Analyzing EDI messages with Azure Functions – a deep dive

Introduction

Why is it necessary to analyze EDI messages?

Anyone who has ever worked extensively with EDI – Electronic Data Interchange knows how important it is to carefully analyze EDI messages to ensure efficient communication between business partners. A precise analysis of the message format ensures compliance with EDI standards such as EDIFACT or ANSI X12, which is especially important in complex business environments with many customers and suppliers. 

But message content analysis goes beyond mere syntax: it also brings errors and inconsistencies to light. This is essential, especially in industries where data accuracy is of the utmost importance. 

The rising of revolutionary technologies, such as artificial intelligence (AI) and machine learning, also offers a wide range of future-oriented possibilities and opportunities that take the analysis of EDI messages to a new level.

These technologies not only detect errors at an early stage, but also certain patterns. Extensive knowledge can therefore be generated from the analyzed data. Companies that use AI in EDI analysis not only optimize their business processes, but also gain data-based insights.
The in-depth analysis of EDI messages and the knowledge gained from it thus become a strategic tool for companies that want to increase their competitiveness and meet the challenges of a constantly changing business world.

Companies that exploit the potential of AI applications in EDI message analysis are therefore optimally positioned for successful and future-oriented corporate development. 

Using Python in Azure Functions for web service setup

The German e-invoicing regulation Azure Functions are an extremely useful toolbox for analyzing EDI messages: for example, they can be configured to automatically respond to incoming EDI messages. They can also monitor the incoming message stream and trigger actions as needed, such as parsing messages, extracting relevant information, or validating against specific business rules, and much more.

Let's now look at how Azure Functions can be used in combination with Python to create web services.

Using Python in Azure Functions to set up web services has a number of advantages. Azure Functions, a serverless platform from Microsoft, provides a scalable and cost-effective environment for executing code in response to events. The main advantage of using Python is its versatility and clear syntax. Developers can use their existing Python skills to quickly and efficiently create serverless functions. 

Python's integration with Azure Functions enables a smooth connection with various Azure services and APIs, making it easier to develop applications that access different resources and data sources.

Working with Python also allows you to use the wide range of Python libraries und -Frameworks. Ein weiterer Vorteil ist die automatische Skalierbarkeit von Azure Functions, um Ressourcen effizient einsetzen und schnell auf Lastspitzen reagieren zu können.

EDI-Nachrichten analysieren mit Python und Azure Functions

The integration of Python in Azure Functions is also beneficial for data-intensive applications. By integrating Python in Azure services such as Azure Machine Learning or Azure Cognitive Services , developers can create patent applications using machine learning or AI functions. 

Using Python in Azure Functions enables agile and efficient development and deployment of serverless functions.

Python also impresses with its user-friendliness and, in combination with Azure Functions, helps you to respond quickly to business requirements. The Python – Azure Functions tandem is also extremely helpful for developing innovative cloud applications.

In the following deep dive, you will learn everything you need to know about analyzing EDI messages and how Azure Functions in combination with Python can help you do it.

What is an EDI message?

Electronic messages – a brief foray into the world of EDI

A new era dawned many decades ago with the advent of Electronic Data Interchange, or EDI for short: from then on, business information could be standardized and communicated electronically. This means that messages such as order confirmations and invoices can be sent and received efficiently and in digital form. Based on standards such as EDIFACT or XML, EDI defines the structure, syntax and semantics of the data to ensure a consistent interpretation across different systems. 

The key advantage of EDI lies in the automation of business processes. By integrating orders into Enterprise Resource Planning (ERP) systems, EDI reduces manual tasks and minimizes errors, significantly increasing business efficiency. 

Security also plays a significant role in EDI: advanced measures are used to ensure the confidentiality and integrity of sensitive business information during data exchange. 

Furthermore, choosing the right EDI standard is crucial and depends on the industry, business processes and specific requirements. Companies need to understand that implementing EDI is not just about the technology; it also affects business processes and partnerships.


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The importance of data formats and EDI protocols

In order for EDI messages to reach their destination, they must be in a specific data format, depending on the requirements.

Common formats or EDI standards include, for example, EDIFACT, XML or JSON, each of which has its own specific advantages and properties. XML (Extensible Markup Language) and JSON (JavaScript Object Notation) are text-based data formats that score points for flexibility and good readability. XML is widely used and ensures a structured presentation of data, while JSON is often used in web applications due to its simplicity and efficiency in data transmission. 

EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) is an international standard for exchanging structured data between companies. It uses a text-based syntax and covers various industries, making it particularly suitable for global data exchange. The selection of the appropriate format always depends on the individual requirements and the industry. 
The selection of the appropriate format always depends on the individual requirements and the industry.

 To send messages electronically, however, you need not only suitable data formats but also sensible protocols: AS2 (Applicability Statement 2) and AS4 (Applicability Statement 4) have proven to be particularly secure and reliable protocols for data transmission via the internet. AS2 offers encrypted data transmission and authentication methods, while AS4 is based on standards such as web services and ebXML, thus ensuring greater interoperability. Both protocols are in particular demand in security-critical environments, such as the financial sector.

EDI – Elektronischer Datenaustausch

 

Message types and categories

Message types and message categories refer to various aspects of structuring EDI messages. The importance of both lies, in terms of EDI, in the standardization of information exchange between companies. These serve as structured formats for various business documents.

Categorization creates an orderly organization and simplifies the processing, monitoring and analysis of business data.

  • Message types Message types define the content and format of an EDI message. They specify what types of information are included in a particular message and how that information is structured. Examples of message types are “Purchase Order”, “Invoice”, “Advance Shipping Notice”, etc. Each message type has a specific message structure that is agreed upon by the parties involved.
  • Message categories group message types according to their purpose or function. They help to organize and classify different types of messages. Message categories can be industry-specific or represent certain business processes. Examples of message categories are “Procurement”, “Logistics”, “Finance”, etc. These categories help companies to efficiently manage and interpret EDI messages by dividing them into thematic groups.

In summary: message types deal with the content and format of an EDI message, while message categories classify groups of message types according to their purpose or function. Both are important for the effective use of EDI in business communication.

Structure of Microsoft Azure Functions

Setting up an Azure Function project

Azure – that's the name of Microsoft's extensive cloud computing platform, and it offers a wide range of services for creating scalable and efficient applications. One such service is Azure Functions, which provides serverless functions to execute code in the Cloud – a practical tool box. 

To set up an Azure Functions project, you first need to create or sign in to an Azure account . You can create or sign in to an account on the official Azure website. 

Once the Azure account is ready, the Azure Functions are set up in the Azure portal. To do this, open the portal, search for the Azure Functions resource, create a new functions project and enter the required details such as subscription, resource group, function language and function storage. 

The development environment is established by installing Visual Studio Code and the Azure Functions extension pack. A new function project is created in VS Code, selecting the desired language and function type. 

The actual function code is implemented according to the requirements in the development environment and tested locally.
Finally, you configure the application variables and, if necessary, external dependencies, such as NuGet packages for C#projects, can be added.

For deployment, you should make sure that the Azure account is logged into the development environment. The function is then published in Azure either directly from the development environment or using the Azure CLI or other tools. 
Finally, you configure logging and monitoring. Using Azure Application Insights or other monitoring services provides detailed insights into the performance and behavior of the function.

Using Python in Azure Functions

In the world of cloud computing platforms, Microsoft Azure is a compelling choice thanks to its versatility and practical features. Since Azure Functions is a server-less service , there is no need to worry about infrastructure when executing code in the cloud. Another particularly useful aspect of Azure Functions is its support for Python, which is arguably one of the most popular programming languages in the world.

An efficient duo: Python and Azure Functions
  • Easy integration: Python can be easily integrated into Azure Functions, which significantly simplifies the development and deployment processes. There is no need to configure servers or manage resources, and the transition from on-premises development environments to cloud-based solutions is effortless.
  • from simple scripts to complex data processing tasks, developers can use Python to create functions that automatically respond to events in Azure. This ranges from processing data changes in From simple scripts to complex data-processing tasks, developers can use Python to create functions that respond automatically to events in Azure. This ranges from the processing of data changes in Azure Storage to responding to incoming HTTPrequests and integrating events from Azure Event Grid.
  • Scalability and performance: Azure Functions automatically scales to respond to requests. In addition, Python comes with a wide range of libraries and frameworks that support the implementation of powerful functions for tasks such as machine learning, data analysis and more.
  • Support for serverless architectures: Azure Functions eliminates the need for on-premises servers, making them completely unnecessary. This results in efficient and cost-effective coding, since you only pay for the resources you actually use, as well as agile development and application deployment.
  • Developer-friendliness: Python is known for its clear and readable syntax, which makes developing and maintaining code easier. Using Python in Azure Functions promotes a developer-friendly environment for quickly and efficiently creating high-quality applications. 

Integration of required modules and libraries

When developing Azure Functions, it is important to integrate the required modules and libraries. To optimize this process, we recommend using a requirements.txt file. This text file can be used to list all modules and libraries, including their versions.

Python Magic and Azure Functions:

The combination of Magic and Azure Functions libraries can help an Azure Function detect the file type of files via an HTTP request.  

The magic library, also known as Python Magic or File-Magic, makes it possible to recognize the file type (MIME type) of files without relying on file extensions. This library uses various mechanisms such as file signatures and magic numbers to determine the file type. This is particularly useful when files without recognizable extensions are to be processed or when the integrity of files is to be verified. 

The Azure Functions library is specifically designed for developing applications in Azure Functions. This library provides functions and classes that make it easier to handle various Azure Functions triggers and bindings. 

EDI message analysis

EDI files usually have a standardized structure to ensure a smooth exchange of information. The exact structure can vary depending on the specific standards and protocols agreed upon by the parties involved. However, here is a general description of the typical structure of an EDI file: 

  • Header segment: this is at the beginning of an EDI file and contains basic information about the entire message (e.g. sender, recipient, message type, time of transmission, etc.)
  • Segments: most EDI files consist of one or more segments. A segment is a group of data that represents a specific business unit or transaction. Each segment begins with a segment identifier and ends with a separator.
  • Data elements: each segment contains data elements that represent specific information. Data elements are individual data points within a segment. These can be numeric, alphanumeric or formatted as a date.
  • Segment identifier: each segment is identified by a unique segment identifier that indicates what type of information the segment contains. For example, a “NAD” (Name and Address) segment may contain information about a party's name and address.
  • Control segments: there may be control segments at the end of the EDI file that contain summaries and checksums to ensure the integrity of the entire messages.
  • Footer segment: similar to the header, the footer segment at the end of the EDI file contains information about the closing tag of the message and possibly also statistics or checksums.

It should be noted that the exact structure of an EDI file depends heavily on the specific standards agreed between the business partners. Common standards include ANSI X12, EDIFACT, JSON , and many others, depending on the industry and use case.


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Extraction of the message type

Extracting the message type from an EDI file is dependent on the specific standard used in the file. General steps for message type extraction include: 

  • Header segment identification: the header segment in the EDI file is recognized, which usually contains information about the message type and other basic details.
  • Search for the segment identifier: within the header segment, locate the segment identifier that indicates the message type. This could be a special field such as “ST01” (Transaction Set Identifier Code) in ANSI X12.
  • Message type extraction: the value of the segment identifier is extracted to determine the message type. This value provides information about the type of transaction or business message involved.
  • Use of standard documentation: the documentation of the specific EDI standard used in the file is consulted. This contains information about which segment identifier values correspond to which message types.
  • Programmatic extraction: when processing EDI files automatically, a so-called parser or software that supports the EDI standard is often used. Many EDI parsers can automatically extract the message type and make the relevant information accessible.

Determining the message category

The process of determining the message category in an EDI file varies depending on the applied standard and the specifications of the industry guidelines. The process is similar to that of message type extraction:

  • Identification of the header segment: in this case, too, the header segment is recognized in the EDI file, which contains basic information about the message.
  • Search for a field that identifies the message category: within the header segment, a specific field is searched for that indicates the message category. This may be named differently depending on the standard, for example, “BGM” (Begin of Message) in EDIFACT or “ST01” (Transaction Set Identifier Code) in ANSI X12.
  • Extraction of the value of the field: the value of the field indicating the message category is extracted. This value should provide clues as to what type of message it is.
  • Use of standard documentation: the documentation of the specific EDI standard and industry guidelines should be consulted to determine which values of the identified field are assigned to the various message categories.
  • Programmatic extraction: use of a parser or software that supports the EDI standard and specific industry guidelines when processing EDI files. This allows message categories to be extracted automatically.

Message ID identification

The way in which the message ID is recognized in an EDI file depends on the applied standard. Again, the procedure is similar to that for message type and category:

  • Header segment identification: the header segment in the EDI file contains basic information about the entire message.
  • Search for a field containing the message ID: within the header segment, a specific field is searched for that indicates the message ID. This may be named differently depending on the standard, for example “ST02” (Transaction Set Control Number) in ANSI X12 or “UNHO2” (Message Reference Number) in EDIFACT.
  • Extracting the value of the field: the value of the field containing the message ID is extracted. This value should represent the unique identifier of the EDI message.
  • Use of standard documentation: the documentation for the specific EDI standard indicates which field contains the message ID and how it is used.
  • Programmatic extraction: Parsers or certain software can also help to automatically extract the message ID.  

Implementation of the functionalities

To ensure that EDI messages are processed efficiently, attention should be paid to implementation and functionality. Robust and flexible solutions need to be developed to analyze, extract, and identify information. Python is an extremely advantageous programming language for this task due to its versatility, clear syntax, and the availability of powerful libraries. The following section highlights three key aspects of implementation that help to make EDI processing in Python efficient and effective.

Python code for message analysis 

Using Python code to analyze EDI messages enables precise and fast processing. Python's easy-to-understand syntax and powerful data structures provide an ideal environment for implementing analysis algorithms.  

The flexibility of Python makes it possible to create customized analysis tools that can be easily adapted to specific requirements and EDI standards. This not only makes the code easier to read, but also helps to optimize analysis processes and adapt them to changing requirements.

Using key libraries for EDI analysis

Using specialized libraries for EDI analysis makes implementation much easier. Plus, Python comes with a variety of libraries designed for processing EDI files. By incorporating such libraries into the development process, developers can access proven functions that make analyzing, validating, and transforming EDI data more efficient. This ultimately leads to shorter development times, reduced maintenance, and overall higher code quality.

Integration of functions for extraction and identification

Incorporating extraction and identification functions is important for accurately capturing relevant information from EDI messages. Python allows you to create custom functions that are tailored to specific requirements. Combining built-in Python functions and custom extraction algorithms allows data to be extracted accurately and flexibly. This makes it easier to identify message characteristics and promotes the reusability of functions across different EDI standards. 

Use of web services

Deploying a web service marks a key step in implementing Azure Functions. This section therefore covers the essential aspects required for deployment, and discusses in detail the configuration of Azure Functions, security considerations, and important authentication aspects.

Configuring the Azure Functions for the web service

Configuring Azure Functions with precision is certainly the basis for an effective web service. The following application examples explain best practices for configuring Azure Functions, including how to set routes, parameter settings, and how to select suitable output formats. The detailed instructions will help developers learn how to optimally configure Azure Functions so that it can be seamlessly integrated as a web service.

Security considerations and authentication

We will examine the security and authentication aspects that are important when using Azure Functions. From implementing access controls to selecting appropriate authentication methods, we will present best practices for maintaining web service integrity and preventing unauthorized access.

Testing the functions

You can't have a successful web service without a thorough testing process. This section is dedicated to testing Azure Functions and covers various aspects, including functionality, performance, scalability, and reliability. Through practical examples and effective testing strategies, developers will learn how to ensure that their Azure Functions are functioning optimally as a web service and meeting requirements. 

Examples of use cases

We present three example scenarios that illustrate the practical use of EDI processing and analysis using Python. From analyzing an AS2 message to identifying specific message types and extracting key information from an XML message, these examples provide insights into the versatility and power of Python in EDI integration. 

Scenario 1: analysis of an AS2 message 

Goal: to check and analyze an incoming AS2 message for validity, integrity, and completeness.
Actors involved: AS2 sender: the organization or system sending the AS2 message. AS2 receiver: the organization or system receiving and parsing the AS2 message.
Prerequisites: the AS2 receiver is properly configured and able to receive AS2 messages. There is an incoming AS2 message.
Process:
  • Receiving the AS2 message: the AS2 message is received by the AS2 recipient. The message is stored in the AS2 recipient's input buffer.
  • Decryption and decompression (if necessary): the AS2 message is decrypted if it is encrypted. If the message has been compressed, it is decompressed.
  • Integrity Check: the integrity of the AS2 message is verified by comparing the message digest (hash value) If the check fails, the message is marked as incorrect.
  • Authenticity verification: the digital signature of the AS2 message is verified to ensure the authenticity of the sender. If the signature is invalid, the message will be marked as inauthentic.
  • AS2 header validation: the AS2 header information, including sender and recipient identification, is verified. Invalid or missing header information will result in the message being marked as incorrect.
     
  • Processing the user data: the user data of the AS2 message is processed depending on the application (e.g. extraction of business data).
     
  • Creation of a receipt (MDN): if configured, a receipt (Message Disposition Notification – MDN) is created and sent back to the AS2 sender.
     
  • Logging and recording: all analysis steps are documented in a log to enable traceability and error diagnosis. 
Postconditions: the AS2 message was successfully parsed and the required steps were carried out according to the defined rules and security policies. A receipt notification (MDN) was generated and sent if applicable.
Alternative Scenarios: if there is an error in one of the analysis steps, the AS2 message is marked as faulty and an error message is generated. If an MDN cannot be generated or sent, a corresponding note is recorded in the log. This use case describes the process of analyzing an AS2 message and emphasizes the security and integrity aspects during the receiving process.

Scenario 2: Identifying an invoice message 

Goal: to identify and extract relevant information from an incoming message in order to determine whether it is an invoice message.
 
Actors involved: system (recipient): the system that analyzes the incoming message and checks it for invoice information.
 
Prerequisites: the system is ready for operation and can receive messages. There is an incoming message to be verified.
Process
  • Receiving the message: the system receives the incoming message and stores it temporarily.
  • Message content analysis: the system analyzes the content of the message, in particular structured and unstructured data.
  •  Identification of key terms: the system identifies key terms that may indicate an invoice message, such as “invoice”, “amount”, “due date”, etc.
  • Data extraction: relevant data is extracted, including sender, recipient, invoice date, invoice number and amount.
  • Validating billing information: the system validates the extracted information to ensure that it matches the expected billing data. 
  • Decision: based on the extracted and validated information, the system decides whether or not the message is an invoice.
  • Further processing: if an invoice message is identified positively, the data is processed further, e.g. for accounting purposes or to trigger payment processes. If the result of the identification process is negative, the data is marked accordingly or can optionally be forwarded for manual review. 
  • Logging: all steps and decisions are logged to enable traceability and review.  
Postconditions: the system has successfully identified whether the message is an invoice. The relevant information has been extracted and validated. The results of the process are recorded in a log.
Alternative scenarios: if the billing information cannot be successfully extracted or validated, the message is marked as non-identifiable. In case of uncertainty, the system can generate a notification for manual review.

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Scenario 3: extracting message IDs from an XML message

 Goal: extract the message ID from an XML message to uniquely identify messages.
Actors involved: system (processor): the system that receives the XML message and extracts the message ID.

Prerequisites: The system is operational and can receive XML messages. There is an XML message that contains a message ID.

Process
  • Receiving the XML message: the system receives the XML message and stores it temporarily.
  • XML structure analysis: the system analyzes the structure of the XML message to identify the element that contains the message ID.
  • Extraction of the message ID: based on the analyzed structure, the system extracts the message ID from the corresponding XML element.
  • Message ID Validation: the extracted message ID is checked for validity to ensure that it meets the expected format or integrity requirements.
  • Further processing: the extracted and validated message ID can be used for further processing steps, for example to trigger a specific action for the message.
  • Logging: all steps, including the extracted message ID and any validation results, are logged to ensure traceability. 
Postconditions: the message ID has been successfully extracted and validated. The extracted message ID is available for further processing steps. The results of the process are recorded in a log.
Alternative scenarios: if the message ID cannot be successfully extracted or validated, the process is marked as unsuccessful and an error message is generated. If required, the system can generate a notification for manual review if uncertainties arise during extraction. 

Conclusion

Summary of the advantages of Python in Azure Functions for EDI analyses 

The integration of Python in Azure Functions for analyzing Electronic Data Interchange (EDI) has proven to be very beneficial. The flexibility and versatility of Python, combined with the powerful features of Azure Functions, open up a wide range of possibilities for efficiently processing EDI messages. The advantages can be summarized as follows: 

  • Easy-to-understand syntax: Python offers a clear and simple syntax that makes developing and maintaining code easier. This helps to make EDI analysis clear and accessible.
  • Extensive libraries: the rich collection of libraries in Python enables the rapid implementation of functions for EDI analysis. The use of specialized libraries improves the efficiency and quality of implementation.
  • Azure Functions for serverless architecture: the serverless architecture of Azure Functions ensures scalable and cost-efficient EDI processing. Python can be perfectly integrated into this environment to ensure efficient resource utilization.
  • Fast development and customization: Python allows for agile development, which is especially important when EDI standards change or new requirements arise. Python's rapid adaptability makes it easy to implement changes.
  • Interoperability: Python offers excellent interoperability with other languages and platforms, making it easy to integrate EDI analysis into existing systems. 

Outlook on possible extensions and optimizations

The continuous development of EDI standards and business requirements opens up room for expansions and optimizations. A look at possible developments includes: 

  • Expansion of format support: the integration of further EDI formats and standards can expand the applicability of the solution and meet the requirements of different industries.
  • Implementing machine learning: the integration of machine learning can help to identify patterns in EDI data, make automatic decisions, and improve the predictability of business processes.
  • Optimizing scalability: fine-tuning the scalability of Azure Functions and adjusting resources can further optimize performance and response times.
  • Enhanced security measures: in view of the increasing cyber threats, the implementation of additional security mechanisms and encryption technologies is highly relevant. 

In any case, the combination of Python and Azure Functions provides a solid foundation for EDI analysis. With a clear view of future developments, organizations can further optimize their EDI processing and meet the changing demands of the digital business world. 

References

References to libraries and resources used 

Van Rossum, G., & Drake, F. L. (2003). Python 2.2.2 documentation, Python Software Foundation:  

Python Standard Library Documentation (2024). Python Software Foundation:

Links to Azure Functions documentation and Python integration 

Python on Azure | Microsoft Azure (2024). Microsoft:

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