EDI and B2B Integration Glossary

A plain-language reference for the most commonly used terms in EDI, B2B integration, and e-business. Written for operations and IT leaders — not just EDI specialists.

Core EDI Standards and Formats

ANSI X12 — The EDI data format standard most commonly used in North America, governed by the Accredited Standards Committee X12. X12 defines transaction set numbers (850, 856, 810, etc.) and their required data elements. When a trading partner says "we require EDI," they almost always mean X12.

EDIFACT — An international EDI standard that originated in Europe and is administered by the UN. Less common in the US than X12, but widely used by global trading partners, particularly in automotive, retail, and logistics.

GS1 — A global standards organization that manages product identification (barcodes, GTINs) and supply chain communication standards. GS1 standards underpin retail EDI compliance requirements from major retailers.

XML — A human-readable data format used in some EDI and B2B integrations. More flexible than X12 but less universally supported by older EDI platforms.

JSON — A lightweight data format increasingly used in API-based B2B integrations. Not traditional EDI, but common in modern ERP-to-system connections.

Transaction Sets (Common X12 Document Types)

810 — Invoice: Electronic billing document from supplier to buyer.

820 — Payment Remittance: Notification of payment details from buyer to supplier.

850 — Purchase Order: Buyer’s formal order to a supplier.

855 — Purchase Order Acknowledgement: Supplier’s confirmation of a received PO, with acceptance or changes noted.

856 — Advance Ship Notice (ASN): Detailed shipment information sent before or upon delivery. One of the most compliance-critical transactions for retail suppliers.

860 — Purchase Order Change: Buyer’s notification of changes to an existing PO.

862 — Shipping Schedule: Used in manufacturing to communicate delivery schedules to suppliers.

997 — Functional Acknowledgement: A system-level receipt confirming that an EDI transaction was received and structurally valid. Required by most trading partners.

Communication Protocols

AS2 — Applicability Statement 2. A secure, internet-based protocol for transmitting EDI data directly between trading partners. Eliminates the need for a VAN for direct connections and is widely required by major retailers and manufacturers.

AS4 — A newer, web services-based protocol similar to AS2. Less common but growing in regulated industries.

SFTP / FTPS — Secure file transfer protocols. SFTP uses SSH encryption; FTPS uses TLS/SSL. Both are widely used for B2B data exchange, particularly with logistics providers and 3PLs.

FTP — File Transfer Protocol. An older, unencrypted method for moving data between systems. Still used in some environments but being replaced by SFTP/FTPS.

VAN (Value Added Network) — A private, managed network used to route EDI data between trading partners. VANs handle mailboxing, protocol translation, and connectivity for partners who don’t support direct connections. Typically priced per kilocharacter of data transmitted.

Integration and Architecture

ERP Integration — A direct, automated connection between an EDI system and an ERP (SAP, Oracle, NetSuite, Dynamics, etc.) that allows transaction data to flow without manual re-keying. Tight ERP integration is the key differentiator between a basic EDI setup and a truly automated B2B operation.

API (Application Programming Interface) — A software interface that allows systems to exchange data in real time. Increasingly used alongside or instead of traditional EDI for modern trading partner connections, particularly in e-commerce and logistics platforms.

iPaaS (Integration Platform as a Service) — A cloud-based platform for building and managing integrations between applications. Examples include MuleSoft, Boomi, and Azure Integration Services. Some managed EDI providers use iPaaS layers to connect EDI to ERPs and other systems.

Mapping / Translation — The process of converting data from one format to another (e.g., an internal purchase order format to an X12 850). Maps are partner-specific and must be maintained as partner requirements change.

Trading Partner — Any external organization with whom you exchange EDI or B2B data — customers, suppliers, 3PLs, carriers, or financial institutions.

Identifiers and Envelope Structure

ISA (Interchange Control Header) — The outermost envelope of an X12 EDI file. Contains the sender and receiver IDs (ISA IDs) that identify who is sending and receiving the transactions.

ISA ID / EDI ID — A unique identifier for your organization within the EDI network. Used by trading partners and VANs to route transactions correctly.

GS Segment — The functional group header within an X12 file. Groups related transaction sets together within an interchange.

Operations and Support

Exception — A transaction that failed validation, was rejected by a trading partner, or could not be processed automatically. Exceptions require human review and resolution.

Chargeback — A financial penalty issued by a trading partner (typically a retailer) for non-compliance — late ASNs, missing acknowledgements, label errors, or quantity discrepancies. Chargebacks are one of the highest-cost consequences of poor EDI execution.

OTIF (On Time, In Full) — A retailer scorecard metric measuring whether shipments arrive on time and in the correct quantity. Poor EDI execution (missed ASNs, incorrect invoices) directly damages OTIF scores.

Partner Onboarding — The process of establishing, testing, and certifying an EDI connection with a new trading partner. Includes requirements gathering, mapping, testing, and go-live.

SLA (Service Level Agreement) — A formal commitment between a provider and customer defining response times, resolution targets, and uptime expectations. Critical to evaluate when selecting a managed EDI provider.

Legacy and Miscellaneous

CSV (Comma-Separated Values) — A simple flat-file format used for data import/export. Not EDI, but sometimes used in integrations with partners who don’t support X12 or EDIFACT.

Web EDI / Portal EDI — A browser-based approach where suppliers log into a retailer’s portal to manually key or upload transaction data. Technically compliant but operationally inefficient — it transfers the data-entry burden rather than eliminating it.

Kilocharacter (KC) — The billing unit used by VANs. One kilocharacter = 1,000 characters of data transmitted. VAN costs are typically quoted as a rate per KC.

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Missing a term? Let us know and we’ll add it. For a deeper look at how these components work together in a managed service, see our complete EDI outsourcing guide.