What is the name for direct computer-to-computer transfer of transaction information contained in standard business documents.
Question
What is the name for direct computer-to-computer transfer of transaction information contained in standard business documents?
Solution
The process of direct computer-to-computer transfer of transaction information contained in standard business documents is known as Electronic Data Interchange (EDI). EDI allows businesses to communicate data with each other in a standardized format without the need for human intervention. This technology is widely used for various business transactions such as purchase orders, invoices, shipping notices, and many other standard documents.
EDI offers several advantages, including improved accuracy due to reduced manual data entry, faster transaction processing, and the ability to streamline supply chain operations. By automating the exchange of information, organizations can reduce errors, cut down on paperwork, and save time and costs associated with traditional communication methods. EDI can operate over various communications protocols and incorporates standardized formats like ANSI X12 and EDIFACT for effective data exchange across different industries.
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