EDI STANDARD
EDI communication standards are the requirements for the format and composition of
EDI documents. EDI standards delineate the correct order and location of units of data in a
given EDI document.
All electronic data interchange transactions are made up of the following parts:
Element - The data elements within an EDI document are individual lines of
information. For example, a document like a purchase order or an invoice will contain data
elements such as city, state, item number, or cost. Elements are the smallest component in an
EDI standard.
Segments - Segments are composed of a group of elements. In an EDI document,
each section of the document is described by a particular segment. Examples of segments
include the beginning of a purchase order, the company, street addresses, etc.
Transaction Sets - Also referred to as an EDI message or EDI transactions. Once
segments are collected in a predetermined format, they form the completed EDI document or
transaction sets.
Electronic data interchange works depending on which EDI standards are required to format
a message. Ultimately, since EDI documents are managed and interpreted by computers,
transferred data must be formatted in a way that the computers of both parties can understand.
The main purpose of EDI standard formats is to minimize communication complications and
costs of redundancies or fines, often called chargebacks.
COMMON EDI COMMUNICATION STANDARDS
1. ANSI ASC X12
ANSI (American National Standards) ASC (Accredited Standards Committee) X12 goes
by more than one pseudonym. This standard is also sometimes called ANSI X12
Standard or just simply X12. But regardless of the terminology, ANSI ASC
X12 includes EDI standards used to communicate digital B2B transactions for various
global business processes. EDI X12 standards allow consistency among business
documents and other kinds of enterprise functionality.
There are more than 300 different types of X12 EDI standards, all delegated by a
different three-digit number, for numerous industries such as finance, government,
health care, insurance, transportation, and others. ANSI ASC X12 also develops
standards for CICA (Context Inspired Component Architecture) and XML schemas.
Service Segment Descriptions
ISA Segment – Interchange Control Header
GS Segment – Function Group Header
ST Segment – Transaction Set Header
1
SE Segment – Transaction Set Trailer
GE Segment – Function Group Trailer
IEA Segment – Interchange Control Trailer
2. TRADACOMS
TRADACOMS (TRAding DAA COMmunicationS) is the primary EDI standard for
domestic trading in the United Kingdom, specifically the UK retail industry. While
somewhat similar to the EDIFACT standard, TRADACOMS uses multi messages
instead of relying on a format of single messaging. TRADACOMS communication is
comprised of 26 messages structured in a hierarchy.
Each TRADACOMS message, much like EDIFACT, is given a six-letter application
reference. For example, an invoice message is INVFIL, a payment order is PAYORD, a
utility bill is UTLHDR, and so on.
Service Segments
Service Segments are used to keep track of the transmission. The most
common set is shown below.
STX - Start of Interchange
MHD - Start of Message
MTR - End of Message
MHD - Start of Message
MTR - End of Message
END - End of Interchange
3. UN/EDIFACT
UN/EDIFACT, which is short for United Nations rules for Electronic Data Interchange
for Administration, Commerce, and Transport, is a set of internationally standardized
communication guidelines for exchanged data tags and message types between computer
systems in different networks. UN/EDIFACT standards structure data into segments,
segments into messages, and messages into an interactive exchange protocol.
The syntax rules for EDIFACT describe the message (nesting, character sets, structures,
etc.) The data tags detail the different types of data being exchanged and how each is
represented. The message types are also known as UNSMs (United Nations Standard
Messages).
UNH+SSDD1+ORDERS:D:03B:UN:EAN00 UNH, to indicate start of message – in this case ORDERS
8′
BGM+220+4768+9′ BGM, to indicate the beginning of the PO message
DTM+137:20120930:102′ DTM, to indicate the date/time period
NAD+BY+5412345000176::9′ NAD, to identify the buyer code corresponding to the
name/address
2
LIN+1+1+331896-42:VN’ LIN, to describe line item detail
QTY+[Link]’ QTY, to define the quantity
PRI+AAA:27.65′ PRI, to define price
UNS+S’ UNS, section control segment to separate line item detail
from summary information
CNT+2:1′ CNT, to provide the number of line items
UNT+22+SSDD1′ UNT, to indicate the end of the PO
4. ODETTE
ODETTE stands for Organization of Data Exchange by Tele Transmission in Europe
and is responsible for one of the most established standards for EDI electronic data
interchange in the automotive sector. It is similar to North America’s AIAG
(Automotive Industry Action Group). ODETTE develops protocols such as OFTP and
the more advanced OFTP2, which provides enhanced security through encryption
methods and digital certificates for EDI data exchange.
ODETTE is responsible for one of the most established standards for EDI electronic
data interchange in the automotive sector.
Specific ODETTE documents
DELINS Delivery Forecast / Delivery
EXHAND For Delivery Schedule Exception Handling
CALDEL JIT Delivery
SYNCRO Sequenced Delivery
KANBAN KANBAN Delivery
FORDIS ‘Ready for Dispatch’ Advice
AVIEXP Dispatch Advice
INVOIC Invoice
STOACT Inventory Report
TRINAD Forwarding Instruction
CONSUM Consignment Consolidation
ORDERR Purchase Order
ORDCHG Order Change
REPORD Order Response
PRILST Price List Based
REMADV Remittance Advice
STATAC Account Statement
Other common EDI standards include:
RosettaNet, based on XML, is used broadly in the supply chain, manufacturing, and
services industries
GS1 EDI is used in retail globally
HL7 required by HIPAA regulation is predominant in U.S. healthcare.
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The Importance of EDI Standards
One of the most common complaints those in the technology world have had about EDI is
due to its rigid standardization. However, this very same standardization has helped EDI stick
around for as long as it has and become a way of life for enterprises. Without standardization,
it becomes difficult to maintain and scale B2B data exchanges.
A lack of true EDI standards that dictate a universal format is one reason that APIs have not
replaced EDI when it comes to B2B-type data exchanges. APIs can be customized to do just
about anything, which means developers a pretty wide range of what he or she can do to meet
the requirements of the business. Such wide-ranging business rules tend to not scale well in
most organizations.
EDI COMMUNICATIONS OPTIONS
Every organization that needs to connect with trading partners must first ask themselves,
“What is the best way to send and receive information and documents?” And while there are
multiple avenues for a company to take business communication, data interchange ultimately
comes down to AS2 vs. VAN.
EDI AS2
With AS2 (applicability statement 2), data such as EDI, XML, and others are sent and
received via the internet using an HTTP protocol (TCP/IP) through a certified server. AS2
offers a securely encrypted process without costly annual or transaction fees for unlimited
data. In today's digital ecosystem, AS2 is considered the best way to integrate with trading
partners and has been widely implemented across many industries.
AS2 can handle any type of file format and requires message disposition/delivery
notifications (MNDs) to alert a trading partner when a document or data has been
delivered or received. AS2 also can be deployed using in-house IT resources or
outsourced through a cloud-based EDI vendor.
With AS2, what it all comes down to is enabling a better way to send data securely and
directly from one source to another.
EDI VAN
An EDI VAN (value-added network) should efficiently deliver EDI transactions through
a single connection. A hosted VAN service enables the communication between a
traditional VAN and a private network or internet-connected trading partner. Simply put,
a VAN is a communication channel that moves and manages data from point A to point
B – kind of like a post office. In a VAN, trading partners each possess a mailbox as data
is delivered between each mailbox.
This streamlined method is meant to lower the document-by-document processing costs
by way of a centralized system with real-time tracking, communication management,
multiple connectivity options, local data integration, and rapid message delivery.
However, relying on a VAN has become an outdated way of doing business, especially
with more modernized and cost-effective technology options available that offer end-to-
end connectivity and solutions to complex integration.
