Electronic Data Interchange (EDI) is the computer to computer exchange of routine business information in a standard format. EDI transaction sets to eliminate the need to re-enter critical data in commercial pay systems and accounting systems. EDI may be most commonly understood as the replacement of paper-based purchase orders with electronic equivalents.
EDI saves unnecessary re-capture of data. This leads to faster transfer of data, far fewer errors, less time wasted on exception-handling, and hence a more streamlined business process. Benefits can be achieved in such areas as inventory management, transport and distribution, administration and cash management. EDI offers the prospect of easy and cheap communication of structured information throughout the business community, and between government agencies and their suppliers and clients.
Common EDI Codes – EDI 810, 850, 856 & 894
All transaction codes used are a part of the ANSI ASC X12 EDI standard. The most common EDI codes are listed below:
- 810 Invoice
- 850 Purchase Order
- 855 Purchase Order Acknowledgment
- 856 Shipment Notice/Manifest
- 894 Delivery/Return Base Record
- 997 Functional Acknowledgment