EDI Remittance Advice
Case Study

How a consumer products company automated their receivables processing in SAP using the EDI 820 remittance advice

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EDI 820 Remittance Advice
in SAP

The Key to Lockboxes in SAP

The EDI 820 - Remittance Advice is often an afterthought with customer EDI implementations. Until a giant retailer mandates it, it is often left unimplemented and unused. However, once the benefit from it is realized, it's easy to see how adding this transaction to your EDI toolset will help you save time and money.

Using EDI and SAP, you can unlock the power of the EDI 820 and the automation it brings with it.

If you aren't using the EDI 820, your AR department is likely spending dozens of hours a month manually entering payments including discounts, charges, and any other type of price change your customer wants to throw at you. Then trying to reconcile that against each invoice included in the payment (sometimes hundreds at once). This time can be virtually eliminated by making use of the EDI 820 remittance advice (REMADV in EDIFACT).

The 820 contains all of the information that your team is manually working with now. However instead of doing the manual entry, they will be able to have this EDI file translated to an IDOC and sent into your SAP system where it can automatically enter in all of the payment information.

Your team then has the ability to review these and the invoices being cleared before letting the system process the information. In addition to drastically cutting the time of manual entry, it greatly reduces the risk of data entry errors.

Once you put the 820 in place with one of your trading partners, you will quickly want to roll it out to the rest of your customer base. For more information on how a packaged goods company selling to all of the big retailers had success in this area, please download our success story.

Contact us to find out more, or call +1 (312) 475-9706 and ask for Jodi.

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