The EDI 812: An Overview of the EDI Credit/Debit Adjustment

If you’ve ever had to fix an invoice after sending it, you already understand why the EDI 812 exists. Mistakes happen — items arrive damaged, pricing is off, or the wrong quantity gets shipped. 

In B2B transactions, the EDI 812 is the digital version of saying, “Oops — let’s fix this right away.” It notifies your trading partner of a correction on a bill or invoice, whether it’s a credit, debit, or adjustment.

In this guide, we’ll define the EDI 812, how it works, and explain the meaning of an EDI debit/credit adjustment. We’ll also cover the EDI 812’s key components and explain how the document can streamline your workflows. 

What’s the EDI 812?

The EDI 812, formally known as the EDI X12 812 (Credit/Debit) transaction set, is a standardized electronic document used to communicate billing adjustments between trading partners — whether to request a refund, issue a credit, or flag a pricing or quantity error. 

Like other EDI transactions, the EDI 812 helps keep business communication accurate, trackable, and audit-friendly. Instead of dealing with manual credit memos or long email chains, trading partners use this document to reconcile payments quickly and clearly. 

Here’s an example: A retailer orders 1,000 coffee mugs, and the supplier invoices them using an EDI 810. When the shipment arrives, the retailer discovers 200 mugs have broken during transit. Instead of calling, emailing, or sending a paper notice, the retailer submits an EDI 812 to the supplier requesting a credit for the damaged items. The supplier reviews and processes the adjustment, and both parties now have a clean digital record of the corrected transaction.

The EDI 812 Specification, Format, and Elements

The EDI 812 (Credit/Debit Adjustment) follows the X12 EDI standard, a common framework for Electronic Data Interchange (EDI) used in B2B transactions. Like the other EDI documents, the EDI 812 is made up of several segments, which consist of data elements. Each section has a specific job to ensure that both the sender and receiver are on the same page regarding billing adjustments.

Sample EDI 812 Document

Here’s a sample EDI 812 document — it serves as an EDI credit memo linked to a specific invoice through the REF segment. 

ISA*00*          *00*          *ZZ*SENDERID       *ZZ*RECEIVERID     *250410*0800*U*00401*000000905*0*P*>~

GS*CD*SENDERID*RECEIVERID*20250410*0800*905*X*004010~

ST*812*0001~

BGN*01*CD812345*20250410~

CUR*BY*USD~

REF*IV*INV123456~

PER*IC*Jane Doe*TE*1234567890~

DTM*011*20250408~

N1*BY*Retailer Inc.*92*RET001~

N3*123 Buyer St.~

N4*New York*NY*10001*US~

N1*SE*Supplier Co.*92*SUP002~

N3*456 Supplier Ave.~

N4*Los Angeles*CA*90001*US~

ITD*01*3*2**30**30~

ACK*IA*001*5~

IT1**5*EA*10.00**VN*123ABC~

SAC*C*D240***500****02~

TAX*00*Sales Tax*7.50~

CAD*ZZ*UPS*GROUND~

ISS*5*EA*50~

CTT*1*50~

SE*22*0001~

GE*1*905~

IEA*1*000000905~

Key Data Elements and Segments

Here’s a breakdown of the most important parts of the EDI 812:

BGN (Beginning Segment)

The BGN segment starts off the document. It states the purpose of the transaction — a credit, debit, or another form of adjustment.

CUR (Currency Segment)

Used to specify the currency for the transaction, CUR ensures both parties are aligned on whether the amounts are in USD, CAD, or another currency.

REF (Reference Identification Segment)

REF includes key reference numbers that link the credit or debit adjustment to other documents, such as purchase orders or original invoices.

PER (Administrative Communications Contact)

The PER segment provides the name and contact details of the person responsible for addressing questions about the transaction.

ITD (Terms of Sale/Deferred Terms of Sale)

ITD outlines the agreed-upon payment terms, including due dates, payment schedules, or available early payment discounts.

DTM (Date/Time Reference)

DTM captures essential dates related to the transaction, such as invoice issuance, shipment, or delivery.

N1-N4 (Name and Address)

These segments identify the involved parties — such as the buyer, seller, or ship-to location — and provide their full mailing addresses.

ACK (Line Item Acknowledgement)

ACK indicates whether individual line items are accepted, rejected, or changed as part of the adjustment process.

IT1 (Baseline Item Data)

This segment lists each item being adjusted, including product identifiers, quantities, and unit prices.

SAC (Service, Promotion, Allowance, or Change Information)

SAC includes additional financial adjustments, such as service charges, discounts, or promotional allowances.

TAX (Tax Reference Information)

TAX provides information about any taxes applied to the transaction, including sales tax amounts or exemptions.

CAD (Carrier Detail)

CAD delivers shipment-related information, including the carrier’s identity, the shipping method, and any tracking references.

ISS (Tax Reference Information)

ISS describes the total physical quantity of items involved — for example, the number of units returned or credited.

CTT (Transaction Totals)

CTT wraps up the transaction with a summary of the total number of line items and the overall value of the EDI credit or debit adjustment.

Benefits of the EDI 812

Implementing the EDI 812 simplifies how businesses handle debit and credit adjustments and brings a range of advantages to your operations. Here are some key benefits of using this transaction set: 

Reduced Effort in Sending and Receiving Credits/Debits

The EDI 812 automates issuing and receiving credit and debit adjustments, reducing the stress and time involved. Instead of relying on paperwork or back-and-forth emails, businesses can exchange adjustments electronically in a consistent format that both parties understand.

Improved Operational Efficiencies

Because the EDI 812 follows a standardized structure, departments like finance, procurement, and logistics can process adjustments more efficiently. Everyone simultaneously receives the same information in the same format, helping avoid communication hiccups and delays.

Reduced Costs

Switching to EDI means fewer physical documents to print, mail, and store — no more printing stacks of forms or paying for postage. It also reduces the need for manual labor like data entry or document handling, which can cut operational costs significantly over time. This allows your team to focus on more important work instead of fixing paperwork errors.

Fewer Errors Due to Automated Data Entry

Since EDI pulls data directly from internal systems, there’s less risk of typos and other manual entry mistakes that can lead to confusion in the supply chain.

Quicker Reconciliation of Invoices with Payments

Matching payments to the right invoices becomes much easier when businesses use EDI 812. Adjustments are transparent, trackable, and tied to the right documents from the start, so everything lines up without manual intervention.

Enhanced Trading Partner Relationships

When you send timely, clear adjustments, it builds trust. Your trading partners know they can count on you to communicate well and keep things professional.

Facilitated Paper Trail for Transactions

EDI creates a digital trail you can refer back to at any time. Everything’s organized, so if you need to check a transaction for an audit or confirm a past adjustment, it’s easier to find.

Improved Data Security of Documents

Unlike paper or email, EDI systems use secure data transmission protocols to keep sensitive information safe, giving you and your trading partners peace of mind.

Better Data Analytics and Reporting

Because EDI uses structured data, it’s easier to spot recurring issues, identify and track trends, and pull reports. Over time, that helps you make smarter business decisions.

Common EDI 812 Issues

Even with its advantages, the EDI 812 can present some challenges. Below are common issues businesses may encounter — and how to address them.

System Compatibility Problems

Not all trading partners use the same EDI systems or formats, making data sharing difficult. To overcome this, it’s important to work with an EDI provider that offers mapping and translation tools. These help convert data into the correct format so it arrives where it should, even if your trading partner’s system doesn’t perfectly align with yours.

Lack of Internal EDI Expertise

If your team isn’t familiar with the EDI 812, it can lead to mistakes when setting things up or interpreting data. Providing training for key staff members and partnering with an experienced EDI provider can make the transition smoother and help everyone work with more confidence and accuracy.

Integration with Internal Systems

It’s frustrating when your EDI solution doesn’t integrate well with your other software systems, such as your ERP, accounting, or inventory tools. Choosing an EDI solution that integrates smoothly with your existing systems (or investing in custom integration support) can make everything run much more efficiently.

Talk to an EDI Expert

Curious about how the EDI 812 can improve your invoicing and payment processes? Whether you're just getting started or looking to optimize your current setup, speaking with an EDI consultant is a smart next step. 

A modern cloud-based EDI solution can help you manage credit and debit adjustments more efficiently, cut down on paperwork, and keep your logistics and operations running smoothly.

Reach out to a trusted EDI expert to learn how the EDI 812 can fit into your workflow and give your business a competitive edge.

Looking to get a better handle on key EDI documents? Check out LearnEDI’s easy-to-follow guides on transaction sets like the EDI 810 (Invoice), EDI 811 (Consolidated Service Invoice/Statement), and EDI 820 (Payment Order/Remittance Advice). Each guide walks you through what the document is used for, how it integrates into your workflows, and how to put it to work for your business.