EDI Purchase Order Operation Cycle

EDI Purchase Order Creation

EDI Purchase Order belongs to the most used electronic transactions in supply chain and retail. Typical information sent in the ordering cycle (Purchase Order/Invoicing):

• PO identification information (PO Number, PO Date, Contract Number, Release Number)
• Currency Information (currency used, exchange rates etc.)
• Internal Reference Numbers
• Free Form Notes
• FOB and Carrier information
• Special Allowances and Charges (either at the line item or entire order level)
• Terms of Sale
• Delivery Dates
• Back Order instructions
• Shipping and Remittance Name information
• Line item identification (either structured (i.e. codified) or non-structured (free form descriptions)
• Sub-Line identification (i.e. assortments)
• Pricing and discount information for specific line items
• Delivery Instructions for the entire order (Name Segments) or for a specific line item (Store Destination
  Quantity).

The actual ordering process will be dependent on what inventory status system is utilized. A key is that the basic information from the Purchase Order is used in the rest of the retail order cycle. The process of acknowledging a received Purchase Order may be done via electronic or manual means. If the acknowledgment is done electronically (via an EDI 855, Purchase Order Acknowledgment), the following subset of information is usually sent from the vendor to the retailer:

• PO identification information (PO Number, PO Date, Contract Number, Release Number)
• Internal Reference Numbers
• Delivery Dates (either changes or confirmations)
• Shipping and Remittance Name information
• Line item identification (either structured (i.e. codified) or non-structured (free form descriptions)
• Line Item acknowledgments (changes, deletions, substitutions or confirmations)
• Pricing Information
• Sub-Line identification (i.e. assortments)

The electronic acknowledgment may be used to specify that there are:

1. Changes to the original Purchase Order at the line item level with the detailed changes sent in the Acknowledgment.
2. No changes to the original Purchase Order at the line item level and the detailed line item information is sent as an Order Confirmation.
3. No changes to the original Purchase Order at the line item level and the detailed line item information is not re-sent to the retailer.
4. Product Replenishment (the Purchase Order Change is actually a vendor-generated Purchase Order.

A vendor-generated Purchase Order can also be sent as a Purchase Order to the retailer in some ordering models).