X12 847 — Material Claim
The 847 transmits a material claim — defective, non-conforming, damaged in transit — from a buyer to its supplier, to open a return / credit.
Purpose
The 847 documents a formal claim: defective received items, non-conforming to specs, damaged in transit, wrong quantity, wrong reference. It carries the claim number, the PO reference, concerned items, amounts, desired disposition (return, credit, replacement).
It feeds the quality management system and the claim resolution workflow. Acknowledged by 997. Pairs naturally with 842 (Nonconformance Report) and 180 (Return Merchandise Authorization).
Envelope structure
The 847 travels within the three X12 envelope levels (ISA/IEA,
GS/GE with functional group MM, and ST/SE).
Didactic example in release 004010:
ISA*00* *00* *ZZ*BUYER *ZZ*SUPPLIER *260515*1530*U*00401*000000847*0*P*>~
GS*MM*BUYER*SUPPLIER*20260515*1530*1*X*004010~
ST*847*0001~
BCM*00*CLM-2026-9911*20260515~
N1*BY*ACME MFG CO*92*BY-001~
N1*SE*XYZ INDUSTRIAL SUPPLIES*92*SU-001~
REF*PO*PO-2026-3300~
LX*1~
LIN*1*UP*012345678905~
QTY*38*25~
NTE*ZZ*OUT-OF-TOLERANCE-25MM~
AMT*ZZ*375.00~
SE*10*0001~
GE*1*1~
IEA*1*000000847~ Common segments
- Header —
ST,BCM(Beginning Segment for Claim). - Buyer / Supplier —
N1*BY,N1*SE. - PO reference —
REF*PO. - Claim items —
LXloop:LIN*UP,QTY*38(defective qty),NTE(reason),AMT*ZZ(loss). - Summary —
SE.
Common pitfalls
- Notice period: most contracts have 30 or 60 day notice for claims; a 847 out of window is barred by default.
- Evidence requirements: a claim without photos / inspection reports is easily contested; always bundle in REF.
- Insurance vs supplier claim: in-transit damage is typically an insurance claim; the supplier only pays manufacturer defects — confusing causes friction.
Related transactions
Documentation
The code 847 and the name Material Claim are public and listed on x12.org/products/transaction-sets. The complete structure of loops, qualifiers and code lists is distributed by DISA via the proprietary Implementation Guides (TR3). ediverse.io covers only public concepts, the envelope and didactic examples.