What is an EDI 856 ASN and How to Process It

What is an EDI 856 ASN?

The EDI 856, also known as the Advance Ship Notice (ASN), is an electronic document that provides detailed information about a pending shipment before it arrives at the destination. It's one of the most frequently used EDI transactions among suppliers, distributors, manufacturers, and retailers.

Think of an ASN as a "heads up" message. When you ship products to Walmart, Target, Amazon, or any major retailer, you send them an 856 ASN that tells them exactly what's on the truck, how it's packaged, when it will arrive, and how to identify each carton.

Why Do Retailers Require 856 ASNs?

Major retailers like Walmart, Target, Amazon, Home Depot, Lowe's, Costco, Kroger, and others mandate ASNs for these reasons:

• Automated Receiving: Distribution centers scan SSCC barcodes on cartons, which match the ASN data. No manual counting or data entry.
• Faster Processing: Receiving docks know what's arriving and can prep space, labor, and routing in advance.
• Inventory Accuracy: ASNs update inventory systems instantly when shipments arrive, preventing stockouts and overstock.
• Compliance Tracking: Retailers track on-time delivery and ASN accuracy as part of supplier scorecards.
• Payment Processing: Accurate ASNs speed up invoice matching (three-way match: PO → ASN → Invoice).

Consequence of missing ASN: Target charges $0.75 per carton for late/missing ASNs (effective May 2025). Walmart imposes SQEP penalties ranging from a few dollars per carton to hundreds per ASN.

EDI 856 Structure: Hierarchical Levels

The 856 uses a hierarchical structure to organize shipment data at multiple levels. Each level provides different details:

1. Shipment Level (Top Level)

Information about the entire shipment:

• BSN Segment: Shipment ID, date, and time
• TD5 Segment: Carrier details (e.g., FedEx, UPS, private fleet) and shipping method
• REF Segment: Bill of Lading (BOL) number, PRO tracking number, carrier reference
• DTM Segment: Ship date and expected delivery date
• N1 Segment: Ship-from and ship-to locations (supplier warehouse → retailer DC)

2. Order Level

Information related to the original purchase order:

• PO Number reference (links this shipment to the 850 Purchase Order)
• Order quantities and totals

3. Pack Level (Carton/Case)

Details about individual cartons or cases:

• SSCC-18 Barcode: Serial Shipping Container Code uniquely identifying this specific carton
• Carton dimensions and weight
• Number of items inside this carton

4. Item Level

Product-specific information:

• LIN Segment: Item identification (SKU, UPC, vendor item number)
• Quantity shipped of this specific item
• Item description
• Unit of measure (EA=each, CA=case, DZ=dozen)

What is an SSCC Barcode?

The Serial Shipping Container Code (SSCC) is an 18-digit unique identifier assigned to each logistics unit (pallet, carton, package). It acts as a "license plate" to identify and track shipments through the supply chain.

SSCC Structure (18 digits):

How SSCC Works with ASN:

1. You generate: SSCC numbers for each carton in your shipment using your company prefix assigned by GS1.
2. You print: GS1-128 barcode labels containing the SSCC and place them on each carton.
3. You send: 856 ASN electronically to the retailer listing all SSCC numbers and what's inside each carton.
4. They receive: Retailer scans the SSCC barcode on each arriving carton.
5. System matches: Scanned SSCC instantly pulls up the ASN data showing contents without opening the carton.

Why SSCC Accuracy is Critical:

If the SSCC on your physical carton label doesn't match the SSCC in your 856 ASN, the retailer's receiving system rejects the carton. Real example from Target suppliers: One company was fined $750 on a single shipment (1,000 cartons × $0.75) because their SSCC labels didn't match the ASN due to a label template configuration error.

How to Process an 856 ASN File

Step 1: Understand the File Format

856 files are EDI text files with segments separated by tildes (~) and elements by asterisks (*). Each segment starts with a 2-3 letter code (BSN, HL, DTM, etc.).

Key segments highlighted:

• BSN: Shipment ID ASN123456, date 2025-01-20
• REF*BM: BOL number BOL987654 (critical for Target ASN Accuracy 2025 requirement)
• MAN*GM: SSCC barcode 00012345678901234567 for this carton

Step 2: Extract Critical Data

You need to pull out:

• Shipment ID (BSN segment)
• BOL/tracking number (REF segment)
• Expected delivery date (DTM segment, qualifier 017)
• All SSCC numbers (MAN segment, qualifier GM)
• Item details (LIN segment for SKU, SN1 for quantity)
• PO number reference (PRF segment)

Step 3: Validate Before Sending

Before transmitting your 856 ASN to a retailer, verify:

• SSCC matches labels: Every SSCC in the ASN must match a physical barcode label on a carton.
• Quantities match PO: Shipped quantities should match what the retailer ordered in their 850 PO.
• BOL format correct: Target's 2025 ASN Accuracy requirement checks BOL number formatting.
• Item attributes match: Case pack quantities and barcodes must match the original 850 PO (Target 2025 requirement).
• Timing: ASN must reach the retailer before the truck arrives at the DC yard.

Convert 856 ASN to CSV for Easy Processing

Manually reading EDI 856 files is time-consuming and error-prone. Converting to CSV format makes it easy to:

• Verify all SSCCs are listed correctly before printing labels
• Cross-check shipped quantities against the original PO
• Audit ASN compliance for retailer scorecards
• Import into spreadsheets for warehouse reconciliation
• Troubleshoot receiving issues at retailer DCs

Retailer-Specific 856 ASN Requirements

Walmart 856 ASN Requirements

• ASN must be sent before truck reaches DC yard
• SSCC-18 barcodes required on all pallets and cartons (effective 2023)
• Missing or inaccurate ASNs trigger SQEP penalties (fees vary based on violation)
• ASN errors impact OTIF (On-Time In-Full) score

Target 856 ASN Requirements (2025 Perfect Order Program)

• ASN Availability: $0.75 per carton if ASN not received before in-yard time
• ASN Accuracy (New 2025): BOL number must be in correct format in correct segment
• Item Accuracy (New 2025): Case pack and barcode data must match the 850 PO exactly
• SSCC labels must match ASN data perfectly

Amazon 856 ASN Requirements

• ASN required for Amazon Vendor Central shipments
• Must include SSCC codes for all cartons and pallets
• Ship date and expected delivery date required

Common 856 ASN Mistakes to Avoid

• SSCC mismatch: Physical label shows one SSCC, ASN shows different SSCC. Result: carton rejected at receiving.
• Late ASN transmission: ASN arrives after truck is already at DC. Result: compliance fees.
• Missing BOL number: BOL not included or in wrong format. Result: Target ASN Accuracy failure (2025).
• Quantity errors: ASN says 100 units, carton contains 90 units. Result: chargeback for shortage.
• Wrong case pack: PO specifies 12-pack, ASN lists 6-pack cases. Result: Target Item Accuracy failure (2025).
• Duplicate SSCC numbers: Same SSCC used on multiple cartons. Result: system confusion, receiving errors.

Best Practices for 856 ASN Compliance

1. Invest in quality barcode printers: Service/clean Zebra printers annually. Ensure quiet zone (white space) is 5× the width of narrowest bar.
2. Validate before sending: Convert ASN to CSV and verify all SSCCs, quantities, and BOL numbers before transmission.
3. Use unique SSCCs: Never reuse SSCC numbers. Each carton gets a unique code.
4. Match the PO: Cross-reference your ASN against the original 850 PO to ensure item attributes match.
5. Send ASN early: Don't wait until the truck leaves. Send ASN as soon as shipment is packed.
6. Test label templates: Print sample labels and scan them before mass production to avoid the $750 mistake.
7. Track acknowledgments: Wait for EDI 997 Functional Acknowledgment confirming the retailer received your ASN.

Related Resources

• EDI 856 ASN to CSV Converter
• Understanding EDI 850 Purchase Orders
• How to Read Walmart EDI 850 Files
• How to Convert Target EDI to Excel
• Walmart 856 ASN Converter
• Target 856 ASN Converter