The electronic replacement for paper invoices - sent by suppliers to request payment from buyers, enabling straight-through AP automation and 3-way PO/receipt/invoice matching across every supply chain vertical.
The EDI 810 Invoice is the electronic equivalent of a paper invoice, sent by a supplier (seller) to a buyer requesting payment for goods or services delivered. It is one of the most universally implemented EDI transaction sets - nearly every company engaged in B2B commerce uses the 810, regardless of industry or trading partner relationship. Unlike paper invoices that require manual data entry into accounts payable systems, an 810 flows directly into the buyer's ERP for automated matching and payment scheduling.
The 810 is structured around a header (invoice number, date, terms, references to PO and ASN), a detail section with line-level item information (IT1 loops - item number, quantity, unit price, product IDs), allowance/charge segments (SAC - for freight, early pay discounts, fuel surcharges), and a summary section (TDS for total invoice amount, CTT for line count hash). The buyer's AP system performs 3-way matching: PO quantity and price from the 850, received quantity from the 856, and billed quantity and price from the 810.
Discrepancies caught during matching often result in a short-pay or a 812 Credit/Debit Adjustment. Common mismatches include invoicing for quantity ordered vs. quantity shipped, price variances from PO price changes, and allowance/charge disagreements. Getting the 810 right the first time accelerates cash flow and reduces the dispute cycle that eats supplier cash flow.
Every retail vendor invoicing major retailers must send 810s. Retailers like Target, Walmart, and Amazon will not process paper invoices - electronic invoicing is mandatory. The 810 feeds directly into the retailer's AP system for 3-way match, and any discrepancy triggers an automatic short-pay or chargeback deduction.
Manufacturers invoicing distributors, OEM partners, or direct buyers use the 810 to bill for components, finished goods, and sometimes tooling or NRE (non-recurring engineering) charges. Manufacturing 810s often carry complex SAC allowance/charge structures for volume rebates, freight terms, and early payment discounts.
Wholesale distributors sending invoices to retailer customers rely on 810s with dense IT1 line detail - often hundreds of line items per invoice. Distributor 810s must carefully map product identifiers (UPC, buyer item number, supplier item number) across all IT1/PID loops to enable automated matching on both sides.
Third-party logistics providers invoice clients for warehousing, pick-and-pack, and transportation services using 810. 3PL invoices often contain SAC segments for handling fees, storage charges, and pallet fees. Automated 810 processing eliminates the error-prone manual billing reconciliation that is common in 3PL relationships.
The mandatory header segment. BIG01 = invoice date (CCYYMMDD), BIG02 = invoice number (supplier-assigned, up to 22 chars), BIG03 = purchase order date, BIG04 = purchase order number (must match the 850 PO number exactly). BIG06 = transaction type code - DR for debit (standard invoice) or CR for credit memo.
One IT1 loop per invoiced line item. IT101 = assigned ID (line number), IT102 = invoiced quantity, IT103 = unit of measure code (EA, CA, DZ, CS), IT104 = unit price, IT105 = basis of unit price code (PE = per each, PB = per pound). The IT1 loop contains child segments including PID (description), REF (item IDs), and SAC (line-level allowances).
Within the IT1 loop, PID carries the item description. PID01 = item description type (F = free-form, S = structured), PID05 = the description text. PID segments within IT1 carry buyer item numbers, supplier item numbers, and UPCs via companion REF segments with qualifiers BP (buyer's part number), VP (vendor's part number), and UI (UPC).
Header or line-level allowances and charges. SAC01 = A (allowance) or C (charge). SAC02 = allowance/charge code: G830 (freight), H850 (fuel surcharge), C310 (cash discount), B030 (promotional allowance). SAC05 = amount in cents. Critical for retailers who expect specific allowance codes matching their vendor agreement.
The single most important summary segment. TDS01 = total invoice amount in cents (no decimal - $1,234.56 is expressed as 123456). The TDS amount must equal the sum of all IT1 line extensions plus header SAC charges minus allowances. Mismatches here cause automatic rejection at many buyers' AP systems.
Payment terms segment. ITD01 = terms type code (01 = basic, 05 = discount not applicable), ITD02 = terms basis date code (3 = invoice date), ITD03 = terms discount percent (e.g., 2.000 for 2%), ITD05 = terms discount days due (e.g., 10 for net-10), ITD07 = net due days (e.g., 30 for net-30). These terms feed the buyer's payment scheduling module.
The 810 invoices against the PO from the 850. The PO number in BIG04 must match the 850 exactly. PO line numbers in IT101 should align with BPO line numbers so the buyer can match billed lines to ordered lines.
The 856 ASN provides the received quantities that the buyer's AP system matches against the 810. Invoicing for quantities that differ from what was confirmed received in the 856 is the most common cause of invoice disputes.
The buyer's response to an 810, detailing which invoice numbers are being paid, in what amounts, and what deductions are being taken. Suppliers reconcile the 820 against open 810s to close out accounts receivable.
Sent by the buyer (or supplier) when an 810 invoice contains errors or when chargebacks are assessed. The 812 references the original invoice number and specifies the adjustment amount and reason code.
Better EDI handles 810 mapping, testing, and trading partner certification so you don't have to.
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