The data element is the smallest named unit of information in the X12 standard. Data elements can be broken down into types. The distinction between the types is strictly a matter of how they are used. The types are:
Simple – If a data element occurs in a segment outside the defined boundaries of a composite data structure, it is called a simple data element.
Composite – If a data element occurs as an ordinally positioned member of a composite data structure, it is called a composite data element. A telephone number is a simple example of a composite. It has a three-digit area code, which must precede the three-digit central office code, which must precede the final four digits.
Each data element has a unique reference number, and it also has a name, description, data type, and minimum and maximum length.