POA Basics

A POA (Purchase Order Acknowledgment), primarily allows a supplier to provide their buyer with feedback on any changes they’ve initiated that may result in changes to the buyer’s purchase order. A POA also has a numerical X12 transaction code, known as an 855.

POA statuses can be applied to the whole PO and/or at the item level. The supplier may accept the PO (no change, no detail), accept the PO (with change, with detail), reject, etc. The supplier may also provide a status on a specific item or items on this PO, including the statuses of accepted, backordered, on hold, etc.

So now that we understand the purchase order acknowledgements purpose and function, let’s take a look at an example of an 855  flow.

The Supplier and Their EDI Provider

The supplier logs into their web edi account, opens a PO and creates a Purchase Order Acknowledgement against that PO. The supplier accepts all items on the PO and completes all required fields on the POA form, which is then “sent” and validation is executed against the POA to ensure compliancy.  Next, a POA flat file is processed by the supplier’s EDI provider. Using EDI Werx’s as example, our translator will convert the flat file to an 855. EDI Werx establishes an FTP connection to Easylink and uploads the 855. The 855 is received on EDI Werx’s VAN, which queries the ISA envelope, identifies the sender and receiver IDs and checks if these IDs are associated to mailboxes on its network. VAN confirms the sender ID (ISA05,06) has a mailbox but the receiver (ISA07,08) does not and proceeds to load the 855 to EDI Werx’s mailbox. VAN checks it’s interconnect table and finds the receiver ID is interconnected to GXS – sending the 855 to GXS via S/FTP.

The Retailer: Final Steps In Processing the POA

The 855 is then received on the trading partner/retailer’s VAN. We’ll use GXS as an example. VAN queries the ISA envelope, identifies the sender and receiver IDs and checks if these IDs are associated to mailboxes on its network. It confirms the receiver ID (ISA07,08) has a mailbox but the receiver (ISA07,08) does not and will load the 855 to the retailer’s mailbox.

The retailer establishes an FTP connection to GXS and downloads the 855 from their VAN mailbox, the 855 is processed by the their EDI translator and converted to a POA flat file. A POA flat file is imported into the retailer’s ERP system and it’s content loaded. The Purchase Order Acknowledgment is reconciled to the original PO and provides an acknowledgement status.

 

This is the complete step-by-step process of the 855 flow. Get in touch for more details on how we can assist in B2B processing.