FREE online courses on ECOMMERCE FUNDAMENTALS - Electronic Data
Interchange - Common language
EDI helps in
establishing a common language, which is used during data exchange:
·The EDI sender's originating
application, such as purchasing produces the same data regardless of the
delivery mechanism.
·The function's business
requirements do not change based on whether EDI is being used or not.
·For EDI the purchase order
data are sent to the translation process instead of the form printer.
·The translator software
accepts the purchasing system's view of the data, applies a user defined map and
converts the purchase order (PO) to an ASC X 12 format.
·The transaction is delivered
through a communication process to the receiving vendor who reverses the EDI
process.
·The ASC X 12 standard PO is
filtered through a map defined by the vendor and is converted to the order entry
system's view of the data.
·The order entry system
processes the information just as though it has originated from a paper PO
received through the supplier's mail room and key punched by a sales order entry
clerk.