What is an EDI 820?

An EDI 820 is the Payment Order or Remittance Advice, sent by a retailer to explain a payment. It lists the invoices being paid, the amounts applied to each, and any deductions taken, with a reason code for every deduction. It is the document that tells a supplier why a payment arrived smaller than the invoice.

Reconciling 820s is how deductions get caught while they are still disputable. Most retailers impose a filing window — commonly 30 to 90 days — after which an unchallenged deduction becomes permanent.

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