# EDI 840

## What is an EDI 840?

EDI 840, also known as a Request for Quotation, is an [electronic data interchange](/content/resource/what-is-edi-video/ "Electronic Data Interchange | Learn More About EDI"/index.html) code used by buyers when looking for price, delivery or other information from a potential seller or supplier. Using EDI 840 makes it easy for a retailer or other buyer to choose the right trading partner for their needs.

EDI 840 documents follow the x12 format set by the American National Standards Institute (ANSI), a not-for-profit organization that regulates EDI formats in the U.S.

### What are the Essential Components of EDI 840?

An EDI 840 transaction set can be used to request a variety of information from a seller or supplier. Important elements in a Request for Quotation document include:

- Buyer identification information
- A deadline for response
- A description of the goods or services needed
- Requests for price and payment term information
- Requests for delivery schedules or conditions information

### How do I Use EDI 840?

EDI 840 is usually used by a buyer to request a quote or bid from a seller or supplier. It’s similar to filling out a “Get a Quote” form online, and is great for purchases that need evaluation, but do not require a formal Request for Proposal. Buyers might send EDI 840 to several suppliers or sellers before deciding who to buy from, and it’s often used for advanced, made-to-order manufacturing jobs that require detailed scoping or regarding government contracts.

Generally, vendors and suppliers will respond to an EDI 840 transaction with an [EDI 843 Response to Request for Quotation](/content/blog/edi-transaction-codes-843/ "EDI 843 Response to Request for Quotation | Learn More About EDI 843"/index.html), which should contain the information the seller requested. The seller might also send an [EDI 997 Functional Acknowledgement](/content/blog/edi-transaction-codes-997/ "EDI 997 Functional Acknowledgement | Learn More About EDI 997"/index.html) in response to EDI 840.

### What are the Benefits of EDI 840?

Because EDI 840 is automated, it can help streamline trading partner communications, while eliminating the need for time-consuming and error-prone manual data entry. EDI 840 also replaces lengthy phone calls between buyers and sellers, by providing an easy way for buyers to assess if a seller meets their needs. The transaction also provides back-up documentation for the bid, and subsequent purchases.

EDI 840 Request for Quotation documents are also more secure than phone calls, emails, or faxed requests. This is because many [integrated EDI solutions](/content/integrations/erp/index.html) use measures such as HTTPs protocols or in-transit encryption to protect the data in EDI transactions.