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EDI2XML is brought to you byNamtek Consult ing ServicesGUIDE: Intro to EDIThe Complete Comprehensive Guideto Electronic Data Interchange.400 Boul Curé Labelle Suite 304Laval QC H7V 2S7 Canada.,,-,1 450 681 3009sales namtek ca @.

INTRO TO EDITABLE OF CONTENTS01 I n tr od u ct i on01 W hat i s EDI ?02 C om m o n ED I S tand ar d s04 C om m o n B us i ne ss Do cu m en ts06 C om m un i cat i on P ro to co ls08 T h e ED I Pr o ce ss09 T h e B i g EDI P i c tur e10 H o w Do es an E DI Do c um en t L oo k11T h e B us i ne ss Cy cle F lo w12C ho i ce of E DI S tan d ard an d P ro to co l14B e ne f i ts o f ED I15G e tti n g S tarte d w i th E DI16C on c lus i on17A bo ut E DI 2X MLedi2xml com.

Page 01INTRO TO EDIINTRODUCTIONElectronic Data Interchangehas evolved over the years since itwas first developed in the 1970sEDI().The first form of EDI was developedby large transportation enterprisesdue to the frustrations and shipmentdelays they used to encounter movingpaper based information to theirbusiness partners To speed up andsimplify the business communicationprocess these enterprises developeda standard format for their industryto exchange business informationbetween each other This eventuallyled to today s version of ElectronicData Interchange EDI-.,.’().WHAT IS EDI?Electronic Data Interchange EDI is a standard along with a set of communicationprotocols technology and best practices that allows the exchange of documentsbetween business partners in a structured digital form based on regulated messageformats and standards(),.Any business document exchanged betweencompanies for example purchase orderinvoice shipping notice etc can betransferred by EDI considering both partieshave been setup to exchange with theappropriate EDI communication protocolThus EDI replaces the manual exchange ofbusiness documents by fax or e mail to a fullyautomatic exchange(,,,.),.,-.edi2xml com.

Page 02INTRO TO EDICOMMON EDISTANDARDSAll EDI transactions are determinedaccording to EDI standards Manyindustries have developed their ownEDI standards to fit theirrequirements and business terms EDIstandards are built on the concept ofmaking electronic businessdocuments uniform EDI standardsregulate the correct order and placeof the units of data in an EDIdocument Below are some of themost commonly used standards.:ANSI ASC X12UN/EDIFACTUniform standard developed by theX12 non profit ANSI accreditedcross industry standards developmentorganization to support companiesacross different industry sectors inNorth AmericaUnited Nations Electronic DataInterchange for AdministrationCommerce and Transport developedfor the United Nations and approvedand published by UNECE EDIFACT isthe international standard but iswidely used by multiple industries inEurope,---,-,./,,,.ODETTESWIFTA standard used by the automotiveindustry in Europe developed by theOrganization for Data Exchange byTele Transmission in EuropeSociety of Worldwide InterbankFinancial Telecommunication is aglobal member owned cooperativeand the world s leading provider ofsecure financial messaging services,.-’.edi2xml com.

Page 03INTRO TO EDIROSETTANETPEPPOLA standard widely used in the globalsemiconductor industry but also inelectronic components consumerelectronics telecommunication andlogistics RosettaNet is widely used inthe USA but it is also well acceptedand even supported by governmentsin AsiaPan European Public ProcurementOnline allows public organizationsand their suppliers to exchangestandard based electronic documentsover its network PEPPOL simplify thetrading process between privatecompanies and governmentHIPAATRADACOMSThe Health Insurance Portability andAccountability Act is a US basedstandard for the exchange ofsensitive medical or administrativeinformation such as claim formspatient medical records etc betweenhealthcare providers using EDIcommunication method The HIPAAEDI transaction sets are based onANSI X12HIPAA standard is used only in themedical and healthcare industrysuch as hospitals private practicehealth insurance and any otherorganization related to medicalrecords or patient careTradacoms is an early EDI ElectronicData Interchange standard that waslargely employed since 1982 in the UKretail industry It was maintained andextended by the UK ArticleNumbering Association now GS1 UKThe standard is no longer beingdeveloped and was replaced by theGS1 EDI EANCOM subsets in 1995Regardless it has proven itself to bereliable and most of the UK EDI retailstill uses it,,,,.,--.-,,.,.,,().().,.,,.edi2xml com.

Page 04INTRO TO EDICOMMONBUSINESSDOCUMENTSEvery industry has their owndocuments that they need toexchange with their Trading PartnersThe most used EDI documentsespecially in the retail andmanufacturing industries are asfollows.,,:EDI X12 DOCUMENTS810 Invoice850 Purchase OrderAn EDI 810 Invoice is an electronicdocument sent by the seller to thebuyer to receive payment for goods orservices provided–.An EDI 850 Purchase Order is aformal request from a buyer buyingcompany to a supplier sellerrequiring the delivery of goods andor services()()/.820 Payment Order/Remittance855 Purchase OrderAdviceEDI 820 Payment Order RemittanceAdvice is a notification that businesspartners seller buyer financialinstitution use to provide detailedpayment information/(,,).846 – Inventory Inquiry/ AdviceAn EDI 846 is a notification that thesupplier usually sends to the retailerwhich contains information about theavailability of goods This EDItransaction is used to inform yourtrading partners retailers aboutstock levels but does not oblige themto make a purchase,.()AcknowledgmentThe EDI 855 is an EDI document thatsellers send to a buyer as a responseto an order 850 to confirm or rejectthe delivery of products856 Advanced Ship NoticeAn EDI 856 is a notification sent bythe supplier immediately after theshipment of the goods leaves itswarehouse EDI 856 ASN does notphysically accompany a shipment butis used to inform the recipient inadvance about the contents of theshipment,.(),.edi2xml com.

Page 05INTRO TO EDI856 Advanced Ship NoticeAn EDI 856 is a notification sent bythe supplier immediately after theshipment of the goods leaves itswarehouse EDI 856 ASN does notphysically accompany a shipment butis used to inform the recipient inadvance about the contents of theshipment.(),.UN/EDIFACTMESSAGESPurchase order order fordelivery of goods or services anelectronic message that is like anorder for the supply of products It isformed and sent by the buyer to thesupplierORDERS()–.Purchase Order Responseorder confirmation an electronicmessage in which the supplierconfirms accepts or rejects thedelivery for each commodity itemDispatched by the supplier to thebuyerORDRSP(),–,.Despatch advice notice ofshipment an electronic messagethat is analogous to the consignmentnote This message is generated atthe time or before the suppliersends the goods This messageindicates the actual shippedquantity and range of goodsdelivered to the buyerDESADV()–.().().Receiving advice deliverynotice an electronic message thatcontains information about theaccepted product as well as it maycontain information about thereasons for not accepting the goodsThis message is generated at the timeor after the physical acceptance ofthe goods by the buyerRECADV)(–,.().Price sales catalog messageproduct catalog an electronicmessage that contains informationabout the goods and their pricecharacteristics This message isgenerated by the supplier to transmitinformation regarding pricing andcatalog detailsPRICAT/()–.edi2xml com.

Page 06INTRO TO EDIProduct inquiry price listrequest an electronic messagecontaining a list of products forwhich price information is requiredSent by the buyer as necessary toobtain product informationPROINQ)Invoice an electronicmessage that is like a paper invoiceINVOIC(–.Commercial disputemessage commercial discussion anelectronic message that containsinformation about the discrepancybetween the quantity prices and VATrates Dispatched by the buyer upondetection of an inconsistency in theinvoice INVOICCOMDIS.(.Commercial accountsummary the act of review of mutualaccounts an electronic messagethat is an analog of the accountingdocument Act of reconciliation ofmutual TIONPROTOCOLSOne of the most important aspects ofexchanging EDI documents is the wayinformation is transferred from onebusiness partner to another In mostcases trading partners themselvesdetermine which transmissionmethod communication protocolthey will use Here are some of themost used communication protocolsin the EDI world.,().:DIRECT CONNECTIONDirect connection allows you totransfer data directly to a businesspartner Types of direct connectionsinclude VPN Virtual Private Network()(),,.(FTP File Transfer Protocol sFTPSecure File Transfer Protocol andAS2 which encrypts data beforesending it over the Internet),.edi2xml com.

Page 07INTRO TO EDIFTP AND SFTPFTP SFTP File TransferProtocol Secure File TransferProtocol These file transfer protocolsallow businesses to connect withtheir partners via the Internet toexchange EDI documents/–/.AS2 (APPLICABILITYSTATEMENT 2)AS2 is a secure way to exchangedocuments over the Internet by usingdigital certificates and encryption ofthe EDI data.AS2TRADING PARTNER 1FTPYOURBUSINESSTRADING PARTNER 2sFTPTRADING PARTNER 3VAN (VALUE ADDEDNETWORK)A Value Added Network VAN isconsidered the post office wherebusiness partners can collect and sortEDI documents coming through-(“)”.As of today the number of companiesusing VANs is constantly decreasinggiven the lower cost of the Internetand the level of security thatsomeone can implement usingInternet communication protocolsMost of the big players in retail haveswitched to point to pointcommunications,,.""--.PURCHASE ORDERINVOICEEDI TRADINGPARTNER(Point A)PURCHASE ORDERVALUE-ADDEDNETWORK (VAN)INVOICEEDI TRADINGPARTNER(Point B)edi2xml com.

Page 08INTRO TO EDITHE EDIPROCESSHer e' s the step-by-step process ofan EDI Flow:INBOUND (RECEIVINGEDI DOCUMENTS)01OUTBOUND (SENDINGEDI DOCUMENTS)01Receive incoming EDI documentsfrom your Trading Partner eitherdirectly or via a VAN().Prepare outgoing documentsextracted from your ERPManagement System typicaldocument formats at this stageare XML TXT or CSV,;,02Convert these documents into aformat suitable to your businessneeds for easy integration into yourERP Management system such asXML TXT CSV,(,,.02Convert the outgoing documentsinto EDI format as specified byyour Trading Partner EDI x12EDIFACT,(,,).).0303Integrate these newly converteddocuments into your ERPManagement System.Send these newly converted EDIdocuments to your TradingPartner using the CommunicationProtocol requested by them AS2sFTP or VAN–,,.edi2xml com.

Page 09INTRO TO EDITHE BIG EDIPICTUREHere is the big picture of an EDIIntegration Process beginning withthe EDI document exchange with theTrading Partner s then moving on tothe transformation of documents onEDI2XML platform and ending witheither a converted file such as XMLor the data from the documentsintegrated directly into ManagementSystem for quick processing,(),,().COMMUNICATION PROTOCOLS: VAN, FTP / sFTP, HTTP / HTTPS, RNIF, AS2, nnectorsGovernmentEU GovernmentTCAFIDE / 21X / LOPPEPeCommercePlatformNOSJ/LMXRetailTCAFIDE / 21X IDEHealthcarePharmaceuticalTCAFIDE / 21X IDEWarehouseLogisticsTCAFIDE / 21X IDEManufacturingAutomotiveTCAFIDE / 21X IDETENATTESORElectronicsSemiconductorSECURED COMMUNICATIONSite-to-site VPNTunnelJSONedi2xml com.