Payment Order/Remittance Advice
The X12 820 instructs a financial institution to make a payment and/or advises the payee which invoices a payment covers.
In this guide
820 Payment/Remittance moves from Buyer / Payer to Supplier / Payee / Bank (Payer → Payee (and/or Bank)) via AS2, SFTP, API. The interactive diagram below traces every business and technical step the message passes through — press Play Flow to watch it travel, or click any step for detail.
How it works
How 820 Payment/Remittance Works
Sender
Buyer / Payer
Receiver
Supplier / Payee / Bank
Direction
Payer → Payee (and/or Bank)
Standard
ANSI ASC X12
Version
005010
Transport
AS2 / SFTP / API
Business Purpose
Finance
Sender — Buyer / Payer
EDI Transmission
820
Payment Order/Remittance Advice
ANSI ASC X12 004010 / 005010
Receiver — Supplier / Payee / Bank
Related transaction flows
Need help understanding this EDI flow?
Ask EDI AI →820 Payment/Remittance workflow. Steps: Approve Invoices, Generate 820 EDI, Send to Bank / Supplier, Receive Remittance, Cash Application, Reconcile Deductions. Transmitted from Buyer / Payer to Supplier / Payee / Bank via AS2, SFTP, API, following ANSI ASC X12 004010 / 005010.
Overview
Automates cash application by telling the supplier's AR system exactly which invoices were paid, in what amounts, and with what deductions.
Sender
Buyer / Payer
Receiver
Supplier / Payee / Bank
Direction
Payer → Payee (and/or Bank)
Standard / Version
ANSI ASC X12 004010 / 005010
Segment structure
Key segments that make up this transaction set:
| Segment | Name | Purpose |
|---|---|---|
| BPR | Beginning Segment for Payment Order/Remittance Advice | Total payment amount, payment method, and bank account details. |
| TRN | Trace Number | Unique reference number for tracing the payment. |
| RMR | Remittance Advice Accounts Receivable Open Item Reference | Identifies the invoice being paid and any adjustment. |
Interactive example
Click any segment below to see its business meaning.
ST
This is an envelope or control segment. Select a highlighted segment on the left (shown in green) for a full business explanation.
View raw EDI
ST*820*0001~
BPR*C*295000*C*ACH*CTX*01*021000021*DA*1234567890**01*091000019*DA*9876543210*20230930~
TRN*1*PMT-77123*1934567890~
N1*PR*BuyerCorp Inc~
N1*PE*Acme Supply Co~
RMR*IV*INV-90210**295000~
SE*7*0001~Mapping example
A representative field-level mapping from a common source system into this transaction:
| Source | Source Field | Target Field |
|---|---|---|
| ERP Payment Run | payment.total_amount | BPR02 (Total Payment Amount) |
| ERP Payment Run | invoice.invoice_number | RMR02 (Reference Number) |
| ERP Payment Run | invoice.amount_paid | RMR04 (Payment Amount) |
Validation rules
- The sum of all RMR04 amounts must equal BPR02.
- RMR02 invoice references should match invoice numbers previously received via 810.
- Bank routing and account numbers in BPR must be valid ABA/DDA formats when BPR04 = ACH or FEDWIRE.
- TRN02 trace number must be unique per payment for reconciliation.
Common errors & troubleshooting
Cash application fails to auto-match
Cause: RMR02 references a purchase order number instead of the invoice number the supplier expects.
Fix: Confirm with the trading partner which reference qualifier (IV, PO, etc.) their AR system expects in RMR01/02.
Payment total doesn't reconcile
Cause: Deductions (short pays, chargebacks) were applied but not represented in an RMR adjustment segment.
Fix: Add adjustment reason codes so the supplier can see why the paid amount differs from the invoiced amount.
Related articles
Frequently asked questions
It can either instruct a bank to move money (payment order) or simply describe a payment made through another channel (remittance advice only) — the trading partner agreement defines which mode is used.
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