EDI 820 Remittance Advice in SAP
The key to automated lockbox and cash application in SAP.
Talk to an SAP EDI ExpertWhat Is the EDI 820?
The EDI 820 remittance advice (REMADV in EDIFACT) tells you exactly what a customer's payment covers: which invoices, and any discounts, charges or deductions.
The 820 is often an afterthought in customer EDI projects, left unimplemented until a large retailer mandates it. Without it, your accounts receivable team spends hours each month keying in payments, discounts, charges and price changes, then reconciling each payment against the invoices it covers, sometimes hundreds at once. With the 820 in place, SAP receives that information electronically and applies it for you.
How It Works in SAP
From your customer's payment to cleared invoices, with your team in control.
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Receive
- Your customer sends an EDI 820 with the payment details
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Translate
- The 820 is translated into an IDoc and sent into SAP
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Review
- Your team reviews the payments and the invoices to be cleared
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Post
- SAP posts the payments and clears the invoices automatically
The Benefits
EDI 820 Success Story
Automated Receivables Processing
How a consumer products company selling to all the big retailers automated its receivables processing in SAP with the EDI 820.
Download the Case StudyEDI 820 Remittance FAQ
What is an EDI 820 remittance advice?
The EDI 820 is the electronic document a customer sends to tell you what a payment covers: the invoices being paid, plus any discounts, charges and deductions. In EDIFACT it is called REMADV.
How does the 820 get into SAP?
Your EDI system translates the 820 into an SAP IDoc, which SAP uses to apply the payment information. Your team can review the payments and the invoices to be cleared before SAP processes them.
Do we need the 820 if our customers don't require it?
It isn't required, but it pays for itself. Without it, your accounts receivable team keys in and reconciles every payment by hand.
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Automate Your Cash Application
Tell us how your customers pay you today, and we'll show you how the 820 works in SAP.