Costco EDI Compliance Guide
Meet Costco's supplier EDI and compliance standards
Quick Answer
Costco requires EDI 850 (Purchase Order), EDI 856 (Ship Notice (ASN)), EDI 810 (Invoice), EDI 997 (Functional Acknowledgment) from all suppliers. Non-compliance triggers chargebacks including aSN errors: $250+ per shipment.
Costco Wholesale requires EDI compliance from suppliers shipping to their 600+ warehouse locations. Costco uses both depot (cross-dock) and direct delivery models depending on product category. Their requirements focus on accurate purchase order processing, timely ASN submission, and invoice accuracy to support their high-volume warehouse model. Costco uses an internal item numbering system separate from UPC codes.
Required EDI Transactions
Costco requires suppliers to support the following EDI transaction types. Click any transaction to view our detailed guide with segment breakdowns and examples.
Compliance Requirements
Here is what Costco expects from EDI-compliant suppliers:
- EDI 850 Purchase Order receipt and processing
- EDI 856 ASN submission before shipment arrival
- EDI 810 Invoice matching PO data exactly
- EDI 997 Functional Acknowledgment
- Pallet-level tracking with SSCC-18 barcodes
- Costco supplier portal compliance
- Strict routing guide adherence
- Product labeling per Costco specifications
Chargeback Penalties
Non-compliance with Costco's EDI requirements can result in significant financial penalties:
Common Costco Chargebacks
- ASN errors: $250+ per shipment
- Routing guide violations: $500-$1,500 per occurrence
- Invoice mismatches: payment holds and deductions
- Labeling non-compliance: shipment rejection
How to Achieve Costco EDI Compliance
Getting compliant with Costco requires three things: an EDI platform that supports all required transaction types, automated validation that catches errors before they trigger chargebacks, and integration with your ERP so orders flow through without manual re-entry.
EDI transaction formats follow ASC X12 standards, and product identification uses GS1 GTIN and GS1-128 barcode specifications. Both are required by virtually every major US retailer.
OrderSync handles all three compliance layers. Our platform processes EDI transactions (850, 855, 856, 810, 997) alongside PDF, CSV, and email orders through a single pipeline. Automated validation checks every order against your product catalog, pricing rules, and Costco-specific compliance requirements before syncing to your ERP.
Related Guides and Articles
Learn more about Costco EDI requirements and compliance best practices:
Test Your EDI Compliance
Upload your EDI documents to our free inspector and check for compliance issues before sending to Costco.
Open EDI InspectorFrequently Asked Questions
What EDI transactions does Costco require?
Costco requires EDI 850 (Purchase Order), EDI 856 (Ship Notice (ASN)), EDI 810 (Invoice), EDI 997 (Functional Acknowledgment). Each transaction must meet Costco's specific formatting and timing requirements.
What happens if I'm not EDI compliant with Costco?
Non-compliance triggers chargebacks that can range from $200 to $5,000+ per incident depending on the violation. Repeated non-compliance can lead to supplier suspension or loss of the retail account.
Can OrderSync help with Costco EDI compliance?
Yes. OrderSync supports all EDI transaction types required by Costco and includes automated validation to catch compliance errors before documents are sent. Our platform processes EDI alongside PDF, CSV, and email orders through a single pipeline.