This transaction set communicates product authorization and de-authorization decisions between trading partners in the grocery and retail supply chain. Typically, a supplier or manufacturer sends the 878 to distributors or retailers to authorize specific products for purchase, or conversely, to de-authorize products that should no longer be ordered. The transaction responds to product inquiries or regulatory changes requiring swift notification. Key segments include the N1 (Name) segment, which identifies the parties involved in the authorization decision; the G21 (Product Information) segment, which specifies the product being authorized or de-authorized; and the G62 (Date/Time) segment, which establishes when the authorization takes effect.

Consider a beverage manufacturer notifying a large retail chain that a new juice product (SKU 789456) is now authorized for purchase, effective immediately, at all distribution centers in the Northeast region. The manufacturer’s 878 transmission includes its own company name and address in the heading loop, followed by a detail loop naming the retail chain’s distribution center as the recipient. Within that loop, the G21 segment identifies the juice product, optional G69 segments may provide marketing descriptions, and G62 segments indicate the authorization effective date. The retailer receives this file and updates its procurement system to accept orders for the new product at the specified locations.