1/10/2018. EDI 101 A Learner s Guide to Electronic Data Interchange. Presented by Shawn Paul

Transcription

1 EDI 101 A Learner s Guide to Electronic Data Interchange Presented by Shawn Paul 1

2 AGENDA Definition of EDI History of EDI EDI Terminology Components of an EDI Solution EDI Document Types Chargebacks WHAT IS EDI? 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. 2

3 WHAT IS EDI? Example ISA*00* *00* *ZZ*AMAZON *12* *150817*0156*U*00400* *0*P*> GS*PO*AMAZON* * *0156*44*X* ST*850*0001 BEG*00*NE*AMAZ1234** REF*CR*VENNO CSH*Y DTM*064* DTM*063* N1*ST**15* PO1*1*1*CA*72*PE*VN*XYZ PO1*2*1*CA*120*PE*VN*XYZ PO1*3*1*CA*124.8*PE*VN*XYZ CTT*3*3 SE*12*0001 GE*1*44 IEA*1* WHAT IS EDI? Example ISA*00* *00* *ZZ*AMAZON *12* *150817*0156*U*00400* *0*P*> GS*PO*AMAZON* * *0156*44*X* ST*850*0001 Transaction Set Header BEG*00*NE*AMAZ1234** REF*CR*VENNO CSH*Y DTM*064* DTM*063* N1*ST**15* PO1*1*1*CA*72*PE*VN*XYZ PO1*2*1*CA*120*PE*VN*XYZ PO1*3*1*CA*124.8*PE*VN*XYZ CTT*3*3 SE*12*0001 Transaction Footer GE*1*44 IEA*1*

4 WHAT IS EDI? Example ISA*00* *00* *ZZ*AMAZON *12* *150817*0156*U*00400* *0*P*> GS*PO*AMAZON* * *0156*44*X* ST*850*0001 BEG*00*NE*AMAZ1234** REF*CR*VENNO CSH*Y DTM*064* DTM*063* N1*ST**15* PO1*1*1*CA*72*PE*VN*XYZ PO1*2*1*CA*120*PE*VN*XYZ PO1*3*1*CA*124.8*PE*VN*XYZ CTT*3*3 SE*12*0001 GE*1*44 IEA*1* Functional Group Header Functional Group Footer WHAT IS EDI? Example ISA*00* *00* *ZZ*AMAZON *12* *150817*0156*U*00400* *0*P*> GS*PO*AMAZON* * *0156*44*X* ST*850*0001 BEG*00*NE*AMAZ1234** REF*CR*VENNO CSH*Y DTM*064* DTM*063* N1*ST**15* PO1*1*1*CA*72*PE*VN*XYZ PO1*2*1*CA*120*PE*VN*XYZ PO1*3*1*CA*124.8*PE*VN*XYZ CTT*3*3 SE*12*0001 GE*1*44 IEA*1* Interchange Control Header Interchange Control Trailer 4

5 WHAT IS EDI? Example ISA*00* *00* *ZZ*AMAZON *12* *150817*0156*U*00400* *0*P*> GS*PO*AMAZON* * *0156*44*X* ST*850*0001 BEG*00*NE*AMAZ1234** REF*CR*VENNO CSH*Y DTM*064* Segment Element DTM*063* N1*ST**15* PO1*1*1*CA*72*PE*VN*XYZ PO1*2*1*CA*120*PE*VN*XYZ PO1*3*1*CA*124.8*PE*VN*XYZ CTT*3*3 SE*12*0001 GE*1*44 IEA*1* HISTORY OF EDI 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. 5

6 ADVANTAGES OF EDI 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 Who uses 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. 6

7 EDI TERMINOLOGY 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. 5 Key pieces to an EDI solution 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 7

8 EDI Communications SENDER INBOUND RECEIVER COMMUNICATION TRANSLATION INTEGRATION BUSINESS APPS TRADING PARTNER VANS: SPS EasyLink GXS 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 COMPANY RECEIVER OUTBOUND SENDER EDI Communication cont d 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. 8

9 EDI Communication cont d Internet file transfer Internet file transfer SENDER VAN mailbox RECEIVER Traditional data communication using a VAN with the Internet linking both parties to the VAN EDI Communication cont d Internet file transfer SENDER RECEIVER Direct data communication between two parties using FTP or AS2 9

10 Data Translation SENDER INBOUND RECEIVER COMMUNICATION TRANSLATION INTEGRATION BUSINESS APPS TRADING PARTNER VANS: SPS EasyLink GXS 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 COMPANY RECEIVER OUTBOUND SENDER Data Translation Software/Service 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 10

11 EDI Integration SENDER INBOUND RECEIVER COMMUNICATION TRANSLATION INTEGRATION BUSINESS APPS TRADING PARTNER VANS: SPS EasyLink GXS 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 COMPANY RECEIVER OUTBOUND SENDER THE SCOPE OF EDI REQUIREMENTS CONNECTIVITY Software/Network for transporting data between you and TPs. UPFRONT COSTS TP Communications Van Mailbox AS2 Software FTP/Other SW Staff Install/IMP MAPPING Software for reconciling data between you and your trading partners. TP Maps Trading Partner Kits Staff Mapping Tool Training Initial TP Map Dev TRANSLATION Software & Hardware for converting data into and out of EDI. Box to run EDI Hardware System SW EDI Software License EDI Translator EDI Mapping Tool Admin/Forms/Other SW Staff Design & Install APPLICATION INTEGRATION Software for exchanging data into and out of your accounting system. Integration SW Adapter Staff Training Development/Imp ONGOING COSTS 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 11

12 Solution Options: In House Solution Options: SaaS Trading Partner 1 Trading Partner 2 Trading Partner 3 Trading Partner 4 Trading Partner 5 12

13 Standard Document Flow 850 Purchase Order Inbound TRADING PARTNER 997 Functional Acknowledgement (PO) Outbound 856 Advanced Ship Notice Outbound 997 Functional Acknowledgement (ASN) Inbound 810 Invoice Outbound CUSTOMER 997 Functional Acknowledgement (Invoice) Inbound Paper Purchase Order ****PURCHASE ORDER**** TO: SHIP TO: Selling Company Buying Company, INC W. Lake Street 8450 Ford Parkway Minneapolis, MN P.O. Box 1000 St. Paul, MN BILL TO: (same) BUYER S CONTACT: R. J. Dittmeyer Header Area F.O.B. Method of Payment: Not specified Trans. Resp.: Origin (Shipping Point). SHIPPING POINT COLLECT P.O.#: 17X3232 Date: 09/01/99 Control #: QUANTITY ORDERED RECEIVED PLEASE SUPPLY ITEMS LISTED BELOW PRICE UNIT PN EKC HI-BIAS TYPE II 123 EA 12 2 PN SD-BLASTER SUPR-PERF 345 EA 50 3 PN-444UU44 MWMRC RW CDS 5 30 EA PN-283H5A7 COAX CONNECT 23 EA 5 Detail Area Number of Line Items 4 Total Quantity 1206 Summary Area 13

14 EDI Purchase Order (850) ISA*00* *00* *ZZ* *ZZ* *990617*1110 GS*PO* * *990617*1232*00223*X* ST*850* BEG*00*SA*17XY3232*00*990901* *AC N1*ST*BUYING COMPANY, INC. N2*PURCHASING & MAIL DEPT. N3*PO BOX 1000 N4*ST. PAUL*MN*55030 PER*BD*R.J. DITTMEYER*TE*(612) N1*SF*SHIP FROM COMPANY N2*2800 W. LAKE ST. N4*MINNEAPOLIS*MN*55448 PO1*1*144*EA*123*CA*PI*PN *VP* PID*F****EKC HI-BIAS TYPE II PO1*2*12*EA*345*CA*PI*PN *VP* PID*F****SD-BLASTER SUPR PERF PO1*3*50*EA*30*CA*PI*PN444UU44*VP* PID*F****MWMRC RW CDS 5 PO1*4*1000*EA*23*CA*PI*PN283H5A7*VP* PID*F****COAX CONNECT CTT*1*123 SE*14* GE*1*00223 IEA*1* Header Area Detail Area Summary Area Common EDI Documents DOC # DESCRIPTION DIRECTION 753 Request For Routing Instructions Outbound 754 Routing Instructions Inbound 810 Invoice Outbound 812 Credit/Debit Adjustment Inbound 816 Organizational Relationships Inbound 820 Payment Order/Remittance Advice Inbound 830 Planning Schedule with Release Capability Inbound 832 Price/Sales Catalog Outbound 846 Inventory Inquiry/Advice Outbound 850 Purchase Order Inbound 852 Product Activity Data Inbound 855 Purchase Order Acknowledgment Outbound 856 Advance Ship Notice/Manifest Outbound 860 Purchase Order Change Request - Buyer Initiated Inbound 862 Shipping Schedule Inbound 864 Text Message Inbound 865 Purchase Order Change Acknowledgment/Request Outbound 875 Grocery Products Purchase Order Inbound 880 Grocery Products Invoice Outbound 940 Warehouse Shipping Order Outbound 945 Warehouse Shipping Advice Inbound 14

15 Chargebacks 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. Q & A 15

16 Contact Info Support Sales Call us Check out the MAPADOC blog MAPADOC Connections Roadshow Hilton Irvine/Orange County Airport March 15, :00 to 6:00 including a cocktail reception Product and Industry Information to be shared along with panel and round table discussions THANK YOU FOR ATTENDING! 16