EDI in Today’s B2B Transactions

X12 EDI (Electronic Data Interchange) is a standardized format developed by the American National Standards Institute (ANSI) for electronically exchanging business documents between organizations. It enables companies to automate the exchange of information such as purchase orders, invoices, shipping notices, and other commercial data in a structured, machine-readable format.

Key Features:

• Standardization: X12 defines strict formatting rules for different transaction types, identified by numeric codes (e.g., 850 for Purchase Order, 810 for Invoice, 856 for Advance Ship Notice).
• Automation: Reduces the need for manual data entry by enabling systems from different businesses to communicate directly.
• Security: Data is typically exchanged over secure communication channels such as AS2, SFTP, or VAN (Value Added Network).
• Validation: Each transaction is validated against X12 rules for accuracy and completeness before being accepted.