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EDI Standards

This blog covers the below mentioned options and it will help us to understand clearly about EDI.

What is EDI & Why does business use it?

  • SAP XI/PI and EDI
  • What are EDI Standards
  • The Flow of Electronic Documents

EDI Definition:

Electronic Data Interchange (EDI) is the exchange of business data from the computer of one enterprise to the computer of another enterprise using a standard format like PO, Invoices e.t.c. I.e Intercompany Electronic Exchange of Business Documents in a Standard Format.

EDI is used with trading partners who are EDI capable and use EDI as a technology to improve the efficiency of their business.  Not all trading partners are EDI capable or choose EDI as their technology of choice.

EDI 1.jpg

Why does Business use it?

  • Increased business opportunities
  • Reduced inventory
  • Lower data entry costs
  • More accurate records
  • Decreased mailing costs
  • Reduction in order time
  • Better cash management


             Paper Document – average cost is $50
             EDI Document – average cost is $4

EDI 2.jpg

What are EDI Standards:

Allows electronic interchange of data between many business partners without the re-development of new a proprietary interface with every partner
Provides a comprehensive, generic description of all possible components of a (paper) business document

EDI 3.jpg

ANSI X12 :

  • American National Standards Institute (ANSI)
  • Cross-industry general business standard
  • Used throughout North America & Canada
  • X12 Versions 003020 and 004010 is preferred when trading EDI with Suppliers
  • Can accommodate any customer version


  • EDI For Administration, Commerce, and Transportation (EDIFACT)
  • Used throughout Europe and Asia, and by some international companies in North America
  • EDIFACT version D97A is preferred when trading EDI with suppliers
  • Can accommodate any customer version


  • Trading Data Communications (TRADACOM)
  • Tradacoms is an early standard for EDI primarily used in the UK retail sector and one of the precursors of EDIFACT
  • Tradacoms versions are V8 and V9
  • Can accommodate any customer version


  • The Society of Worldwide Interbank Financial Telecommunication (SWIFT)
  • operates a worldwide financial messaging network which exchanges messages between banks and financial institutions
  • SWIFT linked 8740 financial institutions across 209 countries
  • A list of Document standards are
    • Customer Payments & Checks
    • Treasury Markets–Foreign Exchange, Money Markets & Derivatives
    • Documentary Credits & Guranatees
    • Cash Management & Customer Status


  • RosettaNet is an organization set up by leading information technology companies to define and implement a common set of standards for e-business.
  • A Partner Interface Process (PIP) is a message model that depicts the activities, decisions and partner Role Interactions that fulfill a business transaction between two partners in a given supply chain.
  • RosettaNet consists of a consortium of major computer, consumer electronics, semi-conductor manufacturers, telecommunications and logistics companies.
  • The RosettaNet document standard is based on XML and defines message guidelines, business processes interface and implementation frameworks for interactions between companies.


  • The Electronincs Industry Data eXchange association
  • Most major electronics companies in North America are members
  • Education, Develop Business Models and Guidelines on how best to implement the ANSI X12 and EDIFACT standards and more recently XML within the RosettaNet standards


  • Computing Technology Industry Association
  • A global organization which represents 7,500 computer hardware and software manufacturers
  • EIDX & COMPTIA now host joint meetings for mutual benefits

Counterparts to EIDX :

EDIFICE (European) – EDI  For Companies Interested in Computing and Electronics
EDIMAN (Singapore) – EDI for MANufacturing
EIAJ (Japan) – Electronics Industry Association Japan  standards and more recently XML within the RosettaNet standards

Reference Links:

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