edi 101 r1 - mapadoc.com · 1/10/2018 1 presented by shawn paul edi 101 a learner’s guide to...

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Presented by Shawn Paul

EDI 101A Learner’s Guide to Electronic Data Interchange

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AGENDA

Definition of EDI

History of EDI

EDI Terminology

Components of an EDI Solution

Chargebacks

EDI Document Types

Electronic Data Interchange (EDI) is an electronic communication method which allows Trading Partners to exchange business documents, such as purchase orders and invoices, with suppliers and manufacturers. These transaction sets are structured documents containing data segments and elements utilizing agreed message standards and versions. The documents are traded all over the world using public communication networks called VANS or through direct connections between the two parties.

Once these documents are sorted through the VAN, the data is then sent to the appropriate mailbox. A translator retrieves the “mail” and maps the data into the appropriate format, enabling it to be easily read through the recipient’s software.

WHAT IS EDI?

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ISA*00* *00* *ZZ*AMAZON *12*9494983952 *150817*0156*U*00400*000000044*0*P*>GS*PO*AMAZON*9494983952*20150817*0156*44*X*004010ST*850*0001BEG*00*NE*AMAZ1234**20150817REF*CR*VENNOCSH*YDTM*064*20150818DTM*063*20150820N1*ST**15*8026661PO1*1*1*CA*72*PE*VN*XYZ-12345PO1*2*1*CA*120*PE*VN*XYZ-23456PO1*3*1*CA*124.8*PE*VN*XYZ-34567CTT*3*3SE*12*0001GE*1*44IEA*1*000000044

WHAT IS EDI? – Example


Transaction Set Header

Transaction Footer


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Functional Group Header

Functional Group Footer



Interchange Control Header

Interchange Control Trailer


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Segment Element


• EDI has been used in one form or another since the mid 1960’s

• No set standards. Individual companies and industries were using their own interfaces and formats.

• 1973, the TDCC (Transportation Data Coordinating Committee) developed the first set of standards for EDI between companies.

• By 1981 these evolved into the ANSI (American National Standards Institute) X12 standards, most commonly used today in the US.

• EDIFACT is a standard started in 1985 by the United Nations that is common in Europe.

HISTORY OF EDI

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• Ability to handle a large volume of transactions easily

• Reduces cost and chargeback potential

• Faster processing, reducing delays and errors

• Improves control of data and tracking

• Elimination of paper documents

• Compliance with trading partner requirements

ADVANTAGES OF EDI

• Any company that buys or sells goods or services can use EDI.

• EDI is commonly used in the retail, automotive, grocery, electronics, freight, and banking industries.

• Typically anyone who sells to Big Box Retailers would use EDI.

Who uses EDI?

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• Trading Partner – A supplier, customer, subsidiary or any other organization which agrees to

exchange business documents electronically.

• Transaction Set – A type of electronic business document defined in standard syntax.

(e.g.850)

• Segment – A grouping of data elements in a standard format.

• Element – The smallest item of information in EDI. Similar to a word in a sentence. Multiple

data elements compose a data segment.

• ANSI X12 - The committee that publishes the EDI standards for business documents.

• EDIFACT - The committee that publishes EDI standards that are generally used in European

countries and in the Automotive industry.

• Mapping – The process of identifying the relationship of EDI data elements to application data.

EDI TERMINOLOGY

1. Communications Software: This key element enforces protocol standardization on all incoming

and outgoing data files.

2. Translation Software: Transforms a standardized ANSIx12 formatted file into a format that a

specific application software suite can understand and vice versa.

3. Integration Software: Interface software that edits, formats and audits data before it hits the

application software. Interface software also reverses this process for outbound EDI documents,

such as invoices.

4. Business Application Software: Accounting or other ERP software that manages business

transactions and rules for a company and is connected to the Integration Software to enable EDI

communications.

5. Label Software: Create compliancy labels to be placed on containers that are shipped to trading

partners

5 Key pieces to an EDI solution

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SENDER RECEIVER

TR

AD

ING

P

AR

TN

ER

COMMUNICATION TRANSLATION INTEGRATION BUSINESS APPS

CO

MP

AN

Y

VANS:SPS

EasyLinkGXS

AS2:Cleo Lexicom

NuBridges

FTP:Generic FTP

SPS

GXS Desktop

Trusted Link Windows

Sterling Gentran

1EDI Source

MAPADOC

SAGE ERP 100

SAGE ERP 500

SAGE ERP X3

RECEIVER SENDER

INBOUNDINBOUND

OUTBOUNDOUTBOUND

EDI Communications

VAN (Value Added Network): This is the most common choice for transferring data. VANs electronically perform the basic functions of a post office or delivery service. Typically, VANs are also a one-to-many solution which allows interconnect to additional VANs.

AS2 (Applicability Statement 2): This is a standard of the IETF (Internet Engineering Task Force) that governs how data (including EDI data) can be transmitted securely over the Internet using the http protocol. It involves the use of SSL certificates to validate a sender’s or receiver’s identity.

FTP (File Transfer Protocol): A FTP connection uses the Internet to link two computers. A FTP solution is usually established when one trading partner is involved. If more than one Trading Partner is in the mix, multiple direct links must be established, making this solution cumbersome. Cost savings are a primary driver for FTP connections, but security remains a concern unless using a more advanced secure FTP protocol.

EDI Communication – cont’d

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SENDER RECEIVERVAN

mailbox

Traditional data communication using a VAN with the Internet linking both parties to the VAN

Internetfile transfer

Internetfile transfer

SENDER RECEIVER

Internet file transfer

Direct data communication between two parties using FTP or AS2


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SENDER RECEIVER

TR

AD

ING

P

AR

TN

ER


CO

MP

AN

Y

VANS:SPS

EasyLinkGXS

AS2:Cleo Lexicom

NuBridges

FTP:Generic FTP

SPS

GXS Desktop


Sterling Gentran

1EDI Source

MAPADOC

SAGE ERP 100

SAGE ERP 500

SAGE ERP X3

RECEIVER SENDER

INBOUNDINBOUND

OUTBOUNDOUTBOUND

Data Translation

• Digests the EDI documents received from the communication software into a translated printable or exportable format

• Imports outgoing EDI transactions from a file and sends them to the communication software

• Holds necessary setup information for trading partners

• Interprets the documents and insures they conforms to EDI standards

Data Translation Software/Service

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SENDER RECEIVER

TR

AD

ING

P

AR

TN

ER


CO

MP

AN

Y

VANS:SPS

EasyLinkGXS

AS2:Cleo Lexicom

NuBridges

FTP:Generic FTP

SPS

GXS Desktop


Sterling Gentran

1EDI Source

MAPADOC

SAGE ERP 100

SAGE ERP 500

SAGE ERP X3

RECEIVER SENDER

INBOUNDINBOUND

OUTBOUNDOUTBOUND

EDI Integration

THE SCOPE OF EDI REQUIREMENTS

• TP Communications

• Van Mailbox

• AS2 Software

• FTP/Other SW

• Staff

• Install/IMP

• TP Maps

• Trading Partner Kits

• Staff

• Mapping Tool Training

• Initial TP Map Dev

• “Box” to run EDI• Hardware• System SW

• EDI Software License• EDI Translator• EDI Mapping Tool• Admin/Forms/Other SW

• Staff—Design & Install

• Integration SW

• Adapter

• Staff

• Training

• Development/Imp

UPFRONT COSTS

CONNECTIVITYSoftware/Network for transporting data between you and TPs.

MAPPINGSoftware for reconciling data between you and your trading partners.

TRANSLATIONSoftware & Hardware for converting data into and out of EDI.

APPLICATIONINTEGRATIONSoftware for exchanging data into and out of your accounting system.

• TP Communications

• Van Trans. Fees

• AS2

• Software

• Maintenance

• FTP/Other SW Maintenance

• Staff

• Network Admin Costs

• TP Maps

• Trading Partner Kits

• Staff

• Map Maintenance

• Additional Map Dev

• EDI Ops & Admin

• TP Relations

• “Box” to run EDI

• Hardware Upgrade

• System SW Upgrade

• EDI Software License

• EDI Translator, & Mapping Tool Maintenance

• Admin/Forms?

• Other SW Maintenance Staff

• System Ops & Admin

• Integration SW

• Adapter Maintenance

• Staff

• Maintenance / Admin

ONGOING COSTS

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Solution Options: In House

Trading Partner 2

Trading Partner 3

Trading Partner 4

Trading Partner 5

Trading Partner 1

Solution Options: SaaS

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TR

AD

ING

PA

RT

NE

RC

US

TO

ME

R850 Purchase Order – Inbound850 Purchase Order – Inbound

997 Functional Acknowledgement (PO) – Outbound997 Functional Acknowledgement (PO) – Outbound

856 Advanced Ship Notice – Outbound856 Advanced Ship Notice – Outbound

997 Functional Acknowledgement (ASN) – Inbound

810 Invoice – Outbound810 Invoice – Outbound

997 Functional Acknowledgement (Invoice) – Inbound

Standard Document Flow

****PURCHASE ORDER****

TO: SHIP TO:

Selling Company Buying Company, INC. 2800 W. Lake Street 8450 Ford Parkway Minneapolis, MN 55448 P.O. Box 1000 St. Paul, MN 55130

BILL TO: BUYER’S CONTACT:

(same) R. J. Dittmeyer 651-780-1233

F.O.B. Method of Payment: Not specified

Trans. Resp.: Origin (Shipping Point). SHIPPING POINT COLLECT

P.O.#: 17X3232 Date: 09/01/99 Control #: 12341234

QUANTITY PLEASE SUPPLY ITEMS LISTED BELOW PRICE UNIT ORDERED RECEIVED

144 1 PN-1234567 EKC HI-BIAS TYPE II 123 EA

12 2 PN-2234567 SD-BLASTER SUPR-PERF 345 EA

50 3 PN-444UU44 MWMRC RW CDS 5 30 EA

1000 4 PN-283H5A7 COAX CONNECT 23 EA

5

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12

Number of Line Items 4

Total Quantity 1206

Header Area

Detail Area

Summary Area

Paper Purchase Order

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CTT*1*123

PO1*1*144*EA*123*CA*PI*PN1234567*VP*12345678PID*F****EKC HI-BIAS TYPE IIPO1*2*12*EA*345*CA*PI*PN2234567*VP*12345678PID*F****SD-BLASTER SUPR PERFPO1*3*50*EA*30*CA*PI*PN444UU44*VP*12345678PID*F****MWMRC RW CDS 5PO1*4*1000*EA*23*CA*PI*PN283H5A7*VP*12345678PID*F****COAX CONNECT

BEG*00*SA*17XY3232*00*990901*12341234*ACN1*ST*BUYING COMPANY, INC.N2*PURCHASING & MAIL DEPT.N3*PO BOX 1000N4*ST. PAUL*MN*55030PER*BD*R.J. DITTMEYER*TE*(612)780-1233N1*SF*SHIP FROM COMPANYN2*2800 W. LAKE ST.N4*MINNEAPOLIS*MN*55448

ISA*00* *00* *ZZ*612410984 *ZZ*313434666 *990617*1110GS*PO*612410984*313434666*990617*1232*00223*X*002002ST*850*000123

SE*14*000123GE*1*00223IEA*1*000001234

Header Area

Detail Area

Summary Area

EDI Purchase Order (850)

Common EDI Documents

DOC # DESCRIPTION DIRECTION

753 Request For Routing Instructions Outbound754 Routing Instructions Inbound810 Invoice Outbound812 Credit/Debit Adjustment Inbound816 Organizational Relationships Inbound820 Payment Order/Remittance Advice Inbound830 Planning Schedule with Release Capability Inbound832 Price/Sales Catalog Outbound846 Inventory Inquiry/Advice Outbound850 Purchase Order Inbound852 Product Activity Data Inbound855 Purchase Order Acknowledgment Outbound856 Advance Ship Notice/Manifest Outbound860 Purchase Order Change Request - Buyer Initiated Inbound862 Shipping Schedule Inbound864 Text Message Inbound865 Purchase Order Change Acknowledgment/Request Outbound875 Grocery Products Purchase Order Inbound880 Grocery Products Invoice Outbound940 Warehouse Shipping Order Outbound945 Warehouse Shipping Advice Inbound

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• Failure to follow a Trading Partner’s specifications for the ASN and Labels can often

result in chargebacks, some of which can be substantial.

• What can cause Chargebacks?

–Early, Late or non-authorized partial delivery of goods or services

–Missing, incorrect, un-readable or incorrectly placed shipping labels

–Making changes to the products shipped without prior authorization

–Shipping to an incorrect location

–Shipping damaged product

–Sending EDI Invoices (810) that do not match original purchase order and / or have incorrect terms and details.

–Sending the ASN (856) late so it does not arrive on time or does not match items in the carton.

Chargebacks

Q & A

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Contact Info

Support [email protected] [email protected] us 866‐627‐2362

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MAPADOC Connections Roadshow – Hilton Irvine/Orange County Airport• March 15, 2018• 8:00 to 6:00 including a cocktail reception• Product and Industry Information to be shared along with panel and round table discussions

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