EDI 940 Warehouse Shipping Order Transaction Specifications
Table of Contents
1. What is an EDI 940 Warehouse Shipping Order?
The EDI 940 instructs remote warehouses to ship orders. It is most often used by the seller, a wholesaler or manufacturer, to authorize a warehouse to send a shipment to a buyer, like a retailer.
In short, the EDI 940 more or less informs the warehouse on what to ship, when to ship, and how much to ship.
The EDI 940 includes the following information:
- Supplier/manufacturer identification
- Required delivery date
- Item numbers, descriptions, and quantities
- Ship-to information
- Bill-to information
- Any special shipper requirements
2. What are the Essential Components of EDI 940?
Warehouse Shipping Orders need to have all the relevant details about an order, as well as specific shipping details. Key components of EDI 940 include:
- Purchase Order number
- Warehouse order details, such as products, product quantity units of measure, expected shipping date, and item identification
- Ship-to address
- Receiver contact information
- Shipping instructions
- Special equipment requirements (such as refrigerated freight needs)
3. How does a typical EDI 940 structure look like?
Here are the essential components of an EDI 940.
The EDI 940 contains specific information including:
1. Delivery date
2. Manufacturer information
3. Item descriptions
4. Item quantities
5. Ship-to information (location name and address, contact, etc.)
6. Bill-to information
7. Shipment method information
4. EDI 940 Document
In order to understand the usage and utility of the EDI 940 document, it is important to understand the workflow to exchange this document. Let us assume that the ordered products are delivered in advance to the 3PL warehouse and inventory of your store in your CRM is synchronized with an inventory of the 3PL warehouse.
Now, the customary workflow for exchanging warehouse shipping can be explained in the following steps: –
- Buyer or customer sends a Purchase Order (EDI 850) to the seller or supplying company of the ordered products.
- The seller of the ordered products replies in the form of EDI 855 Purchase Order Acknowledgement to either accept/reject/ modify the Purchase Order.
- On the basis of information procured through EDI 850 order, the supplier sends EDI 940 (Warehouse Shipping Order) to 3PL warehouse, describing order details.
- Thereafter, the warehouse picks the order, packs and then ships it.
- Next, the warehouse sends backs an EDI 945 (Warehouse Shipment Notification) to the seller confirming that the shipment was sent out to the buyer.
- After getting receipt of the EDI 945 transaction, the seller or supplier generates an EDI 856 (Advance Ship Notice) to notify about the upcoming delivery to the buyer.
- Thereafter, on receipt of goods, the supplier sends an EDI 810 (Invoice) to the buyer.
The workflow explains the usage of EDI 940 in the relationship between buyer, seller, and third-party warehouse.
In the business world, there are many benefits of using EDI 940 (Warehouse Shipping Order) over conventional methods of communications like paper, fax or email is unquestionable and they are: –
- It reduces the time of order processing
- It reduces expenses that are related to office supplies, stationery items, and delivery of documents, as well as office manual labour and salaries.
- It considerably reduces manual data entry which makes it easier for both warehouses and sellers.
- It reduces human errors and elimination of loss of documents.
- It promotes instant delivery and receipt of documents.
- It speeds up the processing of payments.
Looking into the numerous benefits of edi 940, it is preferred by most organizations to systematize their work. It makes the work simple, mechanized, and reliable as the results are auto-generated once the information is fed into the system correctly. The payments are processed quickly which is the prime concern of any of the businesses to run smoothly. In case you want to implement edi 940, read the setup and other specifications carefully before going for it. Understand the edi 940 formats with the help of an example before implementing it or using it for your actual transactions.
Hope it will give you flawless and error-free documentation of your business transactions done on edi 940. It will definitely relieve you from manual data entry and thus makes the task easier for both warehouses and sellers.
5. How do I Use EDI 940?
EDI 940 documents are primarily used by manufacturers, suppliers and other sellers to ship goods from a remote warehouse to a buyer’s location. The document lays out all the information a 3PL needs in order to fulfill the order. Sellers can also send additional EDI 940 transactions to modify or cancel an existing Warehouse Shipping Order.
When the 3PL receives EDI 940, they’ll send back an EDI 997 Functional Acknowledgement automatically. After processing the shipment, the warehouse will also send an EDI 945 Warehouse Shipping Advice, which details the pending shipment and includes delivery date/time estimates.
6. EDI 940 Warehouse Shipping Order Workflow
7. Benefits of the EDI 940
Both the sender and the receiver benefit from implementing the EDI Warehouse Shipping Order. Many of these benefits are dependent on how automated and integrated the transaction is for both parties.
Some of the benefits of the EDI 940 include:
- Reduce administrative time spent by the supplier to manually submit shipping orders and reduce time for the 3PL to process paper-based shipping documentsR
- Eliminate the need to send/receive warehouse orders in several different formats such as email, fax or CSVR
- Reduce volume of paperwork and increase operating efficiencies through reduced time requirements to complete transactions by both partiesR
- Provide more accurate data and reduce errors
Key data elements in an EDI Warehouse Shipping Order (x12 940 Warehouse Shipping Order) document include:
- Buying party purchase order numberR
- Buyer’s ship-to locationR
- Item identifiersR
- Supplier’s order numberR
- Requested ship dateR
- Quantities
8. EDI Mapping Guide
EDI 940 document gives indications to the following parties: – the warehouse, the description of the warehouse’s customer, the customer of the account, the consignee (ship-to-address), and freight payor (if freight is sent the by third party pay), a three code number -940 and identifies the warehouse Shipping Order Transaction Set.
EDI 940 consists of the following segments:
Message Envelop / Group: –
- ISA Interchange Control Header
- GS Functional Group Header
8.1 Heading
- ST Business deal Set Header
- W05 Shipping Order recognition (N = Original Order)
- N1 Name such as ‘SF’ – Ship-from and ‘SF’ – Ship-from
- N3 Address Information
- G62 Date/Time (‘02’ – Requested Arrival ‘10’ – Pick-Up Date)
- NTE – Notes/Special directions (‘WHI’ Warehouse Instruction)
- W66 Warehouse Carrier Information
8.2 Detail (Begins detail loop)
- LX – Assigned Number
- W01 – Line Item Detail – Warehouse
- G69 Line Item Detail – Description
- N9 Reference Identification
- W20 – Line-Item Detail (Miscellaneous)
- AMT – Monetary Amount
8.3 Summary
- W76 Total Shipping Order
- SE Transaction Set clip (the last segment of each transaction set)
8.4 Message Envelop / Group Footer
- GE Functional Group Trailer
- IEA Interchange Control Trailer
8.5 EDI X12 940 Warehouse Shipping Order Sample
Warehouse Shipping Order Transaction Set (EDI 940) Sample File
ISA*00* *00* *01*051950838 *ZX*901234572111 *191016*0845*U*00300*000000001*0*T*:!
GS*OW*051950838*901234572111*20191016*0845*1*T*004010!
ST*940*0001!
W05*N*0060100015****30!
N1*BT*Unicorn Systems Inc.*82*0001002290!
N3*PO Box #796044*178 WEST 56TH STREET!
N4*Austin*TX*78169*US!
N1*ABG*City Inc.*82*1200!
N3*1290 Cordeaux Street!
N4* Cupertino *CA*94129*US!
N1*SF*Golfing Inc.*82*6201!
N3*Unit 205, 8/F,Full Centre!
N4*Siu Leak Yuen, Tatin**999097*HK*93*1000!
N1*ST*Unicorn Systems Inc.*82*0004008088!
N3*3700 Unicorn Way!
N4* San Francisco*CA*95154*US!
G62*02*20191020!
G62*10*20191022!
NTE*LAB*Please print Special Unicorn Lables!
NTE*WHI*For US ship fedex 7 day shipment with A/C – 589074543!
W66*DE*B***XXXXXX*****FBEN!
LX*2!
W01*25*EA**MN*RD69256MIKQ-TR*BP*15-36082-01!
G69*SCP38x6GSec, Pb Free!
N9*5C*MY!
N9*72*2861.90.10.00!
N9*BT*VTIDD001*****IX:800001!
N9*GJ*BLR!
N9*ZV1*2861.90.10.00!
N9*ZV2*2861.90.10.00!
N9*GRD*1917!
N9*ZX*SEAL DATE**20161128!
N9*PV*VoE 616173**20191011!
N9*UQ*0001047877**20190817***IX:000050!
N9*GR*EAR85!
N9*SR*2000!
N9*ZX3*USD!
NTE*WHI*GENERAL PURPOSE!
W20****0.050*F*C!
QTY*01*25!
AMT*CA*36!
W01*50*EA**MN*RD69256MIKQ-TR*BP*15-36082-01!
G69*SCP38x6GSec, Pb Free!
N9*5C*MY!
N9*72*2861.90.10.00!
N9*BH*1661850*****IM:900004!
N9*GJ*BLR!
N9*ZV1*2861.90.10.00!
N9*ZV2*2861.90.10.00!
N9*GRD*1917!
N9*ZX*SEAL DATE**20161128!
N9*PV*VoE 616173**20191011!
N9*UQ*0001047877**20190817***IX:000050!
N9*GR*EAR85!
N9*SR*2000!
N9*ZX3*USD!
NTE*WHI*GENERAL PURPOSE!
W20****0.100*F*C!
QTY*01*50!
AMT*CA*36!
W01*5*EA**MN*RD69256MIKQ-TR*BP*15-36082-01!
G69*SCP38x6GSec, Pb Free!
N9*5C*MY!
N9*72*2861.90.10.00!
N9*BT*V5L5G602*****IX:900004!
N9*GJ*BLR!
N9*ZV1*2861.90.10.00!
N9*ZV2*2861.90.10.00!
N9*GRD*1917!
N9*ZX*SEAL DATE**20161128!
N9*PV*VoE 616173**20191011!
N9*UQ*0001047877**20190817***IX:000050!
N9*GR*EAR85!
N9*SR*2000!
N9*ZX3*USD!
NTE*WHI*GENERAL PURPOSE!
W20****0.010*F*C!
QTY*01*5!
AMT*CA*36!
W01*20*EA**MN*RD69256MIKQ-TR*BP*15-36082-01!
G69*SCP38x6GSec, Pb Free!
N9*5C*MY!
N9*72*2861.90.10.00!
N9*GT*M5L5G693*****IX:900005!
N9*GJ*BLR!
N9*ZV1*2861.90.10.00!
N9*ZV2*2861.90.10.00!
N9*ZX3*USD!
N9*GRD*1917!
N9*ZX*SEAL DATE**20161128!
N9*PV*VoE 616173**20191011!
N9*UQ*0001047877**20190817***IX:000050!
N9*GR*EAR85!
N9*SR*2000!
N9*ZX3*USD!
NTE*WHI*GENERAL PURPOSE!
W20****0.040*F*C!
QTY*01*20!
AMT*CA*36!
LX*3!
W01*25*EA**MN*RD69256MIKQ-TR*BP*15-36082-01!
G69*SCP38x6GSec, Pb Free!
N9*5C*MY!
N9*72*2861.90.10.00!
N9*BT*VTIDD001*****IX:800001!
N9*GJ*BLR!
N9*ZV1*2861.90.10.00!
N9*ZV2*2861.90.10.00!
N9*GRD*1917!
N9*ZX*SEAL DATE**20161128!
N9*PV*VoE 616173**20191011!
N9*UQ*0001047877**20190817***IX:000050!
N9*GR*EAR85!
N9*SR*2000!
N9*ZX3*USD!
NTE*WHI*GENERAL PURPOSE!
W20****0.050*F*C!
QTY*01*25!
AMT*CA*36!
W01*50*EA**MN*RD69256MIKQ-TR*BP*15-36082-01!
G69*SCP38x6GSec, Pb Free!
N9*5C*MY!
N9*72*2861.90.10.00!
N9*BH*1661850*****IM:900004!
N9*GJ*BLR!
N9*ZV1*2861.90.10.00!
N9*ZV2*2861.90.10.00!
N9*GRD*1917!
N9*ZX*SEAL DATE**20161128!
N9*PV*VoE 616173**20191011!
N9*UQ*0001047877**20190817***IX:000050!
N9*GR*EAR85!
N9*SR*2000!
N9*ZX3*USD!
NTE*WHI*GENERAL PURPOSE!
W20****0.100*F*C!
QTY*01*50!
AMT*CA*36!
W01*8*EA**MN*RD69256MIKQ-TR*BP*15-36082-01!
G69*SCP38x6GSec, Pb Free!
N9*5C*MY!
N9*72*2861.90.10.00!
N9*BT*V5L5G602*****IX:900004!
N9*GJ*BLR!
N9*ZV1*2861.90.10.00!
N9*ZV2*2861.90.10.00!
N9*GRD*1917!
N9*ZX*SEAL DATE**20161128!
N9*PV*VoE 616173**20191011!
N9*UQ*0001047877**20190817***IX:000050!
N9*GR*EAR85!
N9*SR*2000!
N9*ZX3*USD!
NTE*WHI*GENERAL PURPOSE!
W20****0.010*F*C!
QTY*01*5!
AMT*CA*36!
W01*20*EA**MN*RD69256MIKQ-TR*BP*15-36082-01!
G69*SCP38x6GSec, Pb Free!
N9*5C*MY!
N9*72*2861.90.10.00!
N9*GT*M5L5G693*****IX:900005!
N9*GJ*BLR!
N9*ZV1*2861.90.10.00!
N9*ZV2*2861.90.10.00!
N9*ZX3*USD!
N9*GRD*1917!
N9*ZX*SEAL DATE**20161128!
N9*PV*VoE 616173**20191011!
N9*UQ*0001047877**20190817***IX:000050!
N9*GR*EAR85!
N9*SR*2000!
N9*ZX3*USD!
NTE*WHI*GENERAL PURPOSE!
W20****0.040*F*C!
QTY*01*20!
AMT*CA*36!
W76*100*0.20*58!
SE*177*0001!
GE*1*1!
IEA*1*000000001!
