Learning EDI - Day 3: What is ANSI X12 and EDIFACT? Why do we have different EDI standards?

 What is an EDI Standard?

An EDI standard is a set of rules that defines:

• Document structure
• Segment names
• Data elements
• Business meanings

Businesses use different EDI standards.

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1. ANSI X12

ANSI X12 (American National Standards Institute X12) is the most widely used EDI standard in North America.

This standard is commonly used In

• United States
• Canada

Industries

• Retail
• Healthcare
• Manufacturing
• Logistics

Example: Purchase Order (850)

ST*850*0001
BEG*00*NE*PO12345
N1*ST*ABC HOSPITAL
PO1*1*100*EA
SE*4*0001

Common X12 Transactions

Transaction Set	Description
850	Purchase Order
855	Purchase Order Acknowledgment
856	Advance Ship Notice
810	Invoice
997	Functional Acknowledgment
846	Inventory Inquiry/Advice

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2. EDIFACT

EDIFACT stands for:

Electronic Data Interchange for Administration, Commerce and Transport

It was developed under the supervision of the United Nations and is the most widely used international EDI standard.

This standard is commonly used In

• Europe
• Asia
• Australia
• Global trade

Example: Purchase Order (ORDERS)

UNH+1+ORDERS:D:96A:UN
BGM+220+PO12345
NAD+BY+123456789
LIN+1
UNT+4+1

Common EDIFACT Messages

Message Type	Description
ORDERS	Purchase Order
ORDRSP	Order Response
DESADV	Advance Ship Notice
INVOIC	Invoice
CONTRL	Functional Acknowledgment

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Different between X12 vs EDIFACT

Feature	ANSI X12	EDIFACT
Origin	USA	United Nations
Primary Usage	North America	International
Segment Separator	*	+
Element Separator	*	+
Terminator	~	'
Purchase Order	850	ORDERS
Invoice	810	INVOIC
ASN	856	DESADV

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Example Comparison

X12 Purchase Order

BEG*00*NE*PO12345

EDIFACT Purchase Order

BGM+220+PO12345

Both mean:

"Purchase Order Number = PO12345"

The business meaning is the same, but the format differs.

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Why Do We Have Different EDI Standards?

Reason 1: Regional Adoption

Different regions created standards before global standardization became common.

• USA → ANSI X12
• Europe → EDIFACT
• UK → TRADACOMS

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Reason 2: Industry Requirements

Certain industries adopted standards tailored to their needs.

Examples:

• Healthcare → X12
• Retail → X12 and EDIFACT
• Automotive → EDIFACT, ODETTE
• Logistics → Both

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Reason 3: Existing Investments

Large companies have used the same EDI standard for decades.

Changing standards would require:

• New mappings
• New testing
• New ERP integrations

So, companies continue using the standard already adopted by their trading partners.

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Example from My Experience

At any companies, you may see:

US Customer

850 Purchase Order
856 ASN
810 Invoice

(X12)

European Customer

ORDERS
DESADV
INVOIC

(EDIFACT)

Although the formats differ, the business process remains the same:

Order → Acknowledgment → Shipment → Invoice

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