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 · Finance

EDI 891 Deduction Research Report

The X12 document a seller uses to request information about a deduction from an invoice, and buyers or agents use to provide the details.

Sent by
Seller, or buyer or seller's agent
Received by
Buyer, or seller
Standard
ANSI ASC X12

What is an EDI 891?

The EDI 891 Deduction Research Report is the ANSI X12 transaction set a seller can use to request information about a deduction taken from an invoice. A seller's agent or buyer can also use it to provide the complete details needed to resolve deduction amounts.

Retailers often pay less than the invoice, deducting for promotions, shortages, damages or compliance penalties. Without detail, suppliers spend significant time researching each deduction. The 891 exchanges the reasons and supporting references so deductions can be validated or disputed quickly.

How the EDI 891 worksDiagram of the EDI 891 Deduction Research Report. Seller, or buyer or seller's agent sends it to buyer, or seller. It usually follows 820. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and N1 (Party Identification) and detail: the required 0100 loop with ENT (Entity). 1 optional loops are listed by their first segment.How the EDI 891 worksDeduction Research Report: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWS820PaymentOrder/Remittance AdviceEDI 891SENDERSeller, or buyer orseller's agentRECEIVERBuyer, or seller997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code UDGS … GETransaction set 891ST … SEHEADINGBGNBeginning SegmentN1Party IdentificationDETAILRequired loop 0100 · repeats up to 100ENTEntity+ 1 optional loop, starting with:N9Blue 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 891. Your trading partner's implementation guide adds its own requirements.
How the EDI 891 worksDiagram of the EDI 891 Deduction Research Report. Seller, or buyer or seller's agent sends it to buyer, or seller. It usually follows 820. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and N1 (Party Identification) and detail: the required 0100 loop with ENT (Entity). 1 optional loops are listed by their first segment.How the EDI 891 worksDeduction Research Report: who sends it,where it fits and what the standard marksrequired1 WHERE IT FITSUSUALLY FOLLOWS820Payment Order/Remittance AdviceEDI 891SENDERSeller, or buyeror seller's agentRECEIVERBuyer, or seller997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code UD (GS … GE)Transaction set 891 (ST … SE)HEADINGBGNBeginning SegmentN1Party IdentificationDETAILRequired loop 0100 · repeats upto 100ENTEntity+ 1 optional loop, starting with:N9Blue 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 891. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 891, 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 891 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

  • Requesting details of an unexplained deduction
  • Providing supporting details for deductions taken
  • Resolving disputed deductions

Where it fits in the document flow

Usually follows 820 Payment Order/Remittance Advice
This document 891 Deduction Research Report
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 891 (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
  • BGN
  • N1
  • ENT
  • N9
  • ADX
  • SE

Practical example

The 891 in practice

A snack manufacturer receives a payment from a grocery chain with a deduction it cannot identify. Its deductions team sends the chain an 891 requesting details. The chain replies with an 891 showing the deduction relates to a promotion allowance, with the promotion number and the cases sold, and the manufacturer clears the item.

Implementation

Implementation considerations for the 891

  • Reference the invoice and payment where the deduction occurred.
  • Use reason codes both parties map the same way.
  • Respond within the dispute windows agreed with the buyer.
  • Link resolved deductions to credit notes or repayments.

How ECOM helps

Automate the 891 with ECOM

Industry

Consumer Goods

Retail, distributor, marketplace and direct-channel integration for consumer brands.

Industry

Retail

Retail and eCommerce EDI for suppliers and retailers, from purchase order to payment, with compliance built in.

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

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

Related transactions

Related finance documents

All 58 finance documents

Need help with the EDI 891?

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

Request a Demo Contact us