Demystifying EDI Standards: ANSI X12 vs EDIFACT

 

Electronic Data Interchange (EDI) allows businesses to exchange documents like purchase orders, invoices, and shipping notices electronically. Two major global standards dominate the EDI landscape: ANSI X12 and EDIFACT. Understanding these standards is crucial for businesses operating internationally or across various industries. While both serve the same goal, their structure, history, and regional adoption differ significantly.

In this article, we’ll walk through the differences between ANSI X12 and EDIFACT, starting from the basics and moving toward technical details.

 

What is EDI?

EDI is the structured transmission of data between organizations by electronic means. It replaces paper-based documents with digital equivalents that are standardized and machine-readable.

With EDI, businesses can:

• Eliminate manual data entry errors
• Speed up transaction processing
• Reduce paperwork and storage costs
• Improve supply chain visibility and partner communication

 

Two of the most used EDI standards are:

ANSI X12 (mostly used in North America)

EDIFACT (used globally, especially outside North America)

 

Brief History of EDI Standards

ANSI X12

• Developed by the American National Standards Institute (ANSI)
• First released in 1979
• Widely adopted in the United States and Canada
• Maintained by the Accredited Standards Committee (ASC) X12

EDIFACT

• Stands for Electronic Data Interchange for Administration, Commerce, and Transport
• Developed by the United Nations in 1987
• Intended as a single international EDI standard
• Adopted across Europe, Asia, South America, and Africa
• Maintained by the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT)

 

Key Differences Between ANSI X12 and EDIFACT (Basic Overview)

Let’s look at the basic areas where they differ.

1. Regional Usage

ANSI X12: Primarily used in North America

EDIFACT: Used globally and often required in international trade

2. Governing Bodies

ANSI X12: Managed by ASC X12

EDIFACT: Managed by UN/CEFACT

3. Structure

ANSI X12: Uses segments and data elements with fixed tags

EDIFACT: Uses segments and elements but with a more flexible, compact syntax

4. Document Naming

ANSI X12: Documents are called Transaction Sets (e.g., 850 for Purchase Order)

EDIFACT: Documents are called Messages (e.g., ORDERS for Purchase Order)

5. Delimiters

ANSI X12: Uses characters like asterisks (*) and tildes (~) as delimiters.

The characters can vary depending on the trading partner. (i.e., trading partners can use any characters for demiliters while the characters like asterisks (*) and tildes (~) are commonly used but not required. In short, custom delimiters are flexible in ANSI X12.) 

EDIFACT: Uses characters like plus signs (+), colons (:), and apostrophes (’)

The characters cannot vary depending on the trading partner. They are defined by the standard itself and are non-negotiable among trading partners. (i.e., custom delimiters are fixed in EDIFACT.)

 

 

Diving Deeper: Message Structure and Syntax

Now let’s explore how each standard organizes a typical message. This is where technical users often face challenges.

ANSI X12 Message Layout

• Interchange Control Header (ISA)
• Functional Group Header (GS)
• Transaction Set Header (ST)
• Data Segments (e.g., BEG, N1, PO1)
• Transaction Set Trailer (SE)
• Functional Group Trailer (GE)
• Interchange Control Trailer (IEA)

Example:

ISA*00*          *00*          *ZZ*MYCOMPANY      *ZZ*THEIRCOMPANY *230630*1345*U*00401*000000001*0*P*>~    GS*PO*MYCOMPANY*THEIRCOMPANY*20230630*1345*1*X*004010~  ST*850*0001~  BEG*00*NE*123456789**20230630~  N1*ST*COMPANY NAME*92*1234~  PO1*1*10*EA*25.00**VP*123456~  SE*6*0001~  GE*1*1~  IEA*1*000000001~

 

EDIFACT Message Layout

• UNB (Interchange Header)
• UNH (Message Header)
• Data Segments (e.g., BGM, NAD, LIN)
• UNT (Message Trailer)
• UNZ (Interchange Trailer)

Example:

UNB+UNOA:1+MYCOMPANY+THEIRCOMPANY+230630:1345+000000001'  UNH+1+ORDERS:D:96A:UN'  BGM+220+123456789+9'  DTM+137:20230630:102'  NAD+BY+123456789::16'  LIN+1++123456:VP'  QTY+21:10'  UNS+S'  UNT+8+1'  UNZ+1+000000001'

 

Comparison of Naming and Codes

ANSI X12 uses numeric transaction codes like:

• 850 for Purchase Order
• 810 for Invoice
• 856 for Advance Ship Notice

EDIFACT uses message names like:

• ORDERS for Purchase Order
• INVOIC for Invoice
• DESADV for Dispatch Advice

This means if your trading partner uses X12, they may say “send me an 850,” while an EDIFACT partner might say “send me an ORDERS message.”

 

Industry Adoption

ANSI X12 is popular in:

• Retail (e.g., Walmart, Target)
• Healthcare (used for HIPAA-compliant transactions)
• Transportation and logistics
• Government agencies in the United States

EDIFACT is popular in:

• Global trade and shipping
• European automotive industry
• International customs and border agencies
• Airlines and freight forwarders
• Global logistics companies like DHL and Maersk
• The booking and publishing industry for book orders, shipping notices, invoices, and more 

 

Pros and Cons

ANSI X12

Pros:

• Strong industry support in the US
• Widely documented
• Stable format
• Used in regulated industries like healthcare

Cons:

• Less compact than EDIFACT
• Not as widely used outside North America
• Learning curve due to fixed segment rules

EDIFACT

Pros:

• Internationally accepted
• Compact structure reduces file sizes
• Built for cross-border transactions

Cons:

• Syntax can be harder to read
• More variations due to localized use
• Less common in US-based retail and healthcare

 

Syntax Details

Delimiters

ANSI X12 uses:

• *(asterisk) to separate elements
• : (colon) for sub-elements
• ~ (tilde) to end a segment

EDIFACT uses:

• +(plus) to separate elements
• : (colon) for composite data elements
• ’ (apostrophe) to end a segment

Control Segments

These segments wrap the entire document like an envelope.

• ANSI X12: ISA and IEA (Interchange start and end)
• EDIFACT: UNB and UNZ (Interchange start and end)

Looping

Both standards allow data loops, which are used to repeat related data blocks (e.g., multiple items in an order)

• X12 uses fixed loop structures
• EDIFACT allows more flexibility in looping, but it can be harder to track

 

Implementation Challenges

Here are a few areas where differences can create problems:

• Mapping tools often need separate profiles for each standard
• One system may support only EDIFACT or X12, not both
• Trading partners may request custom segments or extensions
• Translation software must be configured to understand the exact version used (e.g., X12 4010 vs EDIFACT D96A)

 

Versioning

Both standards have multiple versions, and businesses must agree on which one to use.

• ANSI X12: Versions like 4010, 5010, 6020
• EDIFACT: Versions like D96A, D01B, D20A

Even a small difference in version can cause compatibility issues if systems are not aligned.

 

Real-World Scenarios

A US-based Manufacturer Working with Walmart

• Walmart uses ANSI X12 for all its transactions
• The manufacturer must send 850s (Purchase Orders), 856s (Advance Ship Notices), and 810s (Invoices) in X12 format

A Logistics Company Shipping to Europe

• European customs and trading partners use EDIFACT
• The logistics company needs to send DESADV and INVOIC messages in EDIFACT format

A Multinational Company

• Must support both formats depending on geography
• Often relies on middleware or EDI translation software to convert between formats

 

Interoperability and Conversion

• Some businesses work with both standards. In such cases:
• Middleware can be used to convert EDIFACT to ANSI X12 and vice versa
• Mappings must be defined carefully to ensure that data is not lost during translation

 

Which One Should You Use?

It depends on your trading partners and industry. If your partners are mainly in the US or Canada, ANSI X12 is the expected format.

If you operate globally, especially with partners in Europe or Asia, EDIFACT will likely be required. Many large enterprises support both and expect suppliers to match their form.

 

Final Thoughts

ANSI X12 and EDIFACT are two sides of the same EDI coin. They serve the same purpose but are built differently, much like American English and British English. Understanding their differences helps businesses prepare for global trade and avoid costly miscommunications.

If your business is growing internationally, it’s smart to:

• Invest in flexible EDI software
• Train your team on both standards
• Work with EDI experts who can build and maintain mappings for each partner

By doing this, you’ll ensure your business is ready for efficient, seamless digital communication with partners no matter where they are in the world.