012900 EDI Overview John Tullis De Paul Instructor
- Slides: 66
01/29/00 EDI Overview John Tullis De. Paul Instructor john. d. tullis@us. arthurandersen. com Copyrighted material John Tullis 9/7/2021
04/15/00 EDI At the end of this presentation you will: • Know the definition of EDI • Understand the history & development of EDI • Understandards bodies & how standards are developed • Understand a basic EDI information flow • Understand EDI industry initiatives & groups Copyrighted material John Tullis 9/7/2021
Electronic Data Interchange (EDI) The idea behind EDI is to standardize the format of commonly used business documents (such as purchase orders or invoices) so that they can be sent in electronic form from one business computer application to another business computer application. Copyrighted material John Tullis 9/7/2021
The Problem U. S. Mail - 4 to 6 days Overnight - costly Telephone - error prone Paper, FAX, phone - rekeying P O Copyrighted material John Tullis 9/7/2021
EDI Solution Rapid Errorless No re-keying Less Expensive Standardized Format Copyrighted material John Tullis 9/7/2021
EDI Standards - Definition Electronic Data Interchange (EDI) is the system to system exchange of unambiguous business information in a standard format. Copyrighted material John Tullis 9/7/2021
EDI Standards - History • 1960’s - Private company specific • Sears • Kmart • 1970’s - Public industry specific • TDCC (transportation) • UCS (grocery) • WINS (warehouse) • 1979 - American National Standards Institute (ANSI) chartered the Accredited Standards Committee (ASC X 12) to develop uniform standards for electronic interchange of business transactions. Copyrighted material John Tullis 9/7/2021
EDI Standards - History • 1980’s - Cross industry implementation of EDI using ANSI ASC X 12 standards. • 1990’s - International implementation of EDI using UN/EDIFACT • 2000’s - Next generation of business messaging? • Web forms based EDI? • EDIINT - EDI using the internet for transport? • OO-EDI - international effort from CEFACT? • XML? Copyrighted material John Tullis 9/7/2021
EDI Standards - X 12 Development Process ANSI ASC X 12 (American National Standards Institute Accredited Standards Committee X 12) • Voluntary organization • Meets 3 times per year - February, June, October • Develops standards in committees • Uses consensus process in standards development • There are currently 328 transaction sets (10/99) Copyrighted material John Tullis 9/7/2021
EDI Standards - X 12 Versions & Releases • Standards (major releases) • Voted on by full ANSI membership (e. g. 2000, 3000, 4000…) • Rarely (if ever) implemented • Draft Standards for Trial Use (sub-releases) • Voted on by full X 12 membership (e. g. 2030, 3050, 4020…) • Are implemented • Issue three DTSU’s per year Copyrighted material John Tullis 9/7/2021
Standards Bodies ASC X 12 develops, maintains, interprets, publishes and promotes the proper use of American National and UN/EDIFACT International Electronic Data Interchange Standards. www. X 12. org The Data Interchange Standards Association (DISA) is a not-for-profit organization that supports the development and use of electronic data interchange standards in electronic commerce. DISA serves as the secretariat for ASC X 12. www. disa. org Copyrighted material John Tullis 9/7/2021
Standards Bodies As the international focal point for trade facilitation standards and recommendations, UN/ECE develops instruments to reduce and automate procedures and paperwork. The Centre for Facilitation of Procedures and Practices for Administration, Commerce and Transport (CEFACT) develops and maintains the only international standard for electronic data interchange (UN/EDIFACT). This standard is used to exchange structured information between computers and is critical to the implementation of management techniques such as "just-in-time" manufacturing. www. unece. org/cefact Copyrighted material John Tullis 9/7/2021
Standards Bodies XML. ORG is a self-supporting community resource designed to provide a credible source of accurate, timely information about the application of XML in industrial and commercial settings. Hosted by OASIS, the world's leading independent organization for the standardization of XML applications in electronic commerce, XML. org serves as a reference for XML vocabularies, DTDs, schemas, and namespaces. www. xml. org Copyrighted material John Tullis 9/7/2021
EDI Procurement Process Request for Quote (840) Purchasing Inventory Accounts Payable RFQ Response (843) Purchase Order (850) Advanced Ship Notice (856) Invoice (810) Payment/Remittance (820) Customer Order Entry Shipping Accounts Receivable Supplier Copyrighted material John Tullis 9/7/2021
EDI - Initiatives JIT - Just in Time Pioneered by the auto industry ERS - Evaluated Receipts Settlement Eliminates 810 - Invoice VMI - Vendor Managed Inventory Vendor is given shelf space & is expected to maximize their profits Pioneered by the retail industry Copyrighted material John Tullis 9/7/2021
Industry Groups Retail - VICS UCC - www. uc-council. org Warehouse - WINS Grocery - UCS Petroleum - PIDX - www. pidx. org JUPUG Utility - UIG - www. uig. org Joint Utility Petroleum Users Auto - AIAG - www. aiag. org Group Chemical - CIDX - www. cidx. org Banking - NACHA (www. nacha. org) - BAI (www. bai. org) Computers - COMPTIA - www. comptia. org www. ecomworld. com/html/weblinks. htm Copyrighted material John Tullis 9/7/2021
Industry Groups Health - HEDIC (www. hedic. org) AFEHCT(www. afehct. org) WEDI (www. wedi. org) HIPAA (aspe. os. dhhs. gov/admnsimp) Insurance - ACCORD Copyrighted material John Tullis 9/7/2021
Proprietary Standards • Air Transport -Spec 2000 standard • Keyword, delimited file • Mappings to X 12 and EDIFACT • www. ata. org • Banking - ACH standard • Keyword, delimited file • CCD - Cash Concentration & Disbursement • CCD+ - CCD with one addenda record • CTX - Corporate Trade Exchange has 99, 999 addenda • www. nacha. org • www. bai. org • Banking - SWIFT Copyrighted material John Tullis 9/7/2021
Electronic Data Interchange (EDI) This section covered: • The definition of EDI • The history & development of EDI • Standards bodies & how standards are developed • A basic EDI information flow • EDI industry initiatives & groups Copyrighted material John Tullis 9/7/2021
Electronic Data Interchange (EDI) At the end of this next section you will: • Understand a general EDI architecture & its components • Learn basic EDI vocabulary Copyrighted material John Tullis 9/7/2021
EDI Architecture Since each application has its own internal format & standard, EDI standards were developed to define a common format for each business document. Thus, a translator is needed to convert from internal formats to the standard format. Application System EDI Translator Copyrighted material John Tullis 9/7/2021 EDI Standards
EDI Architecture Application System Communications Interface Appl Data EDI Translator Value Added Network EDI Translator EDI Data Appl Data Communications Interface Application System Copyrighted material John Tullis 9/7/2021
EDI - Terms • Trading Partner - The sending and/or receiving party involved in the exchange of EDI transmissions • Translator - converts files from one format to another • Communications Interface - takes a file, wraps it in a communications envelope, and sends it to a VAN or vice versa • Value Added Network (VAN) - provides store & forward mailboxing services http: //pages. prodigy. com/edibooks/edigloss. html Copyrighted material John Tullis 9/7/2021
EDI Communications Company A Dial-up Company B Company A Company B Company C Company D Communications management becomes more complicated with each additional trading partner so VAN’s are used. Copyrighted material John Tullis 9/7/2021
Value Added Networks Company A Company B Value Added Network Company C Company D The VAN takes care of the communication conversions between trading partners. Copyrighted material John Tullis 9/7/2021
VAN Interconnections Company A Company C Value Added Network Company B Company D VAN connections allow Companies A, B, and D to reach Company C on another VAN. Can’t interconnect through to a 3 rd VAN. Copyrighted material John Tullis 9/7/2021
EDI - Value Added Networks (VANs) VAN (Value Added Network) allows the exchange of data between trading partners by providing mailbox (store & forward) services. • Provide routing services for each trading partner • Independent third party • Provide non-repudiation on message delivery • Security • 24 x 7 reliability • Redundancy Added Services • Header conversions • EDI to fax conversion • Archiving • Re-transmissions • Carbon copies • Check for missing batches • Compliance checking for adherence to standards Copyrighted material John Tullis 9/7/2021
VAN Pricing In general, the sender pays to send a transmission and the receiver pays to receive a transmission. • Some VANs allow charges to be split between the trading partners. e. g. 100% to one, 75%-25%. . . Each VAN has their own pricing scheme making comparison difficult. They also offer volume discounts. In general, pricing is based on some combination of: • Envelope charge • Number of segments within the envelope • Kilo-character charge Rule of thumb - Each transaction is less than the cost of a stamp. Copyrighted material John Tullis 9/7/2021
EDI Over the Internet EDIINT - EDI Over the Internet - www. ediint. org • Viewed as a cost saver • Companies need to carefully evaluate savings based on a risk assessment. For example: • Adding & maintaining security • Providing backups • Providing retransmissions • Building non-repudiation into the process (ensure that “they got it”) • Monitoring & follow-up to ensure that transmissions are received • Reliability/redundancy Copyrighted material John Tullis 9/7/2021
EDI Architecture Application System Purchasing Order Entry SAP BAAN, etc. EDI/TP Management EDIFECS Foresight EDI Translator Appl Data IBM’s Data. Interchange GEIS’ Application Integrator Harbinger (TI, Supply Tech, Premenos) Sterling’s Gentran TSI’s Mercator Value Added Network EDI Data Communications Interface IBM’s Information Exchange IBM’s Advantis GEIS Sterling’s Connect Products Sterling Kleinschmidt, AT&T, MCI, Sprint, etc. Copyrighted material John Tullis 9/7/2021
EDI - Components • Segment is a collection of related information called data elements • Data element is the smallest unit of information Segment N 1*ST*Pete Painfree N/L Element Delimiter Element Copyrighted material John Tullis 9/7/2021 Segment Delimiter
EDI Structure Interchange Envelope Functional Group Envelopes Trans Copyrighted material John Tullis 9/7/2021 Transactions ISA GS ST …transaction set (e. g. PO) SE GE GS …ST… PO Change…SE GE IEA
EDI Structure ISA Control Number & # of Functional Groups Copyrighted material John Tullis 9/7/2021 Interchange Envelope ISA GS ST …transaction set (e. g. PO) SE GE GS …ST… PO Change…SE GE IEA
EDI - Envelopes - ISA/IEA Element Delimiter ISA Sender ID ISA Receiver ID ISA*00* *12* 55555*12* 44444* 991109*1008*U*00402*123456789*1*T*~ N/L ISA Control # Sub-element Separator IEA*1*123456789 N/L Copyrighted material John Tullis 9/7/2021 Segment Delimiter
EDI Structure Group Control Number & # of Transaction Sets Copyrighted material John Tullis 9/7/2021 Functional Group Envelopes ISA GS ST …transaction set (e. g. PO) SE GE GS …ST… PO Change…SE GE IEA
EDI - Envelopes - GS/GE Group ID GS Sender ID GS Receiver ID GS*PO*5554443333*4443332222*19991109*0845* 456789012*X*0004020 N/L GS Control # Standards Version # Trans Sets GE*1*456789012 N/L Copyrighted material John Tullis 9/7/2021
EDI Structure Transaction Set Control # # of Segments & Transaction Set Control # Transactions Trans ISA GS ST …transaction set (e. g. PO) SE GE GS …ST… PO Change…SE GE IEA Copyrighted material John Tullis 9/7/2021
EDI - Envelopes - ST/SE Transaction Set ST*850*890123456 N/L ST Control # SE*21*890123456 N/L Segment Count Copyrighted material John Tullis 9/7/2021
EDI Structure Interchange Envelope Functional Group Envelopes Trans Copyrighted material John Tullis 9/7/2021 Transactions ISA GS ST …transaction set (e. g. PO) SE GE GS …ST… PO Change…SE GE IEA
Electronic Data Interchange (EDI) This section covered: • General EDI architecture & components • A basic EDI vocabulary Copyrighted material John Tullis 9/7/2021
EDI - Transaction Sets • Transaction Set • Represents a business process such as purchase orders, invoices, transcripts. . . • Composed of Segments • Consists of header, detail, and summary areas Copyrighted material John Tullis 9/7/2021
Invoice Create an EDI Purchase Order (850) based on the following paper invoice. Assignment!!! Copyrighted material John Tullis 9/7/2021
Purchase Order Copyrighted material John Tullis 9/7/2021
Purchase Order BEG*00*NE*34561**19991109**RD*IEL N/L Copyrighted material John Tullis 9/7/2021
Purchase Order BEG*00*NE*34561**19991109**RD*IEL N/L Copyrighted material John Tullis 9/7/2021 N 1*BY*H&P Emporium N/L N 3*2000 Translator Drive N/L N 4*Dallas*TX*75201 N/L PER*AE*Heidi Happy*TE*55555 N/L
N 1*BY*H&P Emporium N/L N 3*2000 Translator Drive N/L N 4*Dallas*TX*75201 N/L PER*AE*Heidi Happy*TE*55555 N/L N 1*ST*Pete Painfree N/L N 2*H&P Warehouse N/L N 3*5410 Secret Passage N/L BEG*00*NE*34561**19991109**RD*IEL N/L N 4*Plano*TX*75299 N/L Copyrighted material John Tullis 9/7/2021
N 1*BY*H&P Emporium N/L N 3*2000 Translator Drive N/L N 4*Dallas*TX*75201 N/L PER*AE*Heidi Happy*TE*55555 N/L N 1*ST*Pete Painfree N/L N 2*H&P Warehouse N/L N 3*5410 Secret Passage N/L BEG*00*NE*34561**19991109**RD*IEL N/L N 4*Plano*TX*75299 N/L PO 1*001*512*EA*1. 00**VP*1010100 N/L PID*F*Regular Strength Aspirin N/L PO 1*002*45*CA*50. 00**VP*1010110 N/L PID * F*Extra Strength Aspirin N/L Copyrighted material John Tullis 9/7/2021
N 1*BY*H&P Emporium N/L N 3*2000 Translator Drive N/L N 4*Dallas*TX*75201 N/L PER*AE*Heidi Happy*TE*55555 N/L N 1*ST*Pete Painfree N/L N 2*H&P Warehouse N/L N 3*5410 Secret Passage N/L BEG*00*NE*34561**19991109**RD*IEL N/L N 4*Plano*TX*75299 N/L PO 1*001*512*EA*1. 00**VP*1010100 N/L PID*F*Regular Strength Aspirin N/L PO 1*002*45*CA*50. 00**VP*1010110 N/L PID * F*Extra Strength Aspirin N/L CTT*2*2787. 00 N/L AMT*TZ*25. 00 N/L AMT*5*2787. 00 N/L Copyrighted material John Tullis 9/7/2021
EDI - Purchase Order (850) ISA*00* *12* 55555*12* 44444*991109*1008*U*00402*123456789*1*T*~ N/L GS*PO*5554443333*4443332222*19991109*0845*456789012*X*0004020 N/L ST*850*890123456 N/L BEG*00*NE*34561**19991109**RD*IEL N/L N 1*SE*Alfred Able N/L N 2*Acme Aspirin Company N/L N 3*101 XML Parser Trail N/L N 4*Kauai*HI*99293 N/L N 1*BY*H&P Emporium N/L N 3*2000 Translator Drive N/L N 4*Dallas*TX*75201 N/L PER*AE*Heidi Happy*TE*55555 N/L N 1*Pete Painfree N/L N 2*H&P Warehouse N/L N 3*5410 Secret Passage N/L N 4*Plano*TX*75299 N/L PO 1*001*512*EA*1. 00**VP*1010100 N/L PID*F*Regular Strength Aspirin N/L PO 1*002*45*CA*50. 00**VP*1010110 N/L PID*F*Extra Strength Aspirin N/L CTT*2 N/L AMT*TZ*25. 00 N/L AMT*5*2787. 00 N/L SE*21*890123456 N/L GE*1*456789012 N/L IEA*1*123456789 N/L Copyrighted material John Tullis 9/7/2021
Invoice Create an EDI Invoice (810) based on the following paper invoice. Assignment!!! Copyrighted material John Tullis 9/7/2021
Copyrighted material John Tullis 9/7/2021
Invoice ISA* GS* ST* BIG* N 1* N 2* N 3* N 4* N 1* N 3* N 4* PER* N 1* N 2* N 3* N 4* IT 1* PID* PO 1* PID* TDS* TXI* AMT* CTT* SE* GE* IEA* Copyrighted material John Tullis 9/7/2021
N 1*SE*Acme Aspirin Company N/L N 3*101 XML Parser Trail N/L N 4*Kauai*HI*99293 N/L N 1*ST*Pete Painfree N/L N 2*H&P Warehouse N/L N 3*5410 Secret Passage N/L N 4*Plano*TX*75299 N/L BIG*19991115*14367899*19991109*34561 N/L IT 1*2*45*CA*50. 00**VP*1010110 N/L PID*F****Extra Strength Aspirin N/L IT 1*1*512*EA*1. 00**VP*1010100 N/L PID*F****Regular Strength Aspirin N/L Copyrighted material John Tullis 9/7/2021 TDS*2767. 00 N/L AMT*TZ*25. 00 N/L CTT*2 N/L
Invoice ISA*00*12*44444*12*55555*991115*2345*U*00400*678901234 N/L GS*IN*4443332222*5554443333*19991115*2330*901234567*X*004010 N/L ST*810*712345678 N/L BIG*19991115*14367899*19991109*34561*00 N/L N 1*ST*Pete Painfree N/L N 2*H&P Warehouse N/L N 3*5410 Secret Passage N/L N 4*Plano*TX*75299 N/L N 1*SE*Acme Aspirin Company N/L N 3*101 XML Parser Trail N/L N 4*Kauai*HI*99293 N/L N 1*BY*H&P Emporium N/L N 3*2000 Translator Drive N/L N 4*Dallas*TX*75201 N/L PER*AE*Heidi Happy*TE*55555 N/L IT 1*2*45*CA*50. 00**VP*1010110 N/L PID*F****Extra Strength Aspirin N/L IT 1*1*512*EA*1. 00**VP*1010100 N/L PID*F****Regular Strength Aspirin N/L TDS*2767. 00 N/L AMT*TZ*25. 00 N/L CTT*2 N/L SE*21*712345678 N/L GE*1*901234567 N/L IEA*1*678901234 N/L Copyrighted material John Tullis 9/7/2021
EDI - Unambiguous Information Remember Electronic Data Interchange (EDI) is the system to system exchange of unambiguous business information in a standard format. What has happened recently where data was misinterpreted? Copyrighted material John Tullis 9/7/2021
EDI - Unambiguous Information NASA’s Mars Climate Orbiter Believed To Be Lost September 23, 1999 • Data was exchanged in proprietary file formats. • One group sent data in English measures & the other used metric measures. NASA/JPL/Caltech Copyrighted material John Tullis 9/7/2021
EDI - Legal Issues Trading Partner Agreement (TPA) - defines the terms and conditions for exchanging business documents electronically • Generally based on the model trading partner agreement from the American Bar Association (www. abanet. org) • Sometimes part of a larger business agreement • Contains documents for exchange, timing of exchanges, networks used • Not required by some trading partners Copyrighted material John Tullis 9/7/2021
EDI - Audit & Control Functional Acknowledgment (997) is the EDI equivalent to the post office’s “return receipt requested” form. • Should be a required response to all transaction sets • Automatically generated by the translator • “Good” 997 indicates that the transaction is syntactically correct, nothing more • Provides proof-of-delivery (non-repudiation) • Must be tracked. Follow up missing 997’s with trading partner Non-repudiation • Functional acknowledgment (997) • Application acknowledgment (824, 855) • VAN reports • Mailbag/TA 3 (for interconnects) Copyrighted material John Tullis 9/7/2021
EDI - Trading Partner Management Trading Partner Information • Must keep contact name (both business & technical) for all transaction sets • Need to keep a call tracking history • Need to keep track of trading partner change requests Version control/migration • Some industries use the convention that only the current and 2 prior versions are maintained • Takes about 18 months for a Hub to migrate off a version • Suppliers versions are dictated by their customer’s capabilities Implementation guides • Most industries have created an implementation guide to define what segments and qualifiers are acceptable. This provides a normalization of the data. Copyrighted material John Tullis 9/7/2021
EDI - Security • Most EDI sent through a VAN is not additionally secured. • The subject matter expert determines the need for security. • X 12 supports both encryption & authentication • Security segments are inserted between the ISA/IEA and GS/GE envelopes. • Financial transactions are secured by encryption. This is generally dictated by the bank. Copyrighted material John Tullis 9/7/2021
EDI Structure Interchange Envelope Trans Copyrighted material John Tullis 9/7/2021 Functional Group Envelopes Transactions ISA Security Segments GS ST …transaction set (e. g. PO) SE GE GS …ST… PO Change…SE GE Security Segments IEA
Barriers to EDI Implementations • Too difficult to implement • Too expensive, especially for the small to medium enterprise (SME) • Cost of translator & network • Lack of programming expertise • Applications aren’t integrated • Takes too long to make changes to the standards • Standards have become too generic and require industry implementation guides • Business rules are not retained with the standard Copyrighted material John Tullis 9/7/2021
What’s Next? - XML-EDI · Takes the existing ASC X 12 EDI standards and develops XML DTD’s · Naming guidelines, etc have been developed Copyrighted material John Tullis 9/7/2021
EDI - XML Initiatives X 12 Communications & Control Committee has published a tutorial detailing how to render an X 12 document into XML. ASC X 12 syntax: N 4*Dallas*TX*75201 N/L Corresponding XML syntax: <N 4_Geographic. Info> <City> Dallas </City> <State. Or. Province> TX </State. Or. Province> <Postal. Code> 75201 </Postal. Code> </N 4_Geographic. Info> Copyrighted material John Tullis 9/7/2021
EDI - XML Initiatives UN/CEFACT • Announced on 09/20/99 a joint work effort with OASIS to develop a technical framework to enable XML to be used in a consistent manner for exchanging all electronic business data. • 18 month project • Results to be posted to XML. org and uncefact. org • Co-chaired by Klaus-Dieter Naujok/Harbinger & Bob Sutor/IBM www. unece. org select XML Initiative Copyrighted material John Tullis 9/7/2021
EDI & XML EDI ain’t broke…. it isn’t dead…. it isn’t going away in the near term…. Corporations have large investments in EDI and EDI serves the 20% of the trading partners that comprise 80% of the business. It’s the other 80% of the trading partners - the small to medium enterprises - where XML has potential. Thus, XML opportunities will be found masking as EDI problems/opportunities. Copyrighted material John Tullis 9/7/2021
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