Electronic Data Interchange (EDI)

Electronic Data Interchange (EDI) is the electronic exchange of formatted business data between businesses. The business documents like purchase order, invoice, etc. are translated in a standardized format and exchanged from between computers. The sender or receiver must have the capability to generate complete and accurate information and interpret the data with no human intervention. Commonly business documents are translated to standard EDI X12 format, this is achieved by using a translator. The X12 and EDIFACT standards are very broad, many industry associations develop industry specific guidelines and are sub­sets of the X12 and EDIFACT standards for use within their industry.