Although mail and fax are still used to make business transactions, EDI is a much faster way to do the same thing. It is widely used by hundreds of thousands of businesses to process purchases and sales. EDI typically has software that checks and edits documents for accuracy and all data is logged and entered through a computer. A traditional paper purchase order can take ten days to two weeks from the time the buyer requests it to the time the shipper sends it off. With EDI, that same order can be processed in less than a day.
With faster processing time your company can maintain more efficient inventory levels contributing to a better use of warehouse space, and less out-of-stock problems. This in turn leads to a reduction in freight costs, as there should be no need for last minute urgent delivery surcharges.
Electronic Data Interchange (EDI) transaction codes, sometimes called transaction sets or T-sets, correspond to a specific type of electronic business document, such as an invoice or a purchase order. There are many different codes that you might exchange with your trading partners.
A transaction code is a basic EDI message type. Each EDI transaction code contains one or more data elements, such as a price or phone number. Some data elements are required; others are conditional or optional as specified by the trading partner. Data elements are combined to form data segments. One or more data segments, usually in a specific order and with a header at the front and a trailer at the back, form the complete transaction code.
Following are the most common ASC X12 EDI transaction codes:
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