EDI Terminology & Complete EDI Glossary

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EDI Industry Definitions

Learn more about the EDI industry terminology and definitions with our EDI experts. With decade of experience and counting, Monitor Pro team of experts has continued to support companies around the globe enabling our customers to connect, integrate, automate, and expand their business.

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Learn More About EDI Industry Terminology

  • ANSI: (American National Standards Institute) – “…administers and coordinates the U.S. voluntary standardization and conformity assessment system.” ANSI ASC X12 is the official designation of the U.S. national standards body for the development and maintenance of Electronic Data Interchange (EDI) standards. ASCII X12 has been accredited by ANSI since 1979.
  • AS1: Applicability Statement 1) – A specification for EDI communications between two businesses using e-mail protocols. The standard provides S/MIME (Secure Multi-Purpose Internet Mail Extensions) and uses Simple Mail Transfer Protocol (SMTP) to transmit data. An Internet connection capable of sending and receiving e-mail, an EDI transfer engine, and digital certificates are required for data exchange using AS1. Almost any type of data can be transmitted.
  • AS2: (Applicability Statement 2) – Has largely superseded AS1, it specifies how to connect, deliver, validate and acknowledge data, and creates an envelope for a message which is then sent securely over the Internet. An implementation of AS2 involves two machines, a client and a server, communicating with each other over the Internet using HTTP protocol.
  • AS3: (Applicability Statement 3) – A communications method that uses FTP/S to send EDI transactions over the Internet.
  • ASN: (Advance Ship Notice or 856) – An EDI formatted electronic notification of pending deliveries. The goal of the ASN is to provide information to the destination’s receiving operations in advance of delivery.
  • B2B: (Business-to-Business) – Electronic commerce transactions between businesses, as opposed to those between businesses and other groups such as consumers.
  • Cloud Infrastructure: Web-based processing, whereby shared resources, software, and information are provided to computers and other devices (such as smartphones) on demand over the Internet.
  • CRM: (Customer Relationship Management) – Helps companies acquire and retain customers, gain deep marketing and customer insight, and align organization on customer-focused strategies
  • CSV: (Comma-Separated Values) – A file type that stores tabular data, one implementation of a delimited text file, which uses a comma to separate values.
  • EDI: (Electronic Data Interchange) The computer-to-computer exchange of business documents or business information in a structured or standard format. An EDI message contains a string of data elements, each of which represents a singular fact, such as a price, product model number, and so forth, separated by a delimiter. The entire string is called a data segment. One or more data segments framed by a header and trailer form a transaction set, which is the EDI unit of transmission. A transaction set often consists of what would usually be contained in a typical business document or form. The parties who exchange EDI transmissions are referred to as trading partners.
  • Functional Acknowledgement: (997) – Provides for an EDI notification by the ultimate receiver that the sender’s EDI transmission has been received.
  • GS/GE: (Functional Group Segments) – These segments comprise the Functional Group envelope. It contains information such as the type of transaction enclosed, the sender and receiver information, and defines the version, transmission date and control number.
  • HIPAA: (Health Insurance Portability and Accountability Act) – Part of the HIPAA initiative seeks to establish standardized mechanisms for electronic data interchange (EDI), security, and confidentiality of all healthcare-related data.
  • HTTP: (Hypertext Transfer Protocol) – A communications protocol used to transfer information on intranets and the World Wide Web, or a request/response protocol between a client and a server.
  • X12: (also known as ANSI ASC X12) The official designation of the U.S. national standards body for the development and maintenance of EDI standards. The most widely used standard for EDI in the United States and much of North America.
  • XML: (Extensible Markup Language) is a flexible way to create common information formats and share both the format and the data on the World Wide Web. XML can be used by any individual or group of individuals or companies that wants to share information in a consistent way.