The 997 – It Is More Functional Than You Think

April 17, 2013

Trading Partner decides they don’t want to transmit the 997 Functional Acknowledgments to you…

…they want to save some money on their VAN costs, thinking that the 997 is a waste of time.

There is so much more to a 997 than you might think….as it is called a “Functional” Acknowledgement. So what are its’ functions? The 997 Functional Acknowledgment EDI transaction, a necessary piece of the EDI process, informs recipients that an EDI transaction has been received. This is important when you send out 810 Invoices to get paid and you want to make sure your customer has received them in a timely manner!

Many systems commonly reconcile the incoming and outgoing 997, verify that acknowledgement reporting has occurred inside a window of time (usually 24 hours), and confirm that all EDI transactions were accepted.
If a 997 has reported an error on a transaction set, the Trading Partner can interpret the problem and send a notification to resolve such an issue, usually resulting in retransmission of the corrected transaction set.

Understanding the errors that exist in a transaction set can be helpful. Even when “accepted but with errors”, you have the information needed to make the correction going forward.

Implementing an automated 997 reconciliation process is easy and can save considerable time and money. So next time your Trading Partner says no to the 997, you can explain that using this transaction will actually save time and money. Share this scenario with them….When you find out that 4 weeks ago, a slew of 810 Invoices were never received by your Trading Partner and aren’t paid, you would have saved research time and money, finding out what was wrong with the invoices right away if they had sent the 997 and you had a reconciliation process in place.

For more information contact 1EDISource here.