What is EDI 846? A Guide to Inventory Inquiry and Advice

EDI 846 is the X12 transaction set for Inventory Inquiry/Advice. If you're a supplier or distributor working with retailers, you may receive requests for inventory data or be required to send periodic inventory updates. Understanding EDI 846 helps you meet retailer requirements and keep ordering and fulfillment in sync.

What is EDI 846?

EDI 846 is used to exchange inventory level information between trading partners. It supports two main flows:

• Inventory Inquiry: A retailer (or other partner) asks for current inventory for specific items or locations.
• Inventory Advice: A supplier proactively sends current on-hand quantities, availability, or other inventory data to the retailer.

In both cases, the goal is the same: give the buyer accurate, timely visibility into what you have so they can plan orders (and avoid ordering out-of-stock or over-ordering).

Key Components of an EDI 846

An 846 document is built from standard X12 segments. The most important for inventory are:

• WMI (Warehouse Management Information) / W05 (Warehouse Identification): Identifies the warehouse or location.
• LIN (Item Identification): Product identifier (UPC, vendor part number, etc.).
• QTY (Quantity): Quantities such as on-hand, available-to-sell, or reserved.
• W07 (Quantity per Pack): Pack configuration when relevant.
• DTM (Date/Time): As-of date for the inventory snapshot.

Variations exist by implementation guide; your retailer’s EDI specs will define exactly which segments and qualifiers they require.

How EDI 846 Fits with 850, 856, and 810

846 is one piece of the order lifecycle:

1. EDI 850 (Purchase Order): Retailer sends an order.
2. EDI 846 (Inventory Inquiry/Advice): You send (or they request) current inventory so they can plan future 850s and avoid stockouts.
3. EDI 856 (Advance Ship Notice): You notify what shipped; this also updates the retailer’s view of inventory in transit.
4. EDI 810 (Invoice): You send the invoice for payment.

Sending accurate 846s helps retailers trust your availability and reduces the risk of orders for out-of-stock items, chargebacks, and strained relationships.

Why Retailers Want EDI 846

Planning and Replenishment

Retailers use your inventory data to:

• Plan replenishment and generate 850s at the right time.
• Avoid ordering more than you can ship.
• Balance inventory across locations and channels.

Compliance and Performance

Many retailers require 846 (or equivalent) as part of their vendor programs. Failing to send it, or sending it late or inaccurately, can affect:

• Chargebacks or fines.
• Your score in their vendor performance programs.
• Ability to participate in promotions or expanded distribution.

Fewer Stockouts and Better Fill Rates

When your 846 data is accurate and timely, the retailer’s system can order before you run out. That improves fill rates and in-stock position for both of you.

Common Challenges with EDI 846

Data Accuracy and Timing

• Stale data: Sending inventory that’s already been committed to other orders leads to oversell and disappointed customers.
• Wrong location: Sending warehouse-level or location-level data incorrectly can cause wrong allocation or replenishment decisions.
• Frequency: Some retailers want daily or real-time updates; batch systems may not support that without integration work.

Mapping and Consistency

• Product identifiers: Retailers may require specific IDs (UPC, vendor SKU, etc.). Your WMS or ERP must map to their expectations.
• Units: Cases vs. eaches vs. inner packs must match the retailer’s guide to avoid misinterpretation.

Integration with Your Systems

• Source of truth: Inventory often lives in a WMS or ERP. You need a reliable way to pull current quantities and push them into your EDI outbound 846.
• Automation: Manual preparation of 846s doesn’t scale and increases errors; automation is usually necessary for compliance and efficiency.

Best Practices for EDI 846

1. Automate Generation and Sending

Use your WMS/ERP (or an integration layer) to generate 846s from live inventory data on the schedule your retailers require. Avoid spreadsheets and one-off files.

2. Align with Order and Fulfillment Data

Ensure the same product IDs and locations used in 850 and 856 are used in 846. Inconsistent identifiers cause mismatches and failed validations.

3. Send on the Retailer’s Schedule

Follow each retailer’s implementation guide for frequency (e.g., daily, after cutoff) and format. Missing windows can count against you in their metrics.

4. Validate Before Sending

Check for invalid IDs, negative quantities, and missing required segments. Catching errors before transmission reduces rejections and support tickets.

5. Monitor and Reconcile

Track 846 submissions and any rejections or acknowledgments. Periodically compare what you sent to actual inventory to improve accuracy over time.

Conclusion

EDI 846 is the standard way to share inventory inquiry and advice with retailers. When done well, it improves planning, reduces stockouts, and helps you stay in compliance with retailer programs. Pair it with solid 850 processing and 856 ship notices for a complete order-to-cash and inventory visibility loop.

Ready to streamline your EDI and order workflow? Try our free EDI visualizer to see how EDI documents are structured, and explore how OrderSync can help you automate orders and stay ahead of inventory demands.

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Related Resources:

• The Essential Guide to EDI
• What is EDI 850? Purchase Orders
• What is EDI 856? Advance Ship Notices
• EDI vs API
• Free EDI Visualizer Tool