EDI Concepts and Terminology - 1 Source: EDI Fundamentals and Standard - Overview IEEM 5352 E-Enterprise Integration

EDI Concepts and Terminology - EDI Concepts and Terminology - 11 Source:

EDI Fundamentals and Standard - EDI Fundamentals and Standard - OverviewOverview

IEEM 5352IEEM 5352E-Enterprise IntegrationE-Enterprise Integration


EDI - Electronic Data InterchangeEDI - Electronic Data Interchange

EDI is the EDI is the computer to computercomputer to computer exchange of exchange of routineroutine business documents business documents

in a in a standard format.standard format.

Ship NoticesShip Notices

InvoicesInvoices

Bills of LadingBills of Lading Purchase OrdersPurchase Orders

PaymentsPayments


Trading PartnersTrading Partners

SuppliersSuppliers ManufacturersManufacturers DistributorsDistributors CustomersCustomers


Electronic Data InterchangeElectronic Data Interchange

SuppliersSuppliers ManufacturersManufacturers DistributorsDistributors CustomersCustomers

Purchase OrdersInvoices

Payments

Purchase OrdersInvoices

Payments

ForecastsAdvance Shipment

NotificationWarehouse Authority

To ShipShipment Confirmation

ForecastsAdvance Shipment

NotificationWarehouse Authority

To ShipShipment Confirmation

Sales OrdersInvoices

Payments

Sales OrdersInvoices

Payments


EDI Business PartnershipEDI Business Partnership

CustomerSupplier

Purchase Order

Response to Request for Quote

Request for Quote

Purchase Order Acknowledgment

Ship Notice

Invoice

Payment


EDI Requires Review of Business EDI Requires Review of Business Models and ReengineeringModels and Reengineering

Order Business ModelOrder Business Modelfor Stand Alone Purchase Ordersfor Stand Alone Purchase Orders

Buyer Seller

Purchase Order

Forecast/Plan Cycle (Optional)

Shipment/Payment Business Model

Pre-Order Business Model (Optional)

Purchase Order Acknowledgment

Change Order

Seller-Initiated Change

Change Order Acknowledgment


Commerce Without EDICommerce Without EDI

PurchasingAgent

PurchasingAgent

Purchaser’sComputer


Data EntryData Entry

Supplier’sComputer


Billing ClerkBilling Clerk

FaxPhone

Mail

FaxPhone

Mail

MailTransfer

MailTransfer

MailTransfer

MailTransfer

MailTransfer

MailTransfer

Data EntryData Entry

Post OfficePost Office

BuyerBuyer SupplierSupplier


Commerce With EDICommerce With EDI

PurchasingAgent

PurchasingAgent



Buyer’sPrivateMailbox

Buyer’sPrivateMailbox

ValueAdded

Network

ValueAdded

Network

Supplier’sPrivateMailbox

Supplier’sPrivateMailbox



Billing ClerkBilling Clerk

BuyerBuyer SupplierSupplierElectronicElectronicPost OfficePost Office


Benefits of EDIBenefits of EDI

• Reduces costsReduces costs

• Decreases cycle timeDecreases cycle time

• Improves productivityImproves productivity

• Improves customer service and Improves customer service and satisfactionsatisfaction


EDI ImperativeEDI Imperative

NotNot just nice to have just nice to have

Not Not optionaloptional

Not Not an afterthoughtan afterthought

EDI MUST BE INTERGRATED EDI MUST BE INTERGRATED INTO APPLICATIONINTO APPLICATION


EDI StandardsEDI Standards

EDIFACT Standard

ASC X12 Standard


EDI Standards Building OrganizationsEDI Standards Building Organizations

(ANSI) ASC X12 STANDARDS(ANSI) ASC X12 STANDARDS

Accredited Standards Committee X12 commissioned by ANSI

Used Predominantly in North America

(UN) EDIFACT STANDARDS(UN) EDIFACT STANDARDS

‘EDI For Administration, Commerce and Trade’ Board chartered by the United Nations

Used Predominantly in Europe & Asia

Considered the International Standard


EDI Regional StandardsEDI Regional Standards

ODETTE ODETTE

Organization for Data Exchange Through Telecommunications in Europe

Automotive in Europe

TRADACOMSTRADACOMS

Trading Data Communications Standard

in Europe


ASC X12 Versions/ReleasesASC X12 Versions/Releases

Version Release Sub-Rlse AKA Release Date

001 000 1000 1983

002 000 2000 1986

002 001 2001 1987 November

002 003 2003 1988 August

002 004 000 2040 1989 May

003 001 000 3010 1990 June

003 002 000 3020 1991 June

003 004 000 3040 1993 October

003 004 001 3041 1994 February

003 006 000 3060 1995 October

004 001 4010 1997 December


EDIFACT DirectoriesEDIFACT Directories

Directory Release Date

92.1 Sept. 1992

92.2

D93A Sept. 1993

D93B

D94A Sept. 1994

D94B

D95A March 1995

D95B July 1995

D96A (first in 1996)

D96B (second in 1996)

D97A (first in 1997)


EDI StandardsEDI Standards

All STANDARDS have architecture and syntax rules to define

Electronic Documents (~Transactions/Messages) (~Transactions/Messages)

Records (~Segments) (~Segments)

Data Elements (~Data Element for (~Data Element for Standard Codes Standard Codes or Your Dat or Your Dat

a)a)


Business Documents to Standard Business Documents to Standard Transactions and MessagesTransactions and Messages

Business DocumentBusiness Document

InvoiceInvoice

Purchase OrderPurchase Order

Shipment and BillingShipment and BillingNoticeNotice

Change OrderChange Order

Price/Sales CatalogPrice/Sales Catalog

Customs DeclarationCustoms Declaration

EDIFACTEDIFACT

INVOICINVOIC

ORDERSORDERS

n/an/a

ORDCHGORDCHG

PRICATPRICAT

CUSDECCUSDEC

X12 X12

810810

850850

857857

860860

832832

n/an/a


Paper and X12 Terminology Paper and X12 Terminology ComparisonComparison

BUSINESSDOCUMENTS

Invoices Purchase Order

EQUAL

PO Number PO Date Part Number Item Quantity Schedule Quantity Schedule Date

TRANSACTIONS

810 INVOICE 850 PURCHASE ORDER

GROUPS OF DATA EQUAL SEGMENTS

Basic PO Data PO Line Item Schedules

BEG Segments PO1 Segments SCH Segments

INDIVIDUAL DATA EQUAL DATA ELEMENTS

BEG03 PO NUMBER BEG06 PO DATE PO107 PROD/SERVC ID CD PO102 QTY ORDERED SCH01 (SCHEDULE) QTY SCH06 (SCHEDULE) DATE


Hierarchy of SegmentsHierarchy of Segments

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

Header - BEG Beginning

- N1 Name and Address

Items (within Header)

- PO1 Item Data

Delivery Schedules (within Item)- SCH Scheduling


Sample ASC X12 Purchase Order Sample ASC X12 Purchase Order (850 Transaction)(850 Transaction)

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’


ASCX12 to EDIFACT ASCX12 to EDIFACT ComparisonComparison

ASC X12 PURCHASE ORDER ASC X12 PURCHASE ORDER TRANSACTIONTRANSACTION

STST~~850850~~00010001@@BEGBEG~00~SA~~00~SA~P54356P54356+~~+~~960626~960626~~~CN2345CN2345@@N1N1~~BTBT~ACME CORP.~92~~ACME CORP.~92~AC323AC323@@N1N1~~STST~ACME CORP.~92~~ACME CORP.~92~AC9876AC9876@@PO1PO1~~0101~~500500~~2.992.99~CT~~CT~BPBP~~1820-1820-

02320232~~ECEC~~CC~~VPVP~~GF9876GF9876@@SCHSCH~~200~EA200~EA~~~~002~~~~~002~960715960715@@SCHSCH~~300~EA300~EA~~~~002~~~~~002~960820960820~~CTTCTT~1~500@~1~500@SESE~9~~9~00010001@@

EDIFACT ORDERS MESSAGEUNHUNH++00010001++ORDERSORDERS:2:921:UN:EIVER1’:2:921:UN:EIVER1’BGMBGM+105++105+P54356P54356+9’+9’DTMDTM+4++4+960626960626:101’:101’RFFRFF+CT:+CT:CN2345CN2345’’NADNAD++BTBT++AC323AC323:92’:92’NADNAD++STST++AC9876AC9876:92’:92’LINLIN+01+++01++1820-02321820-0232::BPBP’’PIAPIA+1++1+CC::ECEC++GF9876GF9876::VPVP’’QTYQTY+21:+21:500:PCE500:PCE’’PRIPRI+1:+1:2.992.99:CT::1’:CT::1’SCCSCC+1+DD’+1+DD’QTYQTY+133:+133:200200’’DTMDTM+2:+2:960715960715:101’:101’QTYQTY+133:+133:300300’’DTMDTM+2:+2:960820960820:101’:101’CNSCNS+S’+S’CTNCTN+2:1’+2:1’CNTCNT+19+1800+19+1800UNTUNT+19++19+00010001’’


Sample ASC X12 Transaction Sample ASC X12 Transaction SpecificationsSpecifications

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.


Des.No.

ASC X12 Transaction Specifications -ASC X12 Transaction Specifications -Header Segments Header Segments

Heading:

IDIDName

UsePos. Seg.Seg. Req. Max.

CommentsNotes and

010 STST Transaction Set Header M 1

020 BEGBEG Beginning Segment for Purchase Order MM 1

040 CURCUR Currency O 1

050 REFREF Reference Numbers O 1212

070 TAXTAX Tax Reference O 3

080 FOBFOB F.O.B. Related Instructions O 1

100 SSSSSS Special Services O 25

150 DTMDTM Date/Time Reference O 10

210 PWKPWK Paperwork O 25

240 TD5TD5 Carrier Details (Routing Sequence/TransitTime)

O 12

LOOP START (200)LOOP START (200)

310 N1N1 Name O 1

360 PERPER Administrative Communications Contact O 3

LOOP ENDLOOP END


ASC X12 Transaction Specifications - ASC X12 Transaction Specifications - Detail Segments Detail Segments

Detail:Detail:

Pos. Seg. Req. Max. Notes andNo. ID

NameDes. Use Comments

LOOP START (100000)LOOP START (100000)

010 PO1PO1 Purchase Order Baseline Item Data M 1

080 PKGPKG Marking, Packaging, Loading O 200

090 PO4PO4 Item Physical Details O 1

100 REFREF Reference Numbers O 12

120 SSSSSS Special Services O 25

130 ITAITA Allowance, Charge or Service O 10

230 SCHSCH Line Item Schedule O 200 n1

250 TD5TD5 Carrier Details (Routing Sequence/TransitTime)

O 12

LOOP ENDLOOP END


ASC X12 Transactions Specifications - ASC X12 Transactions Specifications - Summary SegmentsSummary Segments

Summary:

Pos. Seg. Req. Max.No. ID

NameDes. Use

010 CTTCTT Transaction Totals M 1

030 SESE Transaction Set Trailer M 1

Transaction Set NotesTransaction Set Notes

1. The SCH segment is used to specify various quantities of items ordered that are to bescheduled. When this segment is used the unit of measurement code (SCH02)(SCH02) shouldalways 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 quantityordered (PO102)(PO102) in the PO1 segment.

2. The number of line items (CTT01(CTT01) is the accumulation of the number of PO1 PO1 segments.If used, hash total (CTT02)(CTT02) is the sum of the value of quantities ordered (PO102)(PO102) foreach PO1 PO1 segment.


ASC X12 Data Dictionary Data ASC X12 Data Dictionary Data ElementsElements

Segment / Position

Data Type

BEG03 324

PURCHASE ORDERNUMBER

RequirementsDesignator

M AN 1/22

Data Element Number

Minimum/MaximumLength


X12 Data Element 92 - Purchase Order Type Code specifying the type of Purchase Order. Type: ID Min=2 Max=2

Transaction QualifiersTransaction Qualifiers

BK - Blanket Order

CF - Confirmation

CP - Change to purchase order

RE - Reorder

SA - Stand alone order


X12 Data Element 374 - DATE/TIME QualifierCode specifying type of date or time, or bothdate and timeType: ID Min=3 Max=3

Data Value QualifiersData Value Qualifiers

001 - Cancel after002 - Delivery requested003 - Invoice004 - Purchase order005 - Sailing007 - Effective219 - Plugged and abandoned SCH


ASC X12 Data Element Qualifiers - ASC X12 Data Element Qualifiers - ExamplesExamples

N103 66ID CODEID CODE

QUALIFIERQUALIFIER

C ID 1/2

N104 67

ID CODE

C ID 1/30

DE66 CODE LIST1 = DUN & BRADSTREET99 = Duns plus 4 digits91 91 = Assigned by Buyer92 92 = Assigned by Seller

DTM01 374DATE/TIMEDATE/TIMEQUALIFIERQUALIFIER

M ID 3/3

DTM02 373

DATE

C DT 6/6

DE374 CODE LIST002002 = Delivery Requested010010 = Requested Ship017017 = Estimated Delivery069069 = Promised for Delivery

PO106 235PROD/SERVPROD/SERV

ID ID QUALIFIERQUALIFIER

O ID 2/2

PO107 234PROD/SERV

ID

C AN 1/30

DE235 CODE LISTBP BP = Buyer partEC EC = Engineering ChangeDRDR = DrawingVP VP = Vendor Part


ASC X12 Example Purchase Order ASC X12 Example Purchase Order SegmentSegment

PO1PO1(PO BASELINE(PO BASELINEITEMITEMV3030)V3030)

PO101 350

ASSIGNEDASSIGNED IDID

O ID 1/6

PO102 330

QTYQTYORDEREDORDERED

M R 1/9

PO103 355

UNIT OFUNIT OFMEASURE.MEASURE.

M ID 2/2

PO104 212

UNITUNITPRICEPRICE

C R 1/14

PO105 639

BASIS UNITBASIS UNITPRICE CODEPRICE CODE

O ID 2/2

PO106 235

PROD/SERVPROD/SERVID QUALIFERID QUALIFER

O ID 2/2

PO107 234

PROD/SERV IDPROD/SERV IDC AN 1/30

PO108 235


O AN 2/2

PO109 234

PROD/SERVPROD/SERVIDID

C ID 1/30

ETCETERACETERA

PO122 235


O ID 2/2

PO123 234

PROD/SERV IDPROD/SERV IDO AN 1/30

PO124 235


O AN 2/2

PO125 234

PROD/SERVPROD/SERVIDID

O ID 1/30

PO1~1~500~EA~23.99~CT~BP~PD34~VP~V545434@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 Code Conversion/Cross ASC X12 Code Conversion/Cross ReferencingReferencing

X12 Data from SENDER

N1*ST*ST*ACME*91*ABCABCN1*BT*BT**91*XYZXYZ

REF*CTCT*CON24CON24REF*PRPR*QT97QT97TD5**92*UPSBLUPSBL

RECEIVER cross reference

SHIP TOSHIP TO ‘ABC’ = ‘NT1234’BILL TOBILL TO ‘‘XYZ’ = ‘TT987’XYZ’ = ‘TT987’CONTRACTCONTRACT ‘‘CON24’ = ‘986’CON24’ = ‘986’PRICE QUOTEPRICE QUOTE ‘‘QT97’= ‘9864’QT97’= ‘9864’CARRIERCARRIER ‘‘UPSBL’ = ‘UPS2’UPSBL’ = ‘UPS2’

MAY BE REQUIRED TO CROSS-REFERENCE CODES BACK TOORIGINAL CODES FOR RETURNED TRANSACTIONS

Cross-Reference codes to internal application codes.Cross-Reference codes to internal application codes.


Components in the EDI ProcessComponents in the EDI Process

• Business applicationsBusiness applications

• EDI Application Integration SoftwareEDI Application Integration Software

• EDI TranslatorEDI Translator

• CommunicationsCommunications


EDI Transaction FlowEDI Transaction Flow

DataComm

EDITranslator

Application Interface

Applications

ISA~

BEG~00

N1~ST~

TableTable

Std.Std.FileFile

Inbound Flow

Inbound Flow

Outbound Flow

Outbound Flow

850BT12

35789SG

41825520

InterfaceInterfaceFileFile


EDI Application Integration SoftwareEDI Application Integration Software

EDIEDIEX*tenderEX*tender Oracle Oracle

ApplicationsApplications

FlatFile

Format or

Tables

FlatFile

Format or

Tables

FlatFile

Formator

Tables

FlatFile

Formator

Tables

Oracle EDI

Gateway

Oracle EDI

Gateway

• General Code ConversionGeneral Code Conversion

• Location Code ConversionLocation Code Conversion

• Inbound: Loads Data to Application Inbound: Loads Data to Application Interface TablesInterface Tables

• Outbound: Extracts Data from base Outbound: Extracts Data from base ApplicationApplication


EDI TranslatorEDI Translator

• Software bridge between EDI Standards andSoftware bridge between EDI Standards and applications applications

• It is the last process before the standard transactionsIt is the last process before the standard transactions are sent, and the first process after receiving standard are sent, and the first process after receiving standard transactions transactions

• Insulates applications from Standards and StandardInsulates applications from Standards and Standard versions/releases versions/releases

• Each Trading Partner chooses their own EDI TranslatorEach Trading Partner chooses their own EDI Translator

• EDI Gateway is EDI Translator IndependentEDI Gateway is EDI Translator Independent


EDI Translator Set Up EDI Translator Set Up

Trading Partner Set Up (Mandatory)Define electronic mailboxActivate transactionsSet test/production flagsSpecify communications method

Code Conversion Set Up (Optional)Define internal and external codesApply code conversion as

appropriate


EDI Translator - Data FunctionsEDI Translator - Data Functions

Perform data mapping

Perform code conversion

Perform compliance checking

Wrap and compress data before sending

Unwrap and uncompress data after receiving


Generate Functional Acknowledgments

Match Functional Acknowledgments to transactionGenerate audit reportsRequeue transactions for resubmission

EDI Translator - EDI Translator - Monitoring FunctionsMonitoring Functions


ASC X12 810 Invoice - ASC X12 810 Invoice - Wrapped and CompressedWrapped and Compressed

ST~ST~810~810~189’189’BIG~BIG~980208980208~~TF87654TF87654~~980112980112~~KJ98KJ9876-3476-34~~PR’N1~BT~RUNNER UNLIMITED~92~~~PR’N1~BT~RUNNER UNLIMITED~92~MTB1MTB1’’N1~ST~RUNNER UNLIMITED~92~N1~ST~RUNNER UNLIMITED~92~MT01MT01’N1~SE~AC’N1~SE~ACME SUPPLIES~92~ME SUPPLIES~92~AC987AC987’IT1~’IT1~0101~~100100~~EAEA~~1010~~EAEA~BP~~BP~98754-98798754-987~EC~~EC~EE~VP~~VP~5986-08345986-0834’IT1~’IT1~0202~~22~~EAEA~~200200~~EAEA~BP~~BP~BK454532BK454532~EC~~EC~WW~VP~ ~VP~ 646455-5646455-5

66’TDS~’TDS~14001400’CTT~2@SE~10~’CTT~2@SE~10~189189’’ Invoice Invoice TF87654 TF87654 date 2/8/982/8/98 for PO KJ9876-34KJ9876-34 dated 1/12/981/12/98. Bill to Runner Unlimited location coded MTB1MTB1; Ship to Runner Unlimited location coded MT01MT01. Selling Party is Acme Supplies location coded AC987AC987.. There are two line items:There are two line items: IT1= ‘01‘01’’ which is the PO line item number. Buyer part is 98754-98798754-987 with engineering change EE. The vendor part is 5986-08345986-0834 for 100100 units

IT1 =‘0202’’ which is the PO line item number. Buyer part is BK454532 BK454532 with engineering change WW.. The vendor part is 646455-56646455-56 for 200200 units


EDI Implementation GuideEDI 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 Implementati

on Conventions (IC’s) on TP’s• Governments too

• HIPAA - Health Care• DoD - Department of Defense


CommunicationsCommunications

• Value Added Networks (VANs)Value Added Networks (VANs)

• Direct ConnectsDirect Connects

• EDI over the InternetEDI over the Internet

• Diskettes, Tape CartridgeDiskettes, Tape Cartridge


Value Added Network and Trusted Value Added Network and Trusted Third Party ServicesThird Party Services

Value Added Network - VAN

Electronic Mailbox Central Clearinghouse Secure and Private Backup / Archive Protocol Conversions Simplify Data

Communications


EDI Communication Without a VANEDI Communication Without a VAN

Sender 1

Sender 2

Sender 3

Sender 4

Receiver A

Receiver B

Receiver C

Receiver D


EDI Communication with a VANEDI Communication with a VAN

Sender 1

Sender 2

Sender 3

Sender 4

Receiver A

Receiver B

Receiver C

Receiver D

Third-Party

Network

VAN

VAN


Value Added NetworksValue Added Networks

• AT & TAT & T

• IBM Information ExchangeIBM Information Exchange

• HarbingerHarbinger

• SterlingSterling

• GEIS - General Electric Information ServicesGEIS - General Electric Information Services

• TradeVanTradeVan

• ......


EDI Versus Web-BasedEDI Versus Web-BasedApplicationsApplications

Web-based applications:Web-based applications:

Require data entry at sending site

Do not support mass batches of data

Good for status inquiries

Good for transactions where EDI cannot be established


Problems with EDIProblems 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


Two New EDI DirectionsTwo 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