A to Z of EDI

1. Article1: Datatrans-inc.com A to Z of EDI In simple terms, electronic data interchange (EDI) stands for electronic interchange of business information in a standard format. What Is Electronic Data Interchange? (EDI) In technical terms, electronic data interchange is an electronic communication method that provides the standards for exchanging data via any electronic means. Electronic Data Interchange was introduced to create a common format and standard which different companies can follow from across the globe to electronically exchange information. By adhering to the common standard, both the companies involved in the electronic data interchange can have information presented in a uniform format. What Type Of Information Can Be Passed Under EDI? The electronic data exchange includes documents like purchase orders, invoices, shipping notices and others. The electronic data interchange formatcan be altered to suit the needs of specific industries or regions because it is a family of standards that can be used individually and combined together to form different formats. How Does EDI Help? There are many benefits of EDI: It replaces the main hassle of traditional business communication – mail preparation and handling It standardizes the information communicated Makes business documents more legible and clear based on a prearranged format Can make communication entirely paperless – obviously helping the environment Offers various process improvements Reduces the middle steps of actually printing out information only for it to be scanned and stored in another computer at the receiving end. Minimizes manual effort involved in preparation and mailing of bills for each transaction since an existing format is already in place.

2. Article1: Datatrans-inc.com What Is The HIPAA EDI Standard? The Health Insurance Portability and Accountability Act were enacted by the US Congress in 1996. This was aimed towards establishment of national standards for electronic health care transactions and national identifiers for providers, health insurance plans and employers. The HIPAA standards were introduced to improve the efficiency and effectiveness of the North American Healthcare system. Modern day EDI transactions are expected to follow the X12. The EDI X12 is a data format based on the ASC X12 standards used to exchange specific data between two or more trading partners. What Is A HIPAA 837 Transaction? The EDI heath care claim transaction set (EDI 837) is used to submit health care claim billing information, encounter information or both. It can be between the healthcare services and the payers and can be sent directly or via intermediary billers and claims clearing houses including insurance claimers. What Is EDI Software? If a company wants to manage their own EDI environment, they may want to implement the EDI software, behind their company’s firewall. But this is advisable only when the company has the right internal resources to implement and maintain the EDI transactions and their details continually. There are many constraints including mapping different document types, connecting the various business partners, integrating other business applications including accounting packages and ERP software not to mention the exhaustive IT resources that must be involved in maintaining it by upgrading the software environment when required. DataTrans Solutions, Inc. provides a broad range of quality EDI solutions for companies that help them communicate business data electronically. ABOUT THE AUTHOR Gabriel Martin has written many articles and blogs about the EDI, e-commerce and data management solutions. He recommends DataTrans Solutions, Inc. for providing quality, timely, and accurate EDI and B2B outsourcing solutions for to its customers.