Beginner's Guide to EDI Integration (2024)

In this blog post, I will explain how to read and understand an EDI file. EDI stands for Electronic Data Interchange. There are mainly two standards: X12 and EDIFACT. X12 is primarily used in North America, especially in the United States, whereas EDIFACT is predominantly used in Europe. This blog post will focus on X12 syntax only.

Common EDI Transactions:

EDI 850: Buyer sends Purchase Order to Supplier

EDI 855: Supplier confirms to Buyer whether the order can be fulfilled

EDI 856: Supplier provides advance notice of a shipment (ASN)

EDI 810: Supplier sends invoice to Buyer

Each line of the file is referred to as a segment. Each EDI file starts with ISA (Interchange Control Header) segment and ends with IEA (Interchange Control Trailer) segment.

There can be 'n' number of GS/GE segment pair. Each GS segment can have 'n' number of transaction set (SE/ST segment pair) of same type.

ISA (Interchange Control Header) Segment

ISA is fixed length positional.

ISA*00* *00* *ZZ*SRCA *ZZ*DSTB *231116*1700*U*00401*000001000*0*T*>

Element Name	Usage	Sample Value
ISA01	Authorization Info Qualifier. Fixed length - 2. Code '00' indicates that no authorization information present in ISA02	00
ISA02	Authorization Information. Fixed length - 10	Ten spaces
ISA03	Security Info Qualifier. Fixed length - 2. Code '00 'indicates that no security information present in ISA04.	00
ISA04	Security Information. Fixed length - 10	Ten spaces

ISA-01 through ISA-04 are hardly used anymore and that is why these are kept as 00 and blank now-a-days.

Element Name	Usage	Sample Value
ISA05	Interchange Sender ID Qualifier. Fixed length -2 . Used to define the ID sent in the ISA06.	ZZ
ISA06	Interchange Sender ID. Fixed length - 15	SRCA
ISA07	Interchange Receiver ID Qualifier. Fixed length - 2. Used to define the ID sent in the ISA08.	ZZ
ISA08	Interchange Receiver ID. Fixed length - 15	DSTB

The commonly used qualifiers for ISA05/ISA07 are -

01 (DUNS: Dun & Bradstreet’s master Data Universal Numbering System)

12 (Telephone number)

ZZ (Mutually Defined)

Element Name	Usage	Sample Value
ISA09	Interchange Date. Fixed length - 6. Format - YYMMDD	231116
ISA10	Interchange Time. Fixed length - 4. Format - HHMM	1700
ISA11	Code to identify the agency responsible for the control standard used by the message. Fixed length - 1. 'U' stands for 'U.S. EDI Community of ASC X12'	U
ISA12	EDI Version Number. Fixed length - 5	00401
ISA13	Control number for tracking purpose. It must match with IEA02. Fixed length - 9	000001000
ISA14	Acknowledgement Requested (TA1). Code ‘0’ indicates that no acknowledgment has been requested.
ISA15	Usage Indicator. Code ‘P’ indicates that the interchange envelope contains production data. 'T' indicates non-prod data	T
ISA16	Component/Sub Element Separator. The delimiter used to separate component data elements within a composite data structure; this value must be different than the data element separator and the segment terminator.	>

In the above example, * is element separator.

CRLF is segment separator.

Sub element separator

PID*F****CNT HSN10201>700

PID represents product description.

PID01 = F, which means free-form

PID05 is using component separator. It has 2 parts. 1st part is CNT HSN10201, 2nd part is 700. This is just an example for showing how to use sub element separator. Always refer to partner's EDI implementation guidelines for actual usage.

IEA (Interchange Control Trailer) Segment

IEA*1*000001000

Element Name	Value
IEA01	Count of the GS segments
IEA02	Must match with ISA13

GS (Functional Group Header) Segment

GS*PO*SRCA*DSTB*20231116*1700*1000*X*004010

Element Name	Description	Sample Value
GS01	Functional Identifier Code	PO
GS02	Application Sender's Code	SRCA
GS03	Application Receiver's Code	DSTB
GS04	Date (CCYYMMDD)	20231116
GS05	Time (HHMM)	1700
GS06	Group Control Number	1000
GS07	Responsible Agency Code	X
GS08	Version / Release / Industry Identifier	004010

GE (Functional Group Trailer) Segment

GE*1*1000

Element Name	Description	Sample Value
GE01	Number of Transaction Sets Included	1
GE02	Group Control number. Must match GS06	1000

ST (Transaction Set Header) Segment

ST*850*000000010

Element Name	Description	Sample Value
ST01	Transaction Set Identifier Code	850
ST02	Transaction Set Control Number	000000010

SE (Transaction Set Trailer) Segment

SE*20*000000010

Element Name	Description	Sample Value
SE01	Total number of segments included in a transaction set including ST and SE segments	20
SE02	Transaction Set Control Number. Must Match ST02.	000000010

Understanding Sample EDI File

The below is a sample EDI 850 file.

ISA*00* *00* *ZZ*SRCA *ZZ*DSTB *231116*1700*U*00401*000001000*0*T*>
GS*PO*SRCA*DSTB*20231116*1700*1000*X*004010
ST*850*000000010
BEG*00*SA*08292233294**20231116
REF*DP*038
ITD*14*3*2**45**46
DTM*002*20231125
PKG*F*68***PALLETIZE SHIPMENT
PKG*F*66***REGULAR
TD5*A*92*P3**SEE XYZ RETAIL ROUTING GUIDE
N1*ST*XYZ RETAIL*9*0003947268292
N3*91875 SOLON RD
N4*SOLON*OH*44139*US
PO1*1*120*EA*9.25*TE*CB*065322-117*PR*RO*VN*AB3542
PID*F****SMALL WIDGET
PO4*4*4*EA*PLT94**3*LR*15*CT
PO1*2*220*EA*13.79*TE*CB*066850-116*PR*RO*VN*RD5322
PID*F****MEDIUM WIDGET
PO4*2*2*EA
PO1*3*126*EA*10.99*TE*CB*060733-110*PR*RO*VN*XY5266
PID*F****LARGE WIDGET
PO4*6*1*EA*PLT94**3*LR*12*CT
PO1*4*76*EA*4.35*TE*CB*065308-116*PR*RO*VN*VX2332
PID*F****NANO WIDGET
PO4*4*4*EA*PLT94**6*LR*19*CT
PO1*5*72*EA*7.5*TE*CB*065374-118*PR*RO*VN*RV0524
PID*F****BLUE WIDGET
PO4*4*4*EA
PO1*6*696*EA*9.55*TE*CB*067504-118*PR*RO*VN*DX1875
PID*F****ORANGE WIDGET
PO4*6*6*EA*PLT94**3*LR*10*CT
CTT*6
AMT*1*13045.94
SE*32*000000010
GE*1*1421
IEA*1*000003438

Here,

This is an original (BEG01 -> 00) and stand-alone (BEG02 -> SA) purchase order

08292233294 is the PO number (BEG03) and PO date is 16th Nov, 2023 (BEG05)

Reference Department (REF01) is 038 (REF02)

Requested delivery date (DTM01 -> 002) is 25th Nov, 2023 (DTM02)

Ship To (N101) XYZ RETAIL (N102), Ship to Address is 91875 SOLON RD (N301), SOLON (N401), Ohio (N402), ZIP code - 44139 (N403), US (N404)

6 PO line items (CTT01 - is the accumulation of the number of PO1 segments)

Qualifier List

In the above example, I have mentioned some of the qualifiers. All the list of values are present in Code list of Integration Advisor.

BEG01: 00

BEG02: SA

REF01: DP

DTM01: 002

N101: ST

How to convert EDI to XML format?

Use 'EDI to XML Converter' and the schema should be downloaded from Integration Advisor.

You can specifically select the required segments or 'Select All'.

Use the schema from the downloaded zip file in EDI to XML Converter.

Output XML:

<?xml version="1.0" encoding="ISO-8859-1"?><ns0:Interchange xmlns:ns0="urn:sap.com:typesystem:b2b:116:asc-x12:004010">
 <S_ISA>
 <D_I01>00</D_I01>
 <D_I02> </D_I02>
 <D_I03>00</D_I03>
 <D_I04> </D_I04>
 <D_I05_1>ZZ</D_I05_1>
 <D_I06>SRCA </D_I06>
 <D_I05_2>ZZ</D_I05_2>
 <D_I07>DSTB </D_I07>
 <D_I08>231116</D_I08>
 <D_I09>1700</D_I09>
 <D_I10>U</D_I10>
 <D_I11>00401</D_I11>
 <D_I12>000001000</D_I12>
 <D_I13>0</D_I13>
 <D_I14>T</D_I14>
 <D_I15>&gt;</D_I15>
 </S_ISA>
 <FunctionalGroup>
 <S_GS>
 <D_479>PO</D_479>
 <D_142>SRCA</D_142>
 <D_124>DSTB</D_124>
 <D_373>20231116</D_373>
 <D_337>1700</D_337>
 <D_28>1000</D_28>
 <D_455>X</D_455>
 <D_480>004010</D_480>
 </S_GS>
 <M_850>
 <S_ST>
 <D_143>850</D_143>
 <D_329>000000010</D_329>
 </S_ST>
 <S_BEG>
 <D_353>00</D_353>
 <D_92>SA</D_92>
 <D_324>08292233294</D_324>
 <D_373>20231116</D_373>
 </S_BEG>
 <S_REF>
 <D_128>DP</D_128>
 <D_127>038</D_127>
 </S_REF>
 <S_ITD>
 <D_336>14</D_336>
 <D_333>3</D_333>
 <D_338>2</D_338>
 <D_351>45</D_351>
 <D_386>46</D_386>
 </S_ITD>
 <S_DTM>
 <D_374>002</D_374>
 <D_373>20231125</D_373>
 </S_DTM>
 <S_PKG>
 <D_349>F</D_349>
 <D_753>68</D_753>
 <D_352>PALLETIZE SHIPMENT</D_352>
 </S_PKG>
 <S_PKG>
 <D_349>F</D_349>
 <D_753>66</D_753>
 <D_352>REGULAR</D_352>
 </S_PKG>
 <S_TD5>
 <D_133>A</D_133>
 <D_66>92</D_66>
 <D_67>P3</D_67>
 <D_387>SEE XYZ RETAIL ROUTING GUIDE</D_387>
 </S_TD5>
 <G_N1>
 <S_N1>
 <D_98>ST</D_98>
 <D_93>XYZ RETAIL</D_93>
 <D_66>9</D_66>
 <D_67>0003947268292</D_67>
 </S_N1>
 <S_N3>
 <D_166>91875 SOLON RD</D_166>
 </S_N3>
 <S_N4>
 <D_19>SOLON</D_19>
 <D_156>OH</D_156>
 <D_116>44139</D_116>
 <D_26>US</D_26>
 </S_N4>
 </G_N1>
 <G_PO1>
 <S_PO1>
 <D_350>1</D_350>
 <D_330>120</D_330>
 <D_355>EA</D_355>
 <D_212>9.25</D_212>
 <D_639>TE</D_639>
 <D_235>CB</D_235>
 <D_234>065322-117</D_234>
 <D_235_2>PR</D_235_2>
 <D_234_2>RO</D_234_2>
 <D_235_3>VN</D_235_3>
 <D_234_3>AB3542</D_234_3>
 </S_PO1>
 <G_PID>
 <S_PID>
 <D_349>F</D_349>
 <D_352>SMALL WIDGET</D_352>
 </S_PID>
 </G_PID>
 <S_PO4>
 <D_356>4</D_356>
 <D_357>4</D_357>
 <D_355>EA</D_355>
 <D_103>PLT94</D_103>
 <D_384>3</D_384>
 <D_355_2>LR</D_355_2>
 <D_385>15</D_385>
 <D_355_3>CT</D_355_3>
 </S_PO4>
 </G_PO1>
 <G_PO1>
 <S_PO1>
 <D_350>2</D_350>
 <D_330>220</D_330>
 <D_355>EA</D_355>
 <D_212>13.79</D_212>
 <D_639>TE</D_639>
 <D_235>CB</D_235>
 <D_234>066850-116</D_234>
 <D_235_2>PR</D_235_2>
 <D_234_2>RO</D_234_2>
 <D_235_3>VN</D_235_3>
 <D_234_3>RD5322</D_234_3>
 </S_PO1>
 <G_PID>
 <S_PID>
 <D_349>F</D_349>
 <D_352>MEDIUM WIDGET</D_352>
 </S_PID>
 </G_PID>
 <S_PO4>
 <D_356>2</D_356>
 <D_357>2</D_357>
 <D_355>EA</D_355>
 </S_PO4>
 </G_PO1>
 <G_PO1>
 <S_PO1>
 <D_350>3</D_350>
 <D_330>126</D_330>
 <D_355>EA</D_355>
 <D_212>10.99</D_212>
 <D_639>TE</D_639>
 <D_235>CB</D_235>
 <D_234>060733-110</D_234>
 <D_235_2>PR</D_235_2>
 <D_234_2>RO</D_234_2>
 <D_235_3>VN</D_235_3>
 <D_234_3>XY5266</D_234_3>
 </S_PO1>
 <G_PID>
 <S_PID>
 <D_349>F</D_349>
 <D_352>LARGE WIDGET</D_352>
 </S_PID>
 </G_PID>
 <S_PO4>
 <D_356>6</D_356>
 <D_357>1</D_357>
 <D_355>EA</D_355>
 <D_103>PLT94</D_103>
 <D_384>3</D_384>
 <D_355_2>LR</D_355_2>
 <D_385>12</D_385>
 <D_355_3>CT</D_355_3>
 </S_PO4>
 </G_PO1>
 <G_PO1>
 <S_PO1>
 <D_350>4</D_350>
 <D_330>76</D_330>
 <D_355>EA</D_355>
 <D_212>4.35</D_212>
 <D_639>TE</D_639>
 <D_235>CB</D_235>
 <D_234>065308-116</D_234>
 <D_235_2>PR</D_235_2>
 <D_234_2>RO</D_234_2>
 <D_235_3>VN</D_235_3>
 <D_234_3>VX2332</D_234_3>
 </S_PO1>
 <G_PID>
 <S_PID>
 <D_349>F</D_349>
 <D_352>NANO WIDGET</D_352>
 </S_PID>
 </G_PID>
 <S_PO4>
 <D_356>4</D_356>
 <D_357>4</D_357>
 <D_355>EA</D_355>
 <D_103>PLT94</D_103>
 <D_384>6</D_384>
 <D_355_2>LR</D_355_2>
 <D_385>19</D_385>
 <D_355_3>CT</D_355_3>
 </S_PO4>
 </G_PO1>
 <G_PO1>
 <S_PO1>
 <D_350>5</D_350>
 <D_330>72</D_330>
 <D_355>EA</D_355>
 <D_212>7.5</D_212>
 <D_639>TE</D_639>
 <D_235>CB</D_235>
 <D_234>065374-118</D_234>
 <D_235_2>PR</D_235_2>
 <D_234_2>RO</D_234_2>
 <D_235_3>VN</D_235_3>
 <D_234_3>RV0524</D_234_3>
 </S_PO1>
 <G_PID>
 <S_PID>
 <D_349>F</D_349>
 <D_352>BLUE WIDGET</D_352>
 </S_PID>
 </G_PID>
 <S_PO4>
 <D_356>4</D_356>
 <D_357>4</D_357>
 <D_355>EA</D_355>
 </S_PO4>
 </G_PO1>
 <G_PO1>
 <S_PO1>
 <D_350>6</D_350>
 <D_330>696</D_330>
 <D_355>EA</D_355>
 <D_212>9.55</D_212>
 <D_639>TE</D_639>
 <D_235>CB</D_235>
 <D_234>067504-118</D_234>
 <D_235_2>PR</D_235_2>
 <D_234_2>RO</D_234_2>
 <D_235_3>VN</D_235_3>
 <D_234_3>DX1875</D_234_3>
 </S_PO1>
 <G_PID>
 <S_PID>
 <D_349>F</D_349>
 <D_352>ORANGE WIDGET</D_352>
 </S_PID>
 </G_PID>
 <S_PO4>
 <D_356>6</D_356>
 <D_357>6</D_357>
 <D_355>EA</D_355>
 <D_103>PLT94</D_103>
 <D_384>3</D_384>
 <D_355_2>LR</D_355_2>
 <D_385>10</D_385>
 <D_355_3>CT</D_355_3>
 </S_PO4>
 </G_PO1>
 <G_CTT>
 <S_CTT>
 <D_354>6</D_354>
 </S_CTT>
 <S_AMT>
 <D_522>1</D_522>
 <D_782>13045.94</D_782>
 </S_AMT>
 </G_CTT>
 <S_SE>
 <D_96>32</D_96>
 <D_329>000000010</D_329>
 </S_SE>
 </M_850>
 <S_GE>
 <D_97>1</D_97>
 <D_28>1421</D_28>
 </S_GE>
 </FunctionalGroup>
 <S_IEA>
 <D_I16>1</D_I16>
 <D_I12>000003438</D_I12>
 </S_IEA>
</ns0:Interchange>

Message Headers

The below message headers are generated by EDI to XML converter step.

EDI to XML Converter

Thank you for reading this blog post. Please feel free to share your feedback or thoughts in the comments section or ask any questions in the Q&A tag below.

QA link

Regards,

Priyanka Chakraborti

Beginner's Guide to EDI Integration (2024)

FAQs

Is EDI difficult to learn? ›

EDI (Electronic Data Interchange) can be incredibly complex to integrate into your business if you do not have the understanding necessary to make it a success.

Tell Me More ›

How do I start learning about EDI? ›

How to Learn EDI: Step-by-Step

Install EDI software. Download and install EDI software so you can start learning. ...
Watch online tutorials. Many EDI experts will post videos online demonstrating how to use EDI software and applications. ...
Sign up for EDI training. ...
Read books. ...
Practice.

Dec 30, 2020

How long does EDI integration take? ›

around 4-8 weeks depending on who you choose as your EDI providers. Some managed EDI services will build you a complete road-map for your EDI and data integration and implement the overall solution at the same time. Some other services will do it in phases.

Tell Me More ›

Is EDI difficult to implement? ›

There are errors and missing fields in EDI

Avoiding errors and missing fields in the EDI is difficult, especially when you start to deal with bigger volumes. Some older formats of EDI (EDIFACT or IMP) weren't meant for humans to read and understand them, therefore catching and fixing errors can be challenging.

Explore More ›

What is EDI for beginners? ›

EDI, or Electronic Data Interchange, is a way for businesses to exchange standard electronic documents directly between their computer systems. It replaces traditional paper-based methods, offering benefits like cost savings, faster processing, fewer errors, and better relationships with partners.

Know More ›

Why EDI is better than API? ›

Electronic Data Interchanges (EDIs) allow businesses to transfer digital documents with their partners in a standardized format. Meanwhile, Application Programming Interfaces (APIs) give specific instructions to help software applications communicate with each other.

Find Out More ›

How do I get started with EDI? ›

A Structured 10-Step Process for Successful EDI Implementation

Step 1: Develop the Organizational Structure. ...
Step 2: Undertake a Strategic Review. ...
Step 3: Conduct In-depth Analysis. ...
Step 4: Develop a Business-Focused EDI Solution. ...
Step 5: Select the Correct EDI Network Provider (VAN) ...
Step 6: Integrate EDI with the Business.

More items...

Learn More Now ›

What are the four key requirements of EDI? ›

To implement EDI effectively, organizations need to focus on four key requirements: standardization, communication protocols, data security, and integration capabilities. Understanding and mastering these elements will ensure your EDI system runs smoothly, providing you with a competitive edge in the digital economy.

Is EDI outdated? ›

EDI is alive and well and will remain critical to business for many years to come. However, the true future lies in using and evolving B2B integration alongside disruptive technologies such as IoT, blockchain and AI, to deliver innovative levels of multi-party supply chain collaboration.

Read The Full Story ›

Is EDI worth it? ›

EDI cost savings

From a financial perspective alone, there are impressive benefits from implementing EDI. Exchanging documents electronically improves transaction speed and visibility while decreasing the amount of money you spend on manual processes.

Show Me More ›

Why does EDI take so long? ›

EDI onboarding is driven by humans, which includes back and forth feedback loops that aren't in real time. This results in wasted time and delays. When you engage a new trading partner, there are many steps your team must go through before you can successfully start trading with your new partner.

Get More Info ›

How do you implement EDI in your everyday life? ›

How to Support Diversity & Inclusion in Your Everyday Life

Create A Sense Of Belonging.
Reconsider Stereotypes.
Consider Your Actions and Reactions.
Think About Whose Voices Are (And Aren't) Represented.
Support Diverse Work and Ideas with Your Voice and Your Money.

Discover More Details ›

What is better than EDI? ›

APIs are critical to integrating data with your digital ecosystem because they bring more communication flexibility than standard exchanges like EDI.

What is the programming language of EDI? ›

The programming language of our EDI software is Java.

Find Out More ›

What are the prerequisites of EDI? ›

1. Document Management. The right EDI software should be able to handle any document type you have on hand. The software converts documents you upload into a secure format and sends that format to the receiving party, whose software converts it back into its original form for them to read.