EDI Learning
What is EDI?
Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners.
EDI stands for Electronic Data Interchange and loosely defined, EDI is the structured transmission of electronic data.
Examples of electronic data transmitted —
- Purchase orders,
- Invoices and
- Shipping notices
Electronic Data Interchange is not an out of the box solution.
There are standards which need to be followed like —
- ANSI X-12
- UN/EDIFACT
- Tradacoms
- Eancom
- Odette
There are also protocols which are set in place such as —
- VAN or Value Added Network,
- FTP and
- AS2.
These standards and protocols must be followed in order to successfully exchange documents between our clients and trading partners.
Terminology:
Companies that decide to trade business data with each other using EDI are called trading partners.
The trading partners must decide which transaction sets (EDI business documents) will be exchanged electronically, what information will be included (i.e., what segments and data elements within the transaction set should be sent and received), and what method of communications will be used (e.g. asynchronous communications
via a Value Added Network or bisynchronous direct communications).
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Types of Documents:
810 — Invoice
A request for payment that communicates to a buyer the specific items, price, and quantities delivered that must be paid for by the buyer. Payment terms will usually accompany the billing information.
846 — Inventory Inquiry / Advice
The Inventory Inquiry/Advice Transaction Set (846) can be used in the following ways:
- For a seller of goods and services to provide inventory information to a prospective purchaser, with no obligation to the purchaser to acquire these goods or services.
- For a representative of a seller of goods and services to supply inventory information to that seller.
- For one location to supply another location with inventory information.
- For an inquiry as to the availability of inventory with no obligation on the seller of goods and services to reserve that inventory.
850 — Purchase Order (PO)
A Purchase Order (PO) is issued by a buyer to a seller that details the terms of sale under which the buyer will purchase the seller’s goods.
852 — Product Activity Data
Data contents of the Product Activity Data Transaction Set (852) for use within the context of an Electronic Data Interchange (EDI) environment. The transaction set can be used by a distributor, warehouse, or retailer to advise a trading partner of inventory, sales, and other product activity information.
Product activity data enables a trading partner to plan and ship or propose inventory replenishment quantities, for distribution centers, warehouses or retail outlets. The receiver of the transaction set will maintain some type of inventory/product movement records for its trading partners to enable replenishment calculations based on data provided by the distributor, warehouse or retailer.
855 — Purchase Order Acknowledgement
A Purchase Order Acknowledgement is a confirmation to the buyer that the supplier will be filling the purchase order as requested. The Purchase Order Acknowledgement is sometimes required stating that a specific order has been received and if there are any changes with the order. Example: A specific item is back-ordered.
856 — Advanced Ship Notice (ASN) / Manifest
Also known as the Advanced Ship Notice (ASN). A notification of an order in the process of being shipped. Contains information on the specific order including the product data and shipping information.
860 — Purchase Order Change Request — Buyer Initiated
The Purchase Order Change Request Buyer Initiated Transaction Set (860) can be used to provide the information required for the customary and established business and industry practice relative to a purchase order change. This transaction can be used for either of the following reasons:
- By a buyer to request a change to a previously submitted purchase order.
- By a buyer to confirm acceptance of a purchase order change initiated by the seller or by mutual agreement of the two parties.
940 — Warehouse Shipping Order
The Warehouse Shipping Order Transaction Set (940) can be used to enable the depositor to advise a warehouse to make a shipment, confirm a shipment, or modify or cancel a previously transmitted shipping order.
943 — Warehouse Stock Transfer Shipment Advice
The Warehouse Stock Transfer Shipment Advice Transaction Set (943) can be used by a depositor or an agent of the depositor to advise the recipient that a transfer shipment has been made. This transaction set provides a receiving location with detailed information concerning the product being shipped to that location.
944 — Warehouse Stock Transfer Receipt Advice
The Warehouse Stock Transfer Receipt Advice Transaction Set (944) can be used by a receiving location to advise a depositor or an agent of the depositor that a transfer shipment has been received. This transaction set provides the depositor or the depositor’s agent with detailed information concerning the product that has been received.
945 — Warehouse Shipping Advice
The Warehouse Shipping Advice Transaction Set (945) can be used by the warehouse to advise the depositor that shipment was made. It is used to reconcile order quantities with shipment quantities.
997 — Functional Acknowledgement (FA)
Transmitted by the receiver of an EDI transmission to the sender, indicating the receipt of a message. It does not provide acknowledgment of the content of the message, just that the message has been successfully received and interpreted. It may be referred to as an FA or 997 in ANSI X12 terms.
