electronic data interchange (EDI)

What is electronic data interchange (EDI)?

electronic data interchange (EDI) definition and meaning on Finance terms:
The exchange between commercial entities (in some cases also public administrations), in a standardised electronic format, of data relating to a number of message categories, such as orders, invoices, customs documents, remittance advices and payments. EDI messages are sent through public data transmission networks or banking system channels. Any movement of funds initiated by EDI is reflected in payment instructions flowing through the banking system. UN/CEFACT, a United Nations body, has established a set of standards relating to electronic data interchange for administration, commerce and transport (EDIFACT). <


reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html