Electronic Data Interchange
Electronic Data Interchange
E-Finance Paper
Electronic Data Interchange One of the more commonly accepted definitions of Electronic Data Interchange, or EDI, has been “the computer-to-computer transfer of information in a structured, pre-determined format.” Traditionally, the focus of EDI activity has been on the replacement of pre-defined business forms, such as purchase orders and invoices, with similarly defined electronic forms.? EDI is the electronic exchange of information between two business concerns in a specific predetermined format. The exchange occurs when messages that are related to standard business documents, such as Purchase Orders and Customer Invoices are exchanged. The business community has arrived at a series of standard transaction formats to cover a wide range of business needs. ?Each transaction has an extensive set of data elements required for that business document, with specified formats and sequences for each data element. The various data elements are built up into segments such as vendor address, which would be made up of data elements for street, city, state, zip code, and country.? All the transactions are then grouped together, and are ?preceded by a transaction header and followed by a transaction trailer record. If the transaction contains more than one transaction, many purchase
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