How EDI Works
In 1996, the National Institute of Standards and Technology defined electronic data interchange as "the computer-to-computer" interchange of strictly formatted messages that represent documents other than monetary instruments. EDI is the transferring of messages between two parties, either of whom may serve as sender or receiver. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media. In EDI, the usual processing of received messages is by computer only. Human intervention in the processing of received messages is typically intended only for error conditions, for quality review, and for special situations.