972-836-7750 Request a demo Talk to an expert
Talk to an expert Request a demo Call sales 972-836-7750

Learning Center

EDI glossary

Plain-English definitions of 61 common EDI, B2B integration and supply chain terms.

Glossary terms on one EDI documentNested boxes labelled with glossary terms: an interchange sent over AS2, SFTP or a VAN contains a functional group, which contains a transaction set such as an 850, 856 or 810, which contains segments such as N1 and PO1. Inside a segment are data elements, qualifiers, code lists and delimiters.Glossary terms on one EDI documentWhere the structural terms in this glossary sit, from the outside inInterchangeISAUNBThe outer envelope between two trading partners, sent over AS2, SFTP or a VANFunctional groupGSGroups transaction sets of one typeTransaction set850856810One business document; EDIFACT calls it a messageSegmentN1PO1A line of related data; delimiters separate segments and elementsData elementQualifierCode listDelimiter
Glossary terms on one EDI documentNested boxes labelled with glossary terms: an interchange sent over AS2, SFTP or a VAN contains a functional group, which contains a transaction set such as an 850, 856 or 810, which contains segments such as N1 and PO1. Inside a segment are data elements, qualifiers, code lists and delimiters.Glossary terms on one EDIdocumentWhere the structural terms in this glossary sit,from the outside inInterchangeISAUNBThe outer envelope between two tradingpartners, sent over AS2, SFTP or a VANFunctional groupGSGroups transaction sets of one typeTransaction set850856810One business document; EDIFACTcalls it a messageSegmentN1PO1A line of related data; delimitersseparate segments and elementsData elementQualifierCode listDelimiter

Each label is a term defined on this page. Use the diagram to see how the structural terms relate, then look up the ones you need below.

Expand diagram Download SVG

Glossary terms along one exchangeSequence diagram with glossary terms: a trading partner sends an 850 purchase order over AS2; the EDI translator returns an MDN and a 997, applies mapping and cross-references, and creates a sales order in the ERP. From shipment and billing data it sends an ASN with SSCC labels and an 810 invoice.Glossary terms along one exchangeWho does what when a trading partner sends a purchase orderTrading partnerEDI translatorERP850 purchase order over AS2MDN, then 997 functionalacknowledgmentMapping and cross-referencesPartner item numbers become yoursSales order (order-to-cash begins)Shipment and billing dataASN with SSCC labels, then 810 invoice
Glossary terms along one exchangeSequence diagram with glossary terms: a trading partner sends an 850 purchase order over AS2; the EDI translator returns an MDN and a 997, applies mapping and cross-references, and creates a sales order in the ERP. From shipment and billing data it sends an ASN with SSCC labels and an 810 invoice.Glossary terms along oneexchangeWho does what when a trading partner sends apurchase orderTradingpartnerEDItranslatorERP850 purchase order overAS2MDN, then 997 functionalacknowledgmentMapping andcross-referencesPartner item numbersbecome yoursSales order (order-to-cashbegins)Shipment and billing dataASN with SSCC labels,then 810 invoice

The labels use terms from this glossary in the order you meet them during an exchange.

Expand diagram Download SVG

#

3PL (Third-Party Logistics)
A company that provides outsourced logistics services such as warehousing, fulfillment and transportation management for other businesses. Learn more
810 Invoice
The X12 transaction set a supplier uses to bill a customer electronically. Learn more
850 Purchase Order
The X12 transaction set a buyer uses to order goods or services from a supplier. Learn more
856 Advance Ship Notice
The X12 transaction set that describes the contents of a shipment before it arrives, down to cartons and items. Learn more
997 Functional Acknowledgment
The X12 transaction set that confirms EDI documents were received and were syntactically valid. It does not confirm business acceptance. Learn more

A

Acknowledgment
A response confirming that a document was received or processed. Technical acknowledgments (997, CONTRL, MDN) confirm receipt; business acknowledgments (855, 824) confirm business processing.
ANSI ASC X12 · also X12
The EDI standard developed by the Accredited Standards Committee X12 and used predominantly in North America. Documents are identified by three-digit transaction set numbers. Learn more
API (Application Programming Interface)
A defined way for one software system to request or send data to another, usually in real time over HTTPS with JSON or XML payloads. Learn more
AS2 (Applicability Statement 2)
A protocol for exchanging business documents securely over the internet using encryption, digital signatures and signed delivery receipts (MDNs). Learn more
ASN (Advance Ship Notice)
An electronic notice describing a shipment before it arrives. In X12 it is the 856; in EDIFACT it is DESADV. Learn more

B

B2B Integration
The automation of business processes and data exchange between an organization and its external partners, spanning EDI, APIs, file transfer and portals. Learn more
BAI2
A U.S. bank file format used to report account balances and transactions to corporate clients. Learn more
Bill of Lading (BOL)
A shipping document issued by a carrier that details the goods shipped, serves as a receipt and evidences the contract of carriage.

C

Chargeback
A deduction or fee a retailer applies to a supplier for non-compliance, such as late or inaccurate ship notices, incorrect labels or invoice errors.
Code List
A set of allowed values for an EDI data element, such as unit of measure codes or reference qualifiers.
Connect:Direct
IBM Sterling Connect:Direct, a managed file transfer product for secure, high-volume point-to-point file movement, widely used in banking and large enterprises. Learn more
Cross-Reference
A mapping table that translates one party's identifiers, such as customer item numbers or ship-to codes, into another party's identifiers.

D

Data Element
The smallest unit of data in an EDI document, such as a date, quantity or identifier. Elements are grouped into segments.
Delimiter
A character that separates parts of an EDI document. X12 commonly uses * between elements and ~ at the end of segments; EDIFACT commonly uses + and '.
Drop-Ship
A fulfillment model in which a retailer sells a product and the vendor ships it directly to the consumer. Learn more
DSCSA
The U.S. Drug Supply Chain Security Act, which requires tracing of prescription drugs through the supply chain using standardized data exchange. Learn more

E

EDI (Electronic Data Interchange)
The computer-to-computer exchange of business documents in a standard format that trading partners' systems can process automatically. Learn more
EDI Translator
Software that converts documents between EDI standards and internal formats by applying maps. Learn more
EDIFACT · also UN/EDIFACT
The United Nations EDI standard used widely in Europe, Asia and international trade. Messages are named with six-letter codes such as ORDERS and INVOIC. Learn more
Envelope
The header and trailer segments that wrap EDI documents for transmission. In X12: ISA/IEA, GS/GE and ST/SE; in EDIFACT: UNB/UNZ and UNH/UNT. Learn more
EPCIS
A GS1 standard for sharing event data about products as they move through the supply chain, used for pharmaceutical traceability.
ERP (Enterprise Resource Planning)
Business software that manages core processes such as orders, inventory, purchasing, manufacturing and finance. Learn more
ERS (Evaluated Receipt Settlement)
A payment practice, common in automotive, in which the buyer pays based on goods received rather than a supplier invoice. Also called self-billing.
Exception Management
The process of detecting, prioritizing and resolving documents or transactions that fail, are late or do not match expectations. Learn more

F

Functional Group
A group of related EDI transaction sets, such as all purchase orders in an interchange, enclosed in GS and GE segments in X12.

G

GLN (Global Location Number)
A GS1 identifier for a physical location or legal entity, often used in EDI to identify ship-to and bill-to parties.
GS1-128 Label
A barcode label standard for cartons and pallets that encodes data such as the SSCC, used with advance ship notices.
GTIN
Global Trade Item Number, the GS1 identifier for products, which includes UPC and EAN codes.

H

HIPAA Transactions
X12 transactions mandated for U.S. healthcare administrative data, such as 837 claims, 835 remittances and 270/271 eligibility. Learn more

I

IDoc
SAP's intermediate document format used to exchange business data between SAP and external systems, including EDI. Learn more
Implementation Guide
A trading partner's specification describing which documents, segments, elements and values it requires for EDI.
Interchange
The complete EDI transmission between two parties, enclosed in the ISA and IEA segments in X12.
iPaaS (Integration Platform as a Service)
A cloud-delivered platform for building and running integrations, operated by the provider. Learn more
ISO 20022
An international standard for financial messaging, using XML messages such as pain.001 for payments and camt.053 for statements. Learn more

L

Load Tender
An offer of a shipment to a carrier. In X12 it is the 204 motor carrier load tender. Learn more

M

Managed EDI
A service in which a provider operates an organization's EDI program within an agreed scope and service levels. Learn more
Managed File Transfer (MFT)
Software that secures, automates, monitors and audits file transfers between systems and organizations.
Mapping
Defining how data in one format corresponds to another, including field relationships, code conversions and business rules. Learn more
MDN (Message Disposition Notification)
A signed receipt returned in AS2 to prove that a message was received intact. Learn more

N

NACHA
The organization that governs the U.S. ACH network and its file format for electronic payments.

O

Order-to-Cash
The end-to-end process from receiving a customer order to collecting and applying payment. Learn more

P

Procure-to-Pay
The end-to-end process from creating a purchase order to paying the supplier. Learn more

Q

Qualifier
A code in an EDI element that defines the meaning of the next element, such as whether a reference number is a purchase order or a bill of lading.

R

Remittance Advice
A document that explains a payment, listing the invoices paid and any deductions. In X12 it is the 820. Learn more
RPA (Robotic Process Automation)
Software bots that perform repetitive tasks in user interfaces, such as entering invoices into supplier portals.

S

SCAC
Standard Carrier Alpha Code, a two-to-four letter code identifying a transportation company.
Segment
A line of related data elements in an EDI document, identified by a segment ID such as BEG or PO1.
SFTP
SSH File Transfer Protocol, an encrypted protocol for transferring files between systems. Learn more
SSCC
Serial Shipping Container Code, an 18-digit GS1 identifier for a carton or pallet, printed on GS1-128 labels and sent in ship notices.

T

Three-Way Match
Accounts payable control that compares the invoice with the purchase order and the receipt before approving payment.
Trading Partner
Any external organization with which a company exchanges business documents, such as customers, suppliers, carriers and banks. Learn more
Trading Partner Onboarding
The process of setting up electronic data exchange with a new partner, from requirements through testing and production. Learn more
Transaction Set
A complete X12 business document, such as an 850 purchase order, enclosed in ST and SE segments. Learn more

U

UPC
Universal Product Code, the 12-digit GTIN used on retail products in North America.

V

VAN (Value-Added Network)
A third-party network that receives, stores and delivers EDI documents between trading partners' mailboxes. Learn more

W

Web EDI
A browser-based way to exchange EDI documents using web forms, without running EDI software. Learn more

Need help making sense of a partner's EDI requirements?

ECOM's specialists translate implementation guides into working integrations.

Request a Demo Contact us