Do you speak my Lingo? A users guide to EDI Jargon!

In a previous post we spoke about common EDI acronyms and what they stood for, now let’s take this one step further and highlight some commonly used EDI jargon terms and what they mean to you the end user.

EDI Standards - EDI standards are formats for EDI documents (transactions sets) that specify what information goes where within an EDI document. Usually your specific industry or trading partners will determine which EDI standard your organization must use. Examples of EDI standards include ANSI X12, EDIFACT, Tradacoms, Odette, oioUBL.

EDI transaction sets – EDI transaction sets are business documents such as purchase orders, invoices, inventory updates, shipping notices, etc.). The EDI transaction set is identified according to which EDI standard it belongs to. For example in the ANSI X12 standard, EDI transactions sets are given a unique 3 digit identifier whereas in the EDIFACT standard, the identifier is made up of groupings of letterings. In ANSI X12 a shipping notice is referred to as an 856 however in EDIFACT it is called a DESADV.

EDI Software – EDI software facilitates sending and receiving EDI transaction sets according to each trading partner’s unique business rules and requirements. The EDI transaction sets are translated and mapped into a form that a user can use, they can be either transported into a web based EDI type portal or they can be integrated directly into the users back end application such as an ERP, Accounting Package, OMS, WMS and so on. Also within the EDI software there should be a translator. The functionality of the translator is that it that converts EDI data into another format.

EDI Mapping – Converting the electronic transaction sets being sent by one system into the format required by the other system. It is the internal programing that changes the files and allows them to process through systems automatically.

GS1/UCC-128 Barcode Labels - A standard way of labelling packages that includes a scan able bar code label that contains the shipping information for the order and is placed on the outer box. Now known as GS1-128 labels, these were formerly known as UCC-128 labels.

Communication Protocol – Is the ability to connect two different computer systems and transfer the data between them. VAN, AS2 and FTP are some of the most popular methods used in EDI.

Value Added Network – Commonly referred to as a VAN is a network that hosts the exchange of EDI data. A VAN transports the data from one system to another.

EDI Standards Version – A segment that identifies a specific release of the ANSI X12 or EDIFACT standards that may be used by the trading partners. Commonly used versions include ANS! X12 version 4010, version 4030, version 5010 or EDIFACT version D96A.

Functional acknowledgement – An EDI transaction set that is sent by the receiver to the sender to let them know that the previous EDI transaction set was received. It may be referred to as an FA or 997 in ANSI X12 terms.

Trading Partner – A business with whom your organization trades or exchanges goods and/or services. For example if an organization was a wholesale distributor its trading partners may be Walmart, CVS, Amazon and a 3PL (third party logistics provider).

EDI Compliant - A client is capable of transmitting data electronic via an EDI provider and meets the standards and requirements for doing so.

For further information and on the various EDI jargon used please feel free to reach out to the B2BGateway sales team at +1 (401) 491 9595 / +353 61 708533 or email Sales@B2BGateway.Net