EDI Standard - EDIFACT

EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) is an international standard for Electronic Data Interchange (EDI) developed by the United Nations. It provides a framework for structuring business documents and facilitates the exchange of data between organizations across different countries and industries.

Overview of EDIFACT

1. History and Development:

   • Established: EDIFACT was established in 1987 by the United Nations Economic Commission for Europe (UNECE) to create a globally accepted standard for EDI.
   • Scope: Aimed at facilitating international trade and communication, EDIFACT covers various industries including retail, transportation, finance, and manufacturing.

2. Structure and Format:

   • Message Types: EDIFACT messages are defined by a unique UN/EDIFACT message type code (e.g., INVOIC for Invoice, DESADV for Dispatch Advice).
   • Segments: Each message is composed of segments, which are groups of related data elements.
   • Data Elements: Individual pieces of information within segments.
   • Interchange Control Structure: Messages are enclosed in an interchange control structure, which includes an interchange header (UNB) and an interchange trailer (UNZ).

3. Commonly Used EDIFACT Messages:

   • INVOIC: Invoice
   • ORDERS: Purchase Order
   • DESADV: Dispatch Advice
   • RECADV: Receiving Advice
   • PRICAT: Price/Sales Catalog
   • DELJIT: Just-in-Time Delivery Schedule

4. Benefits of EDIFACT:

   • Global Standardization: Provides a universal standard that facilitates international trade and communication.
   • Efficiency: Streamlines business processes by automating document exchange, reducing manual entry, and accelerating transaction cycles.
   • Flexibility: Adaptable to various industries and business processes, with the ability to accommodate different business needs.

5. Implementation:

   • EDI Software: Organizations use EDI translation software to convert internal documents into EDIFACT format and vice versa.
   • Mapping: Defines how data fields from internal systems correspond to EDIFACT segments and data elements.
   • Transmission: EDIFACT messages can be transmitted via different methods, including Value-Added Networks (VANs), direct connections, and the Internet.
   • Acknowledgments: Receipt of messages can be confirmed through acknowledgment messages (e.g., CONTRL for Control Message).