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Electronic Data Interchange (EDI)
One of the greatest work process improvements has been the advent of Electronic Data Interchange. As businesses transition to electronic commerce they must establish standard electronic data terminology to ensure that various accounting systems are able to accurately communicate the data. This electronic data interchange (EDI) is moving many organizations from a paper-based to electronically-based procurement systems.
Establishing a standard electronic data format for the exchange and capture of data between trading partners is the work of a number of standards organizations.
Accredited Standards Committee (ASC) X12 is a membership organization chartered by the American National Standards Institute (ANSI) to develop uniform data standards and data specifications for electronic exchange of business transactions. ASC X12 provides a neutral environment and an appropriate structure to foster data standards development and implementation. ANSI ASC X12 is the official designation of the US National standards body for the development and maintenance of electronic data interchange standards for the US. The group is an accredited standards committee under ANSI.
According to ANSI ASC X12, hundreds of organizations, industry associations and government agencies participate in ASC X12. More than 300,000 companies worldwide use the X12 EDI standards in daily business transactions. In 2002, ANSI approved an amendment to ASC X12's scope to include development of business message standards based on the XML syntax, and other future data exchange syntaxes.
EDI is used in a variety of industries, including distribution, finance and accounting, health care, manufacturing, purchasing, retail, tax form filing, and shipping. With EDI, computer data already entered by one organization is made available to a business partner.
EDI defines the electronic exchange of structured business data, such as purchase orders, invoices, and shipping notices, typically between one organization and another. The relationship is usually between a vendor and customer. For example, EDI provides a way for a customer to place orders directly from a vendor's computer. The EDI system coordinates the transaction, initiates deliveries, and generates invoices
While many organizations build their own proprietary systems in association with their business partners, others choose to work with an outside provider that offers EDI transaction services.
View TAWPI Virtual Expo Companies relating to EDI - electronic data interchange and electronic data capture.
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