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X12 transaction guide · Shipping and logistics

EDI 857 Shipment and Billing Notice

The X12 document that gives a shipment's recipient the data for both receipt planning and payment, combining a ship notice and invoice.

Sent by
Supplier or seller
Received by
Buyer's receiving and accounts payable functions
Standard
ANSI ASC X12

What is an EDI 857?

The EDI 857 Shipment and Billing Notice is the ANSI X12 transaction set that provides the recipient of a shipment with data for both receipt planning and payment generation. In many relationships a seller sends a ship notice (856) to the buyer's receiving function and an invoice (810) to payables, even though most of their content overlaps. The 857 consolidates the two into one document.

It is used where the buyer pays on receipt or where shipment and billing are inherently linked, as in some direct store delivery and evaluated receipt arrangements. The buyer's systems must split the content between receiving and accounts payable.

How the EDI 857 worksDiagram of the EDI 857 Shipment and Billing Notice. Supplier or seller sends it to buyer's receiving and accounts payable functions. It usually follows 850. It is usually followed by 861 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BHT (Beginning of Hierarchical Transaction) and the required HL loop with HL (Hierarchical Level). 5 optional loops are listed by their first segment.How the EDI 857 worksShipment and Billing Notice: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWS850Purchase OrderEDI 857SENDERSupplier or sellerRECEIVERBuyer's receiving andaccounts payablefunctions997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY861ReceivingAdvice/AcceptanceCertificate997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code BSGS … GETransaction set 857ST … SEHEADINGBHTBeginning of Hierarchical TransactionRequired loop HL · repeats many timesHLHierarchical Level+ 5 optional loops, starting with:G05TDSPALLXIT1Blue 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 857. Your trading partner's implementation guide adds its own requirements.
How the EDI 857 worksDiagram of the EDI 857 Shipment and Billing Notice. Supplier or seller sends it to buyer's receiving and accounts payable functions. It usually follows 850. It is usually followed by 861 and 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BHT (Beginning of Hierarchical Transaction) and the required HL loop with HL (Hierarchical Level). 5 optional loops are listed by their first segment.How the EDI 857 worksShipment and Billing Notice: who sends it,where it fits and what the standard marksrequired1 WHERE IT FITSUSUALLY FOLLOWS850Purchase OrderEDI 857SENDERSupplier orsellerRECEIVERBuyer'sreceiving andaccountspayablefunctions997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY861Receiving Advice/AcceptanceCertificate997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code BS (GS … GE)Transaction set 857 (ST … SE)HEADINGBHTBeginning of HierarchicalTransactionRequired loop HL · repeats manytimesHLHierarchical Level+ 5 optional loops, starting with:G05TDSPALLXIT1Blue 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 857. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 857, 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 857 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

  • Replacing a separate 856 and 810 for the same shipment
  • Supporting pay-on-receipt arrangements
  • Sending shipment and billing details from one event

Where it fits in the document flow

Usually follows 850 Purchase Order
This document 857 Shipment and Billing Notice
Usually followed by 861 Receiving Advice/Acceptance Certificate997 Functional Acknowledgment

Structure

Mandatory segments in the 857 (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
  • BHT
  • HL
  • G05
  • N1
  • LM
  • LQ
  • TDS
  • SAC
  • FA1
  • FA2
  • PAL
  • LX
  • IT1
  • PID
  • SLN
  • SE

Practical example

The 857 in practice

A packaging supplier delivers corrugated boxes to a beverage plant several times a week under a blanket order. Instead of an 856 and an 810 per delivery, it sends one 857 with the shipment, the cartons and pallets, the items and quantities, and the prices and totals. The plant receives against the shipment data and its payables system schedules payment from the same document.

Implementation

Implementation considerations for the 857

  • Agree with the buyer that the 857 replaces both the 856 and 810, not just one of them.
  • Make sure the buyer's systems route the receiving and billing content to the right functions.
  • Handle quantity differences found at receipt, since the billing figures come from the shipment.
  • Check tax and charge requirements that an 810 would normally carry.

How ECOM helps

Automate the 857 with ECOM

Solution

Order-to-Cash Automation

Automate the flow from purchase order to payment across every customer channel.

Solution

Procure-to-Pay Automation

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

Industry

Manufacturing

Customer schedules, supplier connectivity and shipping integrated with the ERP for manufacturers.

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

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