# EDI 857 Shipment and Billing Notice: 856 + 810
> EDI 857 explained: one document that replaces the 856 ASN and 810 invoice, its BHT and HL levels, the G05, TDS and IT1 segments, a live example and errors.
The EDI 857 Shipment and Billing Notice is the X12 transaction a supplier sends to describe a shipment and bill for it in one document. It combines the 856 ship notice and the 810 invoice: carrier, packaging and carton labels for receiving, plus prices, terms and invoice totals for payment. It replaces both documents together, never just one.
**The EDI 857 is an ASN and an invoice in one envelope.** Most trading partners want an [856 ship notice](/guides/edi/856-ship-notice) when the goods leave and an [810 invoice](/guides/edi/810-invoice) to bill them, even though the two documents repeat most of the same data. A few buyers, notably in the book trade and in US defense procurement, accept a single 857 instead. When they do, your one document has to satisfy both the receiving dock and accounts payable.
This guide covers what the 857 carries, who uses it, the hierarchy it shares with the 856, every segment you will map, a live example, a side-by-side comparison with the 856 and 810, and the errors that block both receipt and payment.
## What Is an EDI 857?
**An EDI 857 is the Shipment and Billing Notice transaction set defined by [ASC X12](https://x12.org/products/transaction-sets), which gives the recipient of a shipment the data it needs both to plan the receipt and to generate payment.** The X12 standard positions it as a consolidation of the Ship Notice/Manifest (856) and the Invoice (810). It travels in functional group `BS` (the `GS01` value).
The standard attaches three conditions that shape every 857 implementation:
- **It replaces the 856 and the 810 together.** The X12 notes say it is not to replace either one individually. Do not send an 857 and then also send a paper or EDI invoice for the same shipment.
- **It fits when prices are not fully agreed in advance.** The 857 suits environments where the item prices and terms on the shipment are used to generate payment.
- **It does not fit Evaluated Receipts Settlement (ERS).** Under ERS the buyer pays from its own receipt and agreed prices, so no invoice data is needed.
Authoritative references for 857 work:
- The [X12 857 structure (release 004010) on Stedi](https://www.stedi.com/edi/x12-004010/857) lists the segments, the BS1 to BS5 loops and the hierarchy notes
- The [PUBNET 857 implementation guideline](https://info.pubnet.org/assets/media/support/pubnet_857-vers-3060_04-20-2020.pdf), a subset of the BISAC 857 standard used in the book trade, shows a working retail implementation
- The Defense Logistics Agency's [DLMS 857 implementation convention](https://www.dla.mil/Portals/104/Documents/DLMS/Transformats/ICs/4010/41F857.pdf) covers the federal use of the 857 for WAWF "COMBO" documents (invoice and receiving report together)
**Who sends it?** The supplier or its 3PL, from the shipping and billing systems together.
**Who receives it?** The buyer. Its receiving system uses the shipment, pack and item levels; its payables system uses the prices, terms and totals.
**When is it sent?** At shipment, in place of the 856. Because it is also the invoice, it has to be right at the moment it leaves, not corrected a day later.
**Why does it matter?** A bad 856 causes a receiving problem. A bad 810 causes a payment problem. A bad 857 causes both, from the same mistake.
## Who Uses the EDI 857
The 857 is uncommon. Most retailers, including the large general merchandise chains, ask for a separate 856 and 810. Confirmed users include:
| Sector | Example | How the 857 is used |
|---|---|---|
| **Book trade** | The BISAC 857 standard and the [PUBNET 857 guideline](https://info.pubnet.org/assets/media/support/pubnet_857-vers-3060_04-20-2020.pdf) | Publishers and distributors ship and bill booksellers in one document |
| **US defense procurement** | DLA's [DLMS 857](https://www.dla.mil/Portals/104/Documents/DLMS/Transformats/ICs/4010/41F857.pdf) and WAWF | Vendors submit an invoice and receiving report together (a "COMBO") |
Some EDI providers also list individual retailers that accept the 857. Treat those lists as leads and confirm with the buyer's own implementation guide. If a partner has not published an 857 guide, assume it wants an 856 and an 810.
## How an 857 Shipment Works
1. **Order.** The buyer sends an [850 purchase order](/guides/edi/850-purchase-order), and the supplier may confirm it with an [855](/guides/edi/855-purchase-order-acknowledgment).
2. **Pick, pack and label.** The warehouse packs cartons and prints [SSCC-18](/glossary/sscc) labels, exactly as for an 856.
3. **Price and bill.** The billing system prices each shipped line and applies terms, allowances and charges, exactly as for an 810.
4. **Build the 857.** The shipment level carries the carrier, weight and bill of lading. The order level carries the PO, invoice number, terms and invoice total. Pack levels carry carton labels, and item levels carry each priced line.
5. **Transmit.** The supplier sends the 857 when the truck leaves, and the buyer returns a [997](/guides/edi/997-functional-acknowledgment).
6. **Receive.** The buyer's dock scans cartons against the pack and item levels.
7. **Pay.** The buyer's AP matches the shipped and received quantities to the prices on the same document and pays, often with an [820](/guides/edi/820-payment-order).
Because there is no separate invoice to fix later, a short-pick or price correction found after the 857 leaves needs whatever correction process the buyer's guide defines, such as a credit adjustment.
## The 857 Hierarchy and BS Loops
Like the 856, the 857 uses `HL` loops. Unlike the 856, each level has its own named segment group (BS1 to BS5) with a mandatory first segment, which is how the standard fits invoice data into the hierarchy.
| HL03 | Level | Loop | Mandatory first segment | Typical content |
|---|---|---|---|---|
| `S` | Shipment | BS1 | `G05` Total Shipment Information | Carrier, weight, ship date, BOL, ship-from and ship-to |
| `O` | Order | BS2 | `TDS` Total Monetary Value Summary | PO reference, invoice number, terms, taxes, allowances, invoice total |
| `T` | Tare (pallet) | BS3 | `PAL` Pallet Information | Pallet type and label |
| `P` / `Q` | Pack / Subpack | BS4 | `LX` Assigned Number | Carton label (`MAN`), physical details |
| `I` | Item | BS5 | `IT1` Baseline Item Data (Invoice) | Item, quantity, unit price, description |
`BHT01` fixes the order of the levels. The X12 notes allow three values:
- `0001`: Shipment, Order, Tare, Pack, Subpack, Item
- `0002`: Shipment, Order, Item, Tare, Pack, Subpack
- `0003`: Shipment, Tare, Pack, Subpack, Order, Item
Levels must appear in that order, though some can be left out. The structure is always one shipment of one or more orders. Each order needs at least one item level, and the shipment level appears exactly once.
## Interactive Example: Publisher Shipment to a Bookseller DC
A small press ships one order of three titles to a bookseller's distribution center in three cartons. `BHT01` is `0001`, so the levels run shipment, order, pack, item. The shipment level gives 3 cartons and 96 lb in `G05`, the carrier SCAC and the bill of lading. The order level carries the PO in `PRF`, the invoice number in `N9*IV`, net 60 terms in `ITD`, and the $988.44 invoice total in `TDS`. Each carton has its SSCC-18 in `MAN` and one priced `IT1` line. All names, numbers and the carrier code are fictional.
Use the **Plain English** tab for a readable summary, or click any segment to see its elements.
## 857 Structure at a Glance
| Level | Segment | Name | Usage | Notes |
|---|---|---|---|---|
| Header | **ST** | Transaction Set Header | Mandatory | `ST01` = `857` |
| Header | **BHT** | Beginning of Hierarchical Transaction | Mandatory | Level order, purpose, shipment ID, date |
| All | **HL** | Hierarchical Level | Mandatory, repeats | One per level |
| Shipment | **G05** | Total Shipment Information | Mandatory in BS1 | Units, weight, volume |
| Shipment | **TD1 / TD3 / TD4 / TD5** | Carrier details | Optional | Packaging and weight, equipment, hazmat, carrier and routing |
| Shipment | **FOB** | F.O.B. Related Instructions | Optional | Freight terms |
| Shipment | **DTM** | Date/Time Reference | Optional | Ship date (`011`) |
| Shipment | **N9** | Reference Identification | Optional | Bill of lading (`BM`), PRO and similar |
| Shipment | **CUR** | Currency | Optional | Currency of the amounts |
| Shipment loop | **N1/N2/N3/N4** | Name and address | Optional | Ship from (`SF`), ship to (`ST`) |
| Order | **TDS** | Total Monetary Value Summary | Mandatory in BS2 | Invoice total for the order |
| Order | **PRF** | Purchase Order Reference | Optional | PO number and date |
| Order | **N9** | Reference Identification | Optional | Invoice number (`IV`) and others |
| Order | **ITD** | Terms of Sale | Optional | Payment terms |
| Order | **TXI** | Tax Information | Optional | Taxes |
| Order loop | **SAC** | Service, Promotion, Allowance, or Charge | Optional | Freight, allowances, other charges |
| Order loop | **N1** | Name | Optional | Bill-to, remit-to |
| Tare | **PAL / MAN** | Pallet Information / Marks and Numbers | `PAL` mandatory in BS3 | Pallet details and label |
| Pack | **LX / MAN** | Assigned Number / Marks and Numbers | `LX` mandatory in BS4 | Carton number and label |
| Item | **IT1** | Baseline Item Data (Invoice) | Mandatory in BS5 | Item, quantity, price |
| Item | **IT3 / PO4 / CTP / PID** | Additional item data | Optional | Additional quantities, pack, pricing, description |
| Trailer | **SE** | Transaction Set Trailer | Mandatory | Segment count and control number |
The 857 has no summary area of its own: the invoice totals live in `TDS` at each order level.
## Key Segments Explained
### BHT: Beginning of Hierarchical Transaction
```
BHT*0001*00*CHP-SHP-7731*20261102*1430~
```
| Element | Name | Example | What it means |
|---|---|---|---|
| **BHT01** | Hierarchical Structure Code | `0001` | The level order (`0001`, `0002` or `0003`) |
| **BHT02** | Transaction Set Purpose Code | `00` | `00` = original |
| **BHT03** | Reference Identification | `CHP-SHP-7731` | The sender's shipment or transaction number |
| **BHT04** | Date | `20261102` | Date the 857 was created |
| **BHT05** | Time | `1430` | Time it was created |
The X12 notes make `BHT03` and `BHT04` mandatory for the 857, even though they are optional in the generic segment.
### G05: Total Shipment Information
```
G05*3*CT*96*LB~
```
| Element | Name | Example | What it means |
|---|---|---|---|
| **G0501** | Number of Units Shipped | `3` | Shipping units in the shipment |
| **G0502** | Unit of Measure | `CT` | Carton |
| **G0503** | Weight | `96` | Total weight |
| **G0504** | Unit of Measure | `LB` | Pounds |
| **G0505** / **G0506** | Volume, unit | | Optional volume |
| **G0507** / **G0508** | Lading quantity, unit | | Optional piece count |
At least one of units, weight or volume must be present. The carton count here should equal the number of pack levels you send.
### HL: Hierarchical Level
```
HL*1**S*1~
HL*2*1*O*1~
HL*3*2*P*1~
HL*4*3*I*0~
```
`HL01` numbers each level from 1, `HL02` points to the parent level, `HL03` is the level code (`S`, `O`, `T`, `P`, `Q` or `I`) and `HL04` says whether children follow. The X12 notes say `HL02` is 0 at the shipment level, while many guides and translators send it blank, as the example does. Follow the buyer's guide.
### TDS: Total Monetary Value Summary (Order Level)
```
TDS*98844~
```
`TDS01` is the invoice total for the order, including charges and less allowances, before any terms discount. It has two implied decimals: `98844` is $988.44. `TDS02` to `TDS04` carry the amount subject to discount, the amount due if paid by the discount date, and the discount amount where terms include one.
In the example, 24 × $14.95 + 12 × $22.50 + 36 × $9.99 = $358.80 + $270.00 + $359.64 = $988.44. With more than one order on the shipment, each order level has its own `TDS`.
### PRF and N9: Purchase Order and Invoice Number
```
PRF*RB-448120***20261020~
N9*IV*CHP-INV-90217~
```
`PRF01` is the buyer's PO number and `PRF04` its date. The 857 has no `BIG` segment, so the invoice number travels in an order-level `N9` with qualifier `IV` (seller's invoice number), as in the PUBNET guide. The buyer's AP keys payment on it, so it must be unique across every 857 and 810 you send that buyer.
### ITD: Terms of Sale
```
ITD*05*3*****60~
```
`ITD01` is the terms type, `ITD02` the date the terms count from (`3` = invoice date), and `ITD07` the net days. Here: no discount, net 60 from the invoice date. Payment terms belong at the order level because each order on the shipment can have different terms.
### MAN: Marks and Numbers (Pack Level)
```
MAN*GM*006141410000041213~
```
`MAN01` = `GM` identifies an SSCC-18 serial shipping container code, and `MAN02` is the 18-digit number on the carton label. The buyer's dock scans the label and looks it up in the 857, so every label you print must appear once and only once. The example uses GS1's documentation company prefix 0614141 with valid check digits.
### IT1: Baseline Item Data (Invoice)
```
IT1*1*24*EA*14.95**VN*CHP-10417~
```
| Element | Name | Example | What it means |
|---|---|---|---|
| **IT101** | Assigned Identification | `1` | Line number, often the PO line number |
| **IT102** | Quantity Invoiced | `24` | Quantity shipped and billed in this pack |
| **IT103** | Unit of Measure | `EA` | Each |
| **IT104** | Unit Price | `14.95` | Price per unit |
| **IT106** / **IT107** | Product ID qualifier and ID | `VN`, `CHP-10417` | Vendor item number |
The item level replaces both the 856 `LIN`/`SN1` pair and the 810 `IT1` line. One `IT1` therefore states what is in the carton and what it costs. Book trade guides usually identify items by ISBN, with the qualifier set in the guide; general merchandise guides use UPC or GTIN.
## EDI 857 vs 856 and 810
| | 856 Ship Notice/Manifest | 810 Invoice | 857 Shipment and Billing Notice |
|---|---|---|---|
| **Purpose** | Plan receiving | Request payment | Both |
| **Functional group (`GS01`)** | `SH` | `IN` | `BS` |
| **Header segment** | `BSN` | `BIG` | `BHT` |
| **Structure** | HL hierarchy | Flat item lines | HL hierarchy with BS1 to BS5 loops |
| **Item segment** | `LIN` + `SN1` | `IT1` | `IT1` |
| **Totals** | Optional `CTT` | `TDS` in summary | `TDS` at each order level |
| **Invoice number** | Not carried | `BIG02` | `N9` with `IV` at order level |
| **Timing** | At shipment | At or after shipment | At shipment |
| **Correction** | Resend or replace the ASN | Credit memo or new invoice | Buyer's defined process, since one document did both jobs |
The trade-off is simple. The 857 halves the documents you send and removes any chance of the ASN and invoice disagreeing. In return, your billing has to be final at the moment you ship, and pricing data reaches the receiving system. The X12 notes suggest keeping prices away from the receiving area where that is current practice.
## Where the 857 Sits in the Order Flow
1. [850 Purchase Order](/guides/edi/850-purchase-order): buyer orders
2. [855 PO Acknowledgment](/guides/edi/855-purchase-order-acknowledgment): supplier confirms (if required)
3. **857 Shipment and Billing Notice**: supplier ships and bills
4. [997 Functional Acknowledgment](/guides/edi/997-functional-acknowledgment): buyer confirms receipt of the file
5. [861 Receiving Advice](/guides/edi/861-receiving-advice): buyer reports what it received (where used)
6. [820 Payment Order/Remittance](/guides/edi/820-payment-order): buyer pays
The freight itself may move on carrier documents such as a [204 load tender](/guides/edi/204-motor-carrier-load-tender) and [214 status messages](/guides/edi/214-transportation-carrier-shipment-status), which are separate from the 857. For the full picture, see the [EDI order lifecycle guide](/guides/edi/edi-order-lifecycle).
## Common 857 Errors and How to Prevent Them
| Error | What happens | Prevention |
|---|---|---|
| **Sending an 810 as well as the 857** | Duplicate invoice, double payment or rejection | Turn off the 810 for partners on the 857 |
| **Missing `TDS` at an order level** | Order level invalid, invoice cannot be paid | Generate one `TDS` per order level, summed from its items |
| **`TDS` does not equal item extensions plus charges** | AP holds or short-pays | Compute totals from the lines at build time |
| **Implied decimal error in `TDS01`** | Total read 100 times too large or small | Send whole cents with no decimal point |
| **Levels out of `BHT01` order** | Rejected by the buyer's translator | Build the tree from one structure code and validate it |
| **Order with no item level** | Rejected | Every order level needs at least one `IT1` |
| **Carton count in `G05` differs from pack levels** | Receiving discrepancy | Count `MAN` labels and set `G0501` from them |
| **Duplicate or missing SSCC** | Cartons cannot be received by scan | Assign labels from a single serial sequence |
| **Invoice number reused** | Payment applied to the wrong document | Number 857s and 810s from one invoice sequence per buyer |
Paste a test 857 into the [free EDI inspector](/edi-inspector) to see its hierarchy, carton labels and line extensions side by side before your first live shipment. If you are new to the ASN half of the document, our [856 guide](/guides/edi/856-ship-notice) covers SSCC labels and packing hierarchies in more depth.
## 857 Implementation Checklist
- Get the buyer's 857 guide and confirm it replaces both the 856 and 810
- Confirm the `BHT01` structure code and which levels are required
- Confirm `HL02` handling at the shipment level (0 or blank)
- Confirm item identifiers (UPC, GTIN, ISBN, buyer item number)
- Confirm where the invoice number goes (`N9` qualifier) and its format
- Map terms, allowances and charges to `ITD` and `SAC` at the order level
- Generate SSCC-18 labels and `MAN` segments from the same pack data
- Suppress the 810 and 856 for this partner
- Agree the correction process for short shipments and price errors after transmission
- Test a single-order shipment, a multi-order shipment and a shipment with a charge or allowance
## Where OrderSync Fits
An 857 is only as good as the order behind it. If the PO was keyed with the wrong item, unit or price, the shipment and the invoice are wrong together.
OrderSync reads inbound orders in any format, including EDI 850s, PDFs, emails and spreadsheets, matches customers, items and units to your catalog, and outputs clean orders to your ERP or valid X12. Paste an 857 into the [free EDI inspector](/edi-inspector) to see it in plain English, read about [automated order processing](/order-processing-automation), or [book a 15-minute walkthrough](/book-call) to see your own orders processed.
## Frequently Asked Questions
### What is an EDI 857 used for?
The EDI 857 Shipment and Billing Notice tells a buyer what was shipped and bills for it in one document. The buyer's receiving system uses the shipment, carton and item data, and its payables system uses the prices, terms and invoice totals.
### What is the difference between EDI 856 and EDI 857?
The 856 ASN describes a shipment for receiving only and carries no invoice data. The 857 carries the same shipment hierarchy plus prices, terms and invoice totals, so it also serves as the invoice. An 857 replaces both the 856 and the 810.
### Can an EDI 857 replace an 810 invoice?
Yes, but only together with the 856. The X12 standard says the 857 should not replace either document on its own, so a partner on the 857 should receive no separate 810 or 856 for the same shipment.
### Who uses the EDI 857?
It is used far less than the 856 and 810. Documented users include the book trade, through the BISAC 857 standard and the PUBNET guideline, and US defense procurement, where the DLMS 857 supports combined invoice and receiving report documents in WAWF.
### What functional group does the 857 use?
The 857 travels in functional group BS, the value in GS01. The transaction set identifier in ST01 is 857.
### Where is the invoice number in an EDI 857?
There is no BIG segment in the 857. The invoice number is usually sent in an order-level N9 segment with qualifier IV (seller's invoice number), and the invoice total is in the order-level TDS segment.
### What does BHT01 mean in an EDI 857?
BHT01 is the hierarchical structure code. In the 857 it can be 0001, 0002 or 0003, and each fixes a different order of the shipment, order, tare, pack, subpack and item levels.