EDI Compliance Chargebacks Explained
An EDI chargeback happens when one of four electronic documents is missing, late, or doesn't match what actually shipped, and the retailer charges the vendor for it. Each retailer publishes its own EDI rules and fees, so the same miss gets charged differently depending on who's charging it.
Which EDI document failures become a chargeback
An EDI chargeback happens when one of four electronic documents is missing, late, or doesn't match what actually shipped, and the retailer charges the vendor for it. Each retailer publishes its own EDI rules and fees, so the same miss gets charged differently depending on who's charging it.
The purchase order (850) and its acknowledgment
The retailer sends the 850 purchase order to the vendor. Some retailers, Bealls for example, also require the vendor to send back a PO acknowledgment and charge the vendor when it's missing, late, or unusable.
The ASN (856): missing, late, or mismatched
The vendor sends the 856 ASN to the retailer to describe a shipment before it arrives, and each retailer sets its own deadline and accuracy rules for it.
The invoice (810), and what a 997 proves
The vendor sends the 810 invoice to the retailer. Bealls, for example, charges the vendor for an "810 Invoice invalid and/or incorrect data" (code 801) and an "810 Invoice not sent via EDI" (code 803). A 997 backs up your transmission log, but it never proves the contents were right.
Kroger requires the vendor to acknowledge the transactions it receives within the standard's window "or within twenty-four (24) hours, whichever is the shorter period." Vendors shipping to Kroger distribution centers get "ninety (90) days" to receive POs and return invoices via EDI before a fee applies.
How to check an EDI chargeback against your own log
Start with the send timestamp from your EDI log and the 997 confirming receipt, then check the ASN's carton contents against the labels you actually applied.
See also Burlington, Bealls, Kroger, OTIF fines, shortage disputes, and disputing a deduction.
Roy matches each deduction to the documents that answer it and prepares the dispute for review. Want to know where your own EDI compliance chargebacks stand? Get a free deduction assessment.
Frequently asked questions
What is an EDI compliance chargeback?
- A charge a retailer takes from the vendor when an 850 purchase order, 856 ASN, 810 invoice, or 997 acknowledgment is missing, late, or doesn't match the shipment.
What is an ASN-to-carton mismatch?
- The ASN disagrees with the shipping labels on the cartons. Burlington requires the ASN's carton identifiers to match the shipping label.
Does a 997 functional acknowledgment prove an ASN or invoice was correct?
- No. A 997 only confirms a transmission was received and correctly formed. It never confirms the contents were accurate.
Is an EDI chargeback disputable?
- Yes, when your EDI log, 997, or carton contents contradicts the retailer's stated miss. Confirm the retailer's current rules before filing.
Not sure where your EDI compliance chargebacks stand?
Get a quick assessment of your open EDI compliance chargebacks.