# EDI 845 Price Authorization Acknowledgment/Status Guide
> EDI 845 explained: how manufacturers send contract pricing to distributors, the BPA, CON, PAD, UIT and CTP segments, a live example, and how it drives 844 chargebacks.
The EDI 845 Price Authorization Acknowledgment/Status is the X12 transaction a manufacturer sends a distributor to publish or change a pricing contract. It names the contract, the eligible end customers, the covered items, the contract prices and the start and end dates. Distributors price contract sales from it and later claim chargebacks against it on an 844.
**The EDI 845 is the contract that every chargeback is judged against.** When a manufacturer agrees a special price with a hospital, a buying group, a contractor or a restaurant chain, the distributor that will actually ship the product has to know about it. The 845 tells the distributor which customers get which prices on which items, and for how long. When the distributor later claims the difference on an [844](/guides/edi/844-product-transfer-account-adjustment), the manufacturer checks the claim against what it sent here.
This guide covers what the 845 carries, how it fits the contract chargeback cycle, its segments, a live example, and the errors that turn into rejected chargebacks months later.
## What Is an EDI 845?
**An EDI 845 is the Price Authorization Acknowledgment/Status transaction set defined by the [ASC X12 standards body](https://x12.org/products/transaction-sets), used by a manufacturer or vendor to tell a distributor the status of, or changes to, outstanding price authorizations.** In distribution, a "price authorization" is a contract: an agreement that named customers may buy named items at a set price, which the distributor will fulfil and the manufacturer will fund through chargebacks.
References for 845 work:
- The [X12 004010 845 structure on Stedi](https://www.stedi.com/edi/x12-004010/845) lists every segment and loop, including the CON, PAD and CTP loops
- The [Healthcare Distribution Alliance (HDA)](https://hda.org/publications/edi-845-price-authorization-acknowledgment-status) publishes the industry guideline pharmaceutical manufacturers use for 845 bid award and change notices
- Distributor guides such as [AmerisourceBergen's 845 bid award specification](https://amerisourcebergen.com/-/media/assets/amerisourcebergen/i845---price-authorization-acknowledgment---original---june-2023.pdf) show how one large wholesaler expects contract dates, buying groups, eligible customers and prices to be sent
**Who sends it?** The manufacturer, or the contract administration system that manages its pricing agreements.
**Who receives it?** Each distributor authorized to sell under the contract.
**When is it sent?** When a contract is awarded, and again whenever it changes: new customers, dropped customers, new items, price changes, extensions and terminations.
**Why does it matter?** The distributor prices contract sales from the 845. If the distributor's copy of the contract is out of date, it either charges a customer the wrong price or claims a chargeback the manufacturer will reject. Both cost money.
## How the 845 Fits the Chargeback Cycle
The 845 is the first document in a four-part cycle. The contract number it publishes is the key that every later document refers to.
1. **Contract award (845).** The manufacturer sends the contract: number, dates, eligible customers, items and prices.
2. **Contract sale.** A customer on the contract orders through the distributor. The distributor ships from its own stock, bought at its normal acquisition cost, and invoices the customer at the contract price.
3. **Chargeback claim ([844](/guides/edi/844-product-transfer-account-adjustment)).** The distributor claims the difference between its cost and the contract price, quoting the contract number.
4. **Chargeback response ([849](/guides/edi/849-response-to-product-transfer-account-adjustment)).** The manufacturer validates each line against the 845 data and accepts, adjusts or rejects it.
5. **Resale reporting ([867](/guides/edi/867-product-transfer-and-resale-report)).** The distributor reports its sales to end customers, which the manufacturer uses for tracing and for cross-checking chargebacks.
Every rejection reason on an 849 maps back to something in the 845: customer not on the contract, item not covered, sale outside the dates, wrong price. Getting the 845 loaded correctly and promptly is the cheapest chargeback control there is.
## Where the 845 Is Used
- **Pharmaceuticals.** Manufacturers send bid awards and changes for GPO, hospital and pharmacy contracts to the national and regional wholesalers. Customers are identified by DEA number or HIN, and items by NDC.
- **Medical and surgical supply.** The same pattern for GPO and health system contracts on med-surg products.
- **Electronic components.** Manufacturers authorize special prices for specific customers or design wins, which distributors later claim through ship and debit.
- **Electrical, industrial and building products.** Special pricing agreements for contractors, projects or end users.
- **Foodservice.** Contract or deviated prices for chains and operators, fulfilled by broadline distributors.
Many contracts, especially outside pharma, are still sent as spreadsheets or published in portals. The 845 replaces that with a structured feed the distributor's ERP can load directly.
## Interactive Example: Med-Surg Contract Award (845)
Cedar Ridge Medical awards contract `CRM-GPO-2026-118` to its distributor, Lakeshore Medical Supply. The contract runs from October 1, 2026 to September 30, 2027, covers one health system, and includes two items:
| Line | Item | Contract price | Distributor cost (WH) |
|---|---|---|---|
| 1 | Nitrile exam gloves, medium, case | $71.25 | $92.40 |
| 2 | Foam dressing 4x4, box of 10 | $52.00 | $64.80 |
The same contract number flows into the [844 chargeback example](/guides/edi/844-product-transfer-account-adjustment) and the [849 response example](/guides/edi/849-response-to-product-transfer-account-adjustment). Note what is not on it: a Foley catheter kit. The distributor later claims a chargeback on that kit, and the manufacturer rejects it.
## 845 Structure at a Glance
| Area | Segment | Name | Usage | Notes |
|---|---|---|---|---|
| Header | **ST** | Transaction Set Header | Mandatory | `ST01` = `845` |
| Header | **BPA** | Beginning Segment for Price Authorization Acknowledgment/Status | Mandatory | Purpose and status date |
| Header | **CUR**, **NTE**, **REF**, **PER** | Currency, notes, references, contact | Optional | |
| Header | **DTM** | Date/Time Reference | Optional | Contract-level effective and expiration dates |
| Header N1 loop | **N1**, **N2** to **PER**, **DTM** | Parties | Optional, repeats | Manufacturer, distributor, buying group |
| Detail CON loop | **CON** | Contract Number Detail | Mandatory, repeats | One per contract |
| CON loop | **REF**, **PER**, **DTM**, **CTB**, **ITD** | References, contact, dates, restrictions, terms | Optional | |
| CON N1 loop | **N1**, **N3**, **N4**, **REF**, **DTM**, **CTB** | Eligible parties | Optional, repeats | Customers who may buy at the contract price, with their own dates if different |
| CON PAD loop | **PAD** | Product Adjustment Detail | Optional, repeats | One per item |
| PAD loop | **PID**, **UIT**, **QTY**, **AMT**, **DTM** | Description, prices, quantities, dates | Optional | `UIT` carries the contract and wholesale prices |
| PAD LIN loop | **LIN**, **G53**, **SLN** | Item identification | Optional | The item the price applies to |
| PAD CTP loop | **CTP**, **DTM**, **CTB** | Pricing information | Optional, repeats | Tiered or quantity-break prices |
| Summary | **CTT** | Transaction Totals | Mandatory | Number of CON segments |
| Summary | **SE** | Transaction Set Trailer | Mandatory | Segment count and control number |
The 845 sits in functional group **PA** (`GS01`).
One quirk of the 4010 layout: inside each `PAD` loop, the price segments (`UIT`) and item dates come before the `LIN` that identifies the item. Read a whole `PAD` loop as one item record, not segment by segment.
## Key Segments Explained
### BPA: Beginning Segment
```
BPA*00*20260901~
```
| Element | Name | Example | What it means |
|---|---|---|---|
| **BPA01** | Transaction Set Purpose Code | `00` | `00` = original. Changes and cancellations use the codes the partner guide lists |
| **BPA02** | Date | `20260901` | The price authorization status date |
| **BPA03** | Reference Identification Qualifier | | Optional reference qualifier |
| **BPA04** | Reference Identification | | Optional reference, such as a notice number |
| **BPA05** | Time | | Optional |
Some distributors publish separate 845 maps for original awards and for changes. Check which purpose codes your partner accepts, and ask how it treats contract lines that a change notice leaves out, before you build the loader.
### DTM: Contract Dates
```
DTM*124*20261001~
DTM*125*20270930~
```
X12 defines a family of date qualifiers for contracts:
| Qualifier | Meaning | Typical level |
|---|---|---|
| `124` / `125` | Group contract effective / expiration | Header |
| `126` / `127` | Wholesale contract effective / expiration | Header |
| `129` / `130` | Customer contract effective / expiration | Customer (CON N1 loop) |
| `131` / `132` | Item contract effective / expiration | Item (PAD loop) |
Customer and item dates are only needed when they differ from the contract dates. Every chargeback line is checked against the most specific date that applies, so a customer added mid-contract must carry its own effective date.
### N1 and PER: The Parties
```
N1*SU*CEDAR RIDGE MEDICAL*ZZ*CRMED~
PER*AC*CONTRACT ADMINISTRATION*TE*5555550142~
N1*DS*LAKESHORE MEDICAL SUPPLY*ZZ*LKSMED~
```
The header names the manufacturer (`SU` or `MF`), the distributor (`DS` or `DB`) and, where a GPO negotiated the contract, the buying group (`BG`). `PER` gives the contract administration contact the distributor calls with questions. Pharma guides identify parties by DEA number or HIN; other industries use DUNS, GLN or agreed codes.
### CON: Contract Number Detail
```
CON*VC*CRM-GPO-2026-118*OC~
```
| Element | Name | Example | What it means |
|---|---|---|---|
| **CON01** | Reference Identification Qualifier | `VC` | `VC` = vendor contract number |
| **CON02** | Reference Identification | `CRM-GPO-2026-118` | The contract number the distributor must quote on every 844 |
| **CON03** | Contract Status Code | `OC` | `OC` = original contract. Other X12 status codes include `CM` (contract modified), `CR` (contract renewed), `CC` (contract cancelled) and `EX` (expired contract); the partner guide lists the ones it uses |
### N1, N3, N4 in the CON Loop: Eligible Customers
```
N1*EB*RIVERBEND COMMUNITY HEALTH*ZZ*RCH-0001~
N3*400 HOSPITAL DRIVE~
N4*SPRINGFIELD*OH*45501~
```
`N101` = `EB` (eligible party to the contract) names a customer who may buy at the contract price. The identifier in `N104` is the one the distributor's 844 must later carry for that customer, so it has to match the distributor's customer master. When a buying group contract covers hundreds of member facilities, this loop repeats for each one, which is why rosters are the part of the 845 most likely to drift out of date.
### PAD, UIT and LIN: Items and Prices
```
PAD*1~
PID*F****NITRILE EXAM GLOVE MEDIUM 10X100~
UIT*CA*71.25*CT~
UIT*CA*92.40*WH~
LIN**VP*CRM-GLV-N200~
```
| Segment | Element | Example | What it means |
|---|---|---|---|
| **PAD** | PAD01 Assigned Identification | `1` | Item sequence within the contract |
| **PID** | PID05 Description | `NITRILE EXAM GLOVE...` | Free-form item description, where the guide allows it |
| **UIT** | UIT01 Unit of Measure | `CA` | The unit the price is quoted in |
| **UIT** | UIT02 Unit Price | `71.25` | The price |
| **UIT** | UIT03 Basis of Unit Price Code | `CT` / `WH` | `CT` = contract price, `WH` = wholesale price (the distributor's cost basis) |
| **LIN** | LIN02 / LIN03 | `VP` / `CRM-GLV-N200` | The item ID and its qualifier. Pharma uses NDC qualifiers here |
Both prices matter. The contract price is what the customer pays. The wholesale price shows the cost basis the manufacturer expects the distributor's chargeback to start from, so the expected chargeback per unit is the gap between them.
### CTP: Tiered Prices
```
CTP**PBQ*71.25*1*CA~
```
Where a contract has quantity breaks, the `CTP` loop carries each tier: `CTP02` = `PBQ` (unit price beginning quantity), `CTP03` the price and `CTP04`/`CTP05` the quantity and unit where it starts. Contracts without tiers leave it out, as the example does.
### CTT: Totals
```
CTT*1~
```
`CTT01` counts the `CON` segments in the transaction.
## EDI 845 vs 832 and 879
| Document | Sent by | What it prices | Who the price is for |
|---|---|---|---|
| **845 Price Authorization** | Manufacturer | Contract items | Named end customers buying through a distributor |
| **[832 Price/Sales Catalog](/guides/edi/832-price-sales-catalog)** | Supplier | The catalog | The buyer receiving the catalog, usually at list or account price |
| **879 Price Information** | Supplier | Price changes | The buyer receiving it, mostly in grocery |
The short version: the 832 tells a buyer what it will pay. The 845 tells a distributor what someone else will pay, and promises to make up the difference.
## Common 845 Errors and How to Prevent Them
| Error | What happens later | Prevention |
|---|---|---|
| **845 not loaded before the contract start date** | Distributor sells at the wrong price, or claims a chargeback that is rejected | Process 845s on receipt and alert on contracts starting soon |
| **Customer IDs do not match the distributor's customer master** | Contract sales are not priced, or chargebacks are rejected as customer not eligible | Map 845 identifiers to customer accounts during onboarding and review unmatched customers daily |
| **Customer or item dates ignored** | Chargebacks on sales before a customer joined or after an item dropped are rejected | Store dates at the customer and item level, not just the contract |
| **Change handling misunderstood** | Lines removed or kept by mistake | Confirm with the manufacturer whether a change 845 is a full replacement or only the changed lines |
| **Unit of measure mismatch** | Contract price applied per each instead of per case | Store the contract unit with the price and convert explicitly |
| **Terminated contracts left active** | Rejected chargebacks after the end date | Apply expiration dates automatically and act on cancellation notices |
## 845 Implementation Checklist
- Get the manufacturer's 845 guide and confirm which industry guideline it follows
- Confirm which party and item identifiers it sends (DEA, HIN, GLN, DUNS, NDC, GTIN, part numbers)
- Map eligible customer identifiers to your customer accounts
- Store contract, customer and item dates separately
- Confirm how changes, additions, deletions and cancellations are sent
- Load contract prices with their unit of measure, and any tiered prices
- Price contract orders from the loaded contracts, and check eligibility at order entry
- Reconcile 849 rejections back to the 845 data to catch loading problems early
- Return a 997 for every 845
## Handling Contract Orders With OrderSync
An 845 is only useful if every order lands under the right customer and item, because that is what triggers the contract price and, later, the chargeback. Orders from hospitals, clinics, contractors and restaurants still arrive as PDFs, emails and spreadsheets as often as EDI.
OrderSync reads those orders in any format, from EDI 850s and 875s to emails, PDFs and spreadsheets, matches customers, items and units to your catalog, and sends clean orders to your ERP or outputs valid X12. Paste any 845 into the [free EDI inspector](/edi-inspector) to see it parsed with a plain-English summary, read about [EDI for industrial supply distributors](/edi-for/industrial-supply), or [book a 15-minute walkthrough](/book-call) to see your own orders processed.
## Frequently Asked Questions
### What is an EDI 845 used for?
The EDI 845 is used by a manufacturer to send contract pricing to a distributor. It lists the contract number, the customers who are eligible, the items covered, the contract prices and the dates, so the distributor can sell at those prices and claim chargebacks later.
### What does price authorization mean in EDI?
A price authorization is the manufacturer's permission for a distributor to sell specific items to specific customers at a specific price, usually below the distributor's own cost. The manufacturer then funds the difference through chargebacks claimed on an 844.
### What is the difference between EDI 845 and EDI 832?
The 832 is a catalog: it tells a buyer the items and prices it can buy at. The 845 is a contract notice: it tells a distributor which of its customers get a special manufacturer price, and it is the basis for later chargeback claims.
### How does the 845 relate to the 844 and 849?
The 845 publishes the contract. The distributor sells under it and claims the cost difference on an 844 that quotes the contract number. The manufacturer checks that claim against the 845 data and answers with an 849.
### What segments are in an EDI 845?
BPA starts the transaction. Header DTM segments carry contract dates, and N1 names the manufacturer, distributor and any buying group. Each CON loop is a contract, with N1 loops for eligible customers and PAD loops for items, holding UIT prices and LIN item IDs. CTT counts the contracts.
### What is a bid award in pharmaceutical EDI?
A bid award is the pharmaceutical term for a contract a manufacturer has won with a buying group, hospital or pharmacy chain. Manufacturers notify wholesalers of bid awards and their changes using the 845, following the HDA guideline and each wholesaler's specification.
### Who sends the EDI 845?
The manufacturer or vendor sends it to each distributor or wholesaler authorized to sell under the contract. The distributor returns a 997 to confirm receipt and loads the contract into its pricing system.