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EDI Vocabulary

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EDI has created a vocabulary of specific terms which are somewhat technical sounding - but translate easily into normal English!
Transaction Set

A transaction set is the EDI term for a business document. Each transaction set has a standard three-digit numerical code that identifies it.

The three most common transaction sets are:
850: Purchase Order (PO)
855: Purchase Order Acknowledgement (POA)
810: Invoice

ANSI X12

This cryptic term refers to the overall set of standards governing the use of EDI documents by all industries in the U.S. It is the protocol that makes sure all items on a document land in the right spaces. Usually called "X12."

Translation software

The program that takes an EDI standardized X12 document and converts, or translates it, into a format that your Order Processing computer can recognize. 

Communication software

The program that allows you to connect to your EDI mailbox. 

EDI Mailbox

This is the place where EDI documents are sent to and received from, via electronic transmission between computers. To access the mailbox, you connect to a VAN, or to a network managed by an EDI Provider

VAN

Stands for Value Added Network, or "third party service provider." A VAN takes EDI documents, and moves them into mailboxes.

EDI Provider

EDI Providers manage and support the networks over which electronic transactions are delivered. 

Trading Partners

This term refers to companies with whom you are exchanging EDI documents. 

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