Electronic Data Interchange (EDI) has become the backbone for high-volume warehouse fulfillment and inventory management.
The 900-series EDI transaction sets, such as EDI 940, 943, and 945, establish automated communication channels for standardized data exchange between sellers and warehouse operators across different locations and systems.
What Are The EDI Warehouse Transaction Sets?
The EDI warehouse transaction sets are standardized electronic document formats used by sellers, buyers, and third-party logistics (3PL) providers to automate warehouse communications. They enable the seamless exchange of operational information, such as shipping orders and confirmations and inventory adjustments, without manual data entry.
Warehouse Operational Workflow
In a third-party fulfillment model, EDI establishes an automated bridge between a seller’s Enterprise Resource Planning (ERP) or Order Management System (OMS) and a 3PL provider’s Warehouse Management System (WMS).
The fulfillment workflow follows a structured sequence, with specific EDI transaction sets supporting each stage:
- Order Authorization: The seller receives and processes a customer order, confirming that it’s ready for fulfillment.
- Order Release: The seller transmits an EDI 940 Warehouse Shipping Order to the 3PL facility, providing the instructions needed to pick, pack, and ship the goods.
- Pick, Pack, and Processing: Upon receiving the EDI 940, the warehouse begins picking, packing, and staging the goods for shipment.
- Shipment Confirmation: Once the order ships, the 3PL sends an EDI 945 Warehouse Shipping Advice to the seller, confirming the quantities shipped and enabling inventory updates and order status changes.
Alongside outbound fulfillment, EDI also supports inbound inventory transfers and stock reconciliation. EDI 943 notifies the warehouse of incoming inventory transfers, EDI 944 confirms receipt, and EDI 947 communicates inventory adjustments.
Let’s take a closer look.
What Is EDI 940?
EDI 940 is a standardized electronic shipping order sent by a seller or brand to the warehouse to authorize and instruct the shipment of goods to a buyer. It serves as an automated release order.
When a customer order is placed, the seller’s system can automatically generate and transmit the EDI 940 to the designated fulfillment facility based on inventory location and customer proximity.
If needed, it can be sent again to modify shipping instructions or cancel a previously issued order before fulfillment occurs.
The EDI 940 Warehouse Shipping Order Authorizes Outbound Customer Shipments
The EDI 940 transmits detailed shipping instructions directly into the 3PL’s WMS, enabling warehouse teams to initiate picking, packing, and shipping without manual order entry.
EDI 940 Format
The EDI 940 transaction set conforms to the ANSI ASC X12 standard structure, using specific data segments contained within standard interchange envelopes (ISA/GS/ST/SE/GE/IEA):
- W05 (Warehouse Order Identification): Specifies the order status code, order number, and order date.
- N1 (Name): Identifies key entities using qualifiers such as Ship-From (SF), Ship-To (ST), and Bill-To (BT).
- N3 & N4 (Address & Geographic Location): Contains street address, city, state, postal code, and country code.
- N9 (Reference Identification): Transmits reference numbers, customer order numbers, and promotional identifiers.
- G62 (Date/Time): Specifies requested ship dates and delivery windows.
- W66 (Warehouse Carrier Information): Communicates transport method codes, freight payment terms, and carrier routing.
- LX & W01 (Line Item Detail): Lists sequential line numbers, item quantities, units of measure, and product identifiers.
- W76 (Total Shipping Order): Provides order summary data, including total quantities and, where applicable, weight and volume..
What Is EDI 943?
EDI 943 is an electronic transaction set that is sent by a depositor or seller to notify a 3PL warehouse that a shipment of inventory is en route to their facility – acting like an advance shipment notice.
Once the EDI 943 is transmitted, warehouse teams can allocate dock space, schedule receiving labor, and prepare bin locations prior to the shipment’s arrival.
The EDI 943 Notifies The Warehouse of Incoming Inventory
The EDI 943 equips the receiving warehouse with full visibility into incoming stock shipments, helping reduce receiving bottlenecks and inventory discrepancies.
EDI 943 Format
The EDI 943 transaction set also follows standardized ANSI X12 structural conventions:
- BSN (Beginning Segment for Ship Notice): Transmits transaction control numbers, shipment dates, and time stamps.
- N1 (Name Loops): Identifies the depositor, origin warehouse, and receiving facility.
- G62 (Date/Time): Indicates scheduled ship dates and estimated arrival dates.
- W04 (Warehouse Item Detail): Details item quantities, units of measure, and item identifiers for incoming stock.
What Is EDI 944?
EDI 944 is an electronic receipt advice sent by a 3PL warehouse to a seller to confirm that a stock transfer shipment has been received. It details received quantities, item conditions, and discrepancies.
The EDI 944 Confirms Inbound Receipts
After the warehouse processes an incoming stock transfer, the 3PL generates and transmits an EDI 944 back to the depositor that acts as an official confirmation of receipt, closing the inbound transfer loop initiated by the EDI 943.
It enables the ERP system to update accurate stock balances and identify inventory available for sale while flagging damaged or incorrect items.
EDI 944 Format
The EDI 944 is formatted according to X12 standards:
- W17 (Warehouse Receipt Identification): Transmits receipt control numbers, receipt dates, and transaction status codes.
- N1 (Name Loops): Identifies the receiving facility, shipping origin, and depositor.
- G62 (Date/Time): Records actual unloading and receiving timestamps.
- W07 (Warehouse Item Detail): Specifies item-level quantities received, variance codes, and item condition status.
- W13 (Item Detail Exception): Identifies line-item discrepancies, such as quantity shortages, overages, damaged goods, or specific exception reason codes.
What Is EDI 945?
EDI 945 is an electronic shipping advice sent by a 3PL warehouse to a seller to confirm that an order has been picked, packed, and shipped. It contains shipment tracking details, carrier data, and final shipped quantities.
The EDI 945 Confirms Completed Shipments
After completing a shipment, the 3PL transmits the EDI 945 back to the seller’s system. It’s the final confirmation step in seller-to-warehouse outbound communications, confirming that the EDI 940 instructions have been executed, and potentially triggering customer invoicing.
EDI 945 Format
The EDI 945 structure incorporates key X12 segments:
- W06 (Warehouse Shipment Identification): Communicates shipment status, order identification, and ship date.
- N1 (Name Loops): Verifies Ship-From, Ship-To, and Carrier entity details.
- G62 (Date/Time): Records actual shipment date and estimated delivery timestamps.
- W27 (Carrier Details): Identifies carrier transport method, routing codes, and trailer numbers.
- LX & W12 (Warehouse Item Detail): Details shipped item numbers, quantities shipped, shorted quantities, and lot numbers.
What Is EDI 947?
EDI 947 is an electronic document used by a warehouse or seller to communicate internal adjustments or status changes to inventory records. It updates stock balances for damaged, expired, or recounted goods.
The EDI 947 Warehouse Inventory Adjustment Advice: Updating Inventory Balances
When inventory adjustments occur in the warehouse due to factors other than incoming shipments or customer orders, the 3PL issues an EDI 947 to update a customer’s stock records to keep the customer’s accounting or order management systems in sync.
EDI 947 Format
The EDI 947 structure utilizes standard X12 formatting:
- W15 (Warehouse Adjustment Identification): Contains adjustment reference numbers, transaction dates, and reason codes.
- N1 (Name Loops): Identifies the reporting facility and depositor account.
- W19 (Warehouse Adjustment Item Detail): Specifies item identification codes, adjusted quantities (positive or negative), unit of measure, and specific inventory adjustment reason codes.
EDI, Built and Run In-House at ACT Fulfillment
ACT Fulfillment builds and maintains its EDI connections in-house, mapped directly into a tier-1 warehouse management system. So your 940s, 943s, and 945s do not just transmit, they get acted on, confirmed, and reconciled by the same team running your inventory.
