This X12 Transaction Set includes the format and data contents of the Shipment and Billing Notice Transaction Set (857) for use within the context of an Electronic Data Interchange (EDI) environment.
This EDI transaction code gives the recipient of the shipment data for generating payments and receipt planning. There’s no question about it, with EDI, processing data is faster and more efficient.
It’s not unheard of for companies to send an EDI 857 and EDI 810 together. The sender of a shipment may send the recipient’s receiving function a Ship Notice/Manifest (856), and the payables function an Invoice (810). Don’t these two docs include the same information? Yes and no. The two docs share a lot of information.
In some scenarios, the Shipment and Billing Notice allows the consolidation of EDI 857 and EDI 810. There’s a few different scenarios where this transaction set is appropriate with the shipment data;
- When it includes terms and item prices
- Used both to plan receipts and to generate payment
You can’t use this transaction set to replace the Ship Notice/Manifest (856) or Invoice (EDI 810) individually, but only to replace both of them together.
You wouldn’t want to use this transaction set in place of a Ship Notice/Manifest while continuing to send paper or electronic invoices. In this case, both parties may not know the exact prices for the items shipped. This transaction set is not appropriate in so-called Evaluated Receipts Settlement (ERS) environments, in which the exact prices for the items shipped have been agreed upon with both parties knowing that in advance.
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