EDI 820: Payment Order/Remittance Advice

The EDI 820 payment order/remittance advice set provides the EDI format for transmitting information relating to payments. It is used by buyer to notify seller of payment of an invoice or invoices. Often an EDI 820 payment order/remittance advice accompanies the electronic transfer of funds transfer, and may be incorporated into an ACH banking transactions.

It also called x12 820 payment order/remittance advices.

Benefits of using EDI 820 payment order/remittance advice

Implementing 820 payment order/remittance advices is benefited for both buyers and seller. Some important benefits are:

• Allows the sellers to keep track of accounts that need to be settled by buyers
• Gives supplier to ability to reconcile which invoices have been paid in full
• Encrypts the data to ensure security when exchanging information about payments between buyer and seller
• Informs the buyer and seller of any changes made to payment details and information

Some key data element in EDI 820 includes:

• Payment amount
• Trading partner identification
• Invoice adjustments
• Banking & account identification
• Invoice payment information

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