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What is EDI (Electronic Data Interchange)?

What is EDI? (Electronic Data Interchange)

Electronic Data Interchange (EDI) is a technology that allows the exchange of commercial information between organizations in a structured digital form based on regulated message formats and standards. Any standard business document exchanged between companies (for example, purchase order, invoice, shipment plan, request for goods availability) can be transferred using the EDI standard and, when both parties have completed the necessary preparations, called the testing and certification phase.

What is ANSI X12, EDIFACT, HIPAA, HL7, RosettaNet

ANSI X12, EDIFACT, HIPAA, HL7, RosettaNet, – these are all different standards to exchange electronic business documents. Some of these standards have been developed for use in a specific industry, according to its special needs. Other standards are developed and widely used, based on geography. For example, the EDI ANSI X12 standard is developed by the American National Standards Institute (ANSI) and commonly used in North America. The EDIFACT is widely and commonly used in Europe. HIPAA (Health Insurance Portability and Accountability Act) is designed specifically to comply with healthcare law. HL7 standard (Health Level 7) is the standard to exchange medical information. RosettaNet is mostly used in the high technology industry.

Useful reading: What are the differences between RosettaNet, EDI ANSI X12 and EDIFACT

Why EDI?

Exchanging EDI (electronic data interchange) documents between trading partners, improved a lot the supply chain management, by increasing efficiency, simplifying transactions and importantly, increase the speed with which a transaction is processed.

EDI is significantly different from regular email, in which information is transmitted in an unstructured format. What is the difference? For example, you need to submit a purchase order via e-mail, you will probably type the document first, and send it as an attached file. You do not have a 100 % guarantee that your e-mail will be received, correctly understood and processed promptly. Moreover, you need to re-enter the same information in another business system (accounting, ERP or warehouse management).

EDI guarantees the delivery of your business information and, thanks to its structured format, the understanding of electronic documents by all participants in the exchange process. EDI software first processes the information, then translates it into a “readable format”, and then data can be imported directly and automatically into your business system. The result – no manual input, a quick exchange of business information, and a full understanding between trading partners.

If you want to know more how our EDI as a Service and EDI Web Service work, download EDI2XML Brochure: The EDI to XML Service for your Business Needs

Which EDI Communication Protocol to Choose?

One of the most important aspects of exchanging EDI documents is the way information is transferred from one business partner to another. In most cases, trading partners themselves determine which transmission method (communication protocol) they will use. Here are some of the most commonly used communication protocols in the EDI world:

 

What is EDI VAN (Value Added Network)

VAN is the third party in the process that transmits and stores information in an electronic mailbox until it is received by one of the parties. Since the EDI message contains the destination’s address, the VAN routes the message to the recipient’s box.

Despite its advantages, VAN EDI was not widely distributed due to the high price. Thus, many suppliers communicated with their customers via fax, telephone, and mail, as could not afford the significant costs that VAN required.

As a result, there were failures, such as lost or unread orders and invoices, late deliveries of goods, etc.

With data exchange via the Internet, large and small companies have the opportunity to communicate with their trading partners electronically.

Direct Connection

Direct connection allows you to transfer data directly to a business partner. Types of direct connections include VPN (Virtual Private Network), FTP (File Transfer Protocol) sFTP (Secure File Transfer Protocol), and AS2, which encrypts data before sending it over the Internet.

AS2 Standard

The AS2 standard is used to securely transfer EDI and XML documents over the Internet via HTTP. The primary principles behind the AS2 standard are security and secure data transmission over the Internet.

The AS2 standard provides the possibility of almost continuous data transfer since direct HTTP transfers are used. In the AS2 standard – data security is provided by S/MIME via HTTP (Hypertext Transfer Protocol) or HTTP/S (HTTP secure), also using MDN. The AS2 standard provides real-time synchronous data transfer with instant delivery messages. Today, leading retail chains and manufacturers use the AS2 standard. The list of companies includes Wal-Mart, Target, Lowe`s, Wegmans, Procter & Gamble, Hershey Foods, Campbell`s and many others.

What are the Advantages of EDI?
  • Eliminates the need to use email, fax, or telephone to transfer documents.
  • Significantly reduce the processing time of documents (enterprises that have implemented EDI, reduce the document processing time by an average of 80%)
  • Eliminate/reduce the number of errors in the document flow due to the almost complete elimination of manual data entry.
  • Fully control the “order-delivery” process.
  • Monitoring the status of documents (sent, accepted, etc.) allows you to control the execution of the order.
  • Elimination of document loss incident – ensures that all documents (Orders, etc.) will be delivered to the supplier on time.
  • Reduction of costs associated with paper workflow: man-hour spending, office supplies, and equipment.

The Most Used UN/EDIFACT Messages

ORDERS – Purchase order (order for delivery of goods or services) – an electronic message that is analogous to an order for the supply of products. It is formed and sent by the buyer to the supplier.

ORDRSP – Purchase Order Response (order confirmation) – an electronic message in which the supplier confirms, corrects or rejects the delivery for each commodity item. Dispatched by the supplier to the buyer.

DESADV – Despatch advice (notice of shipment) – an electronic message that is analogous to the consignment note. This message is generated at the time (or before) the supplier sends the goods. This message indicates the actual (shipped) quantity and range of goods delivered to the buyer.

RECADV – Receiving advice (delivery notice) – an electronic message that contains information about the actually accepted product, as well as it may contain information about the reasons for not accepting the goods. This message is generated at the time (or after) the physical acceptance of the goods by the buyer.

INVOIC Invoice – an electronic message that is similar to a paper invoice.

PRICAT – Price/sales catalog message (product catalog) – an electronic message that contains information about the goods and their price characteristics. This message is generated by the supplier when the price, assortment changes.

PROINQ – Product inquiry (price list request) – an electronic message containing a list of products for which price information is required. Sent by the buyer as necessary to obtain product information.

COACSU – Commercial account summary (the act of review of mutual accounts) – an electronic message that is an analog of the accounting document “Act of reconciliation of mutual settlements”

COMDIS – Commercial dispute message (commercial discussion) – an electronic message that contains information about the discrepancy between the quantity, prices, and VAT rates. Dispatched by the buyer upon detection of an inconsistency in the invoice (INVOIC).

What are the Types of EDI?

We provide various types of EDI:

1. EDI Web Service. EDI2XML Web Service, is an HTTP service running over the internet, on EDI2XML own platform that is capable of receiving HTTP requests to translate EDI messages to XML, and XML messages (based on EDI2XML’s proprietary format) to EDI.

2. EDI Managed Services. EDI2XML Managed Services is our popular “fully managed EDI service”, including translation and communication service offering to businesses of all sizes, from various industries. All conversions of EDI files are done on our end, leaving customers with no on-site installation of software or hardware and an EDI project that is on time and within budget.

3. On-Premises EDI Services. We offer EDI2XML services with “on-Premises” deployment at the customer servers. Basically, there will be few components that will be deployed “on-premises”:
  • The necessary “binary” engines to process and translate from X12/EDIFACT messages to XML and vice versa.
  • Our proprietary “binary” REST API

EDI2XML – the Best EDI Provider

EDI2XML is one of the leaders in the development and implementation of electronic data interchange (EDI) solutions.

Operating in the IT services market for over 20 years, EDI2XML offers the most effective and advanced EDI solutions.
Free EDI consultation

RELATED POSTS:

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

ANSI ASC X12 Standards Overview

What Are the Differences Between ANSI X12 and UN/EDIFACT

A technical introduction to EDI

What Are the Differences Between ANSI X12 and UN/EDIFACT

X12 vs. EDIFACT

Doing business and interacting with trading partners is associated with the need to prepare, send, receive and process a large number of documents. Today, around the world, almost all enterprises from small businesses to large corporations use EDI (Electronic Data Interchanges) to communicate with business partners.

The most common standards that are used in all Industries are ANSI ASC X12 (X12) and UN/EDIFACT (EDIFACT). Both standards serve to exchange documents electronically and execute business processes between trading partners. The two standards are quite similar, however, there are numerous ways in which ANSI X12 and EDIFACT are different. In this article, we will compare the two most popular standards.

EDIFACT:
  • EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport) is an international standard for electronic data interchange that was developed by the United Nations.
  • It uses UN/EDIFACT syntax and is widely used in Europe and other regions.
  • EDIFACT allows for flexible message definition and supports a wide range of business processes, including e-commerce, procurement, transportation, and healthcare.

EDI X12:
  • X12 (also known as ANSI X12) is a standard for electronic data interchange in the United States.
  • X12 was developed by the Accredited Standards Committee X12 and is maintained by the ASC X12 Standards Development Organization.
  • X12 is used in a variety of industries, including healthcare, finance, and logistics, and is considered a robust and reliable format for data interchange.

EDI Standards in Europe and North America

The first difference between the two EDI standards is the geographic location of users.

– X12 is mainly used in the United States and North America in general.

– EDIFACT is mostly used by companies based in Europe and Asia.

ANSI X12 and EDIFACT Standards Developers

ANSI ASC X12 Standard is developed and maintained by the Accredited Standards Committee X12 (also known as ASC X12) chartered by the American National Standards Institute (ANSI) in 1979.

EDIFACT – Electronic Data Interchange for Administration, Commerce and Transport. This standard is developed and supported by two international organizations: The United Nations Economic Commission for Europe (UNECE) and the International Organization for Standardization (ISO).

ANSI X12 and EDIFACT Document Structure

Basically, the structures of X12 and EDIFACT are similar. Both standards have principally the same structure but use different terminologies.

The figure below shows the structure of X12 and EDIFACT documents that contain Interchange, Functional Group, Transaction set.
x12 vs EDIFACT

For more information on the structure of EDI documents, please read these articles:


– EDI ANSI ASC X12 Standards – Technical Overview

– What is EDIFACT? | UN / EDIFACT standard overview

 EDI Terminologies

Understanding the terminology used in EDI is essential to successfully implementing and utilizing this technology. Some of the key EDI terminologies include EDI standards such as ANSI X12 and EDIFACT, which define the structure and content of EDI messages.

As was mentioned above, ANSI X12 and EDIFACT have different terminologies. The table below demonstrates the difference between both standards.
Terminologies EquivalenceEDI X12 EDIFACT
…………………………………………………………………………………………………………………………………………………….
An electronic business document, such as an Invoice, Purchase Order, etc.Transaction SetMessage
………………………………………………………………………………………………………………….………………………………….
The blocks of multiple segments of the same type grouped together.LoopsGroups
………………………………………………………………………………………………………………….………………………………….
Special characters to differentiate segments and elementsTerminatorSeparators
………………………………………………………………………………………………………………….………………………………….
Interchange Control. Header/TrailerISA/IEAUNB/UNZ
………………………………………………………………………………………………………………….………………………………….
Functional Group. Header/TrailerGS/GEUNG/UNE (optional)
………………………………………………………………………………………………………………….………………………………….
Transaction Set, (Message). Header/TrailerST/SEUNH/UNT

Terminators/Separators

X12 and EDIFACT use special characters to separate segments and elements in the document.

– ANSI X12 to separate segments generally uses a tilde ( ~ ) and to terminate elements asterisk ( * )
– EDIFACT normally uses a period ( . ) between segments and a plus ( + ) within elements.

However, both EDI standards allow customization, and different characters can be used, depending on the implementation.

Composite

A Composite Element is a group (two or more) simple elements separated by a Composite Separator symbol. Composite Element is used in both standards; however, Composite Element is very commonly used in EDIFACT.

– X12 uses a symbol Greater Than ( > )

– EDIFACT separates composite elements with a colon symbol ( : )

Acknowledgments

Both EDI standards use Acknowledgments.

– X12 uses a Functional Acknowledgment or 997 transaction set. An EDI 997 serves as a response, to acknowledge that an EDI transaction was received. TA1 served for describes errors at the ISA level.

– EDIFACT uses CONTRL acknowledgments, which is like the X12 997 Acknowledgments.

X12 Transaction Number and EDIFACT ID

In the ANSI X12 standard, all documents have 3-digit numbers, for example, 810 for an Invoice, 846 for an Inventory Inquiry and Advice, 856 for Advanced Ship Notice.

According to the EDIFACT rule, the name of the document must be limited to 6 letters, for example, INVOIC derived from the word Invoice, INVRPT for Inventory report, DESADV is the abbreviation for Despatch Advice.
  • Syntax: EDIFACT uses UN/EDIFACT syntax while X12 uses an ASCII-based syntax.
  • Message structure: EDIFACT messages have a more flexible structure than X12 messages, which have a more rigid structure.

Different Types of EDI Documents: ANSI X12 vs EDIFACT

The following table lists some of the key EDI X12 Transaction Sets with the corresponding EDIFACT messages.
X12 NoEDIFACT IDNameUsage
………..…………………………………………………………………………..………………………………………………………………………………….
 810INVOICInvoice.Used to receive payment for goods or services provided
………..…………………………………………………………………………..………………………………………………………………………………….
820REMADVPayment Order/Remittance Advice.Used to transmit information relating to payments
………..…………………………………………………………………………..………………………………………………………………………………….
830DELFORPlanning Schedule.Used to share with the supplier’s forecast purchase plans
………..…………………………………………………………………………..………………………………………………………………………………….
832PRICATPrice/Sales Catalog.Used to request or provide prices and product information.
………..…………………………………………………………………………..………………………………………………………………………………….
846INVRPTInventory Inquiry/Advice.Used to communicate inventory levels.
………..…………………………………………………………………………..………………………………………………………………………………….
850ORDERSPurchase Order.Used to place an order for goods or services. 
………..…………………………………………………………………………..………………………………………………………………………………….
852SLSRPTProduct Activity Data.Used to provide inventory, sales, and other product activity information.
………..…………………………………………………………………………..………………………………………………………………………………….
855ORDRSPPO AcknowledgementUsed as an acknowledgment of the purchase order
………..…………………………………………………………………………..………………………………………………………………………………….
856DESADVAdvance Ship Notice (or Dispatch Advice in EDIFACT)Used to inform the recipient in advance, about the contents of the shipment.
………..…………………………………………………………………………..………………………………………………………………………………….
860ORDCHGPO Change (Customer triggered)Used to communicate order changes to the supplier.
………..…………………………………………………………………………..………………………………………………………………………………….
865ORDRSPPO Change (Supplier triggered)Used for acceptance or rejection of changes to a previously submitted purchase order
………..…………………………………………………………………………..………………………………………………………………………………….
997CONTRLFunctional AcknowledgmentUsed to acknowledge that an EDI transaction, was received.

EDI Standards for Special Industry

In addition to EDIFACT and X12 discussed above, there are many other EDI standards that were developed as a result of specialized business requirements in various industries. For example:

RosettaNet is used mostly in the electronic chip and technology Industry.

HIPAA and HL7 for Healthcare and Health Insurance.

ODETTE for the automotive industry in Europe.

SWIFT for exchanges messages between banks and financial institutions.

EDI Integration

For clients who do not have the resources to do X12 or EDIFACT in-house, we, at EDI2XML offer Fully managed EDI Services.

For companies who got their own technical resources to work with REST API we offer them to use EDI REST Web Service.

EDI2XML is an EDI service provider with 20+ years of expertise in EDI and integration projects. We have clients located in North America, Europe, and the Middle East and work with all EDI standards including ANSI X12 and EDIFACT. Contact us if you have any questions or EDI integration needs.
Free EDI consultation

Understanding ANSI ASC X12 EDI 810 Invoice: Definition, Key Data Elements, and Workflow

This post was updated to reflect current trends and information.

What is EDI 810?

EDI 810 Invoice – in international business practices, the 810 (Invoice) is an electronic document sent by the seller to the buyer to receive payment for goods or services provided.

The EDI X12 810 Transaction Set contains information about the goods and /or services, their quantity, and the price at which they were delivered to the buyer, the characteristics of the goods (color, weight, etc.), delivery terms and information about the sender and the recipient.

An electronic invoice can be generated in various standards, it all depends on which standard the partners agreed to use in order to exchange EDI. For example, in ANSI ASC X12, which is prevailing in North America, this document is called ANSI X12 Transaction Set 810 Invoice. You can also see various names for this document, for example, X12 810, EDI Invoice, EDI Invoice 810, ANSI X12 810, EDI X12 810, EDI 810, EDI 810 Document, 810 Transaction Set, etc.

“INVOIC” is an analog of the EDI 810 Invoice in the international UN / EDIFACT standard, which ispredominant outside of North America. INVOIC document (derived from the word “Invoice”, but limited to 6 letters, according to the EDIFACT rule).

The Key Data Elements of EDI 810 Invoice

A typical EDI 810 document often includes the following information:

  • Invoice number and date
  • Purchase order number
  • Delivery date
  • List of Items or services
  • Item price and identifier
  • Payment terms

Depending on the goods or services the company provides, additional information may also be included in the EDI 810 invoice.

How to Send and Receive an EDI 810?

Previously, many EDI transactions (including EDI 810), were carried out through a Value Added Network (VAN).

Currently, in order to provide an affordable and cost-efficient EDI exchange, most companies have switched to a point-to-point communication such as:

Cloud Services Provider AS2 exchange documents over the Internet by using digital certificates and encryption of the EDI data.

Cloud Services Provider FTP/SFTP – File Transfer Protocol/Secure File Transfer Protocol. These file transfer protocols allow businesses to connect with their partners via the Internet in order to exchange EDI documents.

Cloud Services Provider HTTP EDI Web Service (REST API) This EDI Web Service gains more and more popularity because is much more cost-effective and you can be up and running in less than an hour. EDI web Service meant for companies who got their technical resources to work with REST API (call and consume HTTP Rest Web services). The EDI2XML offers a free 15 days trial.

Learn more about EDI Web Service

One company can use different means or protocols to exchange EDI documents with its multiple trading Partners. (see picture below) Usually, this happens because each big company has its own requirements to exchange electronic messages or EDI.

EDI communication

EDI 810 Workflow

In typical and common business practice, the basic documents exchanged between trading partners are EDI 850 (Purchase Order) and EDI 810 (Invoice); this statement is partially true in the EDI world. Based on our more than 18 years of successful EDI Integration experience, we can tell you for sure that usually, the EDI process is much more complex. Between EDI 850 Purchase Order (or even before it) and Invoice 810, partners exchange a number of different documents. This is especially actual for retail companies.

Below you can find a possible EDI scenario in the retail industry.

Seller sends to the buyer an EDI 846 Inventory Inquiry message to advise about stock level status and availability. EDI846 can include also pricing information.

NOTE: EDI 846 is more often used in B2B e-commerce for more information about this transaction set please read the blog: What is EDI 846 document?

Based on the information received in EDI 846 the buyer generates a Purchase Order (EDI 850) which contains a list of goods that he wants to purchase from the supplier, including information about the quantities, shipping directives, and other details.

Upon receiving the Purchase Order seller send a Purchase Order Acknowledgement (EDI 855) to confirm goods are available to be sold.

In the next step, the buyer could send a seller a Purchase Order Change Request (EDI 860) to request a change to a previously submitted purchase order.

The seller responds with a Purchase Order Change Request/Acknowledgement (EDI 865) to notify of the acceptance or rejection of the change to the purchase order previously submitted by the buyer.

To send the contents of the shipment, the seller sends an EDI 856 Advance Ship Notice or EDI ASN. This EDI document must be transmitted before the arrival of the goods.

An invoice (EDI 810) can be transferred to the buyer after filling out and delivering the order or along with.

EDI 810 Invoice

Thus, you can notice, despite EDI X12 810 invoice is the most commonly exchanged electronic document, there are multiples EDI transactions sets supporting EDI 810.

Book a FREE one-on-one EDI consultation session with our in-house experts.

EDI X12 810 Invoice Sample

The following example details the format of an EDI 810 invoice.

ISA*00*          *00*          *12*5141231234     *12*5034564567     
*181122*1220*U*00501*000000001*0*T*> GS*IN*5141231234*504564567*20181122*122047*1*X*005010
ST*810*0001
BIG*20181122*I-0042537
N1*RI**92*10055500
N1*ST**92*00262
ITD*05*1*****100
DTM*011*20190120
IT1**2*EA*5.45**UP*888077648572
SDQ*EA*92*00682*1*70674*1
IT1**2*EA*5.45**UP*888077650123
SDQ*EA*92*00111*1*11356*1
IT1**3*EA*4.85**UP*888077648954
SDQ*EA*92*00682*1*11356*1*70674*1
IT1**3*EA*5.15**UP*888077649105
SDQ*EA*92*00011*2*00111*1
IT1**1*EA*5.9**UP*888077648867
SDQ*EA*92*00682*1
TDS*5770
CAD*A***FDEG
CTT*5
SE*20*0001
GE*1*1
IEA*1*000000001

EDI Specifications 810 – Invoice

Here is the specification of the EDI 810 transaction set given as an example above. You should note that like any other EDI document, 810 contains mandatory and optional data. Optional data depends of the business areas and the requirements of the trading partner.

  Segment name Purpose
ISA Interchange Control Header Marks the beginning of the transmission and provides the sender/receiver identification.
GS Functional Group Header Marks the beginning of the functional group and provides the sender/receiver identification.
ST Transaction Set Header To indicate the start of a transaction set and to assign a control number. There must be only one instance per transaction.
BIG Beginning Segment for Invoice To indicate the beginning of an invoice transaction set and transmit identifying numbers and dates.
N1 Name To identify a party by type of organization, name, and code ST- Ship To RI – Remit To The N1 is sent in conjunction with the SDQ when the N1 indicates the ship to location and the SDQ indicates the bill to locations.
ITD Terms of Sale/Deferred Terms of Sale To indicate a discount terms. Code 05 – Discount Not Applicable  
DTM Date/Time Reference To specify pertinent dates and times Code 011 Shipped
IT1 Baseline Item Data To specify the basic and most frequently used line item data for the invoice and related transactions
SDQ Destination Quantity To specify multiple locations and quantity detail.
TDS Total Monetary Value Summary To provide the total invoice amount
CAD Carrier Detail To specify transportation details for the transaction Code: FDEG  – FedEx (Ground Only)
CTT Transaction Totals Number of line items To transmit hash totals for a specific element in the transaction set. 5 – Total number of IT1 Items segments.
SE Transaction Set Trailer To indicate the end of the transaction set and provide the count of the transmitted segments (including the beginning (ST) and ending (SE) segment).
GE Functional GroupTrailer Marks the ending of the functional group and provides the sender/ receiver identification
IEA Interchange Control Trailer To define the end of an interchange of zero or more functional groups and interchange-related control segments

To learn more about the structure of ANSI ASC X12 read our Blogs:

EDI 810 Invoice Benefits

Like any EDI document, the EDI 810 provides faster communication between seller and buyer and reduces the risk of errors. Using EDI is much easier than traditional paper documents.

Thanks to EDI, the exchange of documents between trading partners is error-free.

Major benefits of EDI:

  • Reduce paper flow and increase business efficiency by reducing the time it takes for both parties to complete transactions.
  • Reduce administrative time spent manually submitting invoices and other essential documents.
  • Resolve manual data entry errors
  • Customer satisfaction is growing due to the rapid completion and delivery of your orders.
  • Faster payment from your customers

EDI 810 Integration

EDI2XML propose 2 options for EDI 810 transaction exchange with your business partners:

Option 1: Fully Managed EDI Service including translation and communication service offering to businesses of all sizes, from various industries. All processing of EDI files are done at our end, leaving customers with no on-site installation of software or hardware and an EDI project that is on time and within budget.

Option 2: EDI2XML web services is an HTTP service running over the internet, on EDI2XML own platform that is capable of receiving HTTP requests to translate EDI messages to XML, and XML messages (based on EDI2XML’s proprietary format) to EDI.

Contact us today for more information about EDI Integration and we will more than happy to assist you!

Canada Border Services Agency (CBSA) ACI eManifest

This post was updated to reflect current trends and information.

Canada Border Services Agency (CBSA) ACI eManifest

Canada Border Services Agency (CBSA) requires all cargo transporters (Highway Carrier, Air Carrier, Marine Carrier, Rail Carrier, Freight Forwarder, Warehouse Operator, and Account Security Holder) to send electronically and in advance commercial information about their shipments in what is called Custom Manifest or Canadian Advance Commercial Information (ACI) eManifest. This measure is necessary to improve the security of international trade and to optimize commercial cross-border processes.

There are two possibilities to transmit electronically pre-arrival information to Canada Border Services Agency (CBSA). Companies may choose between:

Differences between CBSA Electronic Data Interchange and eManifest Portal

EDI and eManifest Portal have different terminologies, data requirements, and business rules. The differences are mainly because EDI and the eManifest Portal are based on two different technologies and interfaces.

EDI refers to the exchange of information, thus, companies using EDI can get statuses and receive notifications, while eManifest Portal refers to the submission of information only, and refers to Statuses.

Canada Border Services Agency CBSA EDI exchange

Similar to the US Customs and Border Protection (CBP) the Canada Border Services Agency (CBSA) is committed to both the ANSI X12 and UN/EDIFACT Electronic Data Interchange standards.

Communication Methods for Electronic Data Interchange (EDI) to CBSA

There are three options to transmit electronic commerce information to CBSA:

Value Added Network, or Direct Connect (DC) to the CBSA

Some VANs have an interconnect with the CBSA to allow EDI exchange with the trading partners and shipping companies; However, Direct Connect (DC) is an alternative that provides a special direct connection to CBSA. All new connections require an initial investment of $ 25,000 ($ 5,000) for customization.

 Customs Internet Gateway (CIG)

CBSA has developed a Customs Internet Gateway (CIG) for transmitting and receiving data over the Internet. Clients must acquire certain encryption and decryption software, as well as develop or acquire protocol software to connect to the CIG. Customers will need to transfer data from the Canadian office, as the certificate is assigned only to the device in Canada.

Third-Party EDI Service Provider

For those companies who are unable or unwilling to transfer data directly to CBSA, there are third-party service providers who are setup and to transmit and exchange data with CBSA in both directions. These organizations offer various EDI solutions, and usually, offer a wide range of EDI services.

Information of Freight/Cargo Manifest for CBSA

The various information must be shown on Freight/Cargo Manifest. (paper form A6A) for example for Marine Carrier:
  • Records the registered name of the vessel
  • Port where the report is made (presented) – Canadian port where the vessel arrived or departed
  • Nationality of ship
  • Name of Master – Self explanatory
  • Port of loading/discharge
  • Final Destination (if on-carriage)
  • Date of sailing from the port of loading
  • Shipper, Consignee information
  • Number of the ocean bill of loading
  • Marks and numbers on each package
  • Number and type of packaging, product description
  • Gross shipping weight of cargo in each category by unit measure.
  • Freight details, charges, etc.

In addition, all carriers and freight forwarders must have a carrier code issued by CBSA.

What Kind of Customs Documents Companies May Exchange via EDI with CBSA?

Depending on your business type and needs, you can submit and request different EDI documents and receive all acknowledgment and reject messages from CBSA:

– Highway carrier – cargo and conveyance documents for highway shipments.

– Air carrier – cargo, conveyance, house bills, and conveyance arrival documents for all air shipments.

– Marine carrier – cargo, conveyance, house bills, bay plan, and conveyance arrival documents for all marine shipments.

– Rail carrier – cargo, conveyance, house bills, and conveyance arrival documents for all rail shipments

– Warehouse operator – can request ACI notices.

– Freight Forwarders – house bill and close notifications for all shipments, all modes of transport

– Account Security Holder – receive notifications based on advanced trading data for all shipments and all modes of transport.

Timeframes for Submitting Custom Manifest to the CBSA
EDI for CBSA

Air carriers – 4 hours

Air carriers transporting cargo to Canada must transmit information on cargo to CBSA at least four hours before arriving in Canada. If the duration of the flight is less than four hours, at the time of departure.

Highway carriers – 1 hour

Highway carriers that ship goods to Canada must transfer information about goods electronically to CBSA prior to arrival. CBSA must receive and verify cargo and transport data at least one hour before the cargo arrives at the border.

Marine carriers – 24 to 96 hours

Depending on the type and origin of the goods marine carriers carrying goods to Canada must submit cargo and conveyance information to CBSA within the prescribed time frame before arrival or before loading.

Rail carriers – 2 hours

CBSA must receive electronically cargo and conveyance information from rail carriers, within a minimum of two-hours before the conveyance arrives at the border.

The Best EDI Service Provider to Exchange EDI

At EDI2XML, we know that our first task is to provide innovative and effective solutions to solve the most difficult EDI task when crossing the border and saving you time and improving efficiency.

Are you need to submit your eManifest to Canada Border Services Agency (CBSA)? We have the solution! Contact us to learn more about ACI eManifest.

Free EDI consultation

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What is Advanced Ship Notice (ASN) 856 transaction set?

ANSI ASC X12 Standards Overview

This post was updated to reflect current trends and information.

To exchange business documents and transactions between business partners via EDI (electronic data interchange), most companies in North America use the EDI ANSI ASC X12 Standards. This overview provides some basic information about the X12 standards for electronic data interchange (EDI).

What do ANSI, ASC, X12, and RSC mean?

The American National Standards Institute (ANSI) is a non-profit organization that controls the development of standards for processes, services, and products in the United States. ANSI also synchronizes U.S. standards with international standards so that American products can be used all over the world.

X12 Overview

Chartered by the ANSI for over 40 years, X12 develops and maintains EDI standards and XML schemas that govern business processes around the world.
X12 is comprised of thousands of experts representing over 600 companies from various industries. X12 Membership is open to any organization, company, or even individual, who directly and materially affected by X12 activities.
To facilitate the exchange of business transactions, X12 members regularly optimize the EDI standard.
X12 consists of two committees:
– Accredited Standards Committee (ASC)
– Registered Standards Committee (RSC).

Useful: What is EDI? (A technical introduction to EDI)

Accredited Standards Committee ACS

Since 1979, the Accredited Standards Committee X12 (ASC) has been developing and maintaining the X12 standard, which can be represented as US national standards or UN / EDIFACT international electronic data interchange standards.

The ASC is composed of different subcommittees:
– X12C – Communications and Controls
– X12F – Finance
– X12I – Transportation
– X12J – Technical Assessment
– X12M – Supply Chain
– X12N – Insurance

Registered Standards Committee (RSC)

The RSC is responsible for the development and support of X12 work products for various industries but is not intended to be presented as US national standards.

What is EDI ANSI ASC X12 Standards?

The ANSI ASC X12 Standards is sometimes called the EDI ASC X12, ANSI X12, ASC X12, or simply the X12 Standard. X12 is a set of standards and rules that determine a specific syntax for structuring and transferring electronically business documents between partners. There are different types of business documents in EDI, which often are called “Transaction Sets”.

ASC X12 Transaction Set

The Transaction Set – is a single business document such as a Purchase Order, Invoice, Student Educational Record (Transcript), Healthcare claim, Ship Notice (ASN). There are hundreds of Transaction Sets available in the ANSI ASC X12 standards. Each set of transaction data is identified by a 3 digits code number:

ASC X12 Transaction Set

X12 Transaction Set Structure

Many X12 transaction sets have 3 parts. The segments that can be used in each of these parts in a particular document (such as an invoice) are listed in the related tables defined in the X12 standards document. For example:

X12 Transaction Set Structure

ASC X12 Segments and Sequence

The following Purchase Order example, shows which segments can be used in the transaction set and the desired sequence of segments:

ID            TITLE

ST           Transaction Set Header

BEG        Beginning Segment for Purchase Order

CUR       Currency

REF         Reference Identification

PER        Administrative Communications Contract

TAX        Tax Reference

FOB        F.O.B. Related Information

CTP        Pricing Information

PAM      Period Amount

CSH        Sales Requirements

TC2         Commodity

Beginning and Ending ASC X12 Transaction Sets:

• A transaction in an X12 document, always begins with the Transaction Set Header (ST) segment

• A transaction in an X12 document always ends with the Transaction Set Trailer (SE) segment

X12 Structure

If you want to learn more about the structure of EDI ANSI ASC X12, please read this article: EDI ANSI ASC X12 – Technical Overview

ANSI X12 EDI document types

Since a uniform standard of EDI (electronic data interchange) ANSI X12 was developed, a huge number of companies use it in its business-to-business (B2B) operations. Although ANSI X12 standard was developed to support companies in different types of industries in North America, these days, businesses worldwide are using X12 EDI standard.

As mentioned above, there is a huge amount of ANSI X12 document types available for use. ANSI X12 standard is used in finance, transportation, healthcare, insurance, government, supply chain and other industries for performing diverse operations. The example below shows some of those EDI documents:

Communications and Control:

  • EDI 864 Text Messages
  • EDI 997 Functional Acknowledgment
  • EDI 999 Implementation Acknowledgment
  • EDI 993 Secured Receipt or Acknowledgment

Finance:

  • EDI 130 Student Educational Record (Transcript)
  • EDI 262 Real Estate Information Report
  • EDI 810 Invoice
  • EDI 812 Credit/Debit Adjustment
  • EDI 131 Student Educational Record (Transcript) Acknowledgment
  • EDI 149 Notice of Tax Adjustment or Assessment
  • EDI 150 Tax Rate Notification
  • EDI 821 Financial Information Reporting

Transportation:

  • EDI 120 Vehicle Shipping Order
  • EDI 106 Motor Carrier Rate Proposal
  • EDI 419 Advance Car Disposition
  • EDI 216 Motor Carrier Shipment Pickup Notification
  • EDI 309 Customs Manifest

Supply Chain:

Insurance:

  • EDI 270 Health Care Eligibility/Benefit Inquiry
  • EDI 271 Health Care Eligibility/Benefit Response
  • EDI 111 Individual Insurance Policy and Client Information
  • 837 Health Care Claim

EDI Outsourcing

We support all EDI standards including ANSI(ASC) X12, EDIFACT, RosettaNet, HIPAA / X12. We provide a cloud-based, fully managed EDI integration solution under our program EDI2XML Managed Services which allows our clients to interact with their business partners without implementing a complex EDI infrastructure.

Our popular managed EDI integration service, is accessible and affordable to even small- and medium-sized businesses.

Book a FREE one-on-one EDI consultation session with our in-house experts.

Benefits of fully managed EDI service:

• Time: Reduced transaction processing time and improved customer service

• Cost: Improved inventory management and minimized use of paper and physical storage

• Quality: Enhanced business relationships with your business partners, and accuracy of information

• Profit: Reduce costs

• Efficiency: Increased productivity

EDI2XML Web Services (Rest API)

EDI2XML web services, our REST API to convert X12 to XML and vice versa meant for companies who got their own technical resources to work with REST API (call and consume HTTP Rest Web services).

Benefits of EDI2XML web service:

  • Self-service solution
  • Low cost
  • Quick entry: you can be up and running in less than an hour, and it is proven
  • We offer a 15 days free trial, without any commitment.

Contact us for more information and for pricing.

EDI Communication Over The Years

This article went on to describe the beginnings of EDI in the business world and how far we’ve advanced with technology to simplify these B2B transactions with EDI2XML.  Read more

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Integrating EDI into your Management System


This post was updated to reflect current trends and information.


EDI Communication is one of the best ways to exchange important business documents with Trading Partners. Documents such as Purchase Orders, Invoices and ASNs can be safely exchanged electronically with business partners, like retailers, in a matter of seconds. In many cases however, Small and Medium Enterprises do not have the budget for some of these EDI communication solutions out there and do not have any in-house staff experienced with EDI exchange. What should these businesses do?

EDI Solution as a Service for SMEs

After over a decade of working hand in hand with Small and Medium Businesses, we’ve come up with a solution. Our EDI specialists realized that it might not be realistic to have SMEs hire in-house EDI experts or purchase expensive EDI communication solutions on the market. This is when our experienced team designed and developed a tool that can be implemented as a Service – no need for any setup or equipment on premises – called EDI2XML as a Service. Here’s how it works:

  1. We communicate with your EDI Trading Partner in order to pick up any incoming EDI documents from their mailbox
  2. We convert all EDI documents into XML or CSV format (whichever works best to be integrated into your management system (ERP suite, CRM system, etc.))
  3. We push all XML documents to you, to be integrated into your system
  4. You will be notified every time EDI documents are sent and received
  5. The opposite process (from XML to EDI) works for outgoing documents.

Click here to view an infographic on EDI2XML as a Service.

Converting from unreadable formats like EDI x12 or EDIFACT (for those companies in Europe) to XML or CSV, allows for easy integration into ERP suits or CRM systems out on the market. On top of this, XML format is easy to read by any businessperson. Our goal was and continues to be to simplify the EDI communication process for Small and Medium Enterprises that are looking to increase efficiency. It’s time SMEs eliminated manual data entry (or human intervention) and enjoyed a smooth, continuous order processing flow.

 

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Convert EDI to XML: The EDI2XML Way

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This post was updated to reflect current trends and information.

 

Why convert EDI to XML?

In this blog post, I will explain why our team decided to convert EDI to XML as well as the advantages and benefits of using this conversion from EDI to XML. On many occasions, EDI consultants, project managers and EDI developers and implementers brought up the following questions:

What are the benefits of having an EDI X12 file format converted to XML?

Why do we need to convert from EDI to XML and not to a database, csv or other file formats directly?

Quick review of EDI2XML

As you might already know, EDI2XML is a technology to convert X12 EDI to XML for incoming EDI documents. At the same time, the engine is intelligent and capable of converting an XML document to an EDI X12 format. This process of turning an X12 EDI file to XML happens because we have taken the time to build pre-defined xml schemas (xsd files) that respond to the business needs of 99.99% of EDI consumers.

EDI developers and integrators are able to use any loop, node or element they need to push to their database for incoming EDI documents. While for outgoing EDI documents in XML format, they are able to pick and choose the node, or EDI element they want to transmit out, fill it in, and send over to EDI2XML engine in order to create the EDI file in X12 format.

Read: Best EDI Processing Options: Service Bureau VS Translation & Integration Solution

Convert EDI to Database or other formats

In the beginning stages of development, we established a list of objectives and a list of possible formats we can use. This was essential, as we needed to evaluate which file format would be best to use as a destination format for incoming EDI documents and outgoing EDI documents.

Objectives to convert EDI

We wanted our EDI conversion technology to respond to the following criteria, as much as possible:

  • Cross-platform: could be triggered on multiple platforms (at least Windows and Linux)
  • Scalable: easily upgradable without the need for heavy work and programming to add a new document or process
  • Portable: could run without any limitation on database, file format or operating system
  • Simple to operate and launch: at the time, we wanted to have the solution as simple as possible so no need to have a very extensive EDI expertise and knowledge in order to work with our EDI conversion tool.

Options for EDI conversion

Below is the list of formats we had put together when we started the R&D, during our brainstorming sessions prior to developing the engine to convert EDI.

  • Convert EDI to Database: this was the first option we had in mind since it was simple and easy to deploy. However, we went into the limitations of portability and compatibility as well as the choice of the Database. What database is the most portable?
  • Convert EDI to CSV: option #2 was also on the table early on, since the csv format is commonly known and heavily used. However, because of the quality of data that anyone might receive within an EDI transmission (carriage return, line feed, special characters…), which might cause the data to be a little less “sanitized”, we opted out of this option and eliminated this format from our list.
  • XML: this was the last option we had on the table. We decided that this would be the best choice due to its flexibility, good structure and ease of use. It responded extremely well to all our technological objectives and more.

Why EDI to XML

Read: Free EDI to XML converter: What’s the catch?

There are many reasons why we selected the XML format as a destination to translate EDI, over other means. Following are some of these reasons:

Simplicity and self-descriptive: data encoded in XML is easy to read and understand by humans (i.e. EDI developers,) and it was becoming easier to process by computers

  • XML format is standardized: XML is a W3C standard and it is endorsed by software industry market leaders
  • XML is structured: No fixed tags; it represents perfectly the hierarchical structure of an EDI file.<
  • Support of multi-lingual and Unicode: very important for exchanging EDI documents at the international level
  • Rapid adoption by programmers and developers: since the use of XML was on the rise, converting EDI to XML was a good decision. Nowadays, it is very rare to find a developer or a consultant who does not work with XML

Having the ability to convert X12 EDI to XML gave us a competitive advantage over other developers involved in EDI projects. We have already implemented this converter in many businesses as well as helped IT consultants leverage EDI2XML in their EDI integration projects.

If you would like to know more about the plans offered for EDI2XML (Free Consultation), or would like to see it in action (live Demo), please do not hesitate to contact us.

Free EDI Demo

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What is EDI?

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This post was updated to reflect current trends and information. 

A Technical Introduction to EDI

Before I start explaining anything about EDI2XML, I would like to start by giving a more technical introduction to EDI, its usage, and its history. EDI is an acronym for Electronic Data Interchange. It has been around for a long time and has been used by retailers and private corporations in several verticals (health, retail, insurance…). When people in the business community talk about exchanging “EDI transactions“, they refer to a combination of the following:
  • Structured EDI file format including version, revision, standard…
  • Protocol of communication, medium and security (FTP, sFTP, AS2, VAN…)
  • Business partners (vendors, retailers…)

Simply speaking, EDI is the process of “electronically” exchanging documents between business partners in a pre-defined format. The information is transmitted in a secured manner. Normally, files with EDI format are structured and follow “EDI standards”.

EDI Standards

There are several widely used EDI standards, including:

  1. ANSI ASC X12: This is the predominant standard used in North America for various industries, such as retail, healthcare, transportation, and finance. It defines specific transaction sets like purchase orders (850), invoices (810), and shipping notices (856).
  2. UN/EDIFACT: This is an international EDI standard developed by the United Nations. It is widely used outside of North America and is popular in sectors like transportation, logistics, and customs. UN/EDIFACT includes a comprehensive set of message types covering various business processes.
  3. GS1 EDI: This standard is developed by GS1, a global organization focused on supply chain standards. It is used primarily in the retail and consumer goods industries. GS1 EDI incorporates the GS1 barcoding standards and provides specific message types for processes like product catalog synchronization, purchase orders, and invoices.
  4. HIPAA EDI: The Health Insurance Portability and Accountability Act (HIPAA) introduced specific EDI standards for healthcare-related transactions. These standards ensure the secure and standardized exchange of sensitive patient data between healthcare providers, insurers, and other entities.
  5. TRADACOMS: Developed in the United Kingdom, TRADACOMS is an EDI standard commonly used in the retail industry. It includes message types for processes like order management, stock control, and invoicing.

These are just a few examples of the many EDI standards available. Each standard has its own message formats, data elements, and communication protocols. Organizations typically choose the appropriate standard based on their industry, geographic location, and trading partner requirements.

Read: What is a VAN ?

EDI X12

EDI has been evolving with different versions, revisions and sub-revisions. For example, in the X12 standard EDI format, I started my EDI career with the EDI version 3010. Today, we are working with much higher EDI versions such as 4010, 5010, 5020… It is important to note that within each one of the above versions, different revisions might exist.

EDI Transactions and Documents

Read: How does EDI2XML work ?

EDI documents are “number coded”; for example, a Purchase Order sent by a retailer to a vendor using EDI format is coded under the number “850”. The same applies for other documents such as 810 (for invoice), 856 (for Advance shipping notice), 820 (for Payment Advice), and 860 (for Retailer triggered Purchase Order Change). The list goes on and it is not limited to the above. For a more extensive list of EDI documents that EDI2XML supports,  visit our EDI Document Library.

Each EDI document sent to a party has to be responded to by the other party by sending back a Functional Acknowledgment (FA 997). The 997 designates that the “structure” of the EDI file was certainly received, without looking at the “content” of the EDI formatted file. Both business partners understand the “content” of the information and they are able to translate into business terms. This is where EDI2XML comes into play to convert and translate the content and make it ready for integration.

To learn more about EDI, read our new blog “What is EDI (Electronic Data Interchange)?” 

RELATED POSTS:

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

ANSI ASC X12 Standards Overview

What Are the Differences Between ANSI X12 and UN/EDIFACT
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