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EDI Gateway Attains Gold Certified Partner Status in Microsoft Partner Program |
| 29-08-2008 |
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How does EDI Work | Most Common EDI cycle? | What are EDI Benefits? | EDI Transactions
| How does EDI Work? |
Purchase Ordering Example
- The buyer enters order information into the production database, which generates a purchase order on the computer. The order information is then channeled through a number of interface programs.
- The interface software programs perform edits and checks on the document and direct the order data into predefined EDI intermediate files.
- The EDI intermediate files contain information in a form that the EDI translation software can read.
- The translation software is a set of programs that translates the interface file data into a document formatted according to EDI standards that the supplier's computer can recognize.
- The electronic document now consists of a file that contains the order data in a predefined, recognizable order.
- The communications software adds appropriate communications protocols to the EDI document in preparation for transmission via telephone lines.
- Using a modem and telephone line, the buyer transmits the EDI purchase order to a VAN (Value added network). Think of this as a mailbox.
- The communications software on the supplier's computer picks up the document from the VAN, interprets and/or converts the communications protocols to open the electronic document.
- The purchase order is now in a standard, recognizable format in a file and is available to the supplier's computer.
- The supplier's translation software interprets the documents from the EDI format and places the order information in EDI intermediate file(s).
- The EDI intermediate files contain the translated purchase order information.
- The interface programs perform edits and checks before the data is integrated with the supplier's production database.
- The application software on the supplier's computer can now process the buyer's order.
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| What is the most common EDI cycle? |
- Customer transmits EDI 850 (purchase order)
- Supplier transmits EDI 997 (functional acknowledgement)
- Supplier transmits EDI 856 (advance ship notice)
- Customer transmits EDI 997 (functional acknowledgement)
- Supplier transmits EDI 810 (electronic invoice)
- Customer transmits EDI 997 (functional acknowledgement)
- Customer transmits EFT (Electronic Funds Transfer) Payment
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| What are EDI Benefits? |
- Builds closer business partnerships
- Reduces/eliminates manual handling of data, errors and rework
- Transfers information faster and more accurately
- Automates routine transactions
- Improves productivity and business controls
- Reduces costs
- Shortens transaction processing cycles
- Enhances data accuracy
- Lowers inventory levels
- Contributes to better in-stock positions
- Lowers freight costs
- Provides Quick Response capability
- Improves cash-flow management
- Creates a competitive advantage
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| EDI Transactions |
810- Invoice
856- Advance Ship Notice
832- UPC Catalog
864- Error Message
820- Remittance Advice
860- Purchase Order Change
850- Purchase Order
997- Functional Acknowledgement
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