EDI standards are very broad and general because they have to meet the need of all businesses.
EDI share a common structure:-
1. Transaction set is equivalent to business document, such as purchase order. Each transaction set is made up of data segments.
2. Data segments are logical groups of data elements that together convey information, such as invoice terms, shipping information or purchase order line.
3. Data elements are individual fields, such as purchase order number, quantity on order, unit price.
The need for EDI standards:-
EDI provides on electronic linkage between two trading partners. To send documents electronically to each other, firms must agree on a specific data format and technical environment.
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