Material Claim

Material Claim (847) is a transaction set used to report discrepancies or issues with received materials, such as damage, quantity shortages, quality defects, or billing errors. A receiving organization sends it to a supplier, carrier, or other trading partner in response to a shipment or invoice. The transaction set uses the BHT (Beginning of Hierarchical Transaction) segment to establish the claim context, the AMT (Monetary Amount) segment to specify financial impact, and repeating HL (Hierarchical Level) loops to detail each affected line item with associated LIN (Item Identification) and optional QTY (Quantity), PID (Product/Item Description), and SHP (Shipped/Received Information) segments to document the specific nature and scope of the problem.

For example, Electronics Distributor Inc. receives a shipment from Summit Components Ltd. and discovers that five units of a circuit board assembly arrived damaged and three units are missing from the order. Electronics Distributor sends a 847 transaction to Summit Components documenting the claim: the BHT segment indicates this is a damage and shortage claim, the AMT segment shows the total claim value of $2,400, and the HL loops detail the two line items—one for the five damaged units with damage description in the NTE segment, and another for the three missing units with shortage details. Summit Components uses the transaction to process the refund or replacement and investigate the carrier’s performance.