972-836-7750 Request a demo Talk to an expert
Talk to an expert Request a demo Call sales 972-836-7750

X12 transaction guide · Ordering

EDI 840 Request for Quotation

The X12 document a buyer sends to potential suppliers to request prices, delivery schedules and terms for goods or services.

Sent by
Buyer or procurement team
Received by
Potential supplier
Standard
ANSI ASC X12
EDIFACT equivalent
REQOTE

What is an EDI 840?

The EDI 840 Request for Quotation is the ANSI X12 transaction set a buyer uses to ask potential sellers for prices, delivery schedules and other terms before placing an order. It identifies the items or services wanted, the quantities, required dates, the date by which quotes must be returned and any conditions the quote must meet.

The 840 starts the sourcing cycle. Suppliers answer with an 843 response to request for quotation, and the buyer compares the replies before issuing a purchase order (850). Government agencies and large manufacturers use the 840 to run competitive sourcing for repeat and engineered items.

How the EDI 840 worksDiagram of the EDI 840 Request for Quotation. Buyer or procurement team sends it to potential supplier. It usually starts the exchange. It is usually followed by 843 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BQT (Beginning Segment for Request for Quotation) and detail: the required PO1 loop with PO1 (Baseline Item Data). 16 optional loops are listed by their first segment.How the EDI 840 worksRequest for Quotation: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 840SENDERBuyer or procurementteamRECEIVERPotential supplier997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY843Response to Request forQuotation997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code RQGS … GETransaction set 840ST … SEHEADINGBQTBeginning Segment for Request for Quotation+ 7 optional loops, starting with:LDTN9N1SPIPCTADVLMDETAILRequired loop PO1 · repeats up to 100,000PO1Baseline Item Data+ 9 optional loops, starting with:PIDLMQTYSCHLDTSLNN9N1PCTBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 840. Your trading partner's implementation guide adds its own requirements.
How the EDI 840 worksDiagram of the EDI 840 Request for Quotation. Buyer or procurement team sends it to potential supplier. It usually starts the exchange. It is usually followed by 843 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BQT (Beginning Segment for Request for Quotation) and detail: the required PO1 loop with PO1 (Baseline Item Data). 16 optional loops are listed by their first segment.How the EDI 840 worksRequest for Quotation: who sends it, where itfits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 840SENDERBuyer orprocurementteamRECEIVERPotentialsupplier997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY843Response to Request for Quotation997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code RQ (GS … GE)Transaction set 840 (ST … SE)HEADINGBQTBeginning Segment forRequest for Quotation+ 7 optional loops, starting with:LDTN9N1SPIPCTADVLMDETAILRequired loop PO1 · repeats up to100,000PO1Baseline Item Data+ 9 optional loops, starting with:PIDLMQTYSCHLDTSLNN9N1PCTBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 840. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 840, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 840 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Soliciting prices from several suppliers for the same items
  • Requesting quotes for engineered or made-to-order parts
  • Running periodic re-sourcing of recurring purchases
  • Asking for delivery lead times before committing to an order

Where it fits in the document flow

This document 840 Request for Quotation
Usually followed by 843 Response to Request for Quotation997 Functional Acknowledgment

Structure

Mandatory segments in the 840 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BQT
  • LDT
  • N9
  • N1
  • SPI
  • CB1
  • PCT
  • ADV
  • LM
  • LQ
  • PO1
  • PID
  • QTY
  • SCH
  • SLN
  • SE

Practical example

The 840 in practice

A machinery manufacturer needs 5,000 machined brackets over the next year. Its procurement system sends an 840 to three approved suppliers listing the part number, drawing revision, quantities by quarter and a response deadline. Each supplier replies with an 843 giving unit prices by quantity break and lead times, and the buyer awards the business with an 850 to the best offer.

Implementation

Implementation considerations for the 840

  • Give each request a unique reference so quotes can be matched to it, and state a clear response deadline.
  • Send the same item identifiers and units of measure that the eventual purchase order will use.
  • Agree with suppliers how drawings or specifications are referenced, since the 840 usually points to them rather than carrying them.
  • Decide whether suppliers may quote alternatives or partial quantities, and how that is coded.

How ECOM helps

Automate the 840 with ECOM

Solution

Procure-to-Pay Automation

Automate purchasing, receiving and supplier invoicing across EDI, portals and documents.

Industry

Industrial Manufacturing

Distributor, OEM customer and supplier integration for industrial manufacturers.

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

More general questions about EDI are answered in the EDI FAQ.

Related transactions

Related ordering documents

All 13 ordering documents

Need help with the EDI 840?

ECOM maps, tests and monitors X12 documents for your trading partners and integrates them with your ERP.

Request a Demo Contact us