EDI Software
EDI (Electronic Data Interchange) software is a tool that enables businesses to exchange structured data electronically in a standardized format. It replaces paper-based communication methods such as fax or mail, facilitating faster, more efficient transactions between organizations.
Key Features of EDI Software
- Data Mapping and Transformation: Converts data from one format to another (e.g., from an ERP system to EDI standard formats like EDIFACT, ANSI X12).
- Document Exchange: Allows the transmission of business documents (orders, invoices, shipment notices, etc.) between companies or trading partners in a secure and structured format.
- Connectivity: Supports various communication protocols such as AS2, FTP, SFTP, VAN (Value-Added Network), or even cloud-based solutions.
- Compliance and Standards: Ensures that the transmitted documents meet industry standards such as EDIFACT (used globally) or ANSI X12 (widely used in the U.S.).
- Automation: Automates manual data entry and updates, reducing human errors and increasing operational efficiency.
- Integration: Often integrates with back-end systems (like ERP, CRM, and WMS) to automate data exchange directly into business processes.
Common EDI Document Codes:
- 810 – Invoice
This document is used to send an invoice for goods or services delivered, typically from a supplier to a buyer. - 856 – Advanced Shipping Notice (ASN)
This document provides details about shipments, including expected delivery times and contents. - 997 – Functional Acknowledgment
This document is used to acknowledge the receipt of an EDI message, confirming whether it was accepted or rejected. - 855 – Purchase Order Acknowledgment
This message is sent by a supplier to confirm receipt and acceptance of a purchase order. - 820 – Payment Order/Remittance Advice
This document is used to send payment information, including remittance details, from a payer to a payee. - 940 – Warehouse Shipping Order
This document is sent from a warehouse to a third-party logistics provider, instructing them to ship goods. - 943 – Warehouse Stock Transfer Order
This document is used to request the transfer of inventory between warehouses or locations. - 941 – Warehouse Shipping Advice
This is a document sent by a warehouse to inform about the status of goods being shipped. - 867 – Product Transfer and Resale Report
Used to send information about product transfers and resale activities, often used in retail industries. - 820 – Payment Order/Remittance Advice
This message is used to send remittance and payment details, often in the form of instructions for financial transactions. - 850 – Purchase Order
Used to request goods or services from a vendor, initiated by the buyer.