Pricing changes are common, but when they slip through the cracks, confusion and chargebacks usually aren’t far behind. Fortunately, the EDI 845 helps keep things clear — giving vendors, distributors, and retailers a reliable way to confirm and update pricing.
In this guide, we’ll explain what the EDI 845 is, what information it contains, and how it keeps pricing processes clean and consistent. We’ll also break down common pitfalls — and how to sidestep them.
What’s the EDI 845? Definition and Example
The EDI 845, or Price Authorization Acknowledgment/Status, is an electronic document trading partners use to communicate pricing updates. Typically, vendors or manufacturers send an EDI 845 to distributors or retailers to:
Confirm approved pricing
Notify of price changes
Share updates about existing pricing agreements
The EDI 845 is commonly used in the pharmaceutical industry, but it’s also relevant in any sector where products move through a supply chain, from food and beverage to electronics.
Scenario: Pharmaceutical Price Changes
Here’s an example of an EDI 845 at work. Imagine a pharmaceutical manufacturer is updating the pricing for one of its products due to increased production costs. They’ve agreed on the new price with a national drug distributor, but they need a clear, formal way to communicate it and make sure it’s recorded on both sides.
To do this, the manufacturer sends the distributor an EDI 845 Price Authorization Acknowledgment/Status document. The file includes:
The product name and item number
The new unit price
The effective date for the updated pricing
A confirmation that the distributor has agreed to the new terms
Once the distributor receives the EDI 845, its system automatically reads the file and updates its pricing records. There are no phone calls, emails, or data entry errors — just a clean, digital confirmation that everyone’s aligned.
The EDI 845 Specification, Format, and Elements
Like other Electronic Data Interchange (EDI) documents, the EDI 845 follows the standardized X12 format, which organizes it into structured segments and data elements that software systems can easily read and process.
Every segment serves a specific purpose, from identifying the parties involved in the transaction to outlining the pricing details (more on those below).
EDI 845 Sample Document
ISA*00* *00* *ZZ*SUPPLIERID *ZZ*DISTRIBUTORID *250430*0800*U*00401*000000001*0*P*>~
GS*PA*SUPPLIERID*DISTRIBUTORID*20250430*0800*1*X*004010~
ST*845*0001~
BIA*00*PC*123456789*20250429~
REF*PO*PO123456~
DTM*001*20250428~
N1*SU*Supplier Inc.*92*SUPP001~
N3*123 Supplier Street~
N4*Los Angeles*CA*90001~
N1*DI*Distributor Corp.*92*DIST001~
N3*456 Distributor Ave.~
N4*Chicago*IL*60601~
LIN**VN*ITEM123~
PID*F****Widget - Large~
CTP*RES*WH*25.00~
CTP*RC*WH*22.00~
PAM*08*100~
ACK*IA*ITEM123~
SE*17*0001~
GE*1*1~
IEA*1*000000001~
Key Data Elements and Segments
Here’s a quick look at some of the segments you’ll find in an EDI 845:
CUR (Currency)
The CUR segment specifies the currency used in the transaction, such as U.S. dollars (USD) or Canadian dollars (CAD).
REF (Reference Identification)
The REF segment provides reference numbers, such as contract IDs or internal pricing codes, that link the transaction to specific pricing agreements or purchase orders.
DTM (Date/Time Reference)
DTM outlines important pricing dates, including when the new price takes effect and when pricing authorizations expire.
PER (Administrative Communications Contact)
The PER segment names the transaction's administrative contact person and provides their contact details so that trading partners have a direct line for questions or clarifications.
N1-N4 (Name and Address)
These segments name the companies involved — typically the supplier and distributor — and list their addresses to support proper routing and record-keeping.
ACK (Line Item Acknowledgement)
ACK communicates the status of each line item in the transaction, indicating whether an item has been accepted, rejected, or changed.
CTP (Pricing Information)
The CTP segment details pricing for each product, including unit price, discounts, and other relevant pricing terms.
Benefits of the EDI 845
Switching from manual pricing updates to the EDI 845 offers significant advantages across your supply chain. Here’s what you can expect:
Secure, Fast Communication of Contract Changes
Instead of relying on emails or manual adjustments, EDI 845 transmits pricing changes instantly and securely between systems. Everyone’s up to date, always.
Reduced Manual Effort
What once took hours of data entry and verification now happens in seconds, thanks to the EDI 845. By automating the process of sending, confirming, and updating pricing agreements, your team can focus on higher-value tasks.
Improved Accuracy of Pricing
Fewer typos mean fewer miscommunications. With data transferred directly between systems, there’s less risk of human error messing up your numbers.
Fewer Chargebacks
Late or incorrect pricing updates often lead to billing disputes and chargebacks. With the EDI 845, you provide accurate pricing information upfront so everyone bills and pays correctly.
Improved Cash Flow
Because the EDI 845 keeps pricing aligned between partners, invoices match agreed-upon terms — and payments arrive faster. This improves cash flow and helps prevent costly revenue delays.
More Efficient Operations
Vendors, manufacturers, and distributors all benefit from streamlined pricing updates. With less back-and-forth and fewer bottlenecks, workflows become smoother and more predictable.
Stronger Compliance with Contracts
The EDI 845 helps ensure you stick to the pricing terms laid out in contracts, reducing the risk of penalties or misunderstandings.
Better Relationships with Trading Partners
When your partners receive clear, timely updates, it builds trust. That reliability makes collaboration easier and strengthens long-term relationships.
Smarter Decisions with Data
Analyzing EDI 845 data helps uncover pricing patterns, inefficiencies, and growth opportunities, insight that drives better strategy and long-term planning.
Common EDI 845 Issues
Even with automation, the EDI 845 isn’t foolproof. Here are some common roadblocks — and how to avoid them:
Pricing Errors
One of the biggest challenges with EDI 845 documents is pricing discrepancies caused by misaligned data. Since the EDI 845 communicates price authorization or changes, even a minor error, like an incorrect unit cost or missing segment, can trigger a huge chain reaction that leads to rejections, chargebacks, or delayed payments.
To minimize these risks, companies should use validation rules and automated checks to catch inconsistencies before sending the EDI 845. With clean, consistent data, pricing stays accurate and downstream issues are minimized.
Lack of a Standardized Process
Another common challenge is the lack of standardized implementation across trading partners. While the EDI 845 follows a structured format, not every partner uses the same segments or interprets the data the same way. One distributor might expect a more detailed pricing breakdown, while another uses different field codes altogether. These mismatches can cause confusion, delays, and frustration, especially during onboarding or contact changes.
To streamline communication, consider using a centralized EDI platform or managed service that enforces mapping standards. These tools can translate documents to fit each partner’s needs while maintaining internal consistency across your system.
Talk to an EDI Expert
The EDI 845 might seem technical, but it’s really about keeping pricing accurate and business relationships strong. If you’re ready to save time, cut down on errors, and take the stress out of pricing updates, it may be time to upgrade your EDI solution. Connect with one of our experts and see what a modern, cloud-based EDI platform can do for your bottom line.
Need help decoding other EDI documents? Check out LearnEDI’s in-depth guides on key transaction sets — including the EDI 844, EDI 845, and EDI 849. Each guide breaks down what the document is for, how it works, and how to use it effectively — whether you're managing product authorizations, pricing updates, or itemized allowances.