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How does EDI2XML work ?

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How does EDI2XML work?

In simple terms, EDI2XML is a converter from EDI X12 format to XML format. The result XML format file is based on a pre-defined schema (xsd); we call it our “EDI2XML format”. Here is a very simple graphical description of the EDI2XML engine “in action”.

EDI Platform

Read: What is EDI ?

EDI2XML can work in two directions by changing a little switch when executing the command:

  • Convert incoming EDI X12 files to XML format
  • Convert outgoing XML format files to EDI format
For incoming EDI files, after a raw X12 EDI file is received using communication software and the EDI2XML engine is triggered, the following actions are executed one after the other:
– EDI2XML will verify the structure of the received file to make sure it is a valid raw EDI X12 format file
– If the raw EDI X12 file is valid in terms of structure, it will run another path to eliminate any information not considered part of EDI; for example, some headings and footers sent through the EDI VAN are automatically cleaned as it does not relate to any business information exchanged with the EDI partner
– The engine is smart enough to split a batch of incoming EDI files inside the same physical file, by envelop (ISA) and by ISA id, as a preparation for the conversion to XML, regardless of its EDI standard and revision
– Once all of the above is completed, the engine would generate for each one of the EDI files an equivalent XML formatted file.
The EDI2XML engine works a little differently when converting raw X12 files from an XML format. Once the engine is triggered with the option to convert XML to EDI X12 format, it will do the following actions:
– For each XML file found, EDI2XML will validate its structure and find out if it is well formed, to make sure it is compliant with edi2xml format and schema
– For each valid XML file, the engine will convert from XML to X12 raw EDI format
*It is important to note that the XML file should comply with a pre-defined xsd (or schema). All necessary information related to EDI versions and standards are sent within the XML file. For incoming and outgoing edi2xml formatted files, only files from the “ licensed” partners are being processed. Any EDI or XML file sent from/to an unlicensed partner will NOT be processed at all.

Read: How is EDI2XML licensed ?

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What is EDI?

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This post was updated to reflect current trends and information. 

A Technical Introduction to EDI

Before I start explaining anything about EDI2XML, I would like to start by giving a more technical introduction to EDI, its usage, and its history. EDI is an acronym for Electronic Data Interchange. It has been around for a long time and has been used by retailers and private corporations in several verticals (health, retail, insurance…). When people in the business community talk about exchanging “EDI transactions“, they refer to a combination of the following:
  • Structured EDI file format including version, revision, standard…
  • Protocol of communication, medium and security (FTP, sFTP, AS2, VAN…)
  • Business partners (vendors, retailers…)

Simply speaking, EDI is the process of “electronically” exchanging documents between business partners in a pre-defined format. The information is transmitted in a secured manner. Normally, files with EDI format are structured and follow “EDI standards”.

EDI Standards

There are several widely used EDI standards, including:

  1. ANSI ASC X12: This is the predominant standard used in North America for various industries, such as retail, healthcare, transportation, and finance. It defines specific transaction sets like purchase orders (850), invoices (810), and shipping notices (856).
  2. UN/EDIFACT: This is an international EDI standard developed by the United Nations. It is widely used outside of North America and is popular in sectors like transportation, logistics, and customs. UN/EDIFACT includes a comprehensive set of message types covering various business processes.
  3. GS1 EDI: This standard is developed by GS1, a global organization focused on supply chain standards. It is used primarily in the retail and consumer goods industries. GS1 EDI incorporates the GS1 barcoding standards and provides specific message types for processes like product catalog synchronization, purchase orders, and invoices.
  4. HIPAA EDI: The Health Insurance Portability and Accountability Act (HIPAA) introduced specific EDI standards for healthcare-related transactions. These standards ensure the secure and standardized exchange of sensitive patient data between healthcare providers, insurers, and other entities.
  5. TRADACOMS: Developed in the United Kingdom, TRADACOMS is an EDI standard commonly used in the retail industry. It includes message types for processes like order management, stock control, and invoicing.

These are just a few examples of the many EDI standards available. Each standard has its own message formats, data elements, and communication protocols. Organizations typically choose the appropriate standard based on their industry, geographic location, and trading partner requirements.

Read: What is a VAN ?

EDI X12

EDI has been evolving with different versions, revisions and sub-revisions. For example, in the X12 standard EDI format, I started my EDI career with the EDI version 3010. Today, we are working with much higher EDI versions such as 4010, 5010, 5020… It is important to note that within each one of the above versions, different revisions might exist.

EDI Transactions and Documents

Read: How does EDI2XML work ?

EDI documents are “number coded”; for example, a Purchase Order sent by a retailer to a vendor using EDI format is coded under the number “850”. The same applies for other documents such as 810 (for invoice), 856 (for Advance shipping notice), 820 (for Payment Advice), and 860 (for Retailer triggered Purchase Order Change). The list goes on and it is not limited to the above. For a more extensive list of EDI documents that EDI2XML supports,  visit our EDI Document Library.

Each EDI document sent to a party has to be responded to by the other party by sending back a Functional Acknowledgment (FA 997). The 997 designates that the “structure” of the EDI file was certainly received, without looking at the “content” of the EDI formatted file. Both business partners understand the “content” of the information and they are able to translate into business terms. This is where EDI2XML comes into play to convert and translate the content and make it ready for integration.

To learn more about EDI, read our new blog “What is EDI (Electronic Data Interchange)?” 

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ANSI ASC X12 Standards Overview

What Are the Differences Between ANSI X12 and UN/EDIFACT
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