Journal of Accounting and Management Information Systems (JAMIS)

Advantages and disadvantages of Electronic Data Interchange

11-12/2005 ,   p235..240

Alexandru GAVRILA

Keywords:   EDI, EDIFACT, ONU Standards, Communication protocols


EDI or Electronic Data Interchange is defined as: The electronic communication of business transactions; specifically the exchange of trade-related documents, such as purchase orders, invoices and corporate Electronic Funds Transfer (EFTs) in a standard format. With EDI, electronically transmitted data replaces paper documents in the business accounts receivable cycle. As more and more companies get connected to the Internet, EDI is becoming increasingly important as an easy mechanism for companies to buy, sell, and trade information. This article presents in a comparative manner the advantages and the disadvantages of using EDI and its improvements - EDIFACT/ONU (Electronic Data Interchange for Administration, Commerce and Transport, the international EDI Standard as developed through the United Nations).