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EDI 820

EDI 820: Payment Order or Remittance Advice

Transferring payment data between businesses requires an acute amount of accuracy and security. Using an EDI system is the best way to accomplish accuracy and security when dealing with financial information. 

The EDI 820 is known as the EDI payment order or remittance advice document. The EDI 820 is used to transfer payment data between businesses or to confirm payment details and advise the seller of any adjustments to the payment amount. It typically includes information, such as:

  • Purchase Order or Invoice number 
  • Payer and payee identification 
  • Amount billed or to be paid
  • Adjustments 
  • Banking information for both seller and buyer
  • Payment tracking information 

An EDI 820 document is typically sent in response to an EDI 810 Invoice or an EDI 850 Purchase Order document.

At Effective Data, we offer top-to-bottom EDI solutions for all financial EDI services. We ensure that all documents are transferred securely with the precision accuracy that comes with using an EDI system.

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edi 820 transaction for financial sector

Data for the EDI 820 can either be manually entered into an EDI standard document or pulled from data integration through your in-house EDI system.

Once the data is entered into the EDI translator, it will begin the conversion process into an EDI document. This conversion process allows for your accuracy and security needs to be met.

The EDI 820 is an important document for both buyers and sellers. Typically, the EDI 820 documents are sent alongside payment to the seller to confirm details. In addition, buyers can use the EDI 820 to inform sellers of a needed adjustment to the invoice.

After the seller receives the EDI 820, the EDI system will generate an EDI 997 Functional Acknowledgement to send to the buyer to confirm receipt.

EDI 820 transactions are most commonly sent directly to the receiver where the receiver of the EDI 820 decodes the EDI into a document that the recipient can use. The second way of sending the EDI 820 is to send it via a secure dial-up connection to a Value-Added Network (VAN) and then is routed to the recipient.

Financial EDI Solutions

At Effective Data, we support all primary EDI communication methods while maintaining knowledge of changing industry standards and trends. We understand that the need for security when sending financial information between businesses. 

We specialize in helping businesses securely automate financial transactions. Our services include:

  • Cloud EDI
  • Off-premise EDI
  • On-premise EDI
  • Hosted EDI
  • EDI Assessment 
  • Strategy/Consulting
  • Process Automation
  • VAN Services
  • And More

We offer full-service, one-on-one support for all of your needs. 

Contact Effective Data to learn more about our EDI solutions for the financial sector integration needs.

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