What are the different types of EDI standards?

EDI data is interpreted by computers rather than humans. Therefore, as a result of EDI standards, it was created to help computers understand EDI documents depending on the use case. Different EDI standards are different interpretations of how EDI should be formatted and they are used in different sectors in accordance with the needs and usage habits. But which message EDI message standard is more suitable for your business? Below are examples of EDI document standards with explanations.

What are EDI Transactions? 

EDI (electronic data interchange) is the automatic computer-to-computer transfer of business documents organized between business partners in a standard electronic format. Daily workflows exchange all kinds of commercial documents such as purchase orders, shipping forms, and invoices electronically. For example, when a business orders goods from its supplier, it automatically sends them an EDI purchase order. When an EDI transaction is sent, data is transferred from one system to another.

The EDI solution automates workflows by eliminating traditional paper-based processes. Thus, businesses can easily share business documents and process data without manual intervention, regardless of borders.

SAP EDI Integration

What are the EDI File Standards?

Document standards form the basis of EDI (Electronic Data Exchange). EDI standards govern the content and format for the sending and receiving processes of B2B (business-to-business) documents such as purchase orders, supply chains, invoices. There are many EDI file formats such as ASC X12, VDA, EDI Via VAN.

Common EDI Document Standards

Commonly used EDI file standards are below:

UN/EDIFACT

United Nations / Electronic Data Interchange for administration is the international standard developed by the United Nations for trade and transport. The maintenance and further development of this standard is done through Facilitating United Nations Trade and Electronic Trade Center affiliated United Nations (UN / CEFACT).

United Nations Center for Trade Facilitation and Electronic Commerce, affiliated with the UN Economic Commission for Europe (UN / CEFACT). The EDIFACT standard provides a set of syntax rules for configuration, an interactive exchange protocol, and a set of standard messages that allow the exchange of multi-country and multi-sectoral electronic business documents.

ANSI X12

In 1979, the American National Standards Institute (ANSI) hired the Accredited Standards Committee (ASC) X12 to develop uniform standards for inter-industry electronic business transactional exchange, that is, electronic data exchange. ANSI X12 was originally designed to support companies in different industry sectors in North America, but today there are more than 300,000 companies worldwide using ANSI X12 EDI standards in their day-to-day business transactions. ANSI X12 also contributes to UN/EDIFACT messages commonly used outside the United States.

VDA

VDA, one of the regional EDI standards, stands for Verband der Automobilindustrie Automotive Industry Association of Germany. It develops standards and best practices to serve the needs of companies in the German automotive industry. The VDA maintains a set of fixed format messages describing the business documents exchanged between automotive manufacturers and suppliers. Unlike other EDI standards, the VDA specifications do not have any naming conventions for each item.

There are some features that distinguish the VDA Standard from other EDI standards:

• The VDA standard does not use a common set of exchange envelopes for all messages.
• It has a format that is not restricted in location.
• It does not use functional groups.
• It uses loops but not compound elements.

EANCOM

EANCOM was designed by the EAN General Assembly in 1987. It was developed based on the EDIFACT standard that emerged at that time. EANCOM messages are maintained by GS1. It has a much more detailed nature than TRADACOMS message sets.

Although EANCOM was first developed for the retail industry, today it has become a sub-component of UN/EDIFACT and is used in many sectors such as health, publishing, and construction.

ODETTE

The Organisation for Data Exchange by Tele Transmission in Europe is a group looking after the interests of the automotive industry in Europe. They have designed ODETTE, the EDI Standard for the automotive industries. ODETTE stands for The Organisation for Data Exchange by Tele Transmission in Europe.

The ODETTE Standard was created to facilitate the exchange of EDI documents with business partners. Its aim is to improve the flow of product data, goods services and business information along the automotive value chain. The growing popularity of ODETTE has led to the emergence of new EDI communication standards such as OFTP and OFTP2.0.

TRADACOMS

TRADACOMS is an early standard for EDI that emerged around 1982. It is an old EDI standard first used by the retail sector in the UK. In favour of TRADACOMS, EDIFACT, EANCOM subsets, its development ended in 1995. However, it is still used by retailers in the UK.

HIPAA

HIPAA is an EDI document type usually used in the health sector. It stands for Health Insurance Portability and Accountability Act. This EDI standard was developed to restrict access to personal health data and protect patient privacy. It ensures that records are securely processed in electronic systems. Hospitals, private health insurance companies and private clinics use this standard to share documents related to health services. 

RosettaNet

RosettaNet is a consortium that aims to establish standardised processes for sharing commercial data between companies. This consortium includes companies operating in semiconductors, telecommunications, consumer electronics and logistics.

RosettaNet aims to create and implement industry-wide open e-business process standards. The RosettaNet EDI standard creates an e-business language that globally harmonises business processes between supply chain partners. The XML-based RosettaNet document standard outlines message directives, business process interfaces and application frameworks for interactions between companies.

Integration of EDI Standards with SAP

MDP Group makes document transmission processes much faster and more reliable by integrating EDIFACT, ANSI X12 and VDA message standards with SAP PO. Thanks to the built-in B2B Toolkit in SAP PO, the conversion of EDI messages is performed automatically. This integration has three outstanding features. With the built-in graphical mapping feature, data can be converted from EDI format to IDOC format quickly and easily. The component monitoring feature allows the inter-partner connection to be followed by end-to-end. The trading partner management feature allows all partners to be viewed and managed through a single portal.

Do not hesitate contact us for detailed information about SAP EDI message standards and our consultancy services.