Electronic Data Interchange (edi)

Article 2 of the EC Recommendation 1994/820/EC defines EDI as “the electronic transfer, from computer to computer, of commercial and administrative data using an agreed standard to structure an EDI message.” EU Directive 2001/115/EC allows the use of EDI invoices: "by means of electronic data interchange (EDI) as defined in Article 2 of Commission Recommendation 1994/820/EC of 19 October 1994 relating to the legal aspects of electronic data interchange (10) when the agreement relating to the exchange provides for the use of procedures guaranteeing the authenticity of the origin and integrity of the data; however Member States may, subject to conditions which they lay down, require that an additional summary document on paper is necessary."

The following questions have been addressed in this article:

How is EDI useful to businesses?
What is the general mechanism of EDI?

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