maintaining EDI
EDI Terms
Manual EDI
This is the process where a business document is faxed or emailed to a business partner who then manually enters the information into their system. This shortens the time to process an order, but still involves manual interventions which introduces errors.
Automated EDI
85% of all business transaction today use this method. This is the exchange of business documents from one company’s computer to a Business Partner’s computer. This allows the business partner the ability to start processing that document immediately.
Business documents
These are any of the documents that are typically exchanged between businesses. The most common documents exchanged via EDI are the Purchase Order, the Purchase Order Acknowledgment, the Advance Ship Notice and the Invoice. But there are many, many others such as bill of lading, customs documents, inventory documents, shipping status documents and payment documents.
Business Partners
The exchange of EDI documents is typically between two different companies, referred to as business partners or trading partners. For example, Company A may buy goods from Company B. Company A sends orders to Company B. Company A and Company B are business partners.
Standard Format
In order to take advantage of Automated EDI, the business documents, a standard format must be used so that the computer will be able to read and understand the documents.
A standard format describes what each piece of information is and in what format (e.g., integer, decimal, date, time). Without a standard format, each company would send documents using its company-specific format and, much as an English-speaking person probably doesn’t understand Japanese, the receiver’s computer system doesn’t understand the company-specific format of the sender’s format
There are several EDI standards in use today, including ANSI X.12, EDIFACT, TRADACOMS and ebXML. And, for each standard there are many different versions like ANSI X.12 5010 or EDIFACT version D96a. When two businesses decide to exchange EDI documents, they must agree on the specific EDI standard and version.
Businesses typically use an EDI translator, either as in-house software or via an EDI service provider, to translate the EDI format so the data can be used by their internal applications and thus enable straight through processing of documents.
This is the process where a business document is faxed or emailed to a business partner who then manually enters the information into their system. This shortens the time to process an order, but still involves manual interventions which introduces errors.
Automated EDI
85% of all business transaction today use this method. This is the exchange of business documents from one company’s computer to a Business Partner’s computer. This allows the business partner the ability to start processing that document immediately.
Business documents
These are any of the documents that are typically exchanged between businesses. The most common documents exchanged via EDI are the Purchase Order, the Purchase Order Acknowledgment, the Advance Ship Notice and the Invoice. But there are many, many others such as bill of lading, customs documents, inventory documents, shipping status documents and payment documents.
Business Partners
The exchange of EDI documents is typically between two different companies, referred to as business partners or trading partners. For example, Company A may buy goods from Company B. Company A sends orders to Company B. Company A and Company B are business partners.
Standard Format
In order to take advantage of Automated EDI, the business documents, a standard format must be used so that the computer will be able to read and understand the documents.
A standard format describes what each piece of information is and in what format (e.g., integer, decimal, date, time). Without a standard format, each company would send documents using its company-specific format and, much as an English-speaking person probably doesn’t understand Japanese, the receiver’s computer system doesn’t understand the company-specific format of the sender’s format
There are several EDI standards in use today, including ANSI X.12, EDIFACT, TRADACOMS and ebXML. And, for each standard there are many different versions like ANSI X.12 5010 or EDIFACT version D96a. When two businesses decide to exchange EDI documents, they must agree on the specific EDI standard and version.
Businesses typically use an EDI translator, either as in-house software or via an EDI service provider, to translate the EDI format so the data can be used by their internal applications and thus enable straight through processing of documents.
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