How are EDI standards implemented?

EDI standards implemented:- Before using EDI, the trading partners must set up a trade agreement which will define all the parameters of EDI.

  • Each partner in an EDI trade agreement must independently determine a method to translate internal data to and from EDI formatted messages.
  • Each partner must agree on the communications media and arrange the method for transmitting information. This may involve any of several methods such as a dedicated communications link, a VAN or the Internet.
  • Each partner must provide for system recovery in case of failure or error, security, and timely response.


EDI Standards Implemented

The sender must convert data from an internal system to EDI formats for transmission. The receiver must be ready to receive transmissions in a timely fashion as agreed by trading partners.

This could be instantaneous or at regular time intervals. Data could be transmitted to VAN and stored for later retrieval by the receiver. The receiver converts the EDI transmission data to the internal system for processing.

Each transaction set represents a single business form. The header area contains preliminary information such as business name, address, date, etc. Next is the actual transaction information, the item, description, quantity, etc.

Where each line corresponds to one segment and each item in the segment is a data element. Last is the summary data which contains the control information.

Each data element is assigned a unique reference number in the EDI master data element list. The structure of each message is strictly defined while allowing for variable length data.

The transfer of information can be done by any electronic media from magnetic tape to telecommunication. EDI standards are designed to be independent of communications media.

Before any transaction can occur the sender and receiver must ensure that a valid connection has been established. Methods of error checking and recovery must also be established to safeguard against loss of data.