Saturday, 23 August 2025

Top FAQs About EDI for Beginners - Part 3

Q21. What is the difference between EDI 810 and EDI 850?

Answer:
EDI 850 is a Purchase Order (buyer requests goods/services), while EDI 810 is an Invoice (seller requests payment for goods/services shipped).


Q22. What is an EDI Trading Partner?

Answer:
A trading partner is any business entity that exchanges EDI documents with you, such as customers, suppliers, carriers, or 3PLs.


Q23. What does "Mapping" mean in EDI?

Answer:
Mapping is the process of translating data from an EDI format (like X12 or EDIFACT) into your internal ERP/business system format, and vice versa.


Q24. What is an EDI Acknowledgment (997/CONTRL)?

Answer:
An acknowledgment confirms receipt of an EDI document.

  • 997 → Used in X12 standards.

  • CONTRL → Used in EDIFACT standards.


Q25. What is the role of a VAN in EDI?

Answer:
A Value-Added Network (VAN) acts like a mailbox service, routing EDI messages between trading partners securely without a direct point-to-point connection.


Q26. What is the difference between EDI ANSI X12 and EDIFACT?

Answer:

  • ANSI X12 → Widely used in North America.

  • EDIFACT → International/European standard.
    Both serve the same purpose but differ in syntax and segment structures.


Q27. What is the benefit of EDI over Email or PDF orders?

Answer:
EDI ensures automation, accuracy, and speed—no manual entry, fewer errors, real-time updates, and compliance with customer/supplier requirements.


Q28. What is an EDI Envelope?

Answer:
An EDI envelope wraps transaction sets for transmission. Examples:

  • ISA/IEA in X12

  • UNB/UNZ in EDIFACT


Q29. What is an EDI Translator?

Answer:
An EDI Translator is software that converts EDI data into a format readable by internal applications (ERP, WMS, TMS), and vice versa.


Q30. What industries use EDI the most?

Answer:

  • Retail (Walmart, Amazon)

  • Healthcare (claims, insurance)

  • Logistics & Transportation

  • Automotive

  • Manufacturing

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Top FAQs About EDI for Beginners - Part 3

Q21. What is the difference between EDI 810 and EDI 850? Answer: EDI 850 is a Purchase Order (buyer requests goods/services), while EDI 8...