Configuration of target schema depends on the type of data you are receiving from partner.

If sending EDI Data to partner
This target schema (EDI) defines the layout of the output data that you want to generate from outbound data.
For details on creating an EDI schema, refer to Creating EDI Schema section.

If sending Non EDI Data to partner
To process non-EDI data, you do not need to create the EDI Schema. In case of non-EDI data, you need to create the schema based on the format of outbound data. For example, if the outbound data is a positional file, you have to create a positional schema.