Understanding EDI 820 Payment Remittance Advice
Complete guide to reading EDI 820 payment remittances, reconciling payments with invoices, and understanding deductions and chargebacks.
What is an EDI 820 Payment Remittance Advice?
The EDI 820 transaction set, also known as the Payment Order/Remittance Advice, is sent by retailers to suppliers to confirm payment details and advise of any adjustments to the invoice amount. Think of it as an electronic version of a check stub that explains what invoices are being paid and whether any deductions or chargebacks were applied.
Here's why 820s matter: The 820 tells you exactly how much you're getting paid versus how much you invoiced. If the amounts don't match, the 820 explains why—whether it's a legitimate discount, a freight allowance, or a chargeback for a compliance violation.
The Payment Gap Problem
- Walmart: Average supplier loses 5.8% of invoices to deductions—some lose over 30%
- Target: Over-ship (A037) and Return to Vendor (A035) deductions are common
- Without 820s: You have no idea why your payment is short unless you manually check retailer portals
- With 820s: You can automatically reconcile invoices, identify invalid deductions, and dispute them faster
How the EDI 820 Works in the Payment Process
The 820 is sent in response to an 810 invoice and shows how the retailer is paying (or adjusting) your bill.
Payment Workflow
EDI 810 Invoice
You send to retailer
Invoice for $10,000 covering 3 POs
- ✓ Invoice #INV12345
- ✓ PO98765: $4,000
- ✓ PO98766: $3,000
- ✓ PO98767: $3,000
EDI 820 Remittance
Retailer sends to you
Payment details + adjustments
- ✓ Invoice #INV12345
- ✓ Invoiced: $10,000
- ⚠️ Deduction: -$250 (late ASN)
- ✓ Paid: $9,750
Reconciliation
You match and dispute
Reconcile 810 with 820
- ✓ Match invoice #INV12345
- ⚠️ Identify $250 deduction
- ✓ Dispute invalid deduction
- ✓ Recover lost revenue
EDI 820 Structure: Critical Segments
Understanding the key segments in an 820 remittance helps you quickly identify payment amounts, invoice references, and deductions.
BPR Segment: Beginning Segment for Payment Order/Remittance Advice
The BPR segment identifies the total payment amount and banking details.
- BPR01 (C): Transaction handling code (C = Payment accompanies remittance advice, H = Notification only, no payment)
- BPR02 (9750.00): ⚠️ CRITICAL — Total payment amount. This is what you're actually receiving.
- BPR03 (C): Credit/Debit flag (C = Credit, D = Debit)
- BPR04 (ACH): Payment method (ACH = Automated Clearing House, CHK = Check, FWT = Wire Transfer)
- BPR05 (CTX): Payment format code
- BPR10 (0123456789): Originator company identifier
- BPR16 (20251020): Payment effective date (YYYYMMDD format)
Key Insight:
BPR02 ($9,750) is the actual payment. If your invoice was $10,000, the difference ($250) is explained in the RMR and ADX segments below.
RMR Segment: Remittance Advice Accounts Receivable Open Item Reference
The RMR segment details which invoices are being paid and any adjustments applied to each invoice.
- RMR01 (IV): Reference identification qualifier (IV = Invoice number)
- RMR02 (INV12345): Invoice number from your 810 invoice
- RMR03: Payment action code (blank = Full payment with adjustments)
- RMR04 (9750.00): ⚠️ Net amount paid for this invoice (after discounts/deductions)
- RMR05 (10000.00): Gross invoice amount (what you originally billed)
- RMR06 (250.00): ⚠️ Total deductions/adjustments taken (the difference between RMR05 and RMR04)
Reconciliation Formula:
RMR04 (Net Paid) = RMR05 (Gross Invoice) - RMR06 (Deductions)
Example: $9,750 = $10,000 - $250
ADX Segment: Adjustment (Deduction Details)
The ADX segment explains why deductions were taken. This is where you'll find chargeback codes.
- ADX01 (-250.00): ⚠️ Adjustment amount (negative = deduction, positive = additional payment)
- ADX02 (65): Adjustment reason code (65 = Late shipment/ASN, 21 = Concealed shortage, 22 = Merchandise not shipped)
- ADX03: Reference identification qualifier
- ADX04 (LATE ASN PENALTY): Free-form description of the deduction
Common Walmart Adjustment Codes:
- Code 21: Concealed shortages
- Code 22: Merchandise billed not shipped
- Code 24: Carton shortage / Freight bill signed short
- Code 64: Early shipment
- Code 65: Late shipment
- Code 31: PO number not on invoice
REF Segment: Reference Information
The REF segment provides additional reference numbers like PO numbers, check numbers, or deduction reference IDs.
REF*0L*CHK12345~
- REF01: Reference identification qualifier (PO = Purchase Order, 0L = Check number, AH = Deduction reference)
- REF02: Reference identification (the actual PO number, check number, etc.)
Dispute Tip:
Use REF segments to track down deductions in retailer portals (Walmart Retail Link, Target's Partner Online). Reference numbers (REF*AH) are required to dispute chargebacks.
N1 Segment: Party Identification
The N1 segment identifies the payer (retailer) and payee (you, the supplier).
N1*PE*ACME SUPPLIER LLC*92*ACME001~
- N101: Entity identifier code (PR = Payer, PE = Payee)
- N102: Party name
- N103: Identification code qualifier (92 = Assigned by buyer)
- N104: Identification code
DTM Segment: Date/Time Reference
The DTM segment provides important dates like invoice date, due date, and payment date.
DTM*011*20251015~
- DTM01: Date/Time qualifier (003 = Invoice date, 011 = Shipped date, 097 = Transaction creation date)
- DTM02: Date in YYYYMMDD format
Real-World Example: Reading an 820 with Deductions
Let's walk through a complete 820 remittance with a deduction:
ISA*00* *00* *ZZ*WALMART *ZZ*ACME001 *251020*1430*U*00401*000012345*0*P*>~ GS*RA*WALMART*ACME001*20251020*1430*12345*X*004010~ ST*820*0001~ BPR*C*9750.00*C*ACH*CTX*01*111000025*DA*123456789*0123456789**01*111000025*DA*987654321*20251020~ TRN*1*0123456789*0123456789~ REF*PO*PO98765~ REF*0L*CHK12345~ DTM*097*20251020~ N1*PR*WALMART INC*92*008479345~ N1*PE*ACME SUPPLIER LLC*92*ACME001~ RMR*IV*INV12345**9750.00*10000.00*250.00~ REF*PO*PO98765~ DTM*003*20251015~ ADX*-250.00*65**LATE ASN PENALTY~ SE*14*0001~ GE*1*12345~ IEA*1*000012345~
Step-by-Step Breakdown:
BPR*C*9750.00*C*ACH*...*20251020~
Total payment: $9,750.00 via ACH, effective October 20, 2025
REF*0L*CHK12345~
Check number: CHK12345 (for your accounting records)
RMR*IV*INV12345**9750.00*10000.00*250.00~
Invoice reconciliation:
- Invoice #INV12345
- You invoiced: $10,000.00
- Deductions: $250.00
- You received: $9,750.00
ADX*-250.00*65**LATE ASN PENALTY~
Deduction explanation:
- Amount: -$250.00
- Reason code: 65 (Late shipment/ASN)
- Description: LATE ASN PENALTY
What to Do Next:
- Log into Walmart Retail Link portal
- Use invoice #INV12345 and PO #PO98765 to find the deduction
- Check your 856 ASN transmission logs—did you send the ASN late?
- If the deduction is invalid (e.g., ASN was sent on time), gather proof and dispute it
- If valid, update your processes to avoid future late ASN penalties
Common Deductions and Chargebacks in 820 Remittances
Walmart Deductions
Walmart suppliers lose an average of 5.8% of invoice value to deductions. Here are the most common codes:
| Code | Description | Common Cause |
|---|---|---|
| 21 | Concealed shortages | Cartons arrived short of expected quantity |
| 22 | Merchandise billed not shipped | Invoiced for items not included in shipment |
| 24 | Carton shortage / Freight bill signed short | Fewer cartons received than listed in 856 ASN |
| 64 | Early shipment | Shipment arrived before requested delivery date |
| 65 | Late shipment | Shipment arrived after MABD (Must Arrive By Date) |
| 31 | PO number not on invoice | 810 invoice missing or incorrect PO number |
| 11 | Price difference between PO and invoice | 810 invoice price doesn't match 850 PO price |
Target Deductions
Target uses alphanumeric deduction codes:
| Code | Description | Common Cause |
|---|---|---|
| A037 | Over-ship | Shipped more units than ordered (item overstocked) |
| A035 | Return to Vendor—Not Ordered | Shipped incorrect item or item not on PO |
| ASN | ASN compliance penalty | Missing or late 856 ASN ($0.75/carton minimum $100) |
| OTFR | On-Time Fill Rate penalty | Below 95% fill rate (5% COGS penalty) |
Amazon Vendor Central Deductions
Amazon automatically deducts from payments for:
- Shortage deductions: Invoiced quantity exceeds shipped quantity (810 IT102 > 856 SN102)
- Price mismatches: 810 invoice price doesn't match 850 PO price
- Duplicate billing: Same invoice number sent twice
- Late invoices: 810 not submitted within 24 hours of shipment confirmation
How to Reconcile 820 Payments with 810 Invoices
5-Step Reconciliation Process
- Extract key data from the 820: Invoice number (RMR02), gross amount (RMR05), net paid (RMR04), deductions (RMR06)
- Match to your 810 invoice: Find the invoice in your accounting system using the invoice number from RMR02
- Compare amounts: Does RMR05 (gross) match your 810 invoice total? If not, investigate why.
- Analyze deductions: Review ADX segments for deduction codes and amounts. Are they valid?
- Dispute invalid deductions: For any deductions you believe are incorrect, gather proof (856 ASN transmission logs, 997 acknowledgments, BOL, etc.) and file a dispute in the retailer's portal
Automated Reconciliation Tools
Many ERP systems (SAP, Oracle, NetSuite) and EDI platforms (SPS Commerce, TrueCommerce) can automatically reconcile 820 payments with 810 invoices.
Pro Tip: Set up automated alerts for when RMR04 (net paid) is less than RMR05 (gross invoice). This flags deductions immediately so you can dispute them before the dispute window closes.
How to Dispute Invalid Deductions
Walmart Deduction Disputes
- Log into Walmart Retail Link: Navigate to the "Deductions" section
- Find the deduction: Use the reference number from the 820 REF segment or invoice number (RMR02)
- Gather evidence: 856 ASN transmission logs, 997 functional acknowledgments, BOL (Bill of Lading), proof of on-time delivery
- Submit dispute: Upload evidence and provide a clear explanation of why the deduction is invalid
- Track status: Walmart has 30-60 days to respond. Follow up if you don't hear back.
Dispute window: Typically 60-90 days from the deduction date. Don't wait—dispute early.
Target Deduction Disputes
- Log into Target Partner Online: Navigate to "Deduction Management"
- Locate the deduction: Use deduction code (A037, A035, etc.) or invoice number
- Provide supporting documentation: 850 PO showing correct quantity, 856 ASN showing correct shipment, BOL
- Submit dispute request: Target reviews disputes within 45 days
Amazon Vendor Central Disputes
- Log into Amazon Vendor Central: Go to "Payments" → "Shortages"
- Find the deduction: Use invoice number or PO number
- Upload proof: 856 ASN showing correct quantities, carrier tracking showing delivery confirmation
- Submit dispute within 11 days: Amazon has a strict 11-day dispute window from the deduction date
Warning: Amazon's 11-day dispute window is non-negotiable. Set up automated 820 alerts to catch deductions immediately.
How PlainEDI Helps You Process 820 Remittances
Manually parsing 820 EDI files to reconcile payments is tedious. PlainEDI converts 820 remittances to clean CSV format, making it easy to:
- Instantly see payment amounts (BPR02) and invoice references (RMR02) in a spreadsheet
- Identify deductions quickly with ADX segments showing chargeback codes and amounts
- Compare 820 payments against 810 invoices side-by-side in Excel
- Track deduction trends across multiple retailers (Walmart, Target, Amazon)
- Export 820 data for ERP import to automate reconciliation in SAP, Oracle, QuickBooks, etc.
Try PlainEDI's 820 Payment Remittance Converter
Upload your 820 EDI file and get instant CSV output with all segments (BPR, RMR, ADX, REF) clearly labeled. Catch deductions early and dispute them before the window closes.
Convert 820 to CSV Now →Frequently Asked Questions
When do retailers send 820 payment remittances?
Retailers typically send 820 remittances when they process payments, which is usually based on payment terms (e.g., Net 30, Net 60). For Walmart, you'll receive an 820 when the payment is issued via ACH or check. Target and Amazon follow similar schedules.
What if I don't receive an 820 for my invoice?
If you sent an 810 invoice but haven't received an 820 remittance within the payment terms window, check the retailer's portal (Walmart Retail Link, Target Partner Online, Amazon Vendor Central). The payment may be held due to a compliance issue, or the 820 EDI transmission may have failed.
Can I get deductions reversed after the dispute window closes?
Generally no. Walmart's dispute window is typically 60-90 days, Target's is 45 days, and Amazon's is only 11 days. After the window closes, it's extremely difficult to recover deducted funds. This is why automated 820 processing and alerts are critical.
How do I prevent deductions in the future?
Most deductions are preventable: Send 856 ASNs on time (before shipment arrives), ensure 810 invoice prices match 850 PO prices exactly, ship correct quantities, use proper GS1-128 barcode labels, and validate all EDI files before sending. Use PlainEDI to validate your 850, 856, and 810 files before transmission.
What's the difference between BPR02 and RMR04?
BPR02 is the total payment amount across all invoices in the 820. RMR04 is the net amount paid for a specific invoice. If the 820 covers multiple invoices, there will be multiple RMR segments, and the sum of all RMR04 values should equal BPR02.
Can PlainEDI automatically match my 820s to 810 invoices?
PlainEDI converts both 820 and 810 EDI files to CSV format. You can then use Excel VLOOKUP or import both files into your ERP system to automatically match invoice numbers (RMR02 in the 820 with BIG02 in the 810) and flag discrepancies.
Summary: Mastering EDI 820 Payment Remittances
- ✅ 820 remittances show exactly what you're paid vs. what you invoiced
- ✅ BPR02 = total payment, RMR04 = net paid per invoice, RMR06 = deductions
- ✅ ADX segments explain why deductions were taken (chargeback codes)
- ✅ Walmart suppliers lose 5.8% of invoices to deductions on average
- ✅ Dispute windows are short: 11 days (Amazon), 45 days (Target), 60-90 days (Walmart)
- ✅ Use PlainEDI to convert 820s to CSV for fast reconciliation and deduction tracking
Ready to Automate 820 Payment Reconciliation?
Upload your 820 EDI remittances to PlainEDI and get clean CSV output. Match payments to invoices, identify deductions, and dispute chargebacks faster.