Shipment and Billing Notice (857) is sent by suppliers, distributors, or logistics service providers to customers or their designated receivers to document the shipment of goods and associated billing information. This transaction set combines shipping and financial data in a single document, eliminating the need for separate communications. The BHT (Beginning of Hierarchical Transaction) segment establishes the transaction context, while the HL (Hierarchical Level) segment organizes shipment information in a structured format. Key carrier and logistics details are conveyed through the TD1, TD3, TD4, and TD5 segments, which specify equipment, quantities, weights, special handling requirements, and routing information.

For example, a distributor such as Premier Supply Company ships an order of industrial components to Midwest Manufacturing and uses the 857 to notify them of the shipment. The message includes shipment-level details via the G05 loop (total shipment information, dates, and carrier routing), item-level line items via the IT1 loop (baseline invoice data with pricing and terms), and pallet information via the PAL loop if the goods are palletized. The transaction simultaneously provides billing summarization through the TDS (Total Monetary Value Summary) segment and supports itemized billing through pricing and tax segments, allowing Midwest Manufacturing to reconcile receipt with the financial obligation in a single, unified document.