Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard electronic business documents between organizations. EDI replaces faxing and mailing paper documents and allows documents like purchase orders and invoices to flow straight to recipient computer systems. EDI documents use specific standard formats like EDIFACT and ANSI X12 so they can be processed electronically without human intervention.
Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard electronic business documents between organizations. EDI replaces faxing and mailing paper documents and allows documents like purchase orders and invoices to flow straight to recipient computer systems. EDI documents use specific standard formats like EDIFACT and ANSI X12 so they can be processed electronically without human intervention.
Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard electronic business documents between organizations. EDI replaces faxing and mailing paper documents and allows documents like purchase orders and invoices to flow straight to recipient computer systems. EDI documents use specific standard formats like EDIFACT and ANSI X12 so they can be processed electronically without human intervention.
Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard electronic business documents between organizations. EDI replaces faxing and mailing paper documents and allows documents like purchase orders and invoices to flow straight to recipient computer systems. EDI documents use specific standard formats like EDIFACT and ANSI X12 so they can be processed electronically without human intervention.
Download as PPTX, PDF, TXT or read online from Scribd
Download as pptx, pdf, or txt
You are on page 1/ 10
EDI
DEFINITION Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners.
EDI replaces the faxing and mailing of paper documents.
EDI documents use specific computer record formats that are based on widely accepted standards. Computer-to-computer EDI replaces postal mail, fax and email. While email is also an electronic approach, the documents exchanged via email must still be handled by people rather than computers. Having people involved slows down the processing of the documents and also introduces errors. Instead, EDI documents can flow straight through to the appropriate application on the receivers computer (e.g., the Order Management System) and processing can begin immediately.
Business documents These are any of the documents that are typically exchanged between businesses. The most common documents exchanged via EDI are purchase orders, invoices and advance ship notices.
Standard format Because EDI documents must be processed by computers rather
than humans, a standard format must be used so that the computer will be able to read and understand the documents. EDI standards in use today, including ANSI, EDIFACT. EDI Layered Architecture 1)Semantic (application layer) 2)Standard transaction layer 3)Packing (transport) layer 4)Physical n/w infrastructure layer.
1)Semantic layer:- It describes the business application that is driving EDI.
For a procurement application, this translates into requests for quotes, price quotes, purchase orders, acknowledgements & invoices.
2)Standard transaction layer :- The information seen at this layer must be translated from a company specific form to a more generic form so that it can be send to various trading partners, who could be using a variety of software applications at this end.
The most two important standards are:-
- EDIFACT - ANSI X12 EDI Layered Architecture EDI vs. Paper- based method
EDI Paper- based method
The inventory system automatically The buyers procurement system, notifies the buyer to place an order, or, which utilizes EDI software, after querying the inventory system, automatically generates and the buyer determines that an order needs to be created sends an EDI-formatted PO when The buyer enters data onto the screen inventory reaches the critical of a purchasing system to create the level PO, prints and mails it Within minutes the vendors sales After several days, the vendor receives order system, utilizing EDI the PO and manually enters it into the software, receives the EDI PO, sales order system notifies the shipping department The vendor prints an invoice and to ship the goods and generates encloses it with the shipment and/or sends it separately by mail an EDI invoice to be transmitted The buyer manually enters the invoice directly to the buyers accounts into the Accounts Payable system payable system Structure of EDI Transactions 1. Transaction set 2. Data Element 3. Segment
In the EDI language, a single business document, such as a purchase order, invoice or advance ship notice, is called a transaction set or message. And, a transaction set is comprised of data elements, segments and envelopes. The data elements in an EDI Transaction Set are the individual items of information within the document. For example, within many documents, such as the purchase order and invoice, you will find data elements such as city, state, country, item number, quantity and price. Data type of numeric, alphanumeric, date or time.
