1
ELECTRONIC DATA
INTERCHANGE
EDI is the computer-to-computer exchange of routine business
documents (data) in a standard format between companies.
COMPANY A COMPANY B
TRANSACTION
DATA
2
EDI
Trading partners are companies that do business via
EDI.
TRADING PARTNER
3
Why Use EDI
4
The EDI Alternative
l The buyer raises a Purchase Order (PO) with EDI software, which can be
automatically transmitted to the seller in near real-time
l The seller’s order entry system receives the PO and an acknowledgement is
transmitted to the buyer with delivery confirmation
l What can take five days with paper takes minutes with EDI
5
What Does an EDI Message
Consist of ?
l Paper-based documents are posted in envelopes and it is possible to mail
many documents in one envelope, EDI is just the same
l A “message envelope” defines the start and end of a document
l “Functional Group envelopes” contain all message envelopes of a specific
type, eg POs, invoices etc
l “Interchange envelopes” enclose all functional group envelopes
6
EDI
Purchase
Order (PO)
PO
Purchaser
A transaction set refers to a type of electronic document.
TRANSACTION SET
7
EDI TRANSACTION SETS
EDI Transaction Meaning
810 Invoice
820 Payment Order/Remittance Advice
832 Price/Sales Catalog
846 Inventory
850 Purchase Order
852 Product Activity Data
855 Purchase Order Acknowledgment
856 Ship Notice/Manifest
860 Purchase Order Change Request - Buyer
Initiated
997 Functional Acknowledgment
8
EDI Sample Data
ST*850*000000002~
BEG*00*DS*7241253**20150623~
REF*RQ*PTEST123459M~
FOB*CC~
CSH*N~
DTM*001*20150630~
DTM*010*20150625~
N1*BT*Adam Grossman~
N1*ST*Adam Grossman*92*0002~
N3*23 Elm Dr~
N4*Renton*WA*98055*US~
PER*ZZ*Adam Grossman*TE*2067080091~
PO1*00002*1*EA*14.00**UP*054003677851*S
K*84021~
CTT*1*1~
SE*15*0000002~
9
PAPER DOCUMENT INTERCHANGE
Computer
Post Office
PO
Purchaser
Computer
Data Entry
Invoice
10
ELECTRONIC DATA INTERCHANGE
Computer
VAN
Purchaser
Computer
Data Entry
Invoice
PO
11
– List the four major components of an EDI
system
– The terms VAN, ANSI X-12,and their
meaning
– Reasons why companies are doing EDI
12
EDI Components
HardwareStandards
EDI
Software Communications
13
EDI
PO
PO
Purchaser
Transaction set refers to a type of electronic document
Transaction Set
14
WITH STANDARDIZATION
Type a who will bunch of things in her again.
Make it look like there are words written on this
page. I am very warm. This presentation is very
long. Make it look like there are words written
on this page. I am very warm. This presentation
is very long.
Type a who'll bunch of things in her gain.
Make it look like there are words written
on this page. I am very warm. This
presentation is very long. Make it look
like there are words written on this page.
I am very warm. This presentation is very
long.
Type a who'll bunch of things in her gain.
Make it look like there are words written on this
page. I am very warm. This presentation is very
long. Make it look like there are words written
on this page. I am very warm. This presentation
is very long.
Type a who'll bunch of things in her gain.
Make it look like there are words written
on this page. I am very warm. This
presentation is very long. Make it look
like there are words written on this page.
I am very warm. This presentation is very
long.
Type a who'll bunch of things in her gain.
Make it look like there are words written
on this page. I am very warm. This
presentation is very long. Make it look
like there are words written on this page.
I am very warm. This presentation is very
long.
Type a who'll bunch of things in her gain.
Make it look like there are words written on this
page. I am very warm. This presentation is very
long. Make it look like there are words written
on this page. I am very warm. This presentation
is very long.
15
Components
ELECTRONIC DATA
INTERCHANGE
STANDARDS
ANSI
X12
UN/EDIFACT
16
A Standard Language
Type a who will bunch of things in her again.
Make it look like there are words written on this
page. I am very warm. This presentation is very
long. Make it look like there are words written
on this page. I am very warm. This presentation
is very long.
Type a who'll bunch of things in her gain.
Make it look like there are words written
on this page. I am very warm. This
presentation is very long. Make it look
like there are words written on this page.
I am very warm. This presentation is very
long.
Type a who'll bunch of things in her gain.
Make it look like there are words written on this
page. I am very warm. This presentation is very
long. Make it look like there are words written
on this page. I am very warm. This presentation
is very long.
Type a who'll bunch of things in her gain.
Make it look like there are words written
on this page. I am very warm. This
presentation is very long. Make it look
like there are words written on this page.
I am very warm. This presentation is very
long.
Type a who'll bunch of things in her gain.
Make it look like there are words written
on this page. I am very warm. This
presentation is very long. Make it look
like there are words written on this page.
I am very warm. This presentation is very
long.
Type a who'll bunch of things in her gain.
Make it look like there are words written on this
page. I am very warm. This presentation is very
long. Make it look like there are words written
on this page. I am very warm. This presentation
is very long.
17
How EDI Works !
quote
The APL Group
664 danbury Ct
Wilson, ct
RFQ # 1234
06/07/95
1 WIDGET #5678
2 dz gizmos
ST* 843 12345
NTE**Ship
Complete
N1 *SE* The Apl
Grp Inc...
N3 *664
DANBURY
Converts Internal Data
Format to ANSI X12
(outbound)
Converts ANSI X12
Standard format to
Internal Format
(inbound)
18
EDI Components
HardwareStandards
EDI
Software Communications
19
EDI Software
X12
Database
1. Document Support
2. Mapping
3. Standards Support
4. Translation
Communications
20
EDI Components
HardwareStandards
EDI
Software Communications
21
Hardware
22
EDI Components
HardwareStandards
EDI
Software Communications
23
Value Added Network (VAN)
U.S. Post OfficeBuyer
Seller
24
Point-to-Point:
EDI Without a VAN
Buyer
1
2
3
4
A
B
C
D
Supplier
25
Value Added Network (VAN):
1
2
3
4
A
B
C
D
Buyer Supplier
26
Interconnect Strategy
GE VAN
AT&T
VAN
27
---EDI Process---
---Integrated Systems---
Business
Management System
Business
Management System
Accounting
Receiving
Manufacturing
Purchasing
EDI
Shipping
Accounting
Sales/Order
Processing
Order Processing
Purchase Order
Purchase Order
Acknowledgment
28
EDI
USERS
Government Health care Retail Grocery Transportation
Policy
Insuranc
e
Manufacturing
AutomotivePetroleumElectronicsChemicalBanks
Construction
Advertising
29
EDI BENEFITS
More Accurate Records and Decision-making Information
Lower Data Entry Costs
Increased Business
Opportunities
Reduced Inventory
30
EDI
BENEFITS
Better Cash Management
Decreased Mailing Costs Greater Customer
Satisfaction
Reduction In Order Time
31
– Relate the paper document
components to EDI transaction set
– Recall the sections of an EDI
transaction set
32
ANSI ASC X12 Standard
Purchase Order
Facilitates electronic interchange of business documents
Purchase Order
33
Transaction Set Composition
File = Transaction Set
Record = Data Segment
Field = Data Elements
34
Vendor:
Date: Purchase Order #
PURCHASE ORDER
Ship To:
Quantity Description Price Amount
ABC Supplies
P.O. Box 180
Baltimore, MD 21239
12/31/92
Cleveland ECRC
2415 Woodland Avenue
Cleveland, OH 44115
4001
2 Legal Pads LP8X11 $8.00/DZ $16.00
Paper Vs. EDI Document
ST*850*0001^
BEG*00*NE*4001**921231^
N1*VN*ABC Supplies^
N3*P.O.Box 180^
N4*Baltimore*MD*21239^
N1*ST*Cleveland ECRC^
N3*2415 Woodland Avenue^
N4*Cleveland, OH 44115^
PO1*1*2*DZ*8.00**VP*LP8X11^
CTT*1^
SE*11*0001
Paper Document = EDI
Transaction Set
35
Envelopes
Address Information
Date and Time
Stamp
Information Receipt
Information Routing
Audit and Version
Control
36
Envelope Elements
Identification
Information
37
Trading Partner
Enveloping Issues
• Envelope Identiffers
• Addressing codes
• Types of control numbers
• Control number sequence
• Version of standards
38
Envelope Structure
ISA
IEA
InterchangeInterchange
39
Paper Vs. EDI Document
Cleveland ECRC
[electronic address]
ABC Company
[electronic address]
Envelope = Interchange
ISA*05*0000000000*01*PASSWORD01*01*
SENDERID
ENTIFIC*01*ReceiveidentifI*950919*1503*U
*00304*
123456789*1*T*|^
GS...
ST...
.
.
SE...
GE...
IEA*1*123456789^
40
Paper Vs. EDI Document
Folder = Functional Group
GS*PO*CECRC01*DISC*95091
9*1426*
0001*X*003050^
ST*850*1001
.
.
.
SE*17*1001
GE*1*0001
41
ISA
IEA
GS
GE
Envelope Structure
ISA*05*0000000000*01*PASSWORD01*01
*SENDERID
ENTIFIC*01*ReceiveidentifI*950919*1503*
U*00304*
123456789*1*T*|^
GS...
ST...
.
.
SE...
GE...
IEA*1*123456789^
42
ISA
IEA
GS
GE
ST
SE
ST*850*0001^
BEG*00*NE*4001**921231^
N1*VN*ABC Supplies^
N3*P.O.Box 180^
N4*Baltimore*MD*21239^
N1*ST*Cleveland ECRC^
N3*2415 Woodland Avenue^
N4*Cleveland *OH* 44115^
PO1*1*2*DZ*8.00**VP*LP8X11^
CTT*1^
SE*11*0001
Transaction Set
Transaction Set
43
Transaction Set 850
Document = Transaction Set
Document
Paper Vs. EDI Document
ST*850*0001^
BEG*00*NE*4001**921231^
N1*VN*ABC Supplies^
N3*P.O.Box 180^
N4*Baltimore*MD*21239^
N1*ST*Cleveland ECRC^
N3*2415 Woodland Avenue^
N4*Cleveland, OH 44115^
PO1*1*2*DZ*8.00**VP*LP8X11^
CTT*1^
SE*11*0001
Vendor:
Date: Purchase Order #
PURCHASE ORDER
Ship To:
Quantity Description Price Amount
ABC Supplies
P.O. Box 180
Baltimore, MD 21239
12/31/92
Cleveland ECRC
2415 Woodland Avenue
Cleveland, OH 44115
4001
2Legal Pads LP8X11 $8.00/DZ$16.00
44
Data Segment
Vendor:
Date: Purchase Order #
PURCHASE ORDER
Ship To:
Quantity Description Price Amount
2 Legal Pads LP8X11 $8.00/DZ $16.00
PO1*1*2*DZ*8.00**VP*LP8X11^
Line Item = Data Segment
45
Paper Vs. EDI Document
N1*VN*ABC Supplies^
4001
Vendor:
Date: Purchase Order #
PURCHASE ORDER
Ship To:ABC Supplies
P.O. Box 180
Baltimore, MD 21239
12/31/92
Cleveland ECRC
2415 Woodland Avenue
Cleveland, OH 44115
4001
Data Elements
46
Paper Vs. EDI Document
N1*VN*ABC Supplies^
Code = Qualifier
Separator = Element Delimiter
Data
Segment
Delimiter
47
Summary
ISA
IEA
GS
GE
ST
SE
ISA*05*0000000000*01*PASSWORD01*01*
SENDERID
ENTIFIC*01*ReceiveidentifI*950919*1503*U*
00304*
123456789*1*T*|^
GS...
ST...
.
.
SE...
GE...
IEA*1*123456789^
Communications Protocol
48
Summary
– The paper business document and its
components can be compared with
the EDI transaction set.
– EDI enveloping can be compared
functionally to postal envelopes.
– EDI Software translates business
documents into a standard format for
transmission
49
Thanks
Muhammad Shahid Aslam
Advisory Software Engineer (Systems Limited)

What is EDI