Understanding EDI Transactions and the Importance of EDI Standards

Electronic Data Interchange (EDI) transactions have revolutionized the way businesses exchange vital information. Through standardized electronic business documents, companies can automate and streamline various processes, such as purchase orders, invoices, acknowledgments, payments, and more. In this blog post, we will explore what EDI transactions are, the significance of EDI standards, EDI transaction codes, and the different communication options available.

Exploring EDI Transactions

EDI transactions serve as standardized electronic business documents that trading partners use to send and receive crucial business information. These transactions are independent of communication methods or software technology and are designed to automate and streamline processes. Each EDI transaction document follows specific formatting rules and is assigned a transaction number, such as the purchase order (PO) with the EDI transaction number 850 or the invoice with number 810. By adhering to these standards, EDI transactions ensure the accurate transfer of data between internal and external systems, applications, and cloud ecosystems.

Understanding EDI Standards

EDI standards play a vital role in determining the format and composition of EDI documents. They define the order and location of data units within an EDI document. The three main components of an EDI document are elements, segments, and transaction sets. Elements represent individual lines of information, segments group elements, and transaction sets encompass segments in a predetermined format.

To ensure effective communication between computer systems, EDI standards format data in a way that both parties can understand. Let's explore some of the commonly used EDI standards:

• ANSI ASC X12: This standard includes more than 300 different types of X12 EDI standards, each designated by a unique three-digit number. It is widely used across industries such as finance, government, healthcare, insurance, and transportation.
• TRADACOMS: TRADACOMS is the primary EDI standard for domestic trading in the United Kingdom, particularly in the retail industry. It uses multi-messages and comprises 26 hierarchical messages with six-letter application references.
• UN/EDIFACT: UN/EDIFACT is an internationally standardized communication guideline for exchanging data tags and message types between computer systems. It structures data into segments, segments into messages, and messages into an interactive exchange protocol.
• ODETTE: ODETTE creates data exchange and communication standards specifically for the European automotive industry. It develops protocols like OFTP and OFTP2, providing enhanced security through encryption methods and digital certificates.

Importance of EDI Standards

While the rigidity of EDI standards has been a common complaint, it has also been instrumental in the long-standing success of EDI. Standardization ensures consistency, scalability, and cost-effectiveness in B2B data exchanges. APIs, although highly flexible, lack universal formats and struggle to match the scalability of EDI in most organizations.

The hundreds of specific EDI transaction codes further enhance the business language, enabling efficient communication between trading partners. EDI standards minimize complications, redundancies, and chargebacks, making them an indispensable part of modern enterprise operations.

EDI Communications Options

When it comes to sending and receiving information and documents, organizations have different communication options. Two popular options are AS2 and VAN.

• EDI AS2: AS2 enables secure data exchange via the internet using an HTTP protocol. It offers encryption, unlimited data transfer without costly fees, and compatibility with various file formats. AS2 facilitates direct and secure communication between trading partners and has gained widespread implementation across industries.
• EDI VAN: EDI VAN, or value-added network, acts as a centralized communication channel for EDI transactions. It ensures reliable document delivery, real-time tracking, and communication management. However, relying solely on a VAN for EDI communication has become outdated with the availability of more modernized and cost-effective technology options that offer end-to-end connectivity and solutions for complex integration.

EDI Transaction Codes

The following compilation provides a breakdown of industry-specific EDI standards, encompassing transportation, healthcare, and more.

Transportation and Logistics

EDI 104: Air Shipment Information

EDI 106: Motor Carrier Rate Proposal

EDI 107: Request for Motor Carrier Rate Proposal

EDI 108: Response to a Motor Carrier Rate Proposal

EDI 109: Vessel Content Details

EDI 110: Air Freight Details and Invoice

EDI 120: Vehicle Shipping Order

EDI 121: Vehicle Service

EDI 125: Multilevel Railcar Load Details

EDI 126: Vehicle Application Advice

EDI 127: Vehicle Baying Order

EDI 128: Dealer Information

EDI 129: Vehicle Carrier Rate Update

EDI 160: Transportation Automatic Equipment Identification

EDI 161: Train Sheet

EDI 163: Transportation Appointment Schedule Information

EDI 204: Motor Carrier Load Tender

EDI 210: Motor Carrier Freight Details and Invoice

EDI 211: Motor Carrier Bill of Lading

EDI 212: Motor Carrier Delivery Trailer Manifest

EDI 213: Motor Carrier Shipment Status Inquiry

EDI 214: Transportation Carrier Ship. Status Message

EDI 215: Motor Carrier Pick-up Manifest

EDI 216: Motor Carrier Shipment Pick-up Notification

EDI 217: Motor Carrier Loading and Route Guide

EDI 219: Logistics Service Request

EDI 220: Logistics Service Response

EDI 222: Cartage Work Assignment

EDI 223: Consolidators Freight Bill and Invoice

EDI 224: Motor Carrier Summary Freight Bill Manifest

EDI 225: Response to a Cartage Work Assignment

EDI 227: Trailer Usage Report

EDI 228: Equipment Inspection Report

EDI 240: Motor Carrier Package Status

EDI 250: Purchase Order Shipment Management Document

EDI 300: Reservation (Booking Request) (Ocean)

EDI 301: Confirmation (Ocean)

EDI 303: Booking Cancellation (Ocean)

EDI 304: Shipping Instructions

EDI 309: Customs Manifest

EDI 310: Freight Receipt and Invoice (Ocean)

EDI 311: Canada Customs Information

EDI 312: Arrival Notice (Ocean)

EDI 313: Shipment Status Inquiry (Ocean)

EDI 315: Status Details (Ocean)

EDI 317: Delivery/Pickup Order

EDI 319: Terminal Information

EDI 322: Terminal Operations and Intermodal Ramp Activity

EDI 323: Vessel Schedule and Itinerary (Ocean)

EDI 324: Vessel Stow Plan (Ocean)

EDI 325: Consolidation of Goods in Container

EDI 326: Consignment Summary List

EDI 350: Customs Status Information

EDI 352: U.S. Customs Carrier General Order Status

EDI 353: Customs Events Advisory Details

EDI 354: U.S. Customs Auto. Manifest Archive Status

EDI 355: U.S. Customs Acceptance/Rejection

EDI 356: U.S. Customs Permit to Transfer Request

EDI 357: U.S. Customs In-Bond Information

EDI 358: Customs Consist Information

EDI 359: Customs Customer Profile Management

EDI 361: Carrier Interchange Agreement (Ocean)

EDI 404: Rail Carrier Shipment Information

EDI 410: Rail Carrier Freight Details and Invoice

EDI 412: Trailer or Container Repair Billing

EDI 414: Rail Car Hire Settlements

EDI 417: Rail Carrier Waybill Interchange

EDI 418: Rail Advance Interchange Consist

EDI 419: Advance Car Disposition

EDI 420: Car Handling Information

EDI 421: Estimated Time of Arrival & Car Scheduling

EDI 422: Equipment Order

EDI 423: Rail Industrial Switch List

EDI 424: Rail Carrier Services Settlement

EDI 425: Rail Waybill Request

EDI 426: Rail Revenue Waybill

EDI 429: Railroad Retirement Activity

EDI 431: Railroad Station Master File

EDI 432: Rail Deprescription

EDI 433: Railroad Reciprocal Switch File

EDI 434: Railroad Mark Register Update Activity

EDI 435: Standard Transportation Commodity Code Master

EDI 436: Locomotive Information

EDI 437: Railroad Junctions & Interchanges Activity

EDI 440: Shipment Weights

EDI 451: Railroad Event Report

EDI 452: Railroad Problem Log Inquiry or Advice

EDI 453: Railroad Service Commitment Advice

EDI 455: Railroad Parameter Trace Registration

EDI 456: Railroad Equipment Inquiry or Advice

EDI 460: Railroad Price Distribution Request or Response

EDI 463: Rail Rate Reply

EDI 466: Rate Request

EDI 468: Rate Docket Journal Log

EDI 470: Railroad Clearance

EDI 475: Rail Route File Maintenance

EDI 485: Ratemaking Action

EDI 486: Rate Docket Expiration

EDI 490: Rate Group Definition

EDI 492: Miscellaneous Rates

EDI 494: Rail Scale Rates

EDI 601: U.S. Customs Export Shipment Information

EDI 603: Transportation Equipment Registration

EDI 715: Intermodal Group Loading Plan

EDI 854: Shipment Delivery Discrepancy Info.

EDI 858: Shipment Information

EDI 859: Freight Invoice

EDI 920: Loss or Damage Claim: Gen. Commodities

EDI 924: Loss or Damage Claim: Motor Vehicle

EDI 925: Claim Tracer

EDI 926: Claim Status Report and Tracer Reply

EDI 928: Automotive Inspection Detail

EDI 980: Functional Group Totals

EDI 990: Response to a Load Tender

EDI 998: Set Cancellation

 

Manufacturing and Retail

EDI 101: Name and Address Lists

EDI 140: Product Registration

EDI 141: Product Service Claim Response

EDI 142: Product Service Claim

EDI 143: Product Service Notification

EDI 159: Motion Picture Booking Confirmation

EDI 170: Revenue Receipts Statement

EDI 180: Return Merchandise Authorization & Notification

EDI 244: Product Source Information

EDI 290: Cooperative Advertising Agreements

EDI 503: Pricing History

EDI 504: Clauses and Provisions

EDI 620: Excavation Communication

EDI 625: Well Information

EDI 753: Request For Routing Instructions

EDI 754: Routing Instructions

EDI 816: Organizational Relationships

EDI 818: Commission Sales Report

EDI 830: Planning Schedule w/ Release Capability

EDI 832: Price/Sales Catalog

EDI 840: Request for Quotation

EDI 841: Specifications/Technical Information

EDI 842: Nonconformance Report

EDI 843: Response to Request for Quotation

EDI 845: Price Authorization Acknowledgment/Status

EDI 846: Inventory Inquiry/Advice

EDI 847: Material Claim

EDI 848: Material Safety Data Sheet

EDI 850: Purchase Order

EDI 851: Asset Schedule

EDI 852: Product Activity Data

EDI 853: Routing and Carrier Instruction

EDI 855: Purchase Order Acknowledgment

EDI 856: Ship Notice/Manifest

EDI 857: Shipment and Billing Notice

EDI 860: Purchase Order Change Request: Buyer Initiated

EDI 861: Receiving Advice/Acceptance Certificate

EDI 862: Shipping Schedule

EDI 863: Report of Test Results

EDI 865: Purchase Order Change Acknowledgment/Request: Seller Initiated

EDI 866: Production Sequence

EDI 867: Product Transfer and Resale Report

EDI 869: Order Status Inquiry

EDI 870: Order Status Report

EDI 873: Commodity Movement Services

EDI 874: Commodity Movement Services Response

EDI 875: Grocery Products Purchase Order

EDI 876: Grocery Products Purchase Order Change

EDI 877: Manufacturer Coupon Family Code Structure

EDI 878: Product Authorization/De-authorization

EDI 879: Price Information

EDI 881: Manufacturer Coupon Redemption Detail

EDI 882: Direct Store Delivery Summary Information

EDI 883: Market Development Fund Allocation

EDI 884: Market Development Fund Settlement

EDI 885: Retail Account Characteristics

EDI 886: Customer Call Reporting

EDI 887: Coupon Notification

EDI 888: Item Maintenance

EDI 889: Promotion Announcement

EDI 890: Contract & Rebate Management

EDI 891: Deduction Research Report

EDI 893: Item Information Request

EDI 894: Delivery/Return Base Record

EDI 895: Delivery/Return Acknowledgment or Adjustment

EDI 896: Product Dimension Maintenance

EDI 940: Warehouse Shipping Order

EDI 943: Warehouse Stock Transfer Shipment Advice

EDI 944: Warehouse Stock Transfer Receipt Advice

EDI 945: Warehouse Shipping Advice

EDI 947: Warehouse Inventory Adjustment Advice

 

Finance

EDI 130: Student Educational Record (Transcript)

EDI 131: Student Educational Record (Transcript) Acknowledgment

EDI 132: Human Resource Information

EDI 133: Educational Institution Record

EDI 135: Student Aid Origination Record

EDI 138: Education Testing and Prospect Request and Report

EDI 139: Student Loan Guarantee Result

EDI 144: Student Loan Transfer and Status Verification

EDI 146: Request for Student Educational Record (Transcript)

EDI 147: Response to Request for Student Educational Record (Transcript)

EDI 155: Business Credit Report

EDI 188: Educational Course Inventory

EDI 189: Application for Admission to Educational Institutions

EDI 190: Student Enrollment Verification

EDI 191: Student Loan Pre-Claims and Claims

EDI 197: Real Estate Title Evidence

EDI 198: Loan Verification Information

EDI 199: Real Estate Settlement Information

EDI 200: Mortgage Credit Report

EDI 201: Residential Loan Application

EDI 202: Secondary Mortgage Market Loan Delivery

EDI 203: Secondary Mortgage Market Investor Report

EDI 205: Mortgage Note

EDI 206: Real Estate Inspection

EDI 245: Real Estate Tax Service Response

EDI 248: Account Assignment/Inquiry & Service/Status

EDI 259: Residential Mortgage Insurance Explanation of Benefits

EDI 260: Application for Mortgage Insurance Benefits

EDI 261: Real Estate Information Request

EDI 262: Real Estate Information Report

EDI 263: Residential Mortgage Insurance Application Response

EDI 264: Mortgage Loan Default Status

EDI 265: Real Estate Title Insurance Services Order

EDI 266: Mortgage or Property Record Change Notification

EDI 810: Invoice

EDI 811: Consolidated Service Invoice/Statement

EDI 812: Credit/Debit Adjustment

EDI 814: General Request, Response, or Confirmation

EDI 819: Joint Interest Billing and Operating Expense Statement

EDI 820: Payment Order/Remittance Advice

EDI 821: Financial Information Reporting

EDI 822: Account Analysis

EDI 823: Lockbox

EDI 824: Application Advice

EDI 827: Financial Return Notice

EDI 828: Debit Authorization

EDI 829: Payment Cancellation Request

EDI 831: Application Control Totals

EDI 833: Mortgage Credit Report Order

EDI 844: Product Transfer Account Adjustment

EDI 849: Response to Product Transfer Account Adjustment

EDI 872: Residential Mortgage Insurance Application

EDI 880: Grocery Products Invoice

 

Healthcare and Insurance

EDI 100: Insurance Plan Description

EDI 111: Individual Insurance Policy & Client Info.

EDI 112: Property Damage Report

EDI 124: Vehicle Damage

EDI 148: Report of Injury, Illness, or Incident

EDI 186: Insurance Underwriting Requirements Reporting

EDI 187: Premium Audit Request and Return

EDI 252: Insurance Producer Administration

EDI 255: Underwriting Information Services

EDI 256: Periodic Compensation

EDI 267: Individual Life Annuity & Disability Application

EDI 268: Annuity Activity

EDI 269: Health Care Benefit Coordination Verification

EDI 270: Eligibility, Coverage or Benefit Inquiry

EDI 271: Eligibility, Coverage or Benefit Information

EDI 272: Property and Casualty Loss Notification

EDI 273: Insurance/Annuity Application Status

EDI 274: Health Care Provider Information

EDI 275: Patient Information

EDI 276: Health Care Claim Status Request

EDI 277: Health Care Information Status Notification

EDI 278: Health Care Services Review Information

EDI 362: Cargo Insurance Advice of Shipment

EDI 834: Benefits Enrollment and Maintenance

EDI 835: Health Care Claim Payment/Advice

EDI 837: Health Care Claim

Conclusion

EDI transactions and standards have transformed the way businesses exchange information, providing automation, efficiency, and accuracy. By adhering to standardized electronic business documents and formats, companies can streamline processes and improve communication with trading partners. The rigid standardization of EDI has ensured its longevity and widespread adoption, allowing for scalable and cost-effective B2B data exchanges. While communication options such as AS2 and VAN are available, AS2 offers a secure and direct method of data exchange, while VANs have become less popular due to advancements in technology.

As businesses continue to evolve and embrace digital transformation, EDI transactions, and standards will remain essential in facilitating seamless communication, streamlining processes, and driving efficiency in the modern business landscape.