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Tag Archive for: EDI

EDI Integration for Warehouse

Most distribution companies are faced with delays in delivering and receiving merchandise and the acceptance of shipments. There are many reasons for these delays:
– employee’s efficiency
– an ineffective system of storage of goods within the warehouse
– lack of technology tools.

In this article, we will tell you how to optimize and speed up the warehouse using EDI ( Electronic Data Interchange)

Warehouse Management Issues

How quickly the warehouse starts picking an order received from an ERP– depends on the internal business process in an organization.

There are situations where orders received before 12:00 noon are shipped on the same day, and all other orders – only the next morning.

There are companies whose warehouse business processes are built in such a way that it takes 2-3 days to process and ship one order.

If the company operates in the FMCG market, then the logistics should be very fast. For example, when delivering perishable goods such as fish and seafood, dairy products, fruit, and vegetables.

The time to receive and accept the goods also depends on the form in which the documents and related paperwork are presented.

Acceptance of goods from a large truck can take from one to three hours.

EDI can significantly reduce the processing time for goods acceptance documentation. Companies that have implemented and integrated EDI in their warehouse business processes realized a reduction in processing time of up to 90%.

Moreover, with large volumes of deliveries, there are other advantages of electronic data Interchange.

eBook:  EDI – Key Information You Need to Know  

EDI Transaction Sets for the Supply Chain

In supply chains, the EDI 856 Advanced Ship Notice and EDI 861 Receiving Advice/Acceptance Certificate transaction sets are very commonly used. DESADV – Despatch advice message and RECADV – Receiving Advice Messages perform the same function in the EDIFACT standard.

An EDI 856 document contains information about the shipment and other detailed information:
  • shipment id
  • physical characteristics of the goods
  • recipient and sender identifiers
  • barcodes
  • transportation information.

When receiving an 856 EDI document, the recipient does not need to enter data manually. Product information may automatically flow into the accounting business system. Advanced Ship Notice helps to prepare for acceptance. Even before the arrival of the supplier’s truck, the buyer already has a list of goods shipped, integrated into his own system.
EDI for Warehouse

The response to the EDI 856 document, to confirms the acceptance of the goods, is EDI 861. The Receiving Advice is transmitted from the buyer to the supplier. EDI 861 indicates the list of goods received or not received, accepted or not accepted, as well as other accompanying information.

EDI improves the accuracy of work with deliveries and reduces the number of human errors when processing documents in the warehouse. Since the data comes even before goods delivery, it is possible to arrange a schedule so that unloading begins immediately after the arrival of the goods.

Using SSCC codes, is a companion to the EDI 856 transaction, which makes it possible to mobile scanners to automatically read information on the contents of pallets, regardless of the number of assortments.

EDI Integration for Warehouse and Supply Chain

For suppliers working with retailers and other distributors, it is possible to use both of EDI2XML offerings: EDI web service that allows to send and receive EDI 856 /861, as well as the fully managed EDI solution…

Integration of EDI with accounting /warehouse business system is importantly relevant, when a huge number of transactions is being processed daily; it will help accelerate the work at the warehouse.
free edi consultation

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Advantages of Fully Managed EDI Solution for Companies in a Post COVID-19 Era

This post was updated to reflect current trends and information.

What is EDI (Electronic data interchange)?
Fully Managed EDI

Electronic data interchange (EDI) is the exchange of structured data, according to a pre-defined format agreed upon, between computer systems and without human intervention. It is the basis of successful entrepreneurship. This is precisely the reason why business partners want to do business electronically, with their business partners such as suppliers or customers.

This will be particularly the case in the post-COVID-19 world since enterprises need to quickly rebuild their business.

Trading Partners Requiring EDI?

For many companies, especially in the Retail Industry, EDI is essential to keep supply chain processes running smoothly, and often these organizations put some pressure on their suppliers to start exchanging EDI. Moreover, EDI is often one of the fundamental conditions for suppliers to start working with large retailers such as (Walmart, Home Depot, Costco, Target, etc.).

However, many suppliers do not have the necessary technical knowledge and expertise to successfully implement EDI in their organization, or they do not have available IT team to setup and manage EDI platforms to connect and exchange electronic EDI documents with new trading partners.

What if the Company Does Not Have the Resources to Implement and Manage EDI?

Our fully managed EDI service is designed for companies that are engaged in various industries such as Retail/Wholesale, Healthcare/Pharmaceutical, Manufacturing, Logistics, etc. who need to use EDI for their business activities.

Because EDI is not their main competence, such companies prefer to use our Fully Managed EDI service offering.

We at EDI2XML, always focus on providing EDI integration solutions that ensure the most efficient operation of various business processes.

Key Features of our Fully Managed EDI Service

Following are the most important key features of the Fully Managed EDI service offered at our company EDI2XML:
  • Over 21 years of expertise in integration projects and EDI implementations
  • Support of all commonly used EDI standards (i.e. X12, EDIFACT, RosettaNet, HIPAA/X12, XML, CSV, etc.)
  • Support of all commonly used communication protocols (i.e. AS2, FTP, sFTP, VAN, RNIF…)
  • 24/7 Helpdesk email support
  • Safe and stable infrastructure (deployed on our private Cloud)
  • Dynamic monthly service prices

Benefits of Managed EDI /EDI Outsourcing
  • No investment in hardware and software required by the client
  • Service offered based on monthly subscription
  • Suitable for all business sectors, regardless of the company size, or geographic location.
  • Seamless connection to your business partners
  • Seamless connectivity and bridging to your branded ERP/CRM or homegrown software system

The Fully Managed EDI Integration Process

We always start by analyzing data flows, systems, and trading partners that must be connected.

After completing the analysis, we submit our commercial business offer.

The offer clearly indicates the type and numbers of EDI documents, communication protocol, flow of Incoming and outgoing EDI documents, and costs associated with the One-Time Initial Investment and Monthly Integration Service Fees.

If you would like our company to submit a  free EDI quotation for you, please fill out our EDI Evaluation Sheet, available here, and send it by e-mail to: sales@namtek.ca

Our team of EDI specialists will be responsible for all stages of EDI integration: including planning an EDI project, Integration, testing, and certification with your company’s trading partners.

Your Trusted EDI Services Provider

For over 20 years, EDI2XML has been delivering advanced EDI integration solutions tailored to the specific needs of each company. We have helped various enterprises to successfully integrate EDI into their business and have empowered our clients to exchange EDI with numerous trading partners.

Whether it is a large or small company, with our Managed EDI service offering, we will completely relieve your IT team of responsibility in the field of EDI.

By outsourcing your EDI to EDI2XML, you guarantee a degree of support and expertise that is difficult to match by an in-house team. Our customers benefit from a higher degree of productivity, and a quick return on investment.

Would you like more information about what EDI2XML can do for you? Please contact us or call us on +1 450-681-3009.
Free EDI consultation

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Fully managed EDI service VS HTTP Web Service: Which is Better for Your Business ?

What is EDI (Electronic Data Interchange)?

eBook: EDI – Key Information You Need to Know

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How to Change Your EDI Service Provider

This post was updated to reflect current trends and information.

Today, companies switching from one EDI service provider to another, is not different from someone changing his mobile operator.

Successful companies are always looking for better services and conditions. They are not afraid to change their EDI service provider, considering they add a value with their new selected choice.

Typically, the main reasons for leaving the “old” EDI service provider:
  • The speed of service and SLA is not adequate to the company.
  • the price is no longer justifiable.
  • poor support service.
  • frequent failures.
  • technological weaknesses.
  • lack of expertise and difficulties with integration.

It happens that the contract between the EDI provider and the client was concluded a long time ago, and after a while, its terms were disadvantageous for the company.

There are cases when the client has accumulated a critical number of claims that he is ready to change the EDI service provider, regardless of the investment.

Sometimes, big retailers recommend their partners to work with a particular EDI service provider, hence, they go by that recommendation, since they do not have enough time to select the most reliable EDI provider more carefully, and they get stuck with that service provider for long, and living the good and the bad….

How to Choose the Right EDI Service Provider

Primarily, to change the EDI service provider, you need to carefully select a new one. This step requires careful study. Here are the qualifications that should be looked at when looking for a new EDI service provider:

A.  The technology and qualification of the EDI provider

Companies often use a variety of business systems (SAP, Oracle JD Edwards, Salesforce, etc.), as well as e-Commerce (i.e. Amazon, Shopify). It is important that the new EDI service provider has the optimal solution for integrating EDI processes into these systems.

B.  Ability to offer diversified and comprehensive services

Secondly, it is desirable that your EDI provider can offer comprehensive diversified services that relate to EDI. For example, a good EDI provider, that offers integration services such as e-commerce integration, and direct integration with leading ERP/CRM systems, in addition to EDI is a very important criterion and one more plus in favor of the provider.

C.  Great technical support and quick response time to “resolve”
EDI provider support

Third, comes technical support. The EDI service provider must ensure that an experienced technical team is always available for any type of request. It should be available to respond quickly to resolve issues (when it happens) within a very reasonable time frame, tolerated by the business. Of course, company experience plays an important role.

Since companies with many years of experience in their field, thanks to their experience, often have more effective solutions.

Where to Start and How to Prepare to Change EDI Provider

Before a potential provider submits a quotation, he will certainly request important information upon which he would want to build his pricing. It is worth preparing the following in advance:
  • EDI standard used (i.e. X12, EDIFACT, RosettaNet, HIPAA/X12, XML, CSV, etc.)
  • Number and name (when possible) of trading partners.
  • Type of documents for each trading partner (Order, Order Acknowledgment, Invoice, etc.)
  • Direction of each document (incoming or outgoing).
  • Communication Protocols (i.e. AS2, FTP, sFTP, VAN, RNIF…)
  • Integration interface to the internal system (i.e. direct integration, API, XML, CSV or Json messages)
  • Type of deployment of the solution, the company is looking for (i.e. On-premises, Cloud based)

If you want to get an EDI quotation from our company, please fill in our EDI Evaluation Sheet available here and send it by email to: support@edi2xml.com

After receiving the necessary information, the future provider gets down to the “drawing board”; based on the above information, the service provider will analyze the business process, and offer the most profitable options for EDI integration.

Here are the EDI integration services our company EDI2XML offers:

Fully Managed EDI Service: with this option, there is an on-boarding one-time fee, and a monthly fee. Our team at EDI2XML takes care of all your EDI project, and we offer a “turn-key solution”; we take care of all the setup, configuration, transformation, testing, certification with your EDI partners. Our monthly pricing packages are dynamic, they go up and down based on the volume and you are not locked in any tier.

EDI2XML web services: our REST API to convert X12 to XML and vice versa , is much more cost effective, and meant for companies who got their own technical resources to work with REST API (call and consume HTTP Rest Web services); In such a scenario, it is the way to go for the following reasons:
  • Self-service solution
  • Low cost per KC
  • Support is included with the subscription without any additional fees
  • Quick entry: you can be up and running in less than an hour, and it is proven; we provide everything to your developers to get started, a java client with its source code and instructions on how to work with.
  • We offer the schemas (xsd) of the XML format our API expects, and all what you need to do is to format your data according to that format and you will be up and running.
  • We offer a [15] days free trial, without any commitment.

EDI2XML On-Premises: is our offering to deploy our solution on customer’s premises.

How to Get a Discount

Chances for a discount increase if:
  • the company moves to a new provider having more than one trading partner.
  • The company has a significant volume of transactions.
  • The company requires integration with internal business systems (JDE Oracle, SAP, MS Dynamics, etc.)

How is the Process of Migrating to a New EDI Provider?

The transition from the old to the new EDI provider consists of two parts: formal and technical parts.

The formalities normally take between 2 to 5 business days before signing the agreement.

The technical part depends on the integration option selected and the volume of technical work involved:

– EDI web services. In this case, you do not even need to sign a contract. The connection is very fast within an hour, you can exchange EDI documents with your trading partner.

– Integration options such as Fully managed EDI service or On-Premises EDI Services or Integration with business system may take more time.

Do You Want to Start?

So, do you think it is time to change your EDI provider? However, you still have doubts. Not sure, which EDI solution is right for you? Contact us for a free consultation. Our EDI experts will advise you on the most cost-effective EDI solution according to your business processes.
Free EDI consultation

Related Posts:

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

What Are the Differences Between ANSI X12 and UN/EDIFACT

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

ORDERS and ORDRSP: The main EDIFACT messages in the supply chain management

This post was updated to reflect current trends and information.

Receiving and processing EDI purchase orders is the most common transaction faced by small businesses. This electronic business document is used to place a commercial order for goods or services by a buyer or business partner.
EDIFACT ORDERS

It’s still possible to use phone, email, or fax between two small businesses, but if you want to collaborate with a large retailer, distributor, or manufacturer, there is a high probability that you must be EDI compatible to receive orders from your B2B partners, in addition to other potential EDI documents or transactions.

What is EDIFACT ORDERS?

ORDERS (Purchase Order) is a type of EDIFACT message that contains requests for the supply of goods or services.

In EDI ANSI ASC X12 standard which is widely used in North America, the ORDERS is referred to as EDI 850 Purchase Order.

Large companies, working with small contractors demand mandatory use of EDI. Requirements for EDI compatibility is specified in contracts or in partners selection criteria.

High competition forces the business to comply, and start exchanging electronic data quickly and accurately, spending minimal time and resources on this business process. Thus, small enterprises must comply with the imposed conditions, in order not to lose a source of profitable purchases.

EDIFACT ORDERS message content

The most important main information contained in an EDIFACT ORDERS message:
  • Order number
  • Required date
  • Delivery date
  • Reference to supply contract number
  • Price and qualifier (including VAT and other taxes)
  • Identifiers of the consignee and sender, delivery location, customer, carrier, recipient
  • Information about the contents of the order (barcodes, quantity, item name, etc.).

EDIFACT ORDERS Processing

After signing the contract, the buyer uses ORDERS to send the seller a list and quantity of goods ordered.

Typically, a buyer creates the order in his ERP system (the most popular are SAP ERP, Microsoft Dynamics, Oracle JD Edwards EnterpriseOne). The created Purchase Order is instantly converted into an EDIFACT ORDERS message which is immediately sent to the seller. The seller must receive the EDIFACT message and quickly process it. He should transmit a Purchase Order Response (ORDRSP) in response to the Purchase Order received.

EDIFACT and ERP/CRM integration

To save time and money by processing the vast amount of information received from business partners, most companies (both retailers and suppliers) choose to integrate their EDI / EDIFACT messages into their ERP systems. Basically, with integration, they connect the received EDI messages and push it directly to their ERP software, through Integration Connectors designed specifically to synchronize and integrate into their ERP systems.

For example, using Magic xpi Integration Platform a company can connect a variety of heterogenous business systems such as ERP, CRM, finance, etc. by implementing out-of-the-box certified and optimized connectors.

You can find useful information on EDI integration with ERP Systems in the following articles:

How to make EDIFACT ordering even easier
EDIFACT ERP integration

As the number of outgoing or incoming orders increase, companies try to optimize the exchange of orders. In case the number of your orders exceeds a couple of hundreds per month, it’s worth thinking about integrating the flow of orders directly into your business software solution and save your company the time and money associated with human errors, delays to deliver, and increase efficiency.

The process of Order creation can be fully automated; it will not require human intervention. To do this first it is necessary to integrate your business system with EDI.

Related article:

Usually, after starting to use ORDERS message, the buyer will most likely request to receive replies to his orders, which means connecting another type of EDI message – ORDRSP. In addition, he can ask you for the dispatch advice (DESADV), and he can send you the delivery advice message. (RECADV).

What is ORDRSP and what are the benefits of using this EDIFACT message

ORDRSP (Order Response) is a type of EDIFACT message in which the supplier confirms or rejects the delivery of goods to the buyer. Using ORDRSP, the supplier can propose amendments, notify of a complete or partial delivery or confirm the entire delivery, before even processing the delivery.

Using UN/EDIFACT ORDRSP improves the logistics chain: the parties save on transportation, reduce returns due to incorrect deliveries of merchandise, increase the accuracy of delivery of the right products.

Through ORDRSP, the supplier can notify the buyer of the lack of certain products, thus avoiding disruption of supplies and maintaining a loyal business relationship. Customer, having this information, can order a similar product from the presented assortment or place an order from another supplier.

The buyer can always understand whether the supplier will deliver the goods on time, or not. He sees preliminary price confirmation and quantity of products, predicts the state of stock based on ORDRSP, and the supplier can automatically book goods for delivery in his warehouse when processing a Purchase Order Response.

What does ORDRSP contain?

ORDRSP has a direct relationship with ORDERS and are complimentary to each other. ORDRSP consists of:
  • Order number
  • GLN numbers of the buyer and seller
  • Order confirmation number
  • Date of planned delivery of goods
  • Scheduled time
  • Item No
  • Quantity approved (To Ship)
  • Price approved
  • Reason of rejection (when parameters are not matching between Order and supplier)

EDI/EDIFACT integration

In EDI/EDIFACT documents exchange, the EDI provider plays a key role. He is the one who ensures the conversion and integrity of message formats and tracking data transfers. For over 21 years now, our company EDI2XML has been successfully helping companies of all sizes switch to Electronic Data Interchange. We help speed up working with orders, shipments, acceptance, inventory of goods and reduce the risks of human errors. We have no hidden fees or confusing rates.

Contact us today for more information and a free EDI consultation.

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!

EDI ANSI ASC X12 Standards – Technical Overview – 2024

This post was updated to reflect current trends and information.

Understanding the Basics of  EDI ANSI ASC X12

This article describes the EDI ANSI ASC X12 standard (American National Standards Institute Accredited Standards Committee X12).

This overview provides full information on the EDI ANSI X12 standards, including general terms (Interchange, functional group, document), description of the main components of an EDI document (segments, elements), and how an EDI document is structured.

What is meant by EDI?

EDI Electronic Data Interchange is the process of electronically exchanging business documents (in a pre-defined format) between trading partners.

The EDI ANSI ASC X12 standard has different versions (related to development standards) – 4010, 5010, 5020

In EDI X12, each document has a three-digit number identifier. For example, an Invoice is 810, an Inventory Inquiry/Advice is 846,  an Advance Ship Notice  is 856, etc. more detailed list of EDI X12 documents with its identifier you can find here: Complete List of EDI X12 Codes

ANSI (American National Standards Institute) – is a non-profit organization that oversees the development of voluntary consensus standards for products, services, processes, systems, and personnel in the United States. EDI is handled by the Accredited Standards Committee X12 (ASC X12), it develops and maintains the X12 Electronic data interchange (EDI).

EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport.) EDIFACT standard is used mainly in Europe.

EDI Terminologies:

Interchange (or Envelop)

Interchange envelope is a structured data set to deliver electronic transactions to a receiving. Interchange can include a package of groups of documents but also may contain only one group with one document.

The Interchange structure
EDI document structure

Interchange begins with the ISA segment and ends with the IEA segment (ISA / IEA Envelope).

EDI X12 – Functional Group

A functional group is a group of one or more similar transaction sets. The beginning of the functional group is determined by the GS segment and the end by the GE segment.

How does an EDI document look (example)

ISA*00*          *00*          *ZZ*A1STORES    *12*5142645505     *190510*0728*|*00403*100000013*0*P*}

GS*PO*A1STORES*5142645505*20190510*0728*1013*X*004030

ST*850*1013

BEG*00*SA*2332233**20190510

REF*IA*66910

PER*BD*Contact Name*TE*123-456-7890

FOB*DF

DTM*010*20190517

DTM*001*20190525

TD5*****Carrier Routing*******CG

N1*ST*Towner Square Schooms*92*006

N3*Williston Towner Square*2100 11th St SW

N4*Williston*ND*58701

PO1*1*4*EA*4.15**UP*066810348563*IT*WACT750SP16-BLK

CTP**RTL*7.99

PID*F*08***Nike Boy Short Black sz M

PO1*2*6*EA*5.00**UP*066810349983*IT*WACT170SP16-AMP

CTP**RTL*7.99

PID*F*08*** Reebok Boy Short Abstract Print sz M

PO1*3*4*EA*5.25**UP*066810349747*IT*WACT790SP16-BLK

CTP**RTL*9.99

PID*F*08*** Puma Boy Short Red sz M

CTT*3

SE*22*1013

GE*1*1013

IEA*1*100000013

What is an EDI envelope?

The outer envelope ISA / IEA contains one or more functional Groups (GS/GE Envelopes) that contain the data, each in a separate envelope (ST/SE Envelopes).

The ISA / IEA envelope contains the addresses of the recipient company and the sending company.

The GS / GE envelope contains information about the type of documents contained in it, they are denoted as a two-letter code. (functional ID code). For example, PO for 850 Purchase Order, IN for 810 Invoice. Such an envelope contains only documents of the same type. GS also contains sender’s and receiver’s ID code, functional Group control numbers, date and time.

Functional Group Header (GS)


Functional Group Trailer (GE)
Functional Group Trailer (GE)

EDI segments

A segment in an EDI document is a group of identical data elements that may occur several times, to provide information about a product (i.e. weight, color, size, etc.)
edi x12 Segment

Segment optionality

Segments in a EDI X12 document  can be of two types:

M (mandatory) – a mandatory segment. Such a segment contains the basic information of the document. The mandatory segment cannot be omitted from the document. Example of the mandatory segment:

BEG*00*SA*2332233**20190510

This is the (BEG) segment of the header, it contains general document information:
  • Destination (00 – Original)
  • type (SA – Stand-alone Order)
  • order number (2332233)
  • 20190510 – Mai 10, 2019

This segment identifies the document.

O is an optional segment. These are segments containing secondary information. Optional segments may not be present in the EDI document. An example of an optional segment:

PER*BD*Contact Name*TE*123-456-7890

This is a PER segment – Administrative Communications Contact, i.e. “contact information”. This segment contains the following information:
  • BD- Buyer Name or Department
  • TE – Telephone
  • The phone number itself 123-456-7890

EDI Document Structure

The initial segments of each section, is called Header, and the final segment is called Trailer:
  • ISA – Interchange Control Header – this is the segment that defines the sender and recipient.
  • GS – Functional Group Header – this segment defines the type of document(s) that are included in this group.
  • ST – Transaction Set Header – this segment starts the document and is used to assign a control number.
  • SE – Transaction Set Trailer – the segment defines the end of the document.
  • GE – Functional Group Trailer– defines the end of the data that was started by the GS segment.
  • IEA – Interchange Control Trailer – is ending the Interchange segment.

EDI document: Header, Details, and Summary

Each EDI document (i. e. an order, an invoice) is divided into three groups – Header, Details, and Summary.
EDI structure

The Header of the document contains general information such as number, contact information, dates of delivery, addresses, etc.

The details of the EDI document contain information about the ordered product (quantity, price, etc.).

The Summary contains information such as the total cost of the goods, number of goods, etc.

Using EDI in business

EDI is used in many industries, but primarily in trading, transport, and logistics.

Retailers such as Costco, Walmart, and others use EDI X12 to exchange electronic documents with their trading partners.

Typically, a retailer and suppliers exchange the following EDI documents:

EDI is the connecting suppliers and retailers and allows business partners to minimize errors, and automate processes.
Free EDI consultation

RELATED POSTS:

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

What Are the Differences Between ANSI X12 and UN/EDIFACT

A technical introduction to EDI

What is EDIFACT? | UN / EDIFACT Standard Overview

UN / EDIFACT Standard Overview

What is UN/EDIFACT standard?

United Nations/Electronic Data Interchange for Administration, Commerce and Transport (UN/EDIFACT) is the International EDI standard ISO 9735-1987, developed under the UN

The general standard is adopted by national and sectoral standards bodies to better reflect the needs of each industry.

At least twice a year, the standard is updated globally. The reason of this update is to create a new directory of data and messages, in addition to improving the usability of existing EDIFACT messages.

The UN/EDIFACT standard has been developed for trade and transport management. The concept of “trade” was interpreted in a broad sense (orders, deliveries, insurance, payment of goods, customs formalities). Currently, the use of UN/EDIFACT has expanded to include accounting, customs control, pensions, health care, social insurance, judicial practice, employment, statistics, construction, finance, insurance, manufacturing, tourism, trade, freight, and container transportation.

The UN/EDIFACT standard is developed and supported by two international organizations: United Nations Economic Commission for Europe — UN ECE and the International Organization for Standardization. – ISO

EDIFACT Subsets

EDIFACT is predominant outside of North America. Due to its complexity, branch-specific subsets of EDIFACT have been developed. These subsets are subsets of EDIFACT and contain only the functions relevant to specific user groups, such as:

  • EANCOM consumer goods industry
  • ODETTE European automotive industry.
  • CEFIC chemical industry
  • EDICON standard used in the construction industry
  • RINET – the Insurance industry
  • HL7 standard is used in healthcare.
  • IATA air transportation
  • SWIFT banking
  • UIC 912 rail transport
  • EDIFICE electronics, software, and telecommunications industry. EDIFICE has played an important role in the implementation of RosettaNet standards in Europe. EDIFICE became the European RosettaNet User Group.

EDIFACT Messages: Structure and Syntax of the Standard

EDIFACT is a special, structured data language that describes all types of commercial activities, based on information logistics. Using elements and segments of standard informational messages, you can create a description of any document, generate its electronic form and transmit it in open telecommunication networks without fear of interception of private commercial information.

UN / EDIFACT Structure

Any document in UN / EDIFACT standard has a hierarchical structure. The entire electronic document is called a message. A message consists of data groups combined in some way, for example, a data group describing customs payments, a group of data describing the attributes of documents, etc. In turn, the group consists of typical data segments that describe document attributes in more details. The standard provides about 200 different types of segments from which messages are composed. The segments themselves also have a hierarchical structure and consist of data elements that can be simple (data field) and composite (usually 2-3 data fields).

The following is the structure of an EDIFACT transmission:

  • Service String Advice
  • Interchange Header
  • Functional Group Header
  • Message Header
  • User Data Segments
  • Message Trailer
  • Functional Group Trailer
  • Interchange Trailer

EDI Guide

Example EDIFACT

UNA:+.? ‘
UNB+UNOB:2+ XYZCORPORATION:ZZ+COMPANYX:ZZ+190521:1604+906019++++++1′
UNH+1+ORDERS:D:96A:UN’
BGM+220+4500265532+9′
DTM+137:20190425:102′
RFF+CT:CompanyX’
NAD+BY+2010::91′
CTA+OC+2010:G. Smith ‘
COM+044-1010605:TE’
COM+044-1010662:FX’
NAD+SE+0000906300::92′
CTA+SC+0000906300′
NAD+DP+++Consulting Inc St+ Begun + Laval++8003+CA’
CUX+2:CHF:9′
LIN+10++TH300010:BP’
PIA+1+000000000000500807:SA’
IMD+A++::92:HIR0010H12′
QTY+22:1:PCE’
DTM+2:20190423:102′
LIN+20++T0004671:BP’
PIA+1+000000000000501516:SA’
IMD+A++::92:CCGT060204NS LT1110S’
QTY+22:10:PCE’
DTM+2:20190423:102′
LIN+30++T2001171:BP’
PIA+1+000000000000501328:SA’
IMD+A++::92:LTPNG-R20-3.0′
QTY+22:1:PCE’
DTM+2:20190423:102′
UNS+S’
UNT+28+1′
UNZ+1+906019′

Principles and Technologies of Application of the UN / EDIFACT Standard

The EDIFACT Standard has three types of reference books:

The first type is directories that are based on the ISO standards. It includes directories of currency codes, country codes, units of measurement, modes of transport, delivery conditions, and some others.

The second type of directories, are the ones included in the EDIFACT standard., by default

The third type of directories is developed by different organizations responsible for issuing codes. Here is the list of organizations 3055 Code list responsible agency code

There are four main components in EDIFACT that are subject to standardization, when preparing documents for exchange between business partners.

  • data elements
  • standard data segments
  • standard messages
  • syntax rules

Data elements are the smallest, non-dividing parts of information, for example, the document date, the name of the destination, the amount of tax. More than 600 data elements used in international trade and transport have been published in a special UNTDID directory.

EDIFACT Standard Principles

The UN / EDIFACT standard is based on the following principal:

1. Standardize data at the segment and element level. Any document intended for electronic exchange should consist of typical segments. This means that the segment of the supplier’s address or delivery address is described by the same elements, regardless of what kind of document it is – invoice, order, declaration, etc. The practice has shown that to describe almost any document, it is enough to have no more than 100 typical segments. The fields inside the segments are standardized the same way, and the ratio of fields to segments is one-to-many, i.e. the same field can be included in different segments.

2. Record the fields used in segments as code. It is assumed that the partners exchanging electronic documents have identical code tables (directories). The composition and content of the reference books is standardized at three levels – international, national and corporate.

3. The independence of standards from the language of communication. The peculiarity of the UN / EDIFACT standards is that more than 90% of the electronic message consists of different codes. Another feature is that only the content of the document is transmitted, without a form. The document form is restored when the message is decoded.

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

EDIFACT Messages

The EDIFACT standard which provides a set of standard messages has greatly simplified international and multi-branch trade and the exchange of electronic business documents between countries and various industries.

The standard message UN / EDIFACT has a six-letter identifier that reflects the short name of the message, for example:

  • CUSDEC – CUStoms DEClaration
  • CUSRES –CUStoms RESponse

Some of the standard EDIFACT messages with X12 equivalent are listed in the table below.

X12 Transaction Number EDIFACT Transaction ID Transaction name
850 ORDERS Purchase order message
855 ORDRSP Purchase Order Acknowledgment
846 INVRPT Inventory Inquiry/Advice
856 DESADV Shipment Notification ASN
810 INVOIC Invoice
997 CONTRL Functional acknowledgment
860 ORDCHG Purchase Order Change – Buyer Initiated

Due to the independence from the language and the transfer of only the contents of the document, the restoration of the form of the document takes place on the receiving side in accordance with the rules that apply in this place.

Benefits of EDIFACT

EDIFACT benifits

EDIFACT has a competitive advantage that positively affects the efficiency of a company and improves business processes. The main advantages of EDIFACT:

Profitability – reducing the volume of papers to be processed leads to a decrease in personnel and administrative costs.

Efficiency – large volumes of commercial data can be transferred from one computer to another within minutes

Accuracy – the use of EDIFACT eliminates human errors that are inevitable when manually keying in data.

EDIFACT is a key component of a just-in-time strategy that ensures prompt customer satisfaction. EDIFACT in conjunction with the Internet allows real-time electronic transactions and accelerates the interaction between trading partners.

Easy EDIFACT Integration

Our company has many years of proven experience in implementing EDI and EDIFACT projects. We offer our clients Fully managed EDI Service and HTTP Web Service.

Contact us today for a free consultation and we will help you find the best option for your business.

EDIFACT Free consultation

EDI Integration of B2B E-commerce for Small Companies

Navigating B2B E-Commerce: A Small Company’s Guide to Seamless EDI Integration

More and more companies in the B2B vertical, are expanding their business to the web and doing more of what is called today B2B e-commerce. Those companies of all sizes are realizing the importance of automation and the value of exchanging EDI with their business partners, suppliers, and buyers.

For small companies in the B2B market, trading with large retailers such as Costco, Wal-Mart, Target or Home Depot is a great opportunity for their business. However, many small and medium-sized enterprises are missing out on this chance due to the fear of large retailers’ requirement to comply with their EDI rules.

In most cases, EDI is the de-facto protocol to communicate and exchange business documents between big-box retailers and their suppliers.

EDI is used to automate the process of exchanging business documents between trading partners. Essentially, it is the solution for B2B and is quite popular amongst retail, manufacturing, transportation, health care, and other industries. By automating documents exchange process, companies can benefit in many areas.

To those who do not know much about Electronic Data Interchange (EDI), it sounds quite complicated at first. There are different EDI standards, requirements, EDI formats, communication protocols such as AS2, sFTP, VAN, different documents / transactions (i.e. 850, 810, 846 856, etc.) which differ depending on company and industry.

EDI Integration projects seem daunting and expensive, which can explain why many smaller businesses still do not communicate with their trading partners through EDI. However, the key is to find the right EDI provider who can offer solutions and services that are simple, affordable and quick to onboard.

An EDI provider like EDI2XML offers 2 options for EDI integration projects:

Fully Managed EDI

This option is a “turn-key solution” where our team at EDI2XML, takes care of all the project: setup, configuration, testing, certification with your EDI partners …

Our monthly pricing packages are dynamic, they go up and down based on the volume and you are not locked in in any tier. Following is a diagram illustrating the flow of information with our EDI as a service offering.
EDI integration platform

By using our EDI Web Service, you can enhance efficiency, reduce errors, and improve collaboration with your trading partners.

EDI2XML Web Services

This option is meant for companies who got their own technical resources to work with REST API (call and consume HTTP Rest Web services); In such a scenario EDI2XML web services is the way to go for the following reasons:
  • Self-service solution,
  • Low cost,
  • Quick entry: you can be up and running in less than an hour, and it is proven; we provide everything to your developers to get started, a java client with its source code and instructions on how to work with it.
  • We offer the xml schemas (xsd) of the XML format our API expects, and all that you need to do is to format your data according to that format and you will be up and running.
  • We offer 15 days free trial, without any commitment.

Advantages of Using EDI
B2B edi Integration

Integrating Electronic Data Interchange (EDI) into B2B e-commerce can bring significant benefits to small companies. EDI allows for the automated exchange of business documents and data between trading partners, streamlining communication, reducing manual effort, and improving efficiency.

Integrating Electronic Data Interchange (EDI) into B2B e-commerce can bring significant benefits to small companies. EDI allows for the automated exchange of business documents and data between trading partners, streamlining communication, reducing manual effort, and improving efficiency.

With EDI, orders, invoices, and other business documents can be sent straight from your ERP management system to the EDI Provider, where they can process this XML file into EDI format and then sent to the Trading Partner.

Orders come in as EDI, get translated into XML format and then get sent straight to your ERP system (if integration was done). In most cases where integration to your ERP solution is done, no human intervention is even needed. This saves so much time and effort and finally allows your employees to get a lot more time on their hands for other important tasks, eliminating so much of the manual data entry.

When it comes to EDI, every case is different. It’s all about finding the right EDI provider that can help you with this process and ensure it’s simple and efficient as can be. Automating B2B processes with EDI can help companies stay profitable by letting them keep up with market changes and trends.

Look at EDI2XML, and book a free consultation with one of our EDI experts!
EDI price