What Is the File Extension EDI?

Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents like purchase orders, invoices, funds transfers and health insurance claims. It differs from email in two important ways: the EDI software interfaces with the sender's and the receiver's computer systems without human involvement, and the EDI program organizes the data in a structured way.

EDI Standards

• There are several different systems of standards for EDI files. Initially, large companies, such as GM, Kmart and Ford, developed their own standards for document exchange throughout the company. The Automotive Industry Action Group then developed a set of standards for use throughout the entire automobile industry. There are now other standards development groups for other industries, including the wholesale druggist business and transportation businesses. The American National Standards Institute has successfully developed and promoted the x12 standard for inter-industry use.

EDI System Providers

• One of the main providers of EDI software is 123 EDI, whose EDI engine supports all the different EDI standards throughout the world. Web EDI is another company that offers Edi software packages, but these run on the Internet. Their EDI service integrates with many established business systems and programs, including Access database, Quickbooks and SAP.

EDI File Errors

• Conflicts within the computer system registry are the most common cause of errors with EDI files. There is software available to fix these errors.