Functional Acknowledgement

Posted in Operations and Supply Chain Terms, Total Reads: 121
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Definition: Functional Acknowledgement

Functional Acknowledgement forms a part under EDI (Electronic data interchange). Whenever an EDI transaction takes place between two parties a virtual receipt is received by both the remote parties signifying that they have received the confirmation that EDI transaction has taken place. The point to note is that it is not a physical receipt.

For example a 2 parties are there and the party which want to purchase some product or service, send the request to seller, once seller receives the request for required amount of object to be purchased it sends a FA to ensure that they have received the order.

There are several parts associated to a Functional Acknowledgement, the first part is called as "Envelope" which has all the information regarding the two parties that are involved in selling and buying.

Functional Acknowledgment is generally classified into two parts segments and data elements. Each of the segment has minimum number of one data element and each data element has a data field which contains all the information required for completing the transactions such price, pin code, quantity etc.

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