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What is an EDI Transaction?

What is an EDI transaction?  Many people question what an EDI transaction is, but chances are if you are in business you handle things that are a result of an EDI transaction or more than one EDI transaction.  When you get into electronic data interchange you will hear many different phrases that are thrown around and you may believe that you understand what is being talked about or referred to, but you may actually need some clarification and the EDI transaction is one of these things.  When you hear the term EDI transaction it may mean one thing to you but another thing to someone else.  You should be aware that the term EDI transaction can also be referred to as transaction codes or transaction sets.  There is a long list of EDI transaction codes that range from the number 104 all the way up to the number 998 and each of them means something different.

For instance, if you look at EDI transaction according to ANSI ASC X12 EDI standards you are looking at air shipment information, yet if you see the EDI transaction 126 you’ll be looking at vehicle application advice, and when you get to EDI transaction 998 you are looking at an EDI transaction to set cancellation.  As you can see, you need to understand that and EDI transaction is not your typical transaction or cannot simply be generalized, you have to know the EDI transaction specifics sets to have it make any sense.

Luckily, EDI transactions are universal.  What this means is that if you go to one area of the country you will generally find that they use the same EDI transaction information that they do on the other side of the country, meaning if you know the EDI transaction for one company you know the EDI transaction for another and another.   There are EDI transaction standards out there that ensure that each business can easily communicate with those that are in their supply chain or with other businesses that they intend to transact with.

When you begin using EDI transaction codes it may take you some time to learn about EDI transaction specifics and which apply to you.  Luckily, there are many tools out there that will do EDI transaction work you, but even if you don’t have the EDI transaction tools you will find that you generally use the same EDI transaction codes time and again as many of the EDI transaction codes are associated with specific types of businesses or actions, some of which you will never participate in and others that you will use every day.

Learning EDI transaction codes is something that a lot of people find overwhelming, but the only way to really learn EDI transaction code is to start using EDI transaction code.  Again, there are a lot of EDI transaction tools out there that will help you streamline the process of choosing the EDI transaction and making the communication happen in the most effective manner possible.  It’s important to ensure that you are using the proper EDI transaction, but when you look at the list of standardized EDI transaction codes and you really look at all of them, you will see that EDI transaction isn’t as difficult or overwhelming as you might think.  Remember that utilizing the proper EDI transaction codes will make your job, as well as the jobs of others much easier, so EDI transaction codes will help you out all around.