824 Application Advice Transaction Definition
824 Application Advice transaction set can be used to provide the ability to report the results of an application system’s data content edits of transaction sets. The results of editing transaction sets can be reported at the functional group and transaction set level, in either coded or free-form format. 824 Application Advice is designed to accommodate the business need of reporting the acceptance, rejection or acceptance with change of any transaction set. 824 Application Advice should not be used in place of a transaction set designed as a specific response to another transaction set (e.g., purchase order acknowledgment sent in response to a purchase order).
EDI 824 Application Advice is different from an EDI 997. An EDI 997 is an acknowledgement to indicate whether an EDI transmission has been received and translated whereas an EDI 824 indicates whether an invoice is accepted or rejected by the Accounts Payable system. Essentially, the EDI 824 is used to transmit invoice disputes with their notes. Like all other EDI transmission, EDI 824 Application Advices can be transmitted using a Value Added Network – VAN or other EDI communication methods.
EDI 824 Application Advice REJECTED (Version 4010) Example
ISA*00* *00*FTP *ZZ*CUSTOMER *02*CN *101225*0900*U*00401*000000837*0*P*>
PER*IC*If questions contact EDI Department at 012-345-6789
PER*IC*Please correct invoice and resend by edi
OTI*TR*TN*42385767*******210 CN Invoice 42385767 is rejected
TED*024*NO FREIGHT RECORD FOUND for LOAD àdispute note OTI*TR*TN*42411572*******210 àCN Invoice 42411572 is rejected
TED*024*NO FREIGHT RECORD FOUND FOR LOAD àdispute note
The 824 transaction set should not be used in situations where a specific response document exists for a given transaction, for example, an 855 Purchase Order Acknowledgement in response to an 850 Purchase Order. In healthcare EDI applications, the 824 transaction meets HIPAA 5010 requirements for non-claims (276, 270 and 278) transactions. 824 transaction serves for reporting errors outside 999 Acknowledgement error reporting. The recipient of an 824 Application Advice document will typically send a 997 Functional Acknowledgement in response, indicating that the 824 was successfully received.