Complete 2024-2025 guide to Costco EDI compliance. Learn mandatory 850, 856, 810 requirements, GS1-128 labeling, SPS Commerce certification, and how to avoid chargebacks.
As of 2024, Costco now requires full EDI compliance across the board for all vendors. Partial setups—like sending invoices by EDI but handling ASNs manually—are no longer acceptable. Every shipment must be pre-announced with exact contents, and all documents (850 Purchase Orders, 856 ASNs, 810 Invoices) must go through EDI.
Costco has standardized EDI requirements and partnered with SPS Commerce for onboarding and certification. All vendors must complete SPS certification before shipping.
Costco mandates these core EDI transactions for all vendors:
Suppliers MUST send EDI 997 functional acknowledgments no more than 24 hours from when Costco purchase orders were placed in their mailbox. Late 997s result in compliance violations.
The EDI 850 Purchase Order from Costco contains all order details including item numbers, quantities, pricing, delivery locations, and expected delivery dates.
BEG*00*SA*CO2024001234*20251020~ Element 3: PO Number (CO2024001234) Element 4: PO Date (October 20, 2025) REF*DP*5678~ Costco Warehouse Number (5678) DTM*002*20251027~ Delivery Date: October 27, 2025 Qualifier 002 = Delivery requested N1*ST*COSTCO WHOLESALE*92*5678~ Ship-to: Costco Warehouse #5678 Qualifier 92 = Assigned by buyer PO1*1*500*EA*12.99*PE*VN*ITEM123~ Line 1: 500 units at $12.99 each Vendor Item Number: ITEM123 PID*F****Product Description Here~ Item description
Use PlainEDI's 850 converter to instantly convert Costco purchase orders to CSV/Excel. Extract PO numbers, warehouse locations, and line items in seconds.
The 856 ASN is mandatory and must be sent before the shipment arrivesat the warehouse. Costco's system preloads receiving data based on your ASN, so accuracy is critical.
BSN*00*SHIP001*20251020*143000~ Shipment ID: SHIP001 Date/Time: October 20, 2025 at 2:30 PM HL*1**S~ Hierarchical Level 1: Shipment TD5*B*2*FEDEX*M*123456789~ Carrier: FedEx Tracking: 123456789 REF*BM*CO2024001234~ Reference to original PO number DTM*011*20251021~ Estimated arrival: October 21, 2025 N1*SF*YOUR COMPANY NAME*92*VENDOR123~ Ship-from location HL*2*1*O~ Hierarchical Level 2: Order (parent: shipment) PRF*CO2024001234~ PO Number reference HL*3*2*P~ Hierarchical Level 3: Pack/Pallet (parent: order) MAN*GM*00123456789012345678~ SSCC-18 barcode on pallet This must match GS1-128 label exactly HL*4*3*I~ Hierarchical Level 4: Item (parent: pack) LIN**VN*ITEM123~ Vendor item number: ITEM123 SN1**500*EA~ Quantity: 500 units HL*5*3*I~ Another item on same pallet LIN**VN*ITEM456~ Vendor item number: ITEM456 SN1**200*EA~ Quantity: 200 units
A mismatch between your ASN and physical shipment—whether it's a wrong PO number, unreadable barcode, or incorrect item quantity—results in chargebacks or manual holds at receiving.
Costco requires GS1-128 barcode labels on all pallets and cartons. These labels must be scannable, follow Costco's layout specifications, and match your ASN exactly.
Use GS1-compliant label printing software. Test label scannability before shipping. Unreadable barcodes cause receiving delays and chargebacks.
The EDI 810 Invoice must reference the original PO number and match the quantities from your 856 ASN. Invoice accuracy is critical for Costco's automated three-way matching (PO ↔ ASN ↔ Invoice).
BIG*20251021*INV2024001*20251020*CO2024001234~ Invoice Date: October 21, 2025 Invoice Number: INV2024001 PO Date: October 20, 2025 PO Number: CO2024001234 REF*DP*5678~ Costco warehouse reference N1*BY*COSTCO WHOLESALE*92*5678~ Bill-to: Costco Warehouse #5678 IT1*1*500*EA*12.99**VN*ITEM123~ Line 1: 500 units at $12.99 Vendor Item Number: ITEM123 TDS*649500~ Total amount: $6,495.00 (500 × $12.99) CAD*****NET30~ Payment terms: Net 30 days
Costco has standardized onboarding through SPS Commerce. Whether you use SPS's web portal or your own EDI system, you must complete SPS's certification process to be approved for shipping.
You can use your own EDI software instead of SPS's web portal, but you'll still route through SPS's network and must pass their certification process.
Error: 997 sent more than 24 hours after receiving 850 PO
Solution: Configure your EDI system to automatically generate and send 997s within 1 hour of receiving any inbound document.
Error: 856 ASN arrives after shipment reaches warehouse
Solution: Integrate your WMS with EDI to trigger ASN transmission the moment the shipment leaves your dock.
Error: ASN shows 10 pallets, but only 9 arrive
Solution: Implement barcode scanning at your warehouse. Verify final carton/pallet counts before sending ASN.
Error: Label won't scan at Costco receiving
Solution: Use high-quality thermal printers. Test label scannability before shipping. Ensure labels are placed on flat surfaces, not wrinkled areas.
Error: 810 Invoice references incorrect PO number
Solution: Implement automated PO number validation. Match invoices to ASNs before transmission to catch errors.
Error: ASN missing lot number for food or consumable products
Solution: Configure your WMS to capture lot codes at receiving. Include lot numbers in ASN for all items requiring traceability.
PlainEDI converts Costco EDI files to Excel/CSV instantly, helping you:
Convert Costco EDI files to CSV/Excel in seconds. Upload your 850, 856, 810, or 997 files and get instant conversion—no EDI software required.
Convert Costco purchase orders to CSV
Validate and convert ASN files
Convert invoices to Excel format
Validate files before sending to Costco
Costco requires all vendors to route EDI through SPS Commerce's network. You can use SPS's web portal or your own EDI software, but you must pass SPS's certification process before shipping to Costco.
Suppliers must send EDI 997 functional acknowledgments within 24 hours of receiving Costco's 850 POs. Late 997s result in compliance violations tracked by SPS Commerce, which can lead to account holds.
Yes, Costco requires GS1-128 labels on all pallets and cartons. Labels must include SSCC-18 barcodes, PO numbers, and warehouse numbers. The labels must be scannable and match your ASN exactly.
Costco typically uses ANSI X12 version 4010, particularly for the 856 ASN with detailed hierarchy levels. Verify the specific version requirements with SPS Commerce during your certification process.
No. As of 2024, Costco requires full EDI compliance for all documents. Partial setups (like sending invoices by EDI but handling ASNs manually) are no longer acceptable. All 850/856/810/997 transactions must use EDI.
PlainEDI currently converts EDI files to CSV/Excel (reading inbound files like 850 POs). For creating outbound EDI files (856 ASNs, 810 Invoices), you'll need EDI translation software that integrates with SPS Commerce's network.