EDI 947 Inventory Adjustment Advice: When 3PL Stock Changes
The 3PL reporting stock changes that aren’t shipments or receipts: cycle counts, damage, returns and status changes.
- Document
- X12 947: Warehouse Inventory Adjustment Advice
- Sent by
- 3PL warehouse
- Sent to
- Supplier (depositor)
- In NetSuite
- Inventory adjustment
(01)What it is
The 947 reports changes to inventory at a warehouse that don’t come from shipping or receiving: a cycle count that found a difference, damaged goods written off, items placed on hold, or returns restocked.
Without it, the supplier’s ERP drifts away from the warehouse count until someone reconciles them by hand.
Inventory status matters too. Warehouses often hold stock as available, on hold, damaged or quarantined, and a 947 that moves stock between statuses changes what can be sold even though the physical count didn’t change.
(02)What it carries
- 01Items and the quantity change, up or down
- 02The reason for each adjustment
- 03Lot numbers and inventory status, when used
- 04The date of the change
In plain language. Each trading partner’s implementation guide sets the exact fields it requires.
(03)Where it fits
Documents usually exchanged before and after the 947.
(04)In NetSuite
Turn each 947 into a NetSuite inventory adjustment at the 3PL’s location, posting to an account that matches the reason (shrinkage, damage, count correction), so the adjustments can be reviewed instead of disappearing into one bucket.
(05)Common mistakes
- 01Posting every adjustment to one account, so shrinkage and receiving errors can’t be told apart.
- 02Ignoring 947s and relying on a periodic 846 overwrite instead, which hides why stock changed.
(06)Questions
What is an EDI 947?
The EDI 947 is the X12 warehouse inventory adjustment advice: a warehouse’s report of stock changes such as count corrections, damage or status changes.
How is a 947 different from an 846?
A 947 reports individual changes and their reasons; an 846 reports the resulting quantities. Both are useful; the 947 explains the 846.
(07)More 3pl & warehouse documents
- EDI 940Warehouse Shipping OrderThe supplier telling its 3PL warehouse what to ship, to whom and how.
- EDI 945Warehouse Shipping AdviceThe 3PL confirming what it shipped: the items, quantities, cartons and tracking, so the supplier can fulfill, notify and bill.
- EDI 943Warehouse Stock Transfer Shipment AdviceThe supplier telling its 3PL that inventory is on the way, so the warehouse can expect and receive it.
- EDI 944Warehouse Stock Transfer Receipt AdviceThe 3PL confirming what it received, item by item, including any shortages or damage.