When two businesses decide to exchange EDI documents, they must agree on the specific EDI standard and version. And, for each standard there are many different versions, e.g., ANSI 5010 or EDIFACT version D12, Release A. There are several EDI standards in use today, including ANSI, EDIFACT, TRADACOMS and ebXML.Without a standard format, each company would send documents using its company-specific format and, much as an English-speaking person probably doesn’t understand Japanese, the receiver’s computer system doesn’t understand the company-specific format of the sender’s format. A standard format describes what each piece of information is and in what format (e.g., integer, decimal, mmddyy). Because EDI documents must be processed by computers rather than humans, a standard format must be used so that the computer will be able to read and understand the documents.
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