Electronic Data Interchange
Effective communication between business partners
Communication between partners is the key process to maintain good relationship, effective cooperation and the high quality of business processes. Each day a company can exchange hundreds or even thousands of documents with its business partners. How fast they are processed, influences all process stakeholders. To make partner collaboration more effective, electronic data exchange can be implemented.
Electronic Data Interchange (EDI) involves the exchange of messages in a defined formats between companies. Such messages can include e.g. order documents, confirmations, warehouse receipts, warehouse shipments, invoices and credit memos.
Effective communication between business partners
The main assumption of EDI is to eliminate multiple data and document entry and to make communication more efficient and effective. This is possible by means of interfacing applications used in the organisation involved. By implementing EDI, you can improve the availability of logistic information, enhance your data repository by collecting more specific data and as a result, reduce the time consumption of communication processes. In order to implement EDI, IT systems of customers and vendors should be interfaced. However, EDI does not define how the messages should be sent. They can be sent using any medium that is used by all stakeholders. They can be transmitted using a modem with FTP and HTTP.
EDI is a solution that can be implemented in any type of business. It is gaining the greatest popularity among retail chains and manufacturing companies. These organisations exchange thousands of documents daily (orders, VAT invoices, credit memos, etc.)
The EDI technology ensures many benefits. It reduces costs and order lead times, increases process efficiency and eliminates errors in documents.
Functionalities
Exporting purchase orders
- Using this functionality, you can tag vendors for EDI.
- The XML file containing an order can be exported directly from the purchase order form.
Importing purchase orders
- Using this functionality, you can tag vendors for EDI.
- Purchase invoice data can be retrieved from a vendor XML file
Operation log
- The functionality provides tools for logging EDI exports and imports
- Data required to identify import or export operations are logged e.g.: import date, file path and file name, document no, document type, user ID, etc.
Customisable setup
- It is possible to define custom export and import setup for purchase documents, e.g.: export and import file paths ,ILN no., EAN no., XML versions.
- The setup can be customised for each vendor tagged as EDI.
- EDI can be blocked temporarily blocked for specific vendors.
Generating EAN codes
- The functionality can be used to generate EAN codes for a defined range.
Importing purchase invoices
- Using this functionality, you can tag vendors for EDI.
- Purchase credit note data can be retrieved from a vendor XML file.
- Data can be automatically validated, including item availability validation.
- This functionality can be used to create a purchase credit note automatically in the system
Importing purchase credit memos
- Using this functionality, you can tag vendors for EDI.
- Purchase credit note data can be retrieved from a vendor XML file.
- Data can be automatically validated, including item availability validation.
- This functionality can be used to create a purchase credit note automatically in the system.
Exporting a confirmed sales delivery advice
- In the posted receipt, you can compare the delivery advice quantity and actually received quantity.
- Based on the comparison of delivery advice and actual delivery quantities, the system exports a delivery confirmation.
Archiving EDI documents.
- The functionality enables you to log and store data from all imported or exported documents using EDI
Importing sales orders
- The functionality enables you to retrieve XML files containing a customer’s order.
- Data can be automatically validated, including item availability
- The functionality creates automatically sales orders in the system.
EDI sales report
- This report can be used to print exported sales invoices and sales credit memos.
- The report can be printed for selected customers, periods and document types.
Importing a confirmed sales delivery advice
- It is possible to import the confirmation of the exported advice from the XML file.
- On the posted shipment, you can compare the shipped quantity and confirmed received quantity.
Archiving EDI documents
- The functionality enables you to log and store data from all imported or exported documents using EDI.
Exporting posted sales invoices
- Using this functionality, you can tag customers for EDI.
- Then, each posted invoice issued for the customer and tagged as EDI can be exported in an XML file.
- You can export single or multiple documents.
Exporting sales shipment advices
- Using this functionality, you can tag customers for EDI.
- Each posted invoice issued for the customer and tagged as EDI can be exported in an XML file
Operation log
- The functionality provides tools for logging EDI exports and imports
- Data required to identify import or export operations are logged e.g.: import date, file path and file name, document no, document type, user ID, etc.
Customisable setup
- It is possible to define custom export and import setup for sales documents, e.g.: export and import file paths, ILN no., EAN no., XML versions.
- The setup can be customised for each customer tagged as EDI.
- EDI can be temporarily blocked for specific customers.
Take care about standardizing data
Benefits
Reduced number of documents with errors.
Errors in documents result frequently from human mistakes. EDI reduces the number of such errors, as each document is validated against formal and accounting rules before it is delivered to its recipient.
End of manual data entry
Documents are automatically imported to the recipient’s system. Therefore, there is no need to enter them manually.
Standardised data
Partners use uniform data standards which ensures consistency and transparency of messages.
Shorter order lead times
Standardised communication and a common language used by contracting parties reduces the time needed to complete the order.
Shorter application of financial records
Due to reduced order lead times and direct document transfer (orders, VAT invoices and credit memos), financial records are processed and applied much faster.
Reduced costs
Faster communication, reduced paperwork and number of errors at order processing contribute to decreased costs. EDI also enables you to curb your sales and logistics management costs.