Last reviewed October 6, 2026 by Effective Data's EDI specialists.
When the 820 is used, and which way it travels
The 820 is typically sent in response to an 810 invoice or an 850 purchase order, and it usually travels alongside the payment itself to confirm the details.
It carries the purchase order or invoice number, payer and payee identification, the amount billed or to be paid, adjustments, banking information for both parties, and payment tracking information.
Buyers also use it to inform sellers of a needed adjustment to the invoice, which makes it the document where deductions first become visible.
On receipt, the seller's EDI system generates a 997 Functional Acknowledgment back to the buyer to confirm the document arrived.
Also called the Payment Order, the Remittance Advice. Same document, same number.
The segments, and what each one carries
The published X12 structure, minus the segments most partners never use. Each partner's implementation guide narrows this further: which qualifiers, which identifiers, how many decimals. That guide, not the standard, is what your file is validated against.
| Segment | Name | Part | What it carries |
|---|---|---|---|
| ST | Transaction Set Header | Header | Identifies the document as an 820 and opens the control number the trailer must match. |
| BPR | Beginning Segment, Payment Order/Remittance Advice | Header | The payment: amount, method, and the banking details it moves through. |
| TRN | Trace | Header | The trace number that ties this advice to the bank payment. |
| REF | Reference Identification | Header | Additional identifiers the partner requires. |
| DTM | Date/Time Reference | Header | Payment effective date. |
| N1 | Party Identification | Header | Payer and payee, with their identifiers. |
| ENT | Entity | Detail | Groups remittance detail when one payment covers multiple entities. |
| RMR | Remittance Advice Accounts Receivable Open Item Reference | Detail | One paid item: the invoice or PO being paid, the amount paid against it. |
| ADX | Adjustment | Detail | Why the paid amount differs from the billed amount, as adjustment reason codes. |
| SE | Transaction Set Trailer | Summary | Closes the set. Segment count and control number must match the ST. |
- ST Transaction Set Header Header
- Identifies the document as an 820 and opens the control number the trailer must match.
- BPR Beginning Segment, Payment Order/Remittance Advice Header
- The payment: amount, method, and the banking details it moves through.
- TRN Trace Header
- The trace number that ties this advice to the bank payment.
- REF Reference Identification Header
- Additional identifiers the partner requires.
- DTM Date/Time Reference Header
- Payment effective date.
- N1 Party Identification Header
- Payer and payee, with their identifiers.
- ENT Entity Detail
- Groups remittance detail when one payment covers multiple entities.
- RMR Remittance Advice Accounts Receivable Open Item Reference Detail
- One paid item: the invoice or PO being paid, the amount paid against it.
- ADX Adjustment Detail
- Why the paid amount differs from the billed amount, as adjustment reason codes.
- SE Transaction Set Trailer Summary
- Closes the set. Segment count and control number must match the ST.
Why yours is being rejected
Every EDI provider publishes what an 820 is. What matters in production is why one fails, and these are the failure modes we can put a source against today:
-
A remittance that does not add up. The BPR payment amount has to reconcile with the RMR items and ADX adjustments it claims to cover; when it does not, cash application stalls and someone posts the payment by hand.
-
Adjustments nobody reads. The 820 is where the buyer advises adjustments to the payment amount; a seller who does not process the ADX detail finds out about deductions from the bank balance instead of from the document.
If one of these is happening to you right now, skip to the bottom of the page and describe it. Diagnosing rejected documents is most of what we do.
The documents the 820 travels with
Frequently asked
+ What is an EDI 820?
The payment order or remittance advice document. It is used to transfer payment data between businesses, or to confirm payment details and advise the seller of any adjustments to the payment amount.
+ What information does an 820 include?
The purchase order or invoice number, payer and payee identification, the amount billed or to be paid, adjustments, banking information for both seller and buyer, and payment tracking information.
+ When is an 820 sent?
Typically in response to an 810 invoice or an 850 purchase order, and usually alongside the payment to the seller to confirm the details. Buyers can also use it to notify the seller of a needed invoice adjustment.
+ What is the difference between an 820 and an 835?
Both are payment and remittance documents. The 835 is the HIPAA-specified healthcare version, sent by insurance plans with the Explanation of Benefits; the 820 is the general commercial payment order and remittance advice.
Is your 820 failing, or being mandated by a partner?
Describe the situation and a named EDI specialist will tell you what it takes, including when the answer is that you do not need us.
Or call 847.969.9300Answered by a named EDI specialist on the same business day. If we are not the right answer we will say so on the first call.