronic document used to initiate an order with a vendor and includes order information about the items being ordered, like item number, quantity, and price. It helps streamline the buying process, allowing vendors to run their businesses more efficiently and buyers to get their goods in a time efficient manner. Trading partners can safely share sensitive data like pricing because EDI transactions are encrypted in transit. EDI 850s are typically the first step in the purchase order process.

How is an EDI 850 Purchase Order used?

EDI 850 documents are commonly used in the retail and manufacturing industries, as well as in other sectors where there is a need to exchange purchase orders and other business documents electronically. Retailers, wholesalers, and manufacturers may all use EDI 850 documents as a way to request goods and materials from their suppliers. An EDI 850 can be applied to one-time purchases, repeating purchases, or to fix or modify a specified order.

    To be EDI compliant when accepting an EDI 850 from a trading partner, one must also send other EDI transactions in response to the purchase order. 

    These transactions include:

    EDI 810 Invoice - replaces the traditional paper invoice

    EDI 856 Advanced Shipping Notice - describes the contents of each shipment

    EDI 997 Functional Acknowledgement - confirms receipt of the EDI 850

    EDI 855 Order Acknowledgment  - confirms you can meet the requirements of the purchase order

    EDI 860 Order Change Request - requests an update to the details on the original purchase order

    EDI 850 Format

    Common information in the EDI 850 transaction includes:

    • Items requested and their prices
    • Payments terms
    • Quantities ordered
    • Shipping details
    • Shipping instructions
    • Carrier details
    • Applicable discounts
    EDI 850 Purchase Order Format

    Here is an EDI 850 Transaction within Cleo Integration Cloud

    Purchase Order 850 TripItView OrdreDetails 0

    Example EDI 850 Transaction Exchange

    1. First, An EDI 850 Purchase Order is sent from your trading partner (Clarendale of Addison in this example) and received by your business

    2. Second, your Cleo EDI Platform creates and sends an EDI 855 Purchase Order Acknowledgment to your trading partner to recognize that the EDI 850 Purchase Order was received. 

    3. Third, Cleo's cloud-based EDI platform generates an EDI 856 and sends the document to your trading partner, giving information on the contents of the shipment. 

    4. Fourth, Cleo Integration Cloud generates an automated EDI 810 invoice and sends the invoice to Clarendale of Addison as a receipt for goods purchased. 

    5. Fifth, your trading partner sends an EDI 820 Order/Remittance to send the terms of the impending payment for goods purchased. 

    EDI 850 Specification 

    This X12 Transaction Set contains the format and establishes the data contents of the Purchase Order Transaction Set (850) for use within the context of an Electronic Data Interchange (EDI) environment. The transaction set can be used to provide for customary and established business and industry practice relative to the placement of purchase orders for goods and services. This transaction set should not be used to convey purchase order changes or purchase order acknowledgment information.


    Accredited Standards Committee X12. ASC X12 Standard [Table Data]. Data Interchange Standards Association, Inc., Falls Church, VA. https://x12.org/index.php/products/transaction-sets

    Modern EDI Translation with Cleo

    Choose the EDI Integration package that best fits your business:

    1. Create and deploy your own integrations using Cleo's intuitive, self-service design platform.

    2. Utilize Cleo's EDI managed services team to design and build your integrations.

    3. Blend our EDI expertise and your business knowledge together in any manner that suits your use case.