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EDI Fundamentals and Standard - Overview

EDI Fundamentals and Standard - Overview. IEEM 5352 E-Enterprise Integration. Bills of Lading. Purchase Orders. EDI - Electronic Data Interchange. EDI is the computer to computer exchange of routine business documents in a standard format. Invoices. Ship Notices. Payments. Suppliers.

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EDI Fundamentals and Standard - Overview

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  1. EDI Fundamentals and Standard - Overview IEEM 5352E-Enterprise Integration

  2. Bills of Lading Purchase Orders EDI - Electronic Data Interchange • EDI is the computer to computer exchange of routine business documents in a standard format. Invoices Ship Notices Payments

  3. Suppliers Manufacturers Distributors Customers Trading Partners

  4. Suppliers Distributors Customers Electronic Data Interchange Manufacturers Purchase OrdersInvoicesPayments ForecastsAdvance ShipmentNotificationWarehouse AuthorityTo Ship Shipment Confirmation Sales OrdersInvoicesPayments

  5. Request for Quote Response to Request for Quote Purchase Order Purchase Order Acknowledgment Customer Invoice Supplier Ship Notice Payment EDI Business Partnership

  6. Buyer Seller EDI Requires Review of Business Models and Reengineering • Order Business Modelfor Stand Alone Purchase Orders Pre-Order Business Model (Optional) Purchase Order Purchase Order Acknowledgment Seller-Initiated Change Change Order Change Order Acknowledgment Forecast/Plan Cycle (Optional) Shipment/Payment Business Model

  7. Data Entry Commerce Without EDI Buyer Supplier PurchasingAgent Data Entry FaxPhoneMail MailTransfer Purchaser’sComputer Supplier’sComputer Post Office Billing Clerk MailTransfer MailTransfer

  8. Buyer’sPrivateMailbox PurchasingAgent Billing Clerk ValueAddedNetwork Purchaser’sComputer Supplier’sComputer Supplier’sPrivateMailbox Commerce With EDI ElectronicPost Office Buyer Supplier

  9. Benefits of EDI • Reduces costs • Decreases cycle time • Improves productivity • Improves customer service and satisfaction

  10. Not just nice to have Not optional Not an afterthought EDI Imperative EDI MUST BE INTERGRATED INTO APPLICATION

  11. ASC X12 Standard EDIFACT Standard EDI Standards

  12. EDI Standards Building Organizations (ANSI) ASC X12 STANDARDS Accredited Standards Committee X12 commissioned by ANSI Used Predominantly in North America (UN) EDIFACT STANDARDS ‘EDIFor Administration, Commerce and Trade’ Board chartered by the United Nations Used Predominantly in Europe & Asia Considered the International Standard

  13. EDI Regional Standards • ODETTE • Organization for Data Exchange Through Telecommunications in Europe • Automotive in Europe • TRADACOMS • Trading Data Communications Standard • in Europe

  14. ASC X12 Versions/Releases

  15. EDIFACT Directories

  16. EDI Standards • All STANDARDS have architecture and syntax rules to define • Electronic Documents (~Transactions/Messages) • Records (~Segments) • Data Elements (~Data Element for Standard Codes or Your Data)

  17. EDIFACT X12 Business Document INVOIC 810 Invoice ORDERS 850 Purchase Order ORDCHG 860 Change Order PRICAT Price/Sales Catalog 832 n/a Shipment and Billing Notice 857 CUSDEC n/a Customs Declaration Business Documents to Standard Transactions and Messages

  18. PO Number PO Date Part Number Item Quantity Schedule Quantity Schedule Date Paper and X12 Terminology Comparison EQUAL TRANSACTIONS BUSINESS DOCUMENTS 810 INVOICE Invoices Purchase Order 850 PURCHASE ORDER EQUAL SEGMENTS GROUPS OF DATA Basic PO Data BEG Segments PO1 Segments PO Line Item SCH Segments Schedules EQUAL INDIVIDUAL DATA DATA ELEMENTS BEG03 PO NUMBER BEG06 PO DATE PO107 PROD/SERVC ID CD PO102 QTY ORDERED SCH01 (SCHEDULE) QTY SCH06 (SCHEDULE) DATE

  19. Acme Corp PO 53436 5400 Acme Pkwy Contract Acme, PA 17016 95-276 IT PART QTY PRICE 1 PD34 1000 1.142 Schedule 500 12/05/98 500 01/05/99 2 L2678 1500 5.17 Schedule 500 12/05/98 500 12/12/98 500 12/19/98 Hierarchy of Segments Header - BEG Beginning - N1 Name and Address Items(within Header) - PO1 Item Data Delivery Schedules (within Item) - SCH Scheduling

  20. ST~850~123’ BEG~00~SA~P54356~~~960102~~CN2345’ N1~BT~ACME CORP.~92~AC323’ N1~ST~ACME CORP.~92~AC9876’ PO1~1~500~23.99~CT~BP~PD34~VP~V545434’ SCH~200~EA~~~~002~960115’ SCH~300~EA~~~~002~960315’ CTT~1~500’ SE~9~123’ Sample ASC X12 Purchase Order (850 Transaction)

  21. ASCX12 to EDIFACT Comparison EDIFACT ORDERS MESSAGE UNH+0001+ORDERS:2:921:UN:EIVER1’ BGM+105+P54356+9’ DTM+4+960626:101’ RFF+CT:CN2345’ NAD+BT+AC323:92’ NAD+ST+AC9876:92’ LIN+01++1820-0232:BP’ PIA+1+C:EC+GF9876:VP’ QTY+21:500:PCE’ PRI+1:2.99:CT::1’ SCC+1+DD’ QTY+133:200’ DTM+2:960715:101’ QTY+133:300’ DTM+2:960820:101’ CNS+S’ CTN+2:1’ CNT+19+1800 UNT+19+0001’ ASC X12 PURCHASE ORDER TRANSACTION ST~850~0001@ BEG~00~SA~P54356+~~960626~~CN2345@ N1~BT~ACME CORP.~92~AC323@ N1~ST~ACME CORP.~92~AC9876@ PO1~01~500~2.99~CT~BP~1820-0232~EC~C~VP~GF9876@ SCH~200~EA~~~~002~960715@ SCH~300~EA~~~~002~960820~ CTT~1~500@ SE~9~0001@

  22. Sample ASC X12 Transaction Specifications 850 Purchase Order Functional Group ID=PO Introduction: This standard provides the format and establishes the data contents of a purchase order transaction set. The purchase order transaction set provides for customary and established business and industry practice relative to the placement of purchase orders for goods and services. This transaction set should not be used to convey purchase order changes or purchase order acknowledgment information.

  23. Notes and Comments ASC X12 Transaction Specifications -Header Segments Heading: Name Pos. Seg. Req. Max. No. ID Des. Use 010 ST Transaction Set Header M 1 020 BEG Beginning Segment for Purchase Order M 1 040 CUR Currency O 1 050 REF Reference Numbers O 12 070 TAX Tax Reference O 3 080 FOB F.O.B. Related Instructions O 1 100 SSS Special Services O 25 150 DTM Date/Time Reference O 10 210 PWK Paperwork O 25 240 TD5 Carrier Details (Routing Sequence/Transit O 12 Time) LOOP START (200) 310 N1 Name O 1 360 PER Administrative Communications Contact O 3 LOOP END

  24. ASC X12 Transaction Specifications - Detail Segments Detail: Pos. Seg. Req. Max. Notes and Name No. ID Des. Use Comments LOOP START (100000) 010 PO1 Purchase Order Baseline Item Data M 1 080 PKG Marking, Packaging, Loading O 200 090 PO4 Item Physical Details O 1 100 REF Reference Numbers O 12 120 SSS Special Services O 25 130 ITA Allowance, Charge or Service O 10 230 SCH Line Item Schedule O 200 n1 250 TD5 Carrier Details (Routing Sequence/Transit O 12 Time) LOOP END

  25. Summary: Pos. Seg. Req. Max. ASC X12 Transactions Specifications - Summary Segments Name No. ID Des. Use 010 CTT Transaction Totals M 1 030 SE Transaction Set Trailer M 1 Transaction Set Notes 1. The SCH segment is used to specify various quantities of items ordered that are to be scheduled. When this segment is used the unit of measurement code (SCH02) should always be identical to the unit of measurement code in the associated PO1 segment (PO103) and the sum of values of quantity (SCH01) should always equal the quantity ordered (PO102) in the PO1 segment. 2. The number of line items (CTT01) is the accumulation of the number of PO1 segments. If used, hash total (CTT02) is the sum of the value of quantities ordered (PO102) for each PO1 segment.

  26. ASC X12 Data Dictionary Data Elements Data Element Number Segment / Position BEG03 324 PURCHASE ORDER NUMBER M AN 1/22 Requirements Designator Data Type Minimum/Maximum Length

  27. X12 Data Element 92 - Purchase Order Type Code specifying the type of Purchase Order. Type: ID Min=2 Max=2 BK - Blanket Order CF - Confirmation CP - Change to purchase order RE - Reorder SA - Stand alone order Transaction Qualifiers

  28. Data Value Qualifiers X12 Data Element 374 - DATE/TIME Qualifier Code specifying type of date or time, or both date and time Type: ID Min=3 Max=3 001 - Cancel after 002 - Delivery requested 003 - Invoice 004 - Purchase order 005 - Sailing 007 - Effective 219 - Plugged and abandoned SCH

  29. N103 66 N104 67 DE66 CODE LIST ID CODE 1 = DUN & BRADSTREET ID CODE QUALIFIER 9 = Duns plus 4 digits 91 = Assigned by Buyer C ID 1/30 92 = Assigned by Seller C ID 1/2 DTM01 374 DTM02 373 DE374 CODE LIST DATE/TIME 002= Delivery Requested DATE 010 = Requested Ship QUALIFIER 017 = Estimated Delivery 069 = Promised for Delivery C DT 6/6 M ID 3/3 PO106 235 PO107 234 DE235 CODE LIST PROD/SERV PROD/SERV BP = Buyer part ID EC = Engineering Change ID QUALIFIER DR = Drawing C AN 1/30 VP = Vendor Part O ID 2/2 ASC X12 Data Element Qualifiers - Examples

  30. PO1 PO101 350 PO102 330 PO103 355 PO104 212 (PO BASELINE ITEM ASSIGNED QTY UNIT OF UNIT V3030) ID ORDERED MEASURE. PRICE O ID 1/6 M R 1/9 M ID 2/2 C R 1/14 PO105 639 PO106 235 PO107 234 PO108 235 PO109 234 BASIS UNIT PROD/SERV PROD/SERV ID PROD/SERV PROD/SERV C AN 1/30 PRICE CODE ID QUALIFER ID QUALIFER ID O ID 2/2 O ID 2/2 O AN 2/2 C ID 1/30 PO122 235 PO123 234 PO124 235 PO125 234 ET CETERA PROD/SERV PROD/SERV ID PROD/SERV PROD/SERV O AN 1/30 ID QUALIFER ID QUALIFER ID O ID 2/2 O AN 2/2 O ID 1/30 PO1~1~500~EA~23.99~CT~BP~PD34~VP~V545434@ PO1~01~200~EA~25~EA~BP~B543567~EC~12~VP~B5340308@ ASC X12 Example Purchase Order Segment

  31. ASC X12 Code Conversion/Cross Referencing Cross-Reference codes to internal application codes. X12 Data from SENDER RECEIVER cross reference ‘ABC’ = ‘NT1234’ N1*ST*ACME*91* ABC SHIP TO ‘XYZ’ = ‘TT987’ N1*BT**91 *XYZ BILL TO ‘CON24’ = ‘986’ REF*CT* CON24 CONTRACT ‘QT97’= ‘9864’ REF*PR *QT97 PRICE QUOTE ‘UPSBL’ = ‘UPS2’ TD5**92* UPSBL CARRIER MAY BE REQUIRED TO CROSS-REFERENCE CODES BACK TO ORIGINAL CODES FOR RETURNED TRANSACTIONS

  32. Components in the EDI Process • Business applications • EDI Application Integration Software • EDI Translator • Communications

  33. 850BT12 35789SG 41825520 ISA~ BEG~00 N1~ST~ EDI Transaction Flow Applications Inbound Flow Application Interface Table EDITranslator InterfaceFile Outbound Flow DataComm Std. File

  34. EDIEX*tender EDI Application Integration Software FlatFileFormat orTables FlatFileFormatorTables Oracle EDI Gateway Oracle Applications • General Code Conversion • Location Code Conversion • Inbound: Loads Data to Application Interface Tables • Outbound: Extracts Data from base Application

  35. EDI Translator • Software bridge between EDI Standards and applications • It is the last process before the standard transactions are sent, and the first process after receiving standard transactions • Insulates applications from Standards and Standard versions/releases • Each Trading Partner chooses their own EDI Translator • EDI Gateway is EDI Translator Independent

  36. Trading Partner Set Up (Mandatory) Define electronic mailbox Activate transactions Set test/production flags Specify communications method Code Conversion Set Up (Optional) Define internal and external codes Apply code conversion as appropriate EDI Translator Set Up

  37. EDI Translator - Data Functions Perform data mapping Perform code conversion Perform compliance checking Wrap and compress data before sending Unwrap and uncompress data after receiving

  38. Generate Functional Acknowledgments Match Functional Acknowledgments to transaction Generate audit reports Requeue transactions for resubmission EDI Translator - Monitoring Functions

  39. ASC X12 810 Invoice - Wrapped and Compressed ST~810~189’BIG~980208~TF87654~980112~KJ98 76-34~~PR’N1~BT~RUNNER UNLIMITED~92~MTB1 ’N1~ST~RUNNER UNLIMITED~92~MT01’N1~SE~AC ME SUPPLIES~92~AC987’IT1~01~100~EA~10~EA ~BP~98754-987~EC~E~VP~5986-0834’IT1~02~2 ~EA~200~EA~BP~BK454532~EC~W~VP~ 646455-5 6’TDS~1400’CTT~2@SE~10~189’ Invoice TF87654 date 2/8/98 for PO KJ9876-34 dated 1/12/98. Bill to Runner Unlimited location coded MTB1; Ship to Runner Unlimited location coded MT01. Selling Party is Acme Supplies location coded AC987. There are two line items: IT1= ‘01’ which is the PO line item number. Buyer part is 98754-987 with engineering change E. The vendor part is 5986-0834 for 100 units IT1 =‘02’ which is the PO line item number. Buyer part is BK454532 with engineering change W. The vendor part is 646455-56 for 200 units

  40. EDI Implementation Guide • Used by all Trading Partners (TP’s) • Is an agreement on how a transaction is used • Makes a generic standard specific • Large corporations often force specific Implementation Conventions (IC’s) on TP’s • Governments too • HIPAA - Health Care • DoD - Department of Defense

  41. Communications • Value Added Networks (VANs) • Direct Connects • EDI over the Internet • Diskettes, Tape Cartridge

  42. Value Added Network and Trusted Third Party Services Value Added Network - VAN • Electronic Mailbox • Central Clearinghouse • Secure and Private • Backup / Archive • Protocol Conversions • Simplify Data Communications

  43. EDI Communication Without a VAN Sender 1 Receiver A Sender 2 Receiver B Sender 3 Receiver C Sender 4 Receiver D

  44. EDI Communication with a VAN Sender 1 Receiver A VAN Sender 2 Receiver B Third- Party Network Sender 3 Receiver C Sender 4 Receiver D VAN

  45. Value Added Networks • AT & T • IBM Information Exchange • Harbinger • Sterling • GEIS - General Electric Information Services • TradeVan • ...

  46. Require data entry at sending site Good for status inquiries EDI Versus Web-BasedApplications Web-based applications: Do not support mass batches of data Good for transactions where EDI cannot be established

  47. Problems with EDI • Setup is expensive and time consuming • VAN’s can be expensive • Large Trading Partner populations are • difficult to manage • EDI is affordable by only large corporations • Hub and Spoke architecture • Good for large company • Difficult and expensive for small company

  48. Two New EDI Directions • EDI over the Internet • Focuses on Security at message level • Uses S/MIME and PGP/MIME • and public key encryption • XML/EDI • Not concerned with security • Based on existing EDI standards • Integrates standard file format and process logic

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