EDI Glossary

Acknowledgment (997)

A document sent in response to the receipt of an EDI transaction, confirming that the document has been received and either accepted or rejected.

Advance Shipping Notice (ASN)

An EDI document (856 in ANSI X12) sent from the supplier to the buyer, notifying them of an upcoming shipment and providing details like contents and delivery date.

ANSI X12

A widely used set of standards in the U.S. that dictate how businesses format and structure their electronic documents for data exchange. Learn more about ANSI X12.

API (Application Programming Interface)

A collection of tools, definitions, and protocols that help developers build software and allow different programs to communicate with each other.

AS2 (Applicability Statement 2)

A protocol for securely and reliably exchanging data over the Internet, often used in EDI communications.

B2B (Business-to-Business)

Refers to transactions or business dealings that occur directly between companies, without involving individual consumers.

B2C (Business-to-Consumer)

Describes transactions where businesses sell directly to the end-user, typically an individual customer.

Barcode

A machine-readable representation of data typically used in tracking inventory or shipping, often integrated into EDI systems.

Batch Processing

A method where transactions or data are processed in groups or batches at scheduled times, instead of being processed individually in real-time.

Business Partner

A company or entity that engages in business transactions through EDI. Also referred to as a "trading partner."

Business Process Integration

Connecting and streamlining business processes through technologies like EDI to improve operational efficiency and data flow.

Certification Authority

An organization responsible for issuing digital certificates, which verify the identity of entities for secure communications.

Clearinghouse

An intermediary service provider that processes, validates, and forwards EDI transactions between trading partners.

Cloud EDI

Using cloud technology to exchange EDI documents, allowing businesses to send and receive data without relying on local servers.

Composite Data Structure

A combination of related data elements grouped together to convey more detailed or complex information.

Communication Protocol

A set of rules that outline how data should be transmitted and received across a network, ensuring smooth communication between systems.

Compliance Checking

The process of reviewing EDI documents to ensure they meet agreed-upon standards and formats between trading partners.

Control Number

A unique identifier assigned to each EDI transaction set, allowing for tracking and audit trails of the specific document.

Cross-docking

A logistics practice where incoming shipments are unloaded and quickly reloaded onto outbound trucks, minimizing storage time and handling.

Data Element

The smallest unit of information in an EDI document, representing a specific value like a date, price, or quantity.

Delimiter

Special characters used to separate different pieces of data (segments or elements) in an EDI document.

Digital Certificate

An electronic document that authenticates the ownership of a public key, used to establish secure online communications.

Direct EDI/Point-to-Point

An EDI system where businesses exchange documents directly with each other, without the need for a third-party network provider.

DUNS Number

A unique nine-digit identifier for businesses, used in EDI transactions to identify trading partners.

EDI (Electronic Data Interchange)

A method for businesses to exchange documents, such as orders and invoices, electronically in a standardized format. Learn more about what is EDI.

EDI Outsourcing

Hiring a third-party provider to manage and run your EDI operations, including document exchange and system maintenance.

EDI Translator

Software that converts EDI-formatted data into a format usable by your internal business systems, and vice versa.

EDIFACT (Electronic Data Interchange For Administration, Commerce and Transport)

An international standard developed by the United Nations for the electronic exchange of data across industries.

E-commerce

The buying and selling of goods or services through online platforms and electronic networks.

Encryption

The process of converting data into a coded format to protect it from unauthorized access, ensuring that only intended recipients can read it.

Envelope

The electronic "wrapper" around an EDI message that contains metadata such as sender and receiver information, similar to a physical mailing envelope.

ERP (Enterprise Resource Planning)

A type of software used by businesses to manage and integrate key operations like finance, supply chain, and manufacturing in one system.

Error Report

A document or notification generated when an EDI transaction fails due to formatting or processing errors.

Functional Acknowledgment (FA)

An EDI message sent to confirm the successful receipt and processing of an EDI transaction by the recipient.

Functional Group

A group of related transaction sets in an EDI transmission, identified by a group control header and trailer.

GS1

An international organization that develops global standards for business communication, particularly in supply chain operations.

GS1-128 (formerly UCC/EAN-128)

A barcode standard used to encode information about products, often accompanying EDI transactions.

GTIN (Global Trade Item Number)

A globally recognized identifier for trade items, often used in EDI for product identification.

HIPAA EDI

Standards for EDI transactions in healthcare, mandated by the Health Insurance Portability and Accountability Act (HIPAA). Common transaction types include claims, eligibility verification, and payment processing.

Integration Broker

Software or a service that helps manage data exchange and transformation between different systems in a business.

Interchange Control Header (ISA)

The starting segment of an ANSI X12 message that provides details about the sender, recipient, and transmission.

Interchange Control Trailer (IEA)

The closing segment of an ANSI X12 message, summarizing the number of documents included in the transmission.

Invoice

An electronic document (810 in ANSI X12) sent by a supplier to request payment for goods or services provided to a buyer.

JSON (JavaScript Object Notation)

A simple, human-readable format for representing structured data, commonly sed for data exchange between web servers and browsers.

Just-In-Time (JIT)

A supply chain strategy where materials are ordered and received just before they are needed in the production process, reducing inventory costs.

Loop

A repeating group of segments in an EDI document, often used to represent multiple occurrences of data such as line items in an invoice.

Mapping

The process of converting data from one format into another so it can be exchanged between different systems.

Message Standards

Predefined rules and formats that dictate how EDI messages should be structured to ensure compatibility between trading partners.

Partner Profile

A set of rules or configurations that define how a company processes EDI transactions with a specific trading partner.

Payment Order/Remittance Advice

An EDI document (820 in ANSI X12) used to send payment details or confirm a payment has been made for goods or services.

PKI (Public Key Infrastructure)

A framework that handles the creation, distribution, and management of digital certificates and encryption keys.

Purchase Order (PO)

An EDI document (850 in ANSI X12) used by buyers to place an order with suppliers for goods or services.

Public Key Infrastructure (PKI)

A system that supports the creation and management of digital certificates and keys for secure online transactions and communications.

RA (Remittance Advice)

An EDI document (820 in ANSI X12) that accompanies a payment and provides details about the invoices being paid.

Real-time Processing

Handling data instantly as it is generated or received, rather than processing it at a later time.

SAP IDoc (Intermediate Document)

A document format developed by SAP for the electronic exchange of business information between systems.

Segment

A logical grouping of related data elements in an EDI document that represents a specific piece of information.

Segment Terminator

A character used to indicate the end of a data segment in an EDI message, such as a tilde (~) or newline character.

Service Bureau

A third-party provider that manages and facilitates EDI transactions for companies that do not have in-house EDI capabilities.

Ship Notice/Manifest (ASN)

An EDI document (856 in ANSI X12) that provides detailed information about a shipment’s contents and delivery schedule.

SKU (Stock Keeping Unit)

A unique identifier assigned to each product or service to track inventory and sales.

Supply Chain Management

The process of overseeing the production, shipment, and distribution of goods from raw materials to the final consumer.

TMS (Transportation Management System)

A software system used to manage and optimize logistics and transportation, often integrated with EDI for automating shipment notices and tracking.

Trading Partner Agreement

A contract between two businesses that defines the terms, technical requirements, and processes for exchanging EDI documents.

Trading Partner Number

A unique identifier assigned to each trading partner, used to distinguish between different entities in EDI transactions.

Transaction Set

A collection of EDI documents that are grouped together and exchanged as part of a single business transaction.

UCC (Uniform Code Council)

An organization that governs product identification standards, now part of GS1, and helps set standards for EDI and barcoding.

UN/EDIFACT

The international standard for EDI, developed by the United Nations, used primarily outside of North America.

VAN (Value-Added Network)

A private, third-party network provider that facilitates the secure exchange of EDI documents between businesses.

Web EDI

A type of EDI that uses internet protocols to exchange business documents, allowing companies to exchange data online.

X12 Version/Release

The specific version or release of the ANSI X12 standards used in EDI transactions, which ensures compatibility between trading partners.

XML (eXtensible Markup Language)

A markup language used to structure and organize data so that it can be easily shared between systems and read by both humans and machines.