EDI Standard - ANSI ASC X12

The ANSI ASC X12 standard is a widely used format for Electronic Data Interchange (EDI) in North America. Developed by the Accredited Standards Committee (ASC) X12, which is part of the American National Standards Institute (ANSI), this standard facilitates the electronic interchange of business documents.

Overview of ANSI ASC X12

1. History and Development:

   • Established: The committee was established in 1979 to develop uniform standards for inter-industry electronic exchange of business transactions.
   • Scope: Covers a wide range of industries including retail, finance, healthcare, supply chain, and transportation.

2. Structure and Format:

   • Interchange Control Structure: Each X12 transaction set is surrounded by a header (ISA) and a trailer (IEA) to manage and identify the start and end of an interchange.
   • Transaction Sets: Defined by three-digit codes, each transaction set corresponds to a specific business document (e.g., 850 for Purchase Order, 810 for Invoice).
   • Segments and Elements: Each transaction set is divided into segments (groups of logically related data elements), which are further divided into data elements (individual pieces of information).

3. Commonly Used Transaction Sets:

   • 810: Invoice
   • 850: Purchase Order
   • 856: Advance Ship Notice
   • 997: Functional Acknowledgement
   • 820: Payment Order/Remittance Advice
   • 837: Health Care Claim
   • 834: Benefit Enrollment and Maintenance

4. Benefits of ANSI ASC X12:

   • Standardization: Provides a uniform format for electronic documents, reducing the complexity of exchanging information between different systems.
   • Efficiency: Streamlines business processes and reduces manual data entry, leading to faster and more accurate transactions.
   • Interoperability: Facilitates communication between different industries and companies, even if they use different internal systems.

5. Implementation:

   • EDI Software: Organizations use EDI translation software to convert internal data into the X12 format and vice versa.
   • Mapping: Defines how data elements from internal business documents correspond to X12 data elements.
   • Transmission: Documents can be transmitted through various means, including direct connections, Value-Added Networks (VANs), and the Internet.
   • Acknowledgments: Receipt of documents is confirmed through acknowledgment transaction sets like the 997 Functional Acknowledgement.