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  4. What is Electronic Data Interchange (EDI)?
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  3. E-invoicing
  4. What is Electronic Data Interchange (EDI)?

What is Electronic Data Interchange (EDI)?

EDI (Electronic Data Interchange) is the technical term for the standardized exchange of digital information between two parties via their ERP, accounting or billing system. The most common form is the e-invoice, but you can also exchange orders, despatches, responses, catalogs, etc.

EDI is not a global format. For example, in Europe, a standard called Edifact is used, while the United States uses ANSI X12.

Based on these standards, many local formats and customizations have been developed, such as Svefaktura and Finvoice. Unfortunately, the large variety of formats means that e-invoices often have to be converted, making e-invoice management complex and expensive.

With the European standard Peppol, e-invoicing is more accessible with greater usability. The public sector must comply with EU legislation, which drives suppliers and other businesses to join.

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