EDI 940 – Warehouse Shipping Order

EDI 940 Definition

The EDI 940 transaction set is an electronic Warehouse Shipping Order that is used by a supplier to inform a remote warehouse when to ship an order/orders to a buyer. This transaction set can also be used to confirm a shipment, or modify or cancel a previously transmitted shipping order. After the EDI 940 Warehouse Shipping Order transaction is received by the warehouse, a 997 Functional Acknowledgement is sent back to the supplier to indicate that they successfully received EDI 940 transaction.

Sent By: Supplier, Manufacturer, or Distributor

The supplier or manufacturer sends the EDI 940 to instruct a third-party warehouse or 3PL to ship goods to a specific destination. This is typically triggered when a purchase order is received from a customer and the supplier relies on a warehouse to fulfill the order.

Received By: Warehouse or Third-Party Logistics Provider (3PL)

The warehouse receives the EDI 940 as the instruction to pick, pack, and ship the specified items. Once the shipment is complete, the warehouse responds with an EDI 945 Warehouse Shipping Advice to confirm what was shipped.

What EDI 940 Represents in Real Life

The EDI 940 is not just a shipping instruction.

It is the trigger that sets warehouse fulfillment in motion. Without it, the warehouse has no authorization to move product and orders sit idle and customers wait.

When an EDI 940 is processed successfully:

• • • The warehouse knows exactly what to ship, where to ship it, and when
    • Picking and packing begin without manual communication
    • The supplier maintains control over fulfillment without being physically at the warehouse
    • Delivery timelines stay on track

In short, the EDI 940 is how suppliers turn customer orders into warehouse action.

EDI 940 Specification

This X12 Transaction Set contains the format and establishes the data contents of the Warehouse Shipping Order Transaction Set (940) for use within the context of an Electronic Data Interchange (EDI) environment. The transaction set can be used to provide for customary and established business and industry practice relative to instructing a warehouse to ship goods on behalf of a supplier.

Source: Accredited Standards Committee X12. ASC X12 Standard [Table Data]. Data Interchange Standards Association, Inc., Falls Church, VA. https://x12.org

Components of an EDI 940 Warehouse Shipping Order:

Each EDI 940 Warehouse Shipping Order document contains segments and data elements. Each segment contains at least one data element. Each data element is a data field. Examples of data elements are:

• • • Seller/Buyer/Supplier information
    • Product ID, descriptions, and quantities
    • Delivery date
    • Shipment method information
    • Ship-to information including location, name and address, contact, etc.
    • Billing information

Additional data that may be included in the shipping order pertains to:

• • • Department and internal account numbers
    • Cancel-after and requested ship dates
    • Carrier codes and equipment type
    • Purchase order references

Vendor part numbers and UPC codes

Related EDI Transactions

Other EDI documents commonly associated with warehouse shipping operations include:

• • • EDI 943 Warehouse Stock Transfer Shipment Advice
    • EDI 944 Warehouse Stock Transfer Receipt Advice
    • EDI 945 Warehouse Shipping Advice
    • EDI 947 Warehouse Inventory Adjustment Advice

Other related EDI documents include:

• • • EDI 810 – Invoice
    • EDI 812 – Credit / Debit Adjustment
    • EDI 820 – Payment or Order Remittance
    • EDI 846 – Inventory Inquiry
    • EDI 850 – Purchase Order
    • EDI 855 – Purchase Order Acknowledgment
    • EDI 856 – Advance Ship Notice
    • EDI 860 – Order Change Request
    • EDI 867 – Product Transfer and Resale Report File Format
    • EDI 870 – Order Status Report
    • EDI 990 – Response to a Load Tender
    • EDI 997 – Functional Acknowledgement
    • EDI 204 – Motor Carrier Load Tender
    • EDI 210 – Motor Carrier Freight Details and Invoice

EDI 214 – Transportation Carrier Shipment Status Message

EDI 940 Sample File Format (Raw EDI File)

ISA*00*          *00*          *12*111111111      *12*222222222      *230522*0825*U*00401*000000001*0*T*>~
GS*OW*111111111*222222222*20230522*0825*1*X*004010~
ST*940*0001~
W05*N*0402738*123456789TEST~
N1*ST*TEST DISTRIBUTION CENTER *92*0111111118923~
N3*1234 Main St~
N4*Carson*CA*90745*USA~
N1*BT*Test Store*92*0111111118923~
N3*P. O. BOX  123~
N4*MEMPHIS*AL*72712*USA~
N1*BY*TEST DISTRIBUTION CENTER*92*0111111118923~
N3*1234 Main St~
N4*Carson*CA*90745*USA~
N9*DP*00063~
N9*IA*473967630~
G62*01*20230516~
G62*04*20230504~
G62*10*20230510~
W66*PP*M***TRUCK*****TRUC~
LX*000001~
W01*1*EA*123456789012*VN*12345678~
N9*LI*001~
LX*000002~
W01*24*EA*123456789013*VN*12345679~
LX*000003~
W01*22*EA*123456789014*VN*12345680~
LX*000004~
W01*17*EA*123456789015*VN*123456781~
W76*64~
SE*28*0001~
GE*1*1~
IEA*1*000000001~

What Each Line in the EDI 940 Sample Means

Each segment in an EDI 940 serves a specific purpose. Here is a breakdown of the sample file above:

ISA – Interchange Control Header. Opens the EDI envelope. Contains the sender ID (111111111), receiver ID (222222222), date (230522), time (0825), control number (000000001), and standards version (00401).

GS – Functional Group Header. Identifies the type of transaction (OW = Warehouse Shipping Order) and groups one or more 940 transactions together.

ST – Transaction Set Header. Marks the beginning of the 940 transaction. The “940” identifies the document type and “0001” is the unique transaction set control number.

W05 – Warehouse Shipping Order Identification. Contains the order status (N = New order), depositor order number (0402738), and purchase order number (123456789TEST).

N1*ST – Ship To Name. Identifies the destination (ST = Ship To). “TEST DISTRIBUTION CENTER” with identification code qualifier 92 and code 0111111118923.

N3 / N4 (Ship To) – Ship To Address. N3 contains the street address (1234 Main St) and N4 contains the city (Carson), state (CA), ZIP code (90745), and country (USA).

N1*BT – Bill To Name. Identifies the billing party (BT = Bill To). “Test Store” with code 0111111118923.

N3 / N4 (Bill To) – Bill To Address. P.O. Box 123, Memphis, AL 72712.

N1*BY – Buyer Name. Identifies the buying party (BY = Buyer). “TEST DISTRIBUTION CENTER” with code 0111111118923.

N9*DP – Department Number Reference. DP = Department Number. References department 00063.

N9*IA – Internal Account Reference. IA = Internal Vendor Number. References account 473967630.

G62*01 – Cancel After Date. Qualifier 01 = Cancel After date. The order should not be delivered after 20230516 (May 16, 2023).

G62*04 – Purchase Order Date. Qualifier 04 = Purchase Order date. The original PO was created on 20230504 (May 4, 2023).

G62*10 – Requested Ship Date. Qualifier 10 = Requested Ship date. The supplier wants the warehouse to ship by 20230510 (May 10, 2023).

W66 – Warehouse Carrier Information. Payment method (PP = Prepaid), transportation method (M = Motor), equipment type (TRUCK), and carrier code (TRUC).

LX – Assigned Number. A line counter that identifies each detail loop. LX*000001 through LX*000004 represent four separate line items in this order.

W01 – Warehouse Item Detail. The core line item segment. Contains quantity ordered (e.g., 1, 24, 22, 17), unit of measure (EA = Each), UPC code, and vendor part number (VN). For example, W01*24*EA*123456789013*VN*12345679 means 24 units of item 12345679.

N9*LI – Line Item Reference. LI = Line Item Number. References the line number (001) from the original order.

W76 – Total Shipping Order. Summary of the order: 64 total units across all line items.

SE – Transaction Set Trailer. Closes the 940 transaction. Contains the segment count (28 segments) and the matching control number from the ST segment.

GE – Functional Group Trailer. Closes the functional group. Indicates 1 transaction set was included in this group.

IEA – Interchange Control Trailer. Closes the entire EDI envelope. Confirms 1 functional group and the matching interchange control number from the ISA segment.

What an EDI 940 Looks Like Inside Elevate

Although the raw EDI 940 is machine-readable, our cloud-based EDI platform Elevate presents the shipping order in a clean, readable format for business users.

Inside Elevate, teams can see:

• • • Order number and purchase order reference
    • Ship to, bill to, and buyer details
    • Requested ship date and cancel-after date
    • Carrier and transportation method
    • Line items, quantities, and item descriptions
    • Status of processing and acknowledgment

This visibility helps operations, logistics, and customer service teams manage warehouse fulfillment without reading raw EDI.

EDI 940 Warehouse Shipping Order in Elevate

How to Start Sending EDI 940

If your business uses a third-party warehouse or 3PL and needs to start sending EDI 940 documents, here is a general roadmap:

1. Understand your warehouse’s requirements: Each warehouse or 3PL will have a specific EDI implementation guide that outlines the segments, data elements, and codes they expect in 940. Review this guide carefully before mapping.

2. Choose an EDI platform: You need EDI software to translate your order data into the ANSI X12 940 format. Cloud-based platforms like Elevate make this straightforward with transparent pricing, no contracts, and end-to-end support.

3. Map your data: Connect the fields in your ERP or order management system to the corresponding EDI 940 segments. This includes ship-to addresses, item quantities, carrier details, delivery dates, and billing information.

4. Test with your warehouse: Before going live, send test 940 transactions to your warehouse to validate that the data maps correctly and meets their requirements. Most warehouses require a testing phase before production.
5. Go live and monitor: Once testing is complete, begin sending production 940s. Monitor for errors, acknowledgment failures (997s), and fulfillment discrepancies. A good EDI platform will alert you to issues in real time.

Need help with EDI 940 implementation and more?

Elevate is built for small businesses and includes hands-on onboarding so you don’t have to figure it out alone.

Real-World Example: Supplier Sending a Shipping Order to the Warehouse

A retailer places a purchase order for 64 units across four products. The supplier uses a third-party warehouse for fulfillment.

• • • The supplier receives the EDI 850 Purchase Order from the retailer
    • Elevate generates an EDI 940 Warehouse Shipping Order and sends it to the warehouse
    • The warehouse picks, packs, and ships the order
    • The warehouse sends an EDI 945 back to the supplier confirming shipment details
    • The supplier generates an EDI 856 Advance Ship Notice for the retailer
    • The supplier sends an EDI 810 Invoice for billing
    • Payment is scheduled without manual reconciliation

When the 940 is accurate, the warehouse fulfills the order correctly the first time.

Why EDI 940 Accuracy Is Critical

Shipping order errors cause fulfillment problems that impact your customers directly.

Common problems include:

• • • Wrong item quantities or product codes
    • Incorrect ship-to addresses
    • Missing or wrong carrier instructions
    • Conflicting delivery dates

These issues lead to:

• • • Wrong items shipped to customers
    • Missed delivery windows
    • Chargebacks from retailers
    • Manual corrections and re-shipments
    • Damaged trading partner relationships

A clean EDI 940 means the warehouse ships the right product to the right place on time.

Common Challenges with EDI 940 Warehouse Shipping Orders

Different warehouses and 3PLs require different 940 formats and field mappings

• • • Multi-warehouse fulfillment requires routing logic to determine which warehouse gets each order
    • Split shipments require multiple 940s tied to a single purchase order
    • Carrier codes and service levels vary across logistics providers
    • ERP or order management system migrations can break existing 940 mappings

Flexible EDI systems handle these scenarios without breaking the flow.

FAQs

The EDI 944 transaction set is an electronic Warehouse Stock Transfer Receipt Advice that is used by third party logistics providers or warehouses to inform a depositor or an agent of the depositor that the transferred shipment has been received