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6 EDI Terms Every Business Should Know

The business benefits of Electronic Data Interchange (EDI) are quite rewarding. EDI holds the power to streamline partner data exchange, increase efficiency in B2B operations, and deliver tangible improvements to business outcome.

With EDI playing an important role in better business data exchange, we thought of putting together some cool terms of the EDI world. These terms hold a special meaning for different set of operations like bill of lading, file transfer protocol (FTP), purchase order confirmation, web services, etc., and are handy for talking smooth with a bunch of EDI experts.

Here’s a little list of cool EDI terms you might want to remember:

Advanced Shipping Notice (ASN): A shipping notification that notifies a pending delivery. This notification provides tracking and packing information related to a delivery. ASN is generated in XML format by a vendor to provide details about content of a shipment.

Acknowledgment:An EDI response generated for a command to confirm that a message has been received, processed, or failed. Acknowledgment messages can be customized and may contain information like message receipts, success/ failure, etc.

Invoice: An EDI function generated for indicating how much amount needs to be paid for goods or services. It is a response to a purchase order for goods or services. Invoice also contains details about shipping, payment terms, and goods or services.

Translation: A part of the data interchange process where data is translated into different formats. Business logic is applied for delivering information to target systems and expediting transactions. It helps in translating high volume transactions and replying to data in a secure manner.

Applicability Statement 1 (AS1): A specification for securely transporting data over a network with Simple Mail Transfer Protocol (SMTP). Digital certificates are used for encrypting and securing the data.

XML/EDI: A standard format to describe different data types to determine how information in a workflow can be displayed consistently. XML and EDI together are a powerful means for exchanging data between different organizations.

The aforementioned were just a handful of EDI terms. However, there are many other additional high-value EDI terms that enterprises should know.

Check outourresources pagefor whitepapers, video tutorials, and documentation on EDI.