Suppliers, distributors, and manufacturers use this transaction set to communicate inventory levels, availability, and status information to their trading partners. Typically sent in response to inventory requests or proactively to advise of stock positions, the 846 enables participants to share current inventory data along with item details and scheduling information. The transaction begins with the BIA (Beginning Segment for Inventory Inquiry/Advice) segment, which establishes the inquiry or advice purpose, and progresses through the LIN (Item Identification) loop that allows senders to report on multiple items with detailed specifications. Supporting segments like DTM (Date/Time Reference) and SDQ (Destination Quantity) provide temporal and quantity context, while optional CTP (Pricing Information) and SAC (Service, Promotion, Allowance, or Charge Information) segments allow inclusion of commercial terms when relevant.

Consider a scenario where TechParts Inc., a component distributor, sends an 846 to ElectroManufacturing Corp., a customer managing a materials-planning cycle. TechParts structures the transaction to report on ten different integrated circuits currently held in inventory. For each item, TechParts includes the line item identification, current available quantities segmented by destination warehouse, lead times for replenishment orders, and relevant date references such as date-last-received and date-of-next-scheduled-delivery. If price changes accompany the shipment, TechParts adds pricing information in the CTP segment. ElectroManufacturing receives the 846, processes the inventory positions into its demand-planning system, and uses the lead-time data to optimize purchase timing for components it will need in the coming quarter.