Setting up EDI

Setting up EDI :-


Although electronic mail is faster than standard mail and eliminates paper, it differs greatly from EDI because the data is in an unstructured format. If you were to get a purchase order as an e-mail, you would likely print out the document and enter the data into another program, such as an accounting or inventory package.

• Getting the implementation guide

Whether you use a service based solution or in-house software, you will need to format the data to your trading partner's specifications. The formatting process, called mapping is usually a part of the technical support service offered by your software provider, and the guidelines for mapping are in your trading partner's implementation guide.
Often the implementation guide contains a trading partner questionnaire, which needs to be filled out and returned as soon as possible. This is the first step in establishing a trading partner relationship.
Please note that even though all of your trading partners may be using X12 standards, EDI guidelines are not universal. The map created for Company A's invoice cannot be copied and used for Company B, as Company B likely has its own criteria. As a result, you will need an implementation guide for every trading partner.

• Setting up communications

One of the most important aspects of EDI is selecting how the data is going to get from one place to the other, such as through a VAN or using a direct communication. In the majority of the cases the trading partner will designate the method.

VAN (Value Added Network)

Often referred to as the "electronic post office", a VAN is a third party service that transmits and stores data in the "electronic mailbox" until it is picked up by the appropriate party. Since the EDI message contains addressing information, the van routes the message to the mailbox of the recipient. Until recently, it was considered the most secure method of transferring data.

Direct Connection

Unlike the VAN, a direct connection allows you to pass the data straight to the receiving party.
Types of direct connection include VPN (Virtual Private Network), FTP (File Transfer Protocol), and EDIINT (EDI over the Internet). Usually EDIINT is done in conjunction with AS2 software, which encrypts the data before sending it over the Internet.

• Installing the software

There are two parts to EDI: the translator and the mapper. Installing each part is simple and takes seconds. However, each piece of software must be customized to fit your specific needs.
Translator

The translator is the engine behind the EDI process and governs the day-to-day activity. It has several components, including the engine itself, the EDI maps, the standards, and communications ability.

Mapping tool

Data is formatted using the mapper, a software tool that enables one to properly organize the data so that it follows both the EDI and the trading partner's standards. Maps contain the rules of the transaction; these rules will be enacted by the translator itself. Mapping also includes integration with an existing application. The EDI translator can be programmed to go into an application, extract information, and send it out as an EDI file. It can also import incoming data, thus eliminating the need for data entry. As said earlier, the mapping design is often done as part of the EDI supplier's technical support service.

• Final steps in the set-up process

The trading partner will send sample data, which is then mapped following the guidelines. The completed map is tested by sending sample data (which is now formatted) back to the trading partner. If it fails, the mapping error must be found and corrected. Upon successful testing the EDI partnership is ready to go live.