Which of the following is not a mandatory element of the EDI 820 standard?

The EDI 820 standard, which is used for Payment Order/Remittance Advice, outlines specific mandatory data elements necessary for the processing of electronic payments. Among these, elements such as Customer Account Number, Invoice Gross Amount, and Amount Paid are critical for ensuring that payments are applied accurately to the correct invoices and accounts.

The Customer Account Number is essential for identifying the recipient of the payment, while the Invoice Gross Amount provides a reference to the total amount of the invoice before any deductions, allowing for clarity in the reconciliation process. Similarly, the Amount Paid is crucial as it indicates the specific amount being remitted, which is necessary for proper accounting and record-keeping.

On the other hand, the Payment Method represents how the payment is being made (such as via check, electronic transfer, etc.), but it is not a mandatory component of the EDI 820 transaction. While it can provide useful information for reconciliation and operational processing, organizations are technically able to process the transaction without specifying the payment method, making it optional rather than mandatory. This distinction clarifies why the Payment Method is not considered a required element within the EDI 820 standard.