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Understanding EDI Drop transactions (814)

The Electronic Data Interchange (EDI) transactions (814) is initiated when a marketer or customer asks for the cancellation of an ongoing service. The procedure guarantees proper deactivation of the customer's account from the Local Distribution Company (LDC) to prevent further transactions.

EDI Drop transactions workflow

The EDI Drop transactions request consists of a systematic workflow, which involves:

  1. Validation of significant account information: The system verifies key identifiers such as account number, service address, rate code, and contract reference to ensure that the drop request applies to a valid and active account.

  2. Automatic or manual drop request processing: The Drop requests can be created in two ways:

    1. Manual initiation: A user submits a drop request through the system UI when a customer cancels service or switches providers.
    2. Automated initiation: Predefined triggers, such as contract expiration or a switch request from another supplier, automatically generate the drop request.

  3. System updates to indicate the status of termination: Based on the utility’s response, the system updates the transaction status to “Accepted”, “Rejected”, or “Pending”. Accepted drops lead to deactivation of the customer’s account, while rejected requests remain in queue for correction and resubmission.

Purpose of EDI Drop transactions

The use of EDI Drop transactions is essential for:

  • Maintaining accurate customer records: Ensures that customers who no longer receive service are promptly removed from the active system.
  • Preventing unauthorized activity: Eliminates the risk of service being added or billed to an inactive or terminated account.
  • Supporting compliance with utility regulations: Ensures that drops are communicated in a timely and standardized manner, following the rules established by the utility and regulatory bodies.
  • Enabling seamless supplier switching: Facilitates smooth transitions when customers move to a new supplier without overlap or disputes.

The EDI Drop transactions request can be initiated manually by a user or automatically in response to predefined triggers. All requests are transmitted and processed through a standardized outbound–inbound data exchange framework to ensure consistency and interoperability.