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EDI

sundar_desai2
Active Contributor
0 Kudos

Hi all,

Can anybody tell me what is EDI??

Sundar

1 ACCEPTED SOLUTION

Former Member
0 Kudos

EDI stands for Electronic Data Interchange is the computer-to-computer

communication of business documents between companies in a standard format.

It is a paperless way to send and receive Purchase Orders, Invoices, etc. EDI

replaces human-readable documents with electronically coded documents. The

sending computer creates the document and the receiving computer interprets the

document. Implementation of EDI streamlines the process of exchanging standard

business transactions. Companies save by eliminating people cost as well as the

cost due to errors and double entry of data. The transmissions are accomplished by

connecting to a mailbox via a modem or the internet.

How EDI Works

EDI document begins in a trading partner's business application computer

system. A document is produced and sent to a specialized computer program that

translates the document into a standard EDI format. The EDI file is then

Transmitted and sent to the intended recipient's mailbox, identified by its EDI

ID. The trading partner receives the document when it connects and

empties its mailbox. Through the use of an EDI translation program, the document

is translated into a file that will be processed by the trading partner's business

application system. During the inbound translation process, a new EDI document

is transmitted back to the sender to acknowledge receipt of the document. This

new document, the functional acknowledgment (FA), assures the sender that its

transmission has been received.

View solution in original post

2 REPLIES 2

Former Member
0 Kudos

EDI stands for Electronic Data Interchange is the computer-to-computer

communication of business documents between companies in a standard format.

It is a paperless way to send and receive Purchase Orders, Invoices, etc. EDI

replaces human-readable documents with electronically coded documents. The

sending computer creates the document and the receiving computer interprets the

document. Implementation of EDI streamlines the process of exchanging standard

business transactions. Companies save by eliminating people cost as well as the

cost due to errors and double entry of data. The transmissions are accomplished by

connecting to a mailbox via a modem or the internet.

How EDI Works

EDI document begins in a trading partner's business application computer

system. A document is produced and sent to a specialized computer program that

translates the document into a standard EDI format. The EDI file is then

Transmitted and sent to the intended recipient's mailbox, identified by its EDI

ID. The trading partner receives the document when it connects and

empties its mailbox. Through the use of an EDI translation program, the document

is translated into a file that will be processed by the trading partner's business

application system. During the inbound translation process, a new EDI document

is transmitted back to the sender to acknowledge receipt of the document. This

new document, the functional acknowledgment (FA), assures the sender that its

transmission has been received.

0 Kudos

thanks a lot buddy...its more than what I wanted......

Sundar