X12 Allowance and Charge codes

X12 Allowance and Charge codes usage, EDI 810 example and explanation

X12 Allowance and Charge codes are used in various EDI transactions to specify types of allowances or charges that apply to an order or invoice. These codes help standardize the communication of additional costs or discounts between trading partners.

Here’s a brief description of some commonly used X12 Allowance and Charge codes:

Commonly Used Allowance and Charge Codes:

  • A260: Advertising Allowance – An allowance given to a retailer or distributor for advertising the manufacturer’s product.
  • B720: Freight – Charges related to the transportation of goods.
  • C930: Discount – A reduction in the price of the goods or services.
  • D240: Fuel Surcharge – An additional charge to cover increased fuel costs.
  • E730: Handling – Costs associated with the handling of goods.
  • F800: Insurance – Costs related to insuring the goods.
  • G950: Packaging – Costs associated with the packaging of goods.
  • H850: Palletizing – Costs for placing goods on pallets.
  • I600: Restocking Charge – Fees for returning goods to stock.
  • J870: Storage – Costs related to storing goods.
  • K840: Tax – Applicable taxes on the goods or services.

Example Usage in an EDI Transaction:

Let’s take an example of an EDI 810 (Invoice) transaction set that includes both an allowance and a charge:

EDI codes

Explanation of Key Segments:

  • ISA (Interchange Control Header): The header segment for the interchange envelope.
  • GS (Functional Group Header): Groups related transaction sets.
  • ST (Transaction Set Header): Begins the transaction set.
  • BIG (Beginning Segment for Invoice): Contains invoice details like date, invoice number, and purchase order number.
  • N1 (Name): Identifies parties by name and code.
  • IT1 (Baseline Item Data): Details of the line item, including quantity, unit price, and item identifiers.
  • TDS (Total Monetary Value Summary): Total amount of the invoice.
  • SAC (Service, Promotion, Allowance, or Charge Information): Specifies allowances or charges. The first SAC segment represents a charge (code G830) for $500, and the second SAC segment represents an allowance (code C000) for $1000.
  • SE (Transaction Set Trailer): Ends the transaction set.
  • GE (Functional Group Trailer): Ends the functional group.
  • IEA (Interchange Control Trailer): Ends the interchange envelope.

Detailed SAC Segment Breakdown:

  • SAC01: Allowance or Charge Indicator (A for Allowance, C for Charge).
  • SAC02: Allowance or Charge Code (e.g., G830 for a charge, C000 for an allowance).
  • SAC05: Amount (e.g., 500 for $500 charge, 1000 for $1000 allowance).

This example demonstrates how allowances and charges are specified within an EDI transaction to communicate additional financial adjustments related to an order or invoice.


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