What is EDI 820 – Payment Order/Remittance Advice

We wanted to explain the EDI 820 document – Payment Order/Remittance Advice – that we use to process payments and communicate payment details.

The EDI 820 transaction set is a standard Electronic Data Interchange (EDI) format. It conveys details about payment transactions, including remittance advice or payment orders. This document serves two primary purposes: it confirms the receipt and application of payments for invoices and provides detailed information about the payment transaction.

Here's a simplified breakdown of what an EDI 820 document typically includes:

• Transaction Set Header (ST Segment): Identifies the start of the payment order/remittance advice transaction set and assigns a control number.

• Financial Information (BPR Segment): Provides details about the transaction amount, payment method, and whether it's a debit or credit.

• Trace (TRN Segment): Includes a reference number for tracking purposes, like a check number.

• Date/Time Reference (DTM Segment): Indicates the transaction date.

• Payer and Payee Identification (N1 Segments): Names and details of the payer and payee.

• Remittance Advice (RMR Segment): Details about the invoices being paid, including invoice numbers and amounts.

• Transaction Set Trailer (SE Segment): Marks the end of the transaction set and provides a count of the included segments.

If you have any questions about a specific EDI 820 document you received or need further clarification on any parts, please don't hesitate to reach out. We are here to ensure that all your transactions are processed smoothly and transparently.