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EDIFACT for Logistics and Transportation: Optimizing EDI Processes & Enhancing the Supply Chain

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As an EDI provider with over 20 years of experience, in this article we dive into how EDIFACT standard, used in logistics and how this standard is transforming logistics and transportation by automating key processes across the supply chain.

Introduction to EDIFACT: What is Electronic Data Interchange in Logistics?

Efficient data exchange has always been crucial for transportation, shipping, and overall logistics. However, some companies still create an invoice in a plain text file or Excel spreadsheet and send it via email. But many successful companies have been exchanging such documents via EDI (Electronic Data Interchange) for a long time now.

EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) is an EDI standard that has transformed supply chain communications worldwide.

For businesses looking to streamline communication with partners, suppliers, or customers, adopting the right data exchange standard is crucial. When it comes to international trade, UN/EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) is the global choice.

EDIFACT plays a key role in optimizing business communications, reducing errors and speeding up transactions such as purchase orders, invoices, shipping notices, and other business documents.

UN/EDIFACT Standard Development

UNECE (United Nations Economic Commission for Europe): The UNECE is the primary body responsible for the development, maintenance, and promotion of the UN/EDIFACT standard. They are the core drivers and have the ultimate authority.

ISO (International Organization for Standardization): The ISO publishes the EDIFACT standard as ISO 9735. This provides wider dissemination and formal recognition. However, the ISO doesn’t develop the standard’s content. They essentially adopt and publish what the UNECE develops. The ISO giving their stamp of approval and making it available through their channels.

So, while both organizations are involved, the UNECE is the developer and the ISO is the publisher. The UNECE is the driving force behind EDIFACT, while the ISO plays a role in making it officially recognized and broadly accessible.

What is EDIFACT? A Comprehensive Guide for Logistics Companies

EDIFACT is an international standard developed by the United Nations for electronic data interchange (EDI). It facilitates the automated exchange of business documents between organizations in a structured, standardized format.

Because EDIFACT is widely used in Europe and internationally, it’s particularly beneficial for businesses engaged in global trade.

EDIFACT messages are a crucial part of modern business operations, especially for companies involved in sectors like freight forwarding, customs clearance, and logistics.

Here are some core EDIFACT aspects:

EDIFACT Messages: These are structured documents like ORDERS, DESADV, INVOIC, SHIP, RECADV, UTILMD, IFTMIN, and IFTSTA that facilitate business transactions.
EDIFACT Formats: Well-defined layouts that ensure all trading partners understand and process the information uniformly.
Electronic Data Interchange (EDI): The process that enables this automated and standardized communication, eliminating paper-based processes.
Global Reach: Widely adopted in international trade and transport.

The main advantage of EDIFACT, like any other EDI standard, is that it provides a structured format and standardized rules that help avoid errors and misunderstandings when exchanging information between different companies, regardless of where they are located, what language they communicate in, and what business systems they use.

Simplify your EDIFACT integration. Our comprehensive code list makes it easy. Find the codes you need: Complete List of EDIFACT Messages

Why is Your New Trading Partner Asking for EDIFACT for Orders?

When your business partner says you need to use EDIFACT to send orders (or any other business document) it means they want you to send your orders in a specific format that integrates easily with their system, allowing them to process the data automatically.

What it Means for You

In your case, your trading partner likely uses EDIFACT to automate order processing. By sending your order in EDIFACT format, you’ll enable their system to:

Receive and interpret your order details accurately.
Process the order quickly.
Potentially generate automated responses, such as order confirmations or shipping updates.

For example, EDIFACT documents can be used to streamline order management, inventory management, and shipping processes. Transport management systems (TMS) and warehouse management systems (WMS) often rely on EDIFACT messages to automate data exchange between warehouses, suppliers, and transportation providers. These systems help businesses manage their supply chain more efficiently, ensuring that orders are processed accurately, inventories are updated in real-time, and goods are delivered on time. Whether you’re handling order management, coordinating freight, or ensuring smooth customs clearance, EDIFACT helps businesses automate and optimize these essential functions.

USEFUL: What is EDIFACT? | UN / EDIFACT Standard Overview

The Role of EDIFACT in Managing Logistics, Transportation, and the Supply Chain

EDIFACT plays a pivotal role in modern supply chain management by enhancing communication between various systems and stakeholders. It benefits the entire network of transport, transportation, and shipping through:

Enhanced Data Accuracy: Automated EDIFACT messages reduce manual errors in data entry, ensuring accurate order management and inventory management.
Faster Processing: Integration with transport management systems (TMS) and warehouse management systems (WMS) speeds up the exchange of information and decision-making.
Improved Freight Forwarding: Real-time updates streamline customs clearance and overall shipment tracking.
Global Standardization: Adhering to EDIFACT standards allows companies to easily communicate with international partners.

By leveraging EDIFACT, companies can achieve smoother operations in supply chain and supply chain management while benefiting from reduced delays and lower administrative costs.

Key EDIFACT Documents: ORDERS, DESADV, INVOIC, and Other Essential Messages

Several EDIFACT messages are critical in logistics and transportation. These messages enable companies to automate communication and ensure that key processes—from procurement to delivery—are managed efficiently. Here’s a detailed look at each of these messages:

ORDERS: The ORDERS message is used for placing orders and managing procurement. This message facilitates the transmission of order details from buyers to sellers, ensuring that product specifications, quantities, pricing, and delivery dates are clearly communicated. By standardizing order information, the ORDERS message helps reduce errors and misunderstandings, ultimately streamlining the procurement process within the supply chain.
DESADV: The DESADV (Dispatch Advice) message is essential for shipping and delivery operations. It is used to notify the recipient about the dispatch of goods, including critical details such as shipment contents, packaging information, and expected delivery times. DESADV messages play a vital role in logistics by providing transparency into the dispatch process, enabling both shippers and receivers to prepare for the arrival and handling of goods efficiently.
INVOIC: The INVOIC message handles invoicing and billing details between trading partners. This document captures all the necessary financial information related to the transactions, such as itemized charges, taxes, and total amounts due. By automating the invoicing process, the INVOIC message minimizes manual data entry errors and expedites payment cycles, thereby contributing to more effective cash flow management and financial reconciliation.
RECADV: The RECADV (Receipt Advice) message is crucial for confirming the reception of goods. Once a shipment arrives, the RECADV message is sent to acknowledge receipt and provide details on the condition and quantities of the received items. This confirmation process is important for inventory reconciliation, quality control, and triggering subsequent processes such as payments and returns if discrepancies are found.
IFTMIN: The IFTMIN (Instruction Message) is used to convey instructions related to the movement of goods within the supply chain. It can include directives on routing, handling, or any special conditions that need to be adhered to during transportation. This message is integral to ensuring that goods are moved correctly and efficiently from one location to another, supporting effective supply chain management and operational coordination.
IFTSTA: The IFTSTA (Cargo Status) message communicates real-time status updates in the logistics process. It informs stakeholders about the current state of a shipment—whether it is in transit, delayed, or has reached a specific checkpoint. By providing timely status updates, the IFTSTA message enhances transparency, enables proactive decision-making, and helps manage exceptions in the transportation process.

These messages, along with robust EDIFACT formats, ensure that processes like customs clearance and freight forwarding are managed efficiently. Additionally, technologies like we use in EDI2XML help convert EDIFACT documents into XML for easier integration with modern software systems, further enhancing interoperability.

How EDIFACT Works: A Step-by-Step Guide to Integration and Automation

The process of using EDIFACT involves several key steps:

Creating an EDIFACT Messa
ge: EDIFACT utilizes predefined formats for various document types. For instance, a specific EDIFACT message structure exists for invoices, containing essential data like amount, recipient, invoice number, and date.
Converting Your Data into EDIFACT Format: Your internal systems likely aren’t designed to directly generate EDIFACT messages. Therefore, you’ll need a way to convert your standard invoices (perhaps in Excel, CSV, or another internal format) into the correct EDIFACT structure. This is where an EDIFACT converter comes in, transforming your invoice data into an EDIFACT message.
Sending the Message: Once your invoice is in the correct EDIFACT format, it’s transmitted electronically through an EDI system. This typically occurs over secure connections like FTP, AS2, or other EDI communication protocols. Your trading partner’s system then automatically receives, validates, and integrates the message data into their workflow, eliminating manual entry.

The Catch: You Probably Can’t Do This Alone

While the above steps outline the EDIFACT process, most companies find they cannot handle these tasks independently. It’s rare for businesses to have in-house staff with the specialized expertise required for EDI implementation. Setting up and maintaining EDI connections, mapping data, handling conversions, managing transmissions, and troubleshooting issues requires a significant investment in both time and training.

Why You Need an EDI Provider: The Benefits of Working with Professionals

This is where EDI providers come in. Companies like EDI2XML offer fully managed EDI services, handling the entire project from start to finish. These providers take on all aspects, including:

Project Management: Overseeing the entire EDI implementation process.
Configuration: Setting up the necessary software and connections.
Mapping: Defining how your internal data corresponds to EDIFACT elements.
Conversion: Transforming your data into the EDIFACT format.
Transmission: Managing the secure sending and receiving of EDI messages.
Integration: We integrate EDIFACT messaging into your existing business systems, so you can automate the entire process and reduce the chance of errors.
Testing: Conducting thorough testing with your trading partners to ensure seamless communication.
Support for EDIFACT Standards: Pr
oviding assistance and troubleshooting after implementation. Whether you need help with invoice messages (e.g., INVOIC), orders (ORDERS), or shipping messages (IFTMIN), we support a wide range of EDIFACT message types and ensure you stay compliant with the latest standards.

By working with Edi2Xml, you can simplify your transition to using EDIFACT and ensure your data exchanges with business partners are smooth, secure, and efficient. No need to worry about manual data entry or mismatched formats—let us handle the technical side while you focus on growing your business.

EDIFACT FAQ: Answers to Frequently Asked Questions

What is the primary benefit of using EDIFACT in logistics and transportation?

EDIFACT automates the exchange of business documents like ORDERS, DESADV, and INVOIC, which improves efficiency, accuracy, and speed in managing supply chain and transportation operations.

How do EDIFACT standards integrate with TMS and WMS?

Modern transport management systems (TMS) and warehouse management systems (WMS) are designed to support EDIFACT messages and EDIFACT formats, enabling seamless integration for order management and inventory management.

Can EDIFACT improve customs clearance processes?

Yes, by using standardized EDIFACT messages for customs clearance, companies can ensure faster and more accurate processing of shipments, reducing delays and minimizing errors in documentation.

What role does EDI2XML play in EDIFACT solutions?

EDI2XML helps convert EDIFACT documents into XML format, making it easier for modern systems to integrate and process data.

How can my company get started with EDIFACT implementation?

Begin by assessing your current data exchange processes and identifying key documents that need standardization. Consult with an EDI provider to evaluate your needs, set up the necessary infrastructure, map your data to EDIFACT standards, and conduct thorough testing with your trading partners.

What are the common challenges when implementing EDIFACT?

Challenges can include mapping your internal data to EDIFACT standards, ensuring compatibility with various trading partner systems, managing change within existing processes, and training staff to handle the new system. Partnering with an experienced EDI provider can help mitigate these issues.

How secure is the EDIFACT data exchange process?

EDIFACT transactions are typically conducted over secure communication channels (such as AS2, FTP/S, or VPNs). Moreover, proper implementation of security protocols, data encryption, and compliance with industry standards ensures that the data exchange remains secure.

Can EDIFACT be integrated with our existing ERP and legacy systems?

Yes, EDIFACT can be integrated with most ERP systems and legacy applications through middleware or conversion tools. Many EDI providers offer services that bridge the gap between modern EDIFACT formats and older systems.

Are there any regulatory or compliance issues associated with EDIFACT?

EDIFACT itself is a standardized format, so it generally supports compliance with industry regulations and international trade standards. However, companies should ensure that their specific implementation meets all applicable local and international legal requirements, especially in sectors with strict data governance.

How do I choose the right EDI provider for my EDIFACT implementation?

Look for a provider with proven experience in your industry, strong technical expertise, comprehensive support services, and a track record of successful EDIFACT integrations. Request case studies, testimonials, and details about their implementation process to make an informed decision.

What kind of support and maintenance can I expect post-implementation?

A reliable EDI provider will offer ongoing support, system monitoring, regular updates to comply with evolving standards, and troubleshooting assistance. This ensures that your EDIFACT system remains robust and continues to meet your operational needs over time.

Conclusion: How EDIFACT is Transforming Logistics and Transportation

EDIFACT is a cornerstone of modern Electronic Data Interchange (EDI) in the logistics and transportation sectors. By integrating EDIFACT standards into transport, shipping, and supply chain management systems, companies can enjoy streamlined processes, enhanced data accuracy, and improved operational efficiency. Whether you’re looking at freight forwarding, customs clearance, or managing transport management systems (TMS) and warehouse management systems (WMS), EDIFACT provides the structure and reliability needed for success.

Ready to harness the power of EDIFACT in your operations? Contact us today to learn more about implementing EDIFACT solutions and transforming your logistics and transportation processes with industry-leading EDI technology.

February 4, 2025/0 Comments

EDI Integration for B2B Exchange to Optimize and Grow your Business

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What is B2B EDI?

B2B (Business-to-Business) Integration, also known as Electronic Data Interchange EDI, is the process of exchanging business documents electronically either internally or amongst external business partners.

Electronic data interchange (EDI) has become a standard data exchange practice in modern business. EDI allows companies to automate their business processes leading to greater efficiency. Automated data exchange allows to avoid errors, reduce order processing time, and achieve accuracy.

What is meant by EDI?

EDI (Electronic Data Interchange) is the process of exchanging documents electronically through secure communication channels from one software information system to another. In other words, from one business partner to another.

In a fully automated process, the exchange of electronic documents (for example, receiving and processing orders), can take place at the application level, without the direct involvement and participation of employees.

Who typically uses EDI?

EDI standard and connected technologies are used in a B2B data exchange protocol, of any type of businesses in different industries. These can be large, medium, or small enterprises operating in retail, manufacturing, healthcare, pharmaceutical, or any other industry. EDI is also used in international trade such as air, sea, and road transportation. Not surprising, to see customs in most of the countries using EDI heavily in their cross-border operations.

Experience shows that large retailers such as Walmart, Costco, Kroger, Home Depot, Target, etc. are always the initiators of electronic data exchange. Moreover, almost all retailers, having evaluated the advantages of using EDI, force their suppliers to exchange documents only through EDI.

EDI Integration with Business Systems (ERP/CRM)

EDI integration allows to automate the creation, sending, receiving, and processing of any business documents in electronic format with a trading partner, existing backend business systems, or applications, to provide a greater level of efficiency and complete automation.

With over 21 years of experience in EDI and the integration marketplace, our company EDI2XML has a proven experience in integrating EDI, with the most frequently used systems:

EDI Integrations and eCommerce Businesses

EDI is also becoming a vital element of the e-commerce business; we are receiving more and more requests for e-commerce integration with EDI.

Especially, requests for connecting online stores running on one of the major e-commerce platforms. The most frequent EDI e-commerce integration are:

Shopify EDI Integration
Magento EDI Integration
BigCommerce EDI Integration
Amazon Vendor Central EDI integration
Amazon Seller Central EDI integration
Walmart EDI Integration
And much more…

This means that orders from an online store will be automatically converted into an EDI document (for example X12 EDI 850 Purchase Order) and pushed into a supplier’s business system. This is the most common scenario in an eCommerce dropship business.

However, it is worth mentioning the very common request for e-commerce integration with ERP / CRM systems. This means syncing data between business software systems (SAP, Salesforce, JDE, etc.) with your e-commerce store.

Fully Managed EDI Services to automate data exchange with business partners

Our company offers a fully managed EDI service that includes transformation and connectivity services for companies of all sizes.

Our customers do not need to install any software or hardware because all EDI file conversions and transformations, are done from our side. We carry out all stages of an integration project from project planning to testing with the trading partner.

Our integration platform receives EDI files (for example x12 or EDIFACT) from the trading partner, then converts them into the required format (i.e. XML, CSV, TXT) and sends them to you (see the picture below).

EDI2XML platform will sit in the middle between you and your trading partner to convert, send and collect all EDI documents.

Request Fully Managed EDI Service Pricing Plans HERE for more information.

Benefits of using EDI for B2B exchange

Currently, using the latest technologies, EDI implementation is not so expensive (as many business leaders might think), but the benefits of EDI integration allow companies to significantly speed up document flow and increase sales. Besides, EDI has many advantages, namely:

EDI enables companies to optimize all processes in the enterprise, from planning to production management and control.
EDI allows increasing the speed and efficiency of data processing. Mandatory use of standards (for example X12 or EDIFACT) helps to avoid errors and improve accuracy.
EDI helps manufacturers to quickly respond to the requests of their wholesalers’ customers.
EDI document exchange allows retailers and wholesalers to improve the efficiency of logistics and procurement as well as improve inventory management. For example, using EDIFACT messages such as INVRPT, DELFOR, DELJIT, and DESADV allows reducing warehouse storage costs.
EDI integration allows companies to reduce the number of employees who enter data into the business system received on paper or by e-mail.
EDI increases the accuracy of information processing because as practice shows, errors are inevitable with manual data entry.

B2B / EDI Integration – find the best Solution

EDI2XML offers various EDI integration solutions.

Whether you are a buyer, supplier, manufacturer, retailer, 3PL Warehouses, or Logistics – using our advanced EDI technology, you can exchange data electronically with all your partners quickly, reliably, and efficiently.

We’ve got an EDI solution that really makes your day-to-day tasks easier and faster!

June 22, 2021

EDI 820 Payment Order/Remittance Advice

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What is EDI 820 Remittance Advice?

EDI X12 820 Payment Order/Remittance Advice (or simply EDI 820), sometimes called as EDI payment, is an electronic document transmitted via EDI (Electronic Data Interchange) that business partners (seller, buyer, financial institution…) use to provide detailed payment information. Normally an EDI 820 transaction, is sent by the buyer to his supplier after issuing a payment against an EDI 810 Invoice sent by the supplier.

In North America, the Payment Order/Remittance Advice transaction set is transmitted in EDI X12 standard. The message code in EDIFACT standard for the Remittance advice message is REMADV.

REMADV is the analog of EDI 820; it has the same function and application in international business practice, mainly in Europe.

Usage of the EDI 820 Payment Order/Remittance Advice Transaction Set

Unlike typical EDI transactions exchange between two trading partners, banks and financial institutions are also involved in the exchange of EDI 820.

Moreover, EDI 820 transaction set can be used for various purposes:

Simultaneously to make a payment and send remittance advice (sent through your bank to trading partner)

In this case, all Remittance Advice details and the Payment Order will be transferred to your financial institution (bank). The bank will then forward Remittance details to your trading partner and debit your account in favor of your trading partner.

To send remittance advice only (sent directly to your Trading Partner, payment is made independently)

If you use this option, you must make payment to your trading partner in separate transaction. This transaction must match the total amount specified in the EDI 820 detail transmission. Normally, the trading partner accepts payment details referencing invoice numbers only.

Remittance Advice can be sent directly from the payer to the recipient, through a financial institution, or a third-party agent.

To make an EDI payment (sent through your bank to a trading partner)

In this case, the payment order will be transferred to the bank and the bank will forward the file to your trading partner and debit your account in favor of this trading partner. Thus, EDI 820 can act as an instruction for a financial institution to make a payment to the beneficiary.

It should be noted that usually trading partners also require the details to be sent in EDI format.

Some companies may still accept non-EDI remittance advice, however, data sent by email, fax, or paper will incur additional manual processing fees for each transaction.

What information is included in EDI 820

As mentioned above, Payment Order/Remittance Advice document contains all important information related to the financial transactions. The EDI 820 document contains the following basic information:

Payer / Beneficiary identification (name, address details)
Invoice number(s)
Bank and account information
Invoice adjustments (if applicable)
Payment amount
Currency
Payment/remittance date
Method of payment/funds movement
Credit /debit confirmation
Check /payment number

How to send and/or receive Remittance Advice (EDI 820)

There are several different ways to exchange an EDI 820 document. The main communication protocol to transfer EDI documents are:

Connection with VAN (Value Added Networks). VAN is the third party in the EDI exchange process that transmits and stores data in an electronic mailbox until it is received by one of the business partners.

Point-to-point EDI exchange:

FTP/SFTP – File Transfer Protocol/Secure File Transfer Protocol. These file transfer protocols allow trading partners to connect with each other via the Internet to exchange EDI documents.
AS2 – A secure way to exchange documents electronically over the Internet by using digital certificates and encryption of the EDI data.
HTTP (REST) where data is transferred using content type “multi-part/form data”

Each one of the above communication protocols, has its advantages, however, each company must decide what best fits its policy, based on the requirements of its business partner or the business processes of the company.

To learn more about EDI Communication Protocols read our article: All about EDI: 11 Complete Answers about Electronic Data Interchange

EDI 820 Payment Order/Remittance Advice Segments and Data Elements

Payment Order/Remittance Advice like any other EDI document has a structure of segments and elements predefined by the X12 standard. Some of them are mandatory, some are optional. It all depends on how this EDI 820 document will be used and the specifications requested by the trading partner.

The structure of EDI 820 could be as follow:

ISA – Interchange Control Set Header (Mandatory)

GS – Functional Group Header (Mandatory)

ST – Transaction Set Header (Mandatory)

BPR – Beginning Segment for Payment Order / Remittance Advice (Mandatory)

TRN – Trace (Mandatory)

CUR – Currency (Mandatory)

REF – Reference Numbers (Mandatory)

DTM – Date / Time Reference (Optional)

N1 – Name (Mandatory)

N3 – Address Information (Optional)

N4 – Geographic Location (Optional)

PER – Administrative Communication Contact (Optional)

ENT – Entity (Optional)

RMR – Remittance Advice Accounts Receivable Open Item Reference (Mandatory)

REF – Reference Numbers (Optional)

DTM – Date / Time Reference (Optional)

ADX – Adjustment (Optional)

SE – Transaction Set Trailer (Mandatory)

GE – Functional Group Trailer (Mandatory)

IEA – Interchange Control Trailer (Mandatory)

Integrate EDI 820 Payment Order/Remittance Advice with EDI2XML EDI Service

With over 25 years of experience in EDI integration, we offer our clients the most advanced and cost-effective EDI service.

You can start exchanging EDI 820 Remittance Advice within an hour using our EDI Web Service. It is a cost-effective, no-contract, and fast EDI solution that does not require special technical knowledge. In addition, we offer a free 15 days trial period. Find out more about our EDI web service here.

With our Fully Managed EDI Service, we take care of all:

EDI mapping
Trading Partner configuration
Standards maintenance
XML/CSV/TXT translation
Send & receive EDI documents, to and from Trading Partners or to and from the customer
Drop off & pick up Json/XML/CSV/TXT files to and from the customer.
Integration with ERP application with certified connectors (when required option)

Request our EDI2XML fully managed EDI service Pricing Packages here, or contact us for a free consultation with our EDI expert.

May 26, 2021

What is UN/EDIFACT INVRPT Inventory report message?

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This article provides the definition and specification of the inventory report message (INVRPT) for UN/EDIFACT (United Nations for Electronic Data Interchange for Administration, Commerce and Transport) EDIFACT standard very commonly used in Europe, Oceanian countries, and some Asian counties. EDI 846 Inventory Inquiry / Advice is an analog document for the ANSI X12 standard, which is widely utilized in North America.

UN/EDIFACT INVRPT (inventory report) function

INVRPT (inventory report) is an electronic message for exchange between trading partners; it contains information about the supplier’s held inventories. The message is widely used regardless of the type of business or industry, both in domestic and international trade.

The information contained in the INVRPT message relates to availabilities and stock of goods. This message generally exchanged between the manufacturer and distributor (wholesaler) or the manufacturer and different type of seller: such us big-box retail, e-commerce, especially in the dropshipping model.

Primarily, the INVRPT message is often used to report stock held and movement of merchandise or raw materials, between business partners…

INVRPT message has a functionality that allows separating stock based on classes, to facilitate a financial assessment of stocks, production and supply planning.

The Inventory report message can indicate the initial stock, final stock and the movement of goods (incoming or outgoing) in the warehouse for a certain period.

UN/EDIFACT Terms Definition

Let’s look at some EDIFACT definitions to help you understand the INVRPT message.

Message

This is information related to a particular transaction exchanged by business partners through EDI. Each message consists of logically grouped segments.

Segment

A segment is part of the information in a message. A segment is composed of a predefined set of data elements. Each segment starts with a unique “segment identifier”, that is a three-letter code, and ends with a segment terminator.

The different segments in a message can be have a Mandatory (M) or Conditional (C) usage.

Each segment has its own place in the message and the same type of segment can be found multiple times in any of the sections of a message (Header, Details, or Summary).

Group of Segments

An identified group of functionally related segments that can be repeated.

How does UN/EDIFACT INVRPT (inventory report) looks like?

To see easier the data structure in the example INVRPT message below, the segments are separate from each other using a new line.

UNA:+.?*’

UNB+UNOC:4+1111111111111:14+2051254890007:14+20150421:1000+0001+INVRPT’

UNH+1+INVRPT:D:19B:UN:EAN007′

BGM+220+822106+5′

DTM+137:20161122:102′

DTM+366:20140416:102′

NAD+BY+2051254890007::5′

NAD+SU+SUPPLIER GLN::5′

NAD+WH+AMAZON WAREHOUSE CODE::73′

RFF+IA:123456′

CUX+2:EUR:10′

LIN+1++EAN_1:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 1:TPRG second item description 1′

INV++++1′

QTY+145:13′

LIN+2++EAN_2:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 2:TPRG second item description 2′

INV++++1′

QTY+145:23′

LIN+3++EAN_3:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 3:TPRG second item description 3′

INV++++1′

QTY+145:33′

LIN+4++EAN_4:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 4:TPRG second item description 4′

INV++++1′

QTY+145:43′

LIN+5++EAN_5:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 5:TPRG second item description 5′

INV++++1′

QTY+145:53′

UNT+35+1′

UNZ+1+0001′

UN/EDIFACT INVRPT Message segment clarification

UN/EDIFACT INVRPT message is structured in two sections, a Header Section and a Detail Section. The header used to give general information relating to the message. The detail section consists of segments and groups.

In the list below you can find a short summary about the meaning and the functionality of the segment which are indicated on the INVRPT example given above.

Header section

UNH – Message header. A service segment uses to head, identify and specify a message.

BGM – Beginning of message uses to indicate the type and function of a message and to transmit the identifying number.

DTM – uses to specify the date, and/or time, or period. Date/time/period associated with the whole message. In order to determine the date when the inventory report was prepared, the segment must be indicated at least once.

Segment groups

NAD – Name and address. This segment serves to identify names and addresses and their functions related to the entire inventory report. In the inventory message, it is recommended to use the code form of ID to indicate the parties.

RFF – Reference. This segment is used to indicate documents that refer to the entire message of the inventory report, for example, dispatch advice number, contract, etc.

CUX – Currencies. This segment defines currencies and, if necessary, exchange rates for the entire message.

LIN – Line item. A segment that identifies a specific item in the INVRPT Message. All other segments in the detailed section are related to the line item.

PIA – Additional product id. The function of this segment to transmit additional product identification.

IMD – Item description. This segment used for describing the item.

INV – inventory management related details. Function: Providing various information related to inventory management functions that necessary for the processing of stock movements and stock balances.

QTY – Quantity. This segment provides quantity information

UNT – Message trailer. A service segment indicates an ending of the message. Indicate the total number of segments in the message (including the UNH & UNT) and the control reference number of the message.

UNZ – Interchange trailer. Function: to end and check the completeness of an interchange.

Benefits of Using Inventory Report (INVRPT)

The benefits of using the INVRPT EDI Message are obvious to both trading partners:

– The supplier can promptly inform you when the goods are out of stock or out of production.

– Much easier e-commerce management. This is one of the most popular and at the same time one of the most complex EDI document in the e- commerce.

– Provides information to the trading partner when the product will be available again if it is not available, thereby helping to better plan stocks and placing orders.

– Allows a business partner (usually a dropshipping online store) to manage data in his online store, such as the available quantity of goods in stock, and to delete or add goods to the online store accordingly.

No-Cost Estimate and Free EDI Consultation

EDI2XML is ready to discuss your EDI challenges and offer turnkey solutions. You can start exchanging the EDIFACT INVRPT message (or any other EDIFACT or X12 document) in an hour using our popular EDI Web service. In this case, you do not need to sign a contract and you can stop using the service whenever you want. In addition, we provide free 15 days trial period.

We also provide Fully Managed EDI Service where we take care of everything.

What is EDI 846 document?

Why EDI 846 is important to do business with big-box retailers

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

What Are the Differences Between ANSI X12 and UN/EDIFACT

April 14, 2020

What is EDI (Electronic Data Interchange)?

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What is EDI? (Electronic Data Interchange)

Electronic Data Interchange (EDI) is a technology that allows the exchange of commercial information between organizations in a structured digital form based on regulated message formats and standards. Any standard business document exchanged between companies (for example, purchase order, invoice, shipment plan, request for goods availability) can be transferred using the EDI standard and, when both parties have completed the necessary preparations, called the testing and certification phase.

What is ANSI X12, EDIFACT, HIPAA, HL7, RosettaNet

ANSI X12, EDIFACT, HIPAA, HL7, RosettaNet, – these are all different standards to exchange electronic business documents. Some of these standards have been developed for use in a specific industry, according to its special needs. Other standards are developed and widely used, based on geography. For example, the EDI ANSI X12 standard is developed by the American National Standards Institute (ANSI) and commonly used in North America. The EDIFACT is widely and commonly used in Europe. HIPAA (Health Insurance Portability and Accountability Act) is designed specifically to comply with healthcare law. HL7 standard (Health Level 7) is the standard to exchange medical information. RosettaNet is mostly used in the high technology industry.

Useful reading: What are the differences between RosettaNet, EDI ANSI X12 and EDIFACT

Why EDI?

Exchanging EDI (electronic data interchange) documents between trading partners, improved a lot the supply chain management, by increasing efficiency, simplifying transactions and importantly, increase the speed with which a transaction is processed.

EDI is significantly different from regular email, in which information is transmitted in an unstructured format. What is the difference? For example, you need to submit a purchase order via e-mail, you will probably type the document first, and send it as an attached file. You do not have a 100 % guarantee that your e-mail will be received, correctly understood and processed promptly. Moreover, you need to re-enter the same information in another business system (accounting, ERP or warehouse management).

EDI guarantees the delivery of your business information and, thanks to its structured format, the understanding of electronic documents by all participants in the exchange process. EDI software first processes the information, then translates it into a “readable format”, and then data can be imported directly and automatically into your business system. The result – no manual input, a quick exchange of business information, and a full understanding between trading partners.

If you want to know more how our EDI as a Service and EDI Web Service work, download EDI2XML Brochure: The EDI to XML Service for your Business Needs

Which EDI Communication Protocol to Choose?

One of the most important aspects of exchanging EDI documents is the way information is transferred from one business partner to another. In most cases, trading partners themselves determine which transmission method (communication protocol) they will use. Here are some of the most commonly used communication protocols in the EDI world:

VAN (Value Added Network)

VAN is the third party in the process that transmits and stores information in an electronic mailbox until it is received by one of the parties. Since the EDI message contains the destination’s address, the VAN routes the message to the recipient’s box.

Despite its advantages, VAN EDI was not widely distributed due to the high price. Thus, many suppliers communicated with their customers via fax, telephone, and mail, as could not afford the significant costs that VAN required.

As a result, there were failures, such as lost or unread orders and invoices, late deliveries of goods, etc.

With data exchange via the Internet, large and small companies have the opportunity to communicate with their trading partners electronically.

Direct Connection

Direct connection allows you to transfer data directly to a business partner. Types of direct connections include VPN (Virtual Private Network), FTP (File Transfer Protocol) sFTP (Secure File Transfer Protocol), and AS2, which encrypts data before sending it over the Internet.

AS2 Standard

The AS2 standard is used to securely transfer EDI and XML documents over the Internet via HTTP. The primary principles behind the AS2 standard are security and secure data transmission over the Internet.

The AS2 standard provides the possibility of almost continuous data transfer since direct HTTP transfers are used. In the AS2 standard – data security is provided by S/MIME via HTTP (Hypertext Transfer Protocol) or HTTP/S (HTTP secure), also using MDN. The AS2 standard provides real-time synchronous data transfer with instant delivery messages. Today, leading retail chains and manufacturers use the AS2 standard. The list of companies includes Wal-Mart, Target, Lowe`s, Wegmans, Procter & Gamble, Hershey Foods, Campbell`s and many others.

What are the Advantages of EDI?

Eliminates the need to use email, fax, or telephone to transfer documents.
Significantly reduce the processing time of documents (enterprises that have implemented EDI, reduce the document processing time by an average of 80%)
Eliminate/reduce the number of errors in the document flow due to the almost complete elimination of manual data entry.
Fully control the “order-delivery” process.
Monitoring the status of documents (sent, accepted, etc.) allows you to control the execution of the order.
Elimination of document loss incident – ensures that all documents (Orders, etc.) will be delivered to the supplier on time.
Reduction of costs associated with paper workflow: man-hour spending, office supplies, and equipment.

The Most Used UN/EDIFACT Messages

ORDERS – Purchase order (order for delivery of goods or services) – an electronic message that is analogous to an order for the supply of products. It is formed and sent by the buyer to the supplier.

ORDRSP – Purchase Order Response (order confirmation) – an electronic message in which the supplier confirms, corrects or rejects the delivery for each commodity item. Dispatched by the supplier to the buyer.

DESADV – Despatch advice (notice of shipment) – an electronic message that is analogous to the consignment note. This message is generated at the time (or before) the supplier sends the goods. This message indicates the actual (shipped) quantity and range of goods delivered to the buyer.

RECADV – Receiving advice (delivery notice) – an electronic message that contains information about the actually accepted product, as well as it may contain information about the reasons for not accepting the goods. This message is generated at the time (or after) the physical acceptance of the goods by the buyer.

INVOIC Invoice – an electronic message that is similar to a paper invoice.

PRICAT – Price/sales catalog message (product catalog) – an electronic message that contains information about the goods and their price characteristics. This message is generated by the supplier when the price, assortment changes.

PROINQ – Product inquiry (price list request) – an electronic message containing a list of products for which price information is required. Sent by the buyer as necessary to obtain product information.

COACSU – Commercial account summary (the act of review of mutual accounts) – an electronic message that is an analog of the accounting document “Act of reconciliation of mutual settlements”

COMDIS – Commercial dispute message (commercial discussion) – an electronic message that contains information about the discrepancy between the quantity, prices, and VAT rates. Dispatched by the buyer upon detection of an inconsistency in the invoice (INVOIC).

What are the Types of EDI?

We provide various types of EDI:

1. EDI Web Service. EDI2XML Web Service, is an HTTP service running over the internet, on EDI2XML own platform that is capable of receiving HTTP requests to translate EDI messages to XML, and XML messages (based on EDI2XML’s proprietary format) to EDI.

2. EDI Managed Services. EDI2XML Managed Services is our popular “fully managed EDI service”, including translation and communication service offering to businesses of all sizes, from various industries. All conversions of EDI files are done on our end, leaving customers with no on-site installation of software or hardware and an EDI project that is on time and within budget.

3. On-Premises EDI Services. We offer EDI2XML services with “on-Premises” deployment at the customer servers. Basically, there will be few components that will be deployed “on-premises”:

The necessary “binary” engines to process and translate from X12/EDIFACT messages to XML and vice versa.
Our proprietary “binary” REST API

EDI2XML – the Best EDI Provider

EDI2XML is one of the leaders in the development and implementation of electronic data interchange (EDI) solutions.

Operating in the IT services market for over 20 years, EDI2XML offers the most effective and advanced EDI solutions.

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

ANSI ASC X12 Standards Overview

What Are the Differences Between ANSI X12 and UN/EDIFACT

A technical introduction to EDI

January 13, 2020

ORDERS and ORDRSP: The main EDIFACT messages in the supply chain management

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This post was updated to reflect current trends and information.

Receiving and processing EDI purchase orders is the most common transaction faced by small businesses. This electronic business document is used to place a commercial order for goods or services by a buyer or business partner.

It’s still possible to use phone, email, or fax between two small businesses, but if you want to collaborate with a large retailer, distributor, or manufacturer, there is a high probability that you must be EDI compatible to receive orders from your B2B partners, in addition to other potential EDI documents or transactions.

What is EDIFACT ORDERS?

ORDERS (Purchase Order) is a type of EDIFACT message that contains requests for the supply of goods or services.

In EDI ANSI ASC X12 standard which is widely used in North America, the ORDERS is referred to as EDI 850 Purchase Order.

Large companies, working with small contractors demand mandatory use of EDI. Requirements for EDI compatibility is specified in contracts or in partners selection criteria.

High competition forces the business to comply, and start exchanging electronic data quickly and accurately, spending minimal time and resources on this business process. Thus, small enterprises must comply with the imposed conditions, in order not to lose a source of profitable purchases.

EDIFACT ORDERS message content

The most important main information contained in an EDIFACT ORDERS message:

Order number
Required date
Delivery date
Reference to supply contract number
Price and qualifier (including VAT and other taxes)
Identifiers of the consignee and sender, delivery location, customer, carrier, recipient
Information about the contents of the order (barcodes, quantity, item name, etc.).

EDIFACT ORDERS Processing

After signing the contract, the buyer uses ORDERS to send the seller a list and quantity of goods ordered.

Typically, a buyer creates the order in his ERP system (the most popular are SAP ERP, Microsoft Dynamics, Oracle JD Edwards EnterpriseOne). The created Purchase Order is instantly converted into an EDIFACT ORDERS message which is immediately sent to the seller. The seller must receive the EDIFACT message and quickly process it. He should transmit a Purchase Order Response (ORDRSP) in response to the Purchase Order received.

EDIFACT and ERP/CRM integration

To save time and money by processing the vast amount of information received from business partners, most companies (both retailers and suppliers) choose to integrate their EDI / EDIFACT messages into their ERP systems. Basically, with integration, they connect the received EDI messages and push it directly to their ERP software, through Integration Connectors designed specifically to synchronize and integrate into their ERP systems.

For example, using Magic xpi Integration Platform a company can connect a variety of heterogenous business systems such as ERP, CRM, finance, etc. by implementing out-of-the-box certified and optimized connectors.

You can find useful information on EDI integration with ERP Systems in the following articles:

How to make EDIFACT ordering even easier

As the number of outgoing or incoming orders increase, companies try to optimize the exchange of orders. In case the number of your orders exceeds a couple of hundreds per month, it’s worth thinking about integrating the flow of orders directly into your business software solution and save your company the time and money associated with human errors, delays to deliver, and increase efficiency.

The process of Order creation can be fully automated; it will not require human intervention. To do this first it is necessary to integrate your business system with EDI.

Related article:

Usually, after starting to use ORDERS message, the buyer will most likely request to receive replies to his orders, which means connecting another type of EDI message – ORDRSP. In addition, he can ask you for the dispatch advice (DESADV), and he can send you the delivery advice message. (RECADV).

What is ORDRSP and what are the benefits of using this EDIFACT message

ORDRSP (Order Response) is a type of EDIFACT message in which the supplier confirms or rejects the delivery of goods to the buyer. Using ORDRSP, the supplier can propose amendments, notify of a complete or partial delivery or confirm the entire delivery, before even processing the delivery.

Using UN/EDIFACT ORDRSP improves the logistics chain: the parties save on transportation, reduce returns due to incorrect deliveries of merchandise, increase the accuracy of delivery of the right products.

Through ORDRSP, the supplier can notify the buyer of the lack of certain products, thus avoiding disruption of supplies and maintaining a loyal business relationship. Customer, having this information, can order a similar product from the presented assortment or place an order from another supplier.

The buyer can always understand whether the supplier will deliver the goods on time, or not. He sees preliminary price confirmation and quantity of products, predicts the state of stock based on ORDRSP, and the supplier can automatically book goods for delivery in his warehouse when processing a Purchase Order Response.

What does ORDRSP contain?

ORDRSP has a direct relationship with ORDERS and are complimentary to each other. ORDRSP consists of:

Order number
GLN numbers of the buyer and seller
Order confirmation number
Date of planned delivery of goods
Scheduled time
Item No
Quantity approved (To Ship)
Price approved
Reason of rejection (when parameters are not matching between Order and supplier)

EDI/EDIFACT integration

In EDI/EDIFACT documents exchange, the EDI provider plays a key role. He is the one who ensures the conversion and integrity of message formats and tracking data transfers. For over 21 years now, our company EDI2XML has been successfully helping companies of all sizes switch to Electronic Data Interchange. We help speed up working with orders, shipments, acceptance, inventory of goods and reduce the risks of human errors. We have no hidden fees or confusing rates.

December 2, 2019

What Are the Differences Between ANSI X12 and UN/EDIFACT

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X12 vs. EDIFACT

Doing business and interacting with trading partners is associated with the need to prepare, send, receive and process a large number of documents. Today, around the world, almost all enterprises from small businesses to large corporations use EDI (Electronic Data Interchanges) to communicate with business partners.

The most common standards that are used in all Industries are ANSI ASC X12 (X12) and UN/EDIFACT (EDIFACT). Both standards serve to exchange documents electronically and execute business processes between trading partners. The two standards are quite similar, however, there are numerous ways in which ANSI X12 and EDIFACT are different. In this article, we will compare the two most popular standards.

EDIFACT:

EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport) is an international standard for electronic data interchange that was developed by the United Nations.
It uses UN/EDIFACT syntax and is widely used in Europe and other regions.
EDIFACT allows for flexible message definition and supports a wide range of business processes, including e-commerce, procurement, transportation, and healthcare.

EDI X12:

X12 (also known as ANSI X12) is a standard for electronic data interchange in the United States.
X12 was developed by the Accredited Standards Committee X12 and is maintained by the ASC X12 Standards Development Organization.
X12 is used in a variety of industries, including healthcare, finance, and logistics, and is considered a robust and reliable format for data interchange.

EDI Standards in Europe and North America

The first difference between the two EDI standards is the geographic location of users.

– X12 is mainly used in the United States and North America in general.

– EDIFACT is mostly used by companies based in Europe and Asia.

ANSI X12 and EDIFACT Standards Developers

ANSI ASC X12 Standard is developed and maintained by the Accredited Standards Committee X12 (also known as ASC X12) chartered by the American National Standards Institute (ANSI) in 1979.

EDIFACT – Electronic Data Interchange for Administration, Commerce and Transport. This standard is developed and supported by two international organizations: The United Nations Economic Commission for Europe (UNE C E) and the International Organization for Standardization (ISO).

ANSI X12 and EDIFACT Document Structure

Basically, the structures of X12 and EDIFACT are similar. Both standards have principally the same structure but use different terminologies.

The figure below shows the structure of X12 and EDIFACT documents that contain Interchange, Functional Group, Transaction set.

For more information on the structure of EDI documents, please read these articles:

– EDI ANSI ASC X12 Standards – Technical Overview

– What is EDIFACT? | UN / EDIFACT standard overview

EDI Terminologies

Understanding the terminology used in EDI is essential to successfully implementing and utilizing this technology. Some of the key EDI terminologies include EDI standards such as ANSI X12 and EDIFACT, which define the structure and content of EDI messages.

As was mentioned above, ANSI X12 and EDIFACT have different terminologies. The table below demonstrates the difference between both standards.

Terminologies Equivalence	EDI X12	EDIFACT
…………………………………………………………………………………………………………………	…………………	……………….
An electronic business document, such as an Invoice, Purchase Order, etc.	Transaction Set	Message
………………………………………………………………………………………………………………….	…………………	……………….
The blocks of multiple segments of the same type grouped together.	Loops	Groups
………………………………………………………………………………………………………………….	…………………	……………….
Special characters to differentiate segments and elements	Terminator	Separators
………………………………………………………………………………………………………………….	…………………	……………….
Interchange Control. Header/Trailer	ISA/IEA	UNB/UNZ
………………………………………………………………………………………………………………….	…………………	……………….
Functional Group. Header/Trailer	GS/GE	UNG/UNE (optional)
………………………………………………………………………………………………………………….	…………………	……………….
Transaction Set, (Message). Header/Trailer	ST/SE	UNH/UNT

Terminators/Separators

X12 and EDIFACT use special characters to separate segments and elements in the document.

– ANSI X12 to separate segments generally uses a tilde ( ~ ) and to terminate elements asterisk ( * )
– EDIFACT normally uses a period ( . ) between segments and a plus ( + ) within elements.

However, both EDI standards allow customization, and different characters can be used, depending on the implementation.

Composite

A Composite Element is a group (two or more) simple elements separated by a Composite Separator symbol. Composite Element is used in both standards; however, Composite Element is very commonly used in EDIFACT.

– X12 uses a symbol Greater Than ( > )

– EDIFACT separates composite elements with a colon symbol ( : )

Acknowledgments

Both EDI standards use Acknowledgments.

– X12 uses a Functional Acknowledgment or 997 transaction set. An EDI 997 serves as a response, to acknowledge that an EDI transaction was received. TA1 served for describes errors at the ISA level.

– EDIFACT uses CONTRL acknowledgments, which is like the X12 997 Acknowledgments.

X12 Transaction Number and EDIFACT ID

In the ANSI X12 standard, all documents have 3-digit numbers, for example, 810 for an Invoice, 846 for an Inventory Inquiry and Advice, 856 for Advanced Ship Notice.

According to the EDIFACT rule, the name of the document must be limited to 6 letters, for example, INVOIC derived from the word Invoice, INVRPT for Inventory report, DESADV is the abbreviation for Despatch Advice.

Syntax: EDIFACT uses UN/EDIFACT syntax while X12 uses an ASCII-based syntax.
Message structure: EDIFACT messages have a more flexible structure than X12 messages, which have a more rigid structure.

Different Types of EDI Documents: ANSI X12 vs EDIFACT

The following table lists some of the key EDI X12 Transaction Sets with the corresponding EDIFACT messages.

X12 No	EDIFACT ID	Name	Usage
………..	…………………	………………………………………………………..	………………………………………………………………………………….
810	INVOIC	Invoice.	Used to receive payment for goods or services provided
………..	…………………	………………………………………………………..	………………………………………………………………………………….
820	REMADV	Payment Order/Remittance Advice.	Used to transmit information relating to payments
………..	…………………	………………………………………………………..	………………………………………………………………………………….
830	DELFOR	Planning Schedule.	Used to share with the supplier’s forecast purchase plans
………..	…………………	………………………………………………………..	………………………………………………………………………………….
832	PRICAT	Price/Sales Catalog.	Used to request or provide prices and product information.
………..	…………………	………………………………………………………..	………………………………………………………………………………….
846	INVRPT	Inventory Inquiry/Advice.	Used to communicate inventory levels.
………..	…………………	………………………………………………………..	………………………………………………………………………………….
850	ORDERS	Purchase Order.	Used to place an order for goods or services.
………..	…………………	………………………………………………………..	………………………………………………………………………………….
852	SLSRPT	Product Activity Data.	Used to provide inventory, sales, and other product activity information.
………..	…………………	………………………………………………………..	………………………………………………………………………………….
855	ORDRSP	PO Acknowledgement	Used as an acknowledgment of the purchase order
………..	…………………	………………………………………………………..	………………………………………………………………………………….
856	DESADV	Advance Ship Notice (or Dispatch Advice in EDIFACT)	Used to inform the recipient in advance, about the contents of the shipment.
………..	…………………	………………………………………………………..	………………………………………………………………………………….
860	ORDCHG	PO Change (Customer triggered)	Used to communicate order changes to the supplier.
………..	…………………	………………………………………………………..	………………………………………………………………………………….
865	ORDRSP	PO Change (Supplier triggered)	Used for acceptance or rejection of changes to a previously submitted purchase order
………..	…………………	………………………………………………………..	………………………………………………………………………………….
997	CONTRL	Functional Acknowledgment	Used to acknowledge that an EDI transaction, was received.

EDI Standards for Special Industry

In addition to EDIFACT and X12 discussed above, there are many other EDI standards that were developed as a result of specialized business requirements in various industries. For example:

RosettaNet is used mostly in the electronic chip and technology Industry.

HIPAA and HL7 for Healthcare and Health Insurance.

ODETTE for the automotive industry in Europe.

SWIFT for exchanges messages between banks and financial institutions.

EDI Integration

For clients who do not have the resources to do X12 or EDIFACT in-house, we, at EDI2XML offer Fully managed EDI Services.

For companies who got their own technical resources to work with REST API we offer them to use EDI REST Web Service.

EDI2XML is an EDI service provider with 20+ years of expertise in EDI and integration projects. We have clients located in North America, Europe, and the Middle East and work with all EDI standards including ANSI X12 and EDIFACT. Contact us if you have any questions or EDI integration needs.

November 21, 2019

What is EDIFACT? | UN / EDIFACT Standard Overview

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UN / EDIFACT Standard Overview

What is UN/EDIFACT standard?

United Nations/Electronic Data Interchange for Administration, Commerce and Transport (UN/EDIFACT) is the International EDI standard ISO 9735-1987, developed under the UN

The general standard is adopted by national and sectoral standards bodies to better reflect the needs of each industry.

At least twice a year, the standard is updated globally. The reason of this update is to create a new directory of data and messages, in addition to improving the usability of existing EDIFACT messages.

The UN/EDIFACT standard has been developed for trade and transport management. The concept of “trade” was interpreted in a broad sense (orders, deliveries, insurance, payment of goods, customs formalities). Currently, the use of UN/EDIFACT has expanded to include accounting, customs control, pensions, health care, social insurance, judicial practice, employment, statistics, construction, finance, insurance, manufacturing, tourism, trade, freight, and container transportation.

The UN/EDIFACT standard is developed and supported by two international organizations: United Nations Economic Commission for Europe — UN ECE and the International Organization for Standardization. – ISO

EDIFACT Subsets

EDIFACT is predominant outside of North America. Due to its complexity, branch-specific subsets of EDIFACT have been developed. These subsets are subsets of EDIFACT and contain only the functions relevant to specific user groups, such as:

EANCOM consumer goods industry
ODETTE European automotive industry.
CEFIC chemical industry
EDICON standard used in the construction industry
RINET – the Insurance industry
HL7 standard is used in healthcare.
IATA air transportation
SWIFT banking
UIC 912 rail transport
EDIFICE electronics, software, and telecommunications industry. EDIFICE has played an important role in the implementation of RosettaNet standards in Europe. EDIFICE became the European RosettaNet User Group.

EDIFACT Messages: Structure and Syntax of the Standard

EDIFACT is a special, structured data language that describes all types of commercial activities, based on information logistics. Using elements and segments of standard informational messages, you can create a description of any document, generate its electronic form and transmit it in open telecommunication networks without fear of interception of private commercial information.

UN / EDIFACT Structure

Any document in UN / EDIFACT standard has a hierarchical structure. The entire electronic document is called a message. A message consists of data groups combined in some way, for example, a data group describing customs payments, a group of data describing the attributes of documents, etc. In turn, the group consists of typical data segments that describe document attributes in more details. The standard provides about 200 different types of segments from which messages are composed. The segments themselves also have a hierarchical structure and consist of data elements that can be simple (data field) and composite (usually 2-3 data fields).

The following is the structure of an EDIFACT transmission:

Service String Advice
Interchange Header
Functional Group Header
Message Header
User Data Segments
Message Trailer
Functional Group Trailer
Interchange Trailer

Example EDIFACT

UNA:+.? ‘

UNB+UNOB:2+ XYZCORPORATION:ZZ+COMPANYX:ZZ+190521:1604+906019++++++1′

UNH+1+ORDERS:D:96A:UN’

BGM+220+4500265532+9′

DTM+137:20190425:102′

RFF+CT:CompanyX’

NAD+BY+2010::91′

CTA+OC+2010:G. Smith ‘

COM+044-1010605:TE’

COM+044-1010662:FX’

NAD+SE+0000906300::92′

CTA+SC+0000906300′

NAD+DP+++Consulting Inc St+ Begun + Laval++8003+CA’

CUX+2:CHF:9′

LIN+10++TH300010:BP’

PIA+1+000000000000500807:SA’

IMD+A++::92:HIR0010H12′

QTY+22:1:PCE’

DTM+2:20190423:102′

LIN+20++T0004671:BP’

PIA+1+000000000000501516:SA’

IMD+A++::92:CCGT060204NS LT1110S’

QTY+22:10:PCE’

DTM+2:20190423:102′

LIN+30++T2001171:BP’

PIA+1+000000000000501328:SA’

IMD+A++::92:LTPNG-R20-3.0′

QTY+22:1:PCE’

DTM+2:20190423:102′

UNS+S’

UNT+28+1′

UNZ+1+906019′

Principles and Technologies of Application of the UN / EDIFACT Standard

The EDIFACT Standard has three types of reference books:

The first type is directories that are based on the ISO standards. It includes directories of currency codes, country codes, units of measurement, modes of transport, delivery conditions, and some others.

The second type of directories, are the ones included in the EDIFACT standard., by default

The third type of directories is developed by different organizations responsible for issuing codes. Here is the list of organizations 3055 Code list responsible agency code

There are four main components in EDIFACT that are subject to standardization, when preparing documents for exchange between business partners.

data elements
standard data segments
standard messages
syntax rules

Data elements are the smallest, non-dividing parts of information, for example, the document date, the name of the destination, the amount of tax. More than 600 data elements used in international trade and transport have been published in a special UNTDID directory.

EDIFACT Standard Principles

The UN / EDIFACT standard is based on the following principal:

1. Standardize data at the segment and element level. Any document intended for electronic exchange should consist of typical segments. This means that the segment of the supplier’s address or delivery address is described by the same elements, regardless of what kind of document it is – invoice, order, declaration, etc. The practice has shown that to describe almost any document, it is enough to have no more than 100 typical segments. The fields inside the segments are standardized the same way, and the ratio of fields to segments is one-to-many, i.e. the same field can be included in different segments.

2. Record the fields used in segments as code. It is assumed that the partners exchanging electronic documents have identical code tables (directories). The composition and content of the reference books is standardized at three levels – international, national and corporate.

3. The independence of standards from the language of communication. The peculiarity of the UN / EDIFACT standards is that more than 90% of the electronic message consists of different codes. Another feature is that only the content of the document is transmitted, without a form. The document form is restored when the message is decoded.

Book a FREE one-on-one EDIFACT consultation session with our in-house experts.

EDIFACT Messages

The EDIFACT standard which provides a set of standard messages has greatly simplified international and multi-branch trade and the exchange of electronic business documents between countries and various industries.

The standard message UN / EDIFACT has a six-letter identifier that reflects the short name of the message, for example:

CUSDEC – CUStoms DEClaration
CUSRES –CUStoms RESponse

Some of the standard EDIFACT messages with X12 equivalent are listed in the table below.

X12 Transaction Number	EDIFACT Transaction ID	Transaction name
850	ORDERS	Purchase order message
855	ORDRSP	Purchase Order Acknowledgment
846	INVRPT	Inventory Inquiry/Advice
856	DESADV	Shipment Notification ASN
810	INVOIC	Invoice
997	CONTRL	Functional acknowledgment
860	ORDCHG	Purchase Order Change – Buyer Initiated

Due to the independence from the language and the transfer of only the contents of the document, the restoration of the form of the document takes place on the receiving side in accordance with the rules that apply in this place.

Benefits of EDIFACT

EDIFACT has a competitive advantage that positively affects the efficiency of a company and improves business processes. The main advantages of EDIFACT:

Profitability – reducing the volume of papers to be processed leads to a decrease in personnel and administrative costs.

Efficiency – large volumes of commercial data can be transferred from one computer to another within minutes

Accuracy – the use of EDIFACT eliminates human errors that are inevitable when manually keying in data.

EDIFACT is a key component of a just-in-time strategy that ensures prompt customer satisfaction. EDIFACT in conjunction with the Internet allows real-time electronic transactions and accelerates the interaction between trading partners.

Easy EDIFACT Integration

Our company has many years of proven experience in implementing EDI and EDIFACT projects. We offer our clients Fully managed EDI Service and HTTP Web Service.

July 26, 2019

API Web Service for EDI X12 exchange – Discover the advantages

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This post was updated to reflect current trends and information.

API Web Service for EDI X12 exchange – Discover the advantages

For over 20 years, we have been working with EDI, integrating systems and helping companies of all sizes, in their digital transformation journey. We have been writing extensively and covering hot topics about EDI integration with e-commerce such as Shopify, Amazon and other eCommerce platforms, or EDI for drop-ship business, or EDI Integration with Salesforce and other different CRM and ERP system.

We have extensive knowledge in Electronic Data Interchange (EDI), and we share our knowledge by writing a large number of articles in our Blog ; we take up questions from our readers and contacts, related to different EDI topics, including types of EDI messages , EDI Standards and we try to respond to those in our blog.

In this article, there is an important topic I want to expand on: it is our EDI2XML API service, to translate EDI to XML (and vice versa) through our Http/https/httpss REST Web Service; This service we launched last year, and it is gaining success and popularity, mainly within the community of CTOs, Integrators and Developers who are looking for ways to include EDI messages processing, as part of their ESB (enterprise service bus) integration projects, in a corporate environment heavily connected using SOA (or service-oriented architecture).

What is EDI2XML Web Service?

EDI2XML Web Service, is an HTTP/HTTPS/HTTPSS service running over the internet, on EDIXML own platform that is capable of receiving HTTP/HTTPS/HTTPSS requests to translate EDI messages to XML, and XML messages (based on EDI2XML’s proprietary format) to EDI. The principles of the mechanism of EDI2XML Web Service is schematically illustrated in the figure below.

EDI2XML Web Service: Who is it for?

EDI2XML Web Service is for developers and businesses, interested in building their own EDI (Electronic Data Interchange) integration flows and programs. Normally, these individuals, are capable of interacting with external API and Web Services to translate EDI to XML and XML to EDI, and have the resources and expertise to work with Web Services and HTTP/HTTPS/HTTPSS requests in order to achieve their goals. EDI2XML web service is the premier choice for IT people as a reliable service to accomplish such Integration projects.

How much time does it take to get started with EDI2XML Web Service?

In order to access EDI2XML Web Service, and start taking advantage of our HTTP/HTTPS service in your EDI integration projects, we require that you fill the form on our EDI2XML website.

Getting started with EDI2XML Web Service, is very simple and quick. Within less than an hour, you can issue the first Call to the Web Service and see the response.

Our Web Service is very well documented and instructions are provided with each subscription. The instructions on how to get started are very straight forward and simple to follow. We provide detailed instructions and screenshots.

For a junior developer who is able to follow instructions, he can see results within less than an hour, just by following instructions from our quick start guide.

Moreover, we offer a 30 minutes courtesy technical call, for every new subscriber.

Is there any limitation with EDI2XML Web Service?

Access to our EDI2XML Web Service is unlimited and There are no limits for http/https calls. EDI2XML format supports currently the most commonly used EDI formats in North America: X12 and EDIFACT. You can check supported EDI transactions listed on our website. In case a transaction you are looking for is not on the list, we can simply just add it and activate into the service at no additional fee.

What is the XML format returned and expected by EDI2XML Web Service?

When Translating from EDI to XML, our EDI2XML Web service will generate a “proprietary” XML format we call it “EDI2XML format”. This is a very structured format where we do provide also the corresponding schemas (.xsd) for each transaction, in order to ease developer’s lives.

When translating from XML to EDI, EDI2XML expects a proprietary XML format, which we do provide the schemas (.xsd).

Does EDI2XML Web Service support Https?

EDI2XML API service supports http and https REST calls. We do realize how important is to transmit EDI information on a public tunnel such as the internet, with full security, when calling our EDI2XML web service.

Advantages of using EDI2XML HTTP/HTTPS service:

Get started with less than an hour
No contract: pay as you go
Very simple and dynamic pricing scheme
Availability and reliability
Based on proven technology in the field for over 18 years now
Outstanding technical support
Self-service solution
Cloud based
Low cost
Quick entry: you can be up and running in less than an hour, since we provide everything an integrator/developer needs to get started. We provide java client with its source code and instructions on how to try it.
Free trial for [15] days, with no commitment.

EDI Consultancy

We do offer EDI projects consultancy. We help companies plan, deploy, test and integrate EDI projects. You can simply call us (450) 68-3009 Ext 223 or write us sales@namtek.ca if you need any EDI consulting work. We have a proven 20+ years of experience in EDI and integration projects.

February 15, 2019

How To Successfully Complete SAP/R3 EDI Integration Projects Using iDoc

Blog, EDI2XML

Article written by Pierre Namroud, EDI Integration Specialist & Business Consultant

During my professional career as an integrator and EDI expert, I had the opportunity to work on several major integration projects. Some of them were in an Oracle environment while others had to do with integrating with SAP/R3. Other projects included integrations with different types of systems such as Salesforce, Shopify, Microsoft suites, etc.

In today’s EDI2XML post, I will share my experience as an ‘Integrator’ to lay down the basis of a successful integration project of EDI and SAP/R3. Please note, however, that I am not an SAP expert and during these integration projects I worked closely with SAP professionals and credit them for all of their efforts in completing the SAP portions of this type of project.

What is SAP/R3?

SAP/R3 is an Enterprise Resource Planning (ERP) software solution produced by the well-known German company, SAP. This specific version,“R3”, has been renamed to ECC (ERP Central Component). SAP Business One is also a sub-set ERP software from the same Software Provider and it is designed for Small Businesses.

SAP ERP Solutions are widely present in corporate enterprises in North America, Europe and all around the world. It is one of the most popular corporate ERP software solutions.

Does SAP support EDI Integration?

SAP ECC (or R3), out of the box, does in fact support EDI integration. The EDI format that is currently supported by SAP is called iDoc. Simply put, iDoc format files or messages are proprietary to SAP and they are similar to, and based on, EDIFACT messages.

In essence, if an iDoc file is provided to SAP, it will get processed using some specific BAPI and it will turn the iDoc into an order, in SAP.

EDI Transformation for SAP Integration

Most integration projects that I have worked on involved integrating EDI X12 formats within the SAP system, in both directions (incoming and outgoing messages). Since X12 EDI format is far from the iDoc format, our team was tasked with handling the transformation and EDI translation from X12 EDI to iDoc format.

Checklist for a Successful EDI Integration Project with SAP

Now that the basics are defined, I will share my recommendations, in a checklist format, to help guide you through a successful integration project for SAP and EDI.

Make sure you know how to work with SAP backend. If you are not highly knowledgeable or an expert in SAP, make sure to most definitely include someone who is, as part of your team. This is a must.
Make sure you work in a Development SAP environment, rather than a Production environment when doing the work.
Make sure to use the appropriate SAP BAPIs or RFC, well identified for each point you plan to integrate with SAP. This is very important and it is crucial to be identified. Your SAP expert can take the lead in this area.
Make sure to equip yourself and your integration team with an efficient integration framework. The completion timeline and success rate of this project will definitely be better if you equip your integration team with an efficient integration tool.
To avoid getting into an unknown space, outsource the translation of the EDI X12 or EDIFACT (or any other protocol) to a reliable, knowledgeable Service Provider. By teaming up with an EDI partner, you’ll quickly notice the real value they will bring to the table since they will handle all of the complexities that an EDI project can bring. Their task will be to do the EDI transformations and create one single iDoc format of EDI for your integration flows to SAP.

Conclusion

I sure hope that I was able to expose some of the challenges and complexities surrounding a typical SAP integration project, with the above checklist, and properly explained my recommendations, from my own personal experiences.

If you are interested to learn more about this topic or any other issue related to EDI integration projects, please click on the image below and I will be more than happy to contact you for a FREE consultation.

May 5, 2017

Tag Archive for: EDIFACT

Introduction to EDIFACT: What is Electronic Data Interchange in Logistics?

UN/EDIFACT Standard Development

What is EDIFACT? A Comprehensive Guide for Logistics Companies

Why is Your New Trading Partner Asking for EDIFACT for Orders?

The Role of EDIFACT in Managing Logistics, Transportation, and the Supply Chain

Key EDIFACT Documents: ORDERS, DESADV, INVOIC, and Other Essential Messages

How EDIFACT Works: A Step-by-Step Guide to Integration and Automation

Why You Need an EDI Provider: The Benefits of Working with Professionals

EDIFACT FAQ: Answers to Frequently Asked Questions

How can my company get started with EDIFACT implementation?

What are the common challenges when implementing EDIFACT?

How secure is the EDIFACT data exchange process?

Can EDIFACT be integrated with our existing ERP and legacy systems?

Are there any regulatory or compliance issues associated with EDIFACT?

How do I choose the right EDI provider for my EDIFACT implementation?

What kind of support and maintenance can I expect post-implementation?

Conclusion: How EDIFACT is Transforming Logistics and Transportation

Request Fully Managed EDI Service Pricing Plans HERE for more information.

Simultaneously to make a payment and send remittance advice (sent through your bank to trading partner)

To send remittance advice only (sent directly to your Trading Partner, payment is made independently)

To make an EDI payment (sent through your bank to a trading partner)

UN/EDIFACT INVRPT (inventory report) function

UN/EDIFACT Terms Definition

How does UN/EDIFACT INVRPT (inventory report) looks like?

UNA:+.?*’

UNB+UNOC:4+1111111111111:14+2051254890007:14+20150421:1000+0001+INVRPT’

UNH+1+INVRPT:D:19B:UN:EAN007′

BGM+220+822106+5′

DTM+137:20161122:102′

DTM+366:20140416:102′

NAD+BY+2051254890007::5′

NAD+SU+SUPPLIER GLN::5′

NAD+WH+AMAZON WAREHOUSE CODE::73′

RFF+IA:123456′

CUX+2:EUR:10′

LIN+1++EAN_1:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 1:TPRG second item description 1′

INV++++1′

QTY+145:13′

LIN+2++EAN_2:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 2:TPRG second item description 2′

INV++++1′

QTY+145:23′

LIN+3++EAN_3:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 3:TPRG second item description 3′

INV++++1′

QTY+145:33′

LIN+4++EAN_4:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 4:TPRG second item description 4′

INV++++1′

QTY+145:43′

LIN+5++EAN_5:BP’

PIA+5+ABCDEF:SA’

IMD+F++:::TPRG item description 5:TPRG second item description 5′

INV++++1′

QTY+145:53′

UNT+35+1′

UNZ+1+0001′

UN/EDIFACT INVRPT Message segment clarification

Header section

Segment groups

Benefits of Using Inventory Report (INVRPT)

No-Cost Estimate and Free EDI Consultation

Related Posts:

What is EDI? (Electronic Data Interchange)

What is ANSI X12, EDIFACT, HIPAA, HL7, RosettaNet

Why EDI?

Which EDI Communication Protocol to Choose?

VAN (Value Added Network)

Direct Connection

AS2 Standard

What are the Advantages of EDI?

The Most Used UN/EDIFACT Messages

What are the Types of EDI?

EDI2XML – the Best EDI Provider