Glossary · Integrations

What is EDI?

EDI (electronic data interchange) is the exchange of business documents such as purchase orders, shipping notices, delivery notes and invoices directly between companies’ systems in a standard format. UN/EDIFACT and ANSI X12, used mainly in the US, are the main standards.

Also called: electronic data interchange

Why it matters

Many large retail chains and manufacturers ask suppliers to trade by EDI, so it can decide whether you win the contract. Done well, orders flow straight into your accounting system or ERP and documents go out without retyping. In Kazakhstan, though, the electronic VAT invoice is issued in the state ESF e-invoicing system, so plan EDI and ESF as two linked flows.

1How it worksYour accounting system turns a document into an EDI message and sends it over AS2, SFTP or an exchange operator.
2EDI vs APIEDI exchanges standard documents between companies, often in batches; APIs usually carry live requests.
3EDI and the ESF systemThe ESF system is the state e-invoicing system with its own API; it does not replace EDI with a buyer.
ExampleA food producer in Kostanay signs a contract with a retail chain that works by EDI. Its accounting system now receives purchase orders as EDI messages and sends shipping notices when trucks leave, while the invoice for each delivery goes from the same system to the ESF e-invoicing system. Nobody keys orders in from PDFs any more.
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