This transaction is generally used as a means of communicating errors in the previous transaction. This allows the trading partner who sent the original transaction to identify, correct and resubmit that transaction.
The 824 transaction set should not be used in situations where a specific response document exists for a given transaction, such as an 855 Purchase Order Acknowledgement in response to an 850 Purchase Order.
In healthcare applications, the 824 transaction meets HIPAA 5010 requirements for non-claims (276, 270 and 278) transactions. It is for reporting errors outside 999 Acknowledgement error reporting.
The recipient of an 824 Application Advice document will typically send a 997 Functional Acknowledgement in response, indicating that the 824 was successfully received.
As a result, the 824 can report the disposition of the previously sent transaction as any of the following:
- Accepted with Changes