What is EDI?

Electronic Data Interchange, or EDI, is the electronic exchange of business data. Using a standard format, EDI provides a method of transmitting business data from one computer to another, without the need to re-key data. This electronic link can result in more effective business transactions. With EDI, paper documents such as invoices can be replaced with electronic transmissions, thus time is saved, and the potential for error is minimized. Data can be exchanged at any time. Related business expenses, such as postage, printing, phone calls, and handling, can also be significantly reduced. EDI can aid in the support of manufacturing efforts, such as Just-in-Time and Third Party Warehousing, and financial efforts, such as Electronic Payments.

What parts of the business cycle can be supported by EDI?

Any business documents that are currently exchanged using paper can be converted to an EDI. Standards. Standards include ANSI X12 and XML/EDI are primarily used in the United States, while EDIFACT is used in Europe and Asia.

What industries are using EDI?

The retail, automotive, grocery, freight, energy and financial industries were early users of EDI. The electronic, computing, insurance and the U.S. government are currently big users of EDI.

Who can use EDI?

Any company that buys or sells goods or services can use EDI. because it supports the entire business cycle, EDI can streamline the relationship that any company has with its customers, distributors, suppliers, and so forth.

Should my company use EDI?

EDI offers many potential benefits. EDI is a productivity tool that is beneficial to both suppliers and customers. It is a service to customers and is often viewed as an indicator of technical ability. A seller can get more business if buyers know that the seller has EDI capabilities.

What kind of software is needed to implement EDI?

EDI translation and communication software is available for most computers, whether PCs, minicomputers or mainframes. Basically all EDI software packages do the same thing. Translation software translates business documents into a standardized format that complies with ANSI X12, XML or EDIFACT, and communication software sends and receives documents. PassportXchange translates EDI to XML, ODBC and Flat File Text.

What kind of hardware is needed to implement EDI?

Hardware selection is dependent upon your preferences for speed, operating system, and level of integration with the current systems. The EDI system may be able to run on your existing hardware.

Which transactions does Embassy support?

Embassy Software supports all ANSI x12 Documents and some EDIFACT documents. Here are the most common we have solutions for:

ANSI X12 Document Number ANSI X12 Document Name Purpose
185 Royalty Regulatory Rpt Royalty Data on minerals or petroleum
204 Carrier Load Tender Shipment information for Motor Carriers
210 Freight Invoice Detail of Freight charges
211 Carrier Bill of Lading Legal Bill of lading for a shipment
214 Shipment Status Report Shipment Status (Dates and Times of pickups and deliveries)
810 Invoice Billing for goods and services
811 Consolidated Service Invoice Reporting of complex and structured service invoices. Used by Communication and Utility industries
812 Credit/Debit Adjustment Reports exceptions, adjustments, credits or debits to invoice
816 Organizational Relationships Reports relationships to parent parent organization and other members
820 Remittance Advice Payment detail of EFT sent from payer
824 Application Advice Text response to EDI transactions received
830 Planning Schedule Material Release Forcasting
846 Inventory Inquiry/Advice Sellerís Inventory Information
850 Purchase Order Purchase Order for goods and services
855 Purchase Order Acknowledgment Vendor information that goods are available and will ship
856 Advance Shipment Notice ASNs describes configuration of goods Within the transportation equipment
860 Purchase Order Change Buyer Initiated change in Purchase Order
862 Shipping Schedule Shipping requirements for vendor
864 Text Message Error Reports
865 Purchase Order Change Acknowledgment Seller notification of acceptance or rejection of PO Change (860)
867 Product Transfer Sales report and product transfers
940 Warehouse Shipping Order Depositor advise to warehouse to make or confirm a shipment
943 Warehouse Stock Transfer Shipment Advice Advise that a shipment has been made
944 Warehouse Stock Transfer Receipt Advice Advise on product that has been received
945 Warehouse Shipping Advise Advise that the shipment has been made


How does EDI get started?

EDI gets started when one company contacts another expressing interest in trading business documents electronically using Electronic Data Interchange. The two companies must first determine each other's EDI capabilities. If you do not already know your EDI capabilities, we have prepared a questionnaire to help you determine them. If you are already EDI capable, we will coordinate with your technical staff to determine a testing plan. Upon completion of testing the EDI documents, the appropriate business personnel will set a production start date to begin the exchange of EDI business data. If you are not EDI capable, we recommend you first obtain a commitment from your upper management. Your company will need to allocate resources and capital for software, hardware, testing, possible programming, and training.

What is the flow of EDI?

The flow of EDI depends on the sophistication of your systems and your EDI software. If you have internal purchasing/order entry systems, you will need interface programs that can extract and insert data out of and into these systems. EDI programs that interface with your internal systems are preferred over software that requires re-keying of data. Embassy Software specializes in seemless interface between EDI and your back office systems. Using a purchase order as an example of a business document your customer would send that PO electronically (850) to you. It could be sent either through a VAN (Value Added Network) or through an FTP server. You would take that 850 and convert it either into and ODBC database, a flat file or XML document to be imported into your Order System with the use of EDI Software such as PassportXchange.. Using EDI communication software, which is part of the PassportXchange package you would pull down data at set intervals from the VAN or FTP. These documents are then processed through EDI translation software and output to our order entry system. Finally, an EDI document called a functional acknowledgment (997) is sent to your customer

What is the availability of EDI at Embassy?

Our EDI software can run 24 hours a day, seven days a week, including holidays. You can send and receive documents every few minutes, hourly, daily, seven days a week. Call 888-467-2936 for information on determining the best EDI solution for you.