image

What is EDIFACT?

EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport) is an internationally recognized standard for exchanging structured business documents electronically between organizations.

Developed and maintained by the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), EDIFACT provides a common format that allows companies, suppliers, logistics providers, customs authorities, and other business partners to exchange data automatically without manual intervention.

EDIFACT is one of the most widely used EDI standards worldwide and is particularly common in Europe, Asia, logistics, automotive, retail, manufacturing, and international trade.


Why EDIFACT Matters

Before EDI standards such as EDIFACT, businesses often exchanged information using paper documents, emails, or proprietary formats, resulting in:

  • Manual data entry

  • Processing delays

  • Increased costs

  • Higher error rates

  • Limited automation

EDIFACT enables organizations to automate business processes by exchanging structured electronic messages that can be processed directly by business systems.

Benefits include:

  • Faster transaction processing

  • Reduced operational costs

  • Improved data accuracy

  • Enhanced supply chain visibility

  • Greater business automation


What is an EDI Message?

An EDI Message is the electronic equivalent of a business document.

Examples include:

Business Document EDIFACT Message
Purchase Order ORDERS
Invoice INVOIC
Shipping Notice DESADV
Order Response ORDRSP
Inventory Report INVRPT
Customs Declaration CUSDEC

Each message follows a predefined structure that both sender and receiver understand.


How EDIFACT Works

A typical EDIFACT process looks like this:

  1. A business system creates a document (e.g., purchase order).

  2. The document is converted into EDIFACT format.

  3. The message is transmitted via a communication protocol such as AS2, SFTP, OFTP2, or VAN.

  4. The receiver validates the message.

  5. The message is translated into the receiver’s internal format.

  6. The receiving business application processes the data automatically.

EDIFACT defines the document structure, while transport protocols define how the message is delivered.


Key EDIFACT Terminology

EDI (Electronic Data Interchange)

EDI is the electronic exchange of structured business information between organizations using standardized formats.

EDIFACT is one of several EDI standards used globally.

Other standards include:

  • ANSI X12

  • TRADACOMS

  • VDA

  • ODETTE


EDIFACT Message

An EDIFACT Message is a structured electronic document containing business information.

Examples:

  • ORDERS (Purchase Order)

  • INVOIC (Invoice)

  • DESADV (Despatch Advice)

  • RECADV (Receiving Advice)

Every message follows a standardized syntax.


Segment

A Segment is the basic building block of an EDIFACT message.

Each segment contains a specific type of information.

Example:

NAD+BY+123456789::9′

This segment identifies the buyer involved in the transaction.

Common segments include:

Segment Description
UNH Message Header
BGM Beginning of Message
DTM Date/Time Information
NAD Name and Address
LIN Line Item
QTY Quantity
UNS Section Control
UNT Message Trailer

Data Element

A Data Element is an individual piece of information within a segment.

Example:

DTM+137:20260614:102′

Contains:

  • 137 = Document date qualifier

  • 20260614 = Date value

  • 102 = Date format code

Data elements are the smallest meaningful components of an EDIFACT message.


Composite Data Element

A Composite Data Element groups multiple related data elements together.

Example:

C507:137:20260614:102

This composite contains:

  • Date qualifier

  • Date value

  • Date format

Composites improve message consistency and flexibility.

Message Type

A Message Type defines the business purpose of an EDIFACT message.

Common message types include:

Message Description
ORDERS Purchase Order
ORDRSP Order Response
DESADV Despatch Advice
INVOIC Invoice
PRICAT Product Catalogue
INVRPT Inventory Report
RECADV Receiving Advice
CONTRL Functional Acknowledgement

Interchange

An Interchange is the complete EDIFACT transmission exchanged between two trading partners.

It may contain:

  • One message

  • Multiple messages

  • Multiple message types

The interchange is wrapped by control segments.


UNA Segment

The UNA Segment defines separators used throughout the message.

Example:

UNA:+.? ‘

It specifies characters used for:

  • Data element separation

  • Component separation

  • Decimal notation

  • Escape characters

  • Segment termination


UNB Segment

The UNB (Interchange Header) identifies the interchange.

Example information includes:

  • Sender

  • Receiver

  • Date and time

  • Interchange reference number

The UNB segment marks the beginning of an interchange.


UNZ Segment

The UNZ (Interchange Trailer) closes the interchange.

It contains:

  • Number of messages

  • Interchange control reference

UNZ ensures completeness of the transmission.


UNH Segment

The UNH (Message Header) identifies a specific message within an interchange.

Example:

UNH+1+ORDERS:D:23A:UN’

This indicates:

  • Message reference number

  • Message type

  • Version

  • Release


UNT Segment

The UNT (Message Trailer) marks the end of a message.

It includes:

  • Segment count

  • Message reference number

This helps validate message completeness.


Qualifier

A Qualifier provides additional meaning to a data element.

Example:

DTM+137:20260614:102′

Here:

  • 137 means “Document Date”

Without qualifiers, systems would not know how to interpret values.


Code List

A Code List contains standardized values used throughout EDIFACT.

Examples:

Code Meaning
BY Buyer
SU Supplier
DP Delivery Party
IV Invoicee

Using codes ensures consistency across organizations.


Trading Partner

A Trading Partner is an organization exchanging EDIFACT messages with another organization.

Examples:

  • Retailer and Supplier

  • Manufacturer and Logistics Provider

  • Importer and Customs Authority

Trading partners agree on implementation guidelines and communication methods.


Implementation Guideline (MIG)

A Message Implementation Guideline (MIG) defines how a specific EDIFACT message should be used within a business relationship.

A MIG typically specifies:

  • Mandatory segments

  • Optional segments

  • Allowed codes

  • Business rules

  • Validation requirements

Although EDIFACT is standardized, MIGs ensure consistent implementation between partners.


CONTRL Message

The CONTRL Message is an acknowledgment message used in EDIFACT.

It confirms:

  • Successful syntax validation

  • Message acceptance

  • Message rejection

CONTRL focuses on technical validation rather than business processing.


Syntax Version

EDIFACT messages are released in versions and directories.

Examples:

  • D.96A

  • D.01B

  • D.10A

  • D.23A

Different industries and organizations may support different versions.


Typical EDIFACT Message Structure

A simplified purchase order might look like:

UNA:+.? ‘
UNB+UNOC:3+BUYER+SUPPLIER+260614:1000+12345′

UNH+1+ORDERS:D:23A:UN’

BGM+220+PO123456+9′

DTM+137:20260614:102′

NAD+BY+123456789::9′
NAD+SU+987654321::9′

LIN+1++123456789:EN’
QTY+21:100′

UNT+9+1′

UNZ+1+12345′

This message contains:

  • Interchange header

  • Purchase order information

  • Trading partner details

  • Product information

  • Quantities

  • Message trailer

  • Interchange trailer


EDIFACT vs. AS2

Feature EDIFACT AS2
Purpose Document Format Standard Transport Protocol
Defines Message Structure Yes No
Defines Communication Method No Yes
Used For Business Documents Message Delivery
Typical Combination EDIFACT over AS2 Transporting EDIFACT

A common misconception is that EDIFACT and AS2 are competing technologies.

In reality:

EDIFACT defines the content, while AS2 defines how the content is transported.

A typical B2B integration often uses:

EDIFACT → AS2 → Trading Partner


Advantages of EDIFACT

Global Standardization

Provides a common language for international trade.

Automation

Reduces manual processing and human errors.

Scalability

Supports high transaction volumes across complex supply chains.

Interoperability

Enables communication between different systems and organizations.

Compliance

Widely accepted by retailers, manufacturers, logistics providers, and government agencies worldwide.

Summary

EDIFACT is a globally recognized EDI standard used to exchange structured business documents electronically between trading partners. It defines a consistent message format based on segments, data elements, qualifiers, and standardized message types such as ORDERS, INVOIC, and DESADV.

While EDIFACT specifies what information is exchanged, transport protocols such as AS2, SFTP, and OFTP2 determine how that information is delivered. Understanding concepts such as segments, interchanges, message types, qualifiers, and implementation guidelines is essential for successfully implementing and managing EDIFACT-based integrations.