EDI 849

What are the Essential Components of EDI 849?

An EDI 849 document must include data from the EDI 844 request, along with other pertinent information relating to the requested adjustment. Elements of EDI 849 can include (but are not limited to): 

• Manufacturer and wholesaler identifying information 
• Document number and date 
• Type and amount of adjustment requested 
• Product information, where applicable 
• Indication of acceptance, rejection, or acceptance with changes 
• Chargeback reconciliation details 

How do I Use EDI 849?

When selling a product to a wholesaler, manufacturers commonly sell at a wholesale price, as agreed upon in that wholesaler’s contract. The wholesaler, in turn, sells to a customer. Sometimes, the customer has an agreed upon manufacturer rebate, entitling them to a lower price. 

To account for this rebate, after the completion of the sale the wholesaler will send the manufacturer an EDI 844 Product Transfer Account Adjustment, in which they request a credit. The manufacturer then uses EDI 849 as a response document. They can use EDI 849 to indicate whether they are accepting or rejecting an account adjustment outright or need to make changes before accepting. 

Upon receipt of the EDI 849, the wholesaler sends back an EDI 997 Functional Acknowledgement. 

What are the Benefits of EDI 849?

EDI 849 eliminates the need to create a paper, email, or PDF response to an account adjustment request. Because the document can be created automatically and generally pulls data directly from EDI 844 and associated business systems, it not only saves time, but also reduces errors from manual data entry. This, in turn, reduces the possibility of an adjustment discrepancy, which can negatively impact cash flow. 

Additionally, many EDI software solutions provide additional security measures for their EDI transactions, such as FTPs and HTTPs protocols, in-transit encryption, and user authentication for EDI portals. These help protect sensitive business and transaction details better than their emailed or faxed counterparts.