IEEM 5352 E-Enterprise Integration EDI Fundamentals and Standard

IEEM 5352 E-Enterprise Integration EDI Fundamentals and Standard Overview EDI Concepts and Terminology - 1 Source:

EDI - Electronic Data Interchange EDI is the computer to computer exchange of routine business documents in a standard format. Invoices Bills of Lading Ship Notices EDI Concepts and Terminology - 2 Purchase Orders Payments Source:

Trading Partners Suppliers Manufacturers EDI Concepts and Terminology - 3 Distributors Source: Customers

Electronic Data Interchange Suppliers Manufacturers Purchase Orders Invoices Payments Distributors Forecasts Advance Shipment Notification Warehouse Authority To Shipment Confirmation EDI Concepts and Terminology - 4 Customers Sales Orders Invoices Payments Source:

EDI Business Partnership Request for Quote Response to Request for Quote Purchase Order Acknowledgment Customer Invoice Supplier Ship Notice Payment EDI Concepts and Terminology - 5 Source:

EDI Requires Review of Business Models and Reengineering Order Business Model for Stand Alone Purchase Orders Pre-Order Business Model (Optional) Purchase Order Acknowledgment Seller-Initiated Change Order Buyer Change Order Acknowledgment Forecast/Plan Cycle (Optional) Shipment/Payment Business Model EDI Concepts and Terminology - 6 Source: Seller

Buyer Commerce Without EDI Fax Phone Mail Purchasing Agent Purchaser’s Computer Data Entry Mail Transfer Data Entry Post Office Mail Transfer EDI Concepts and Terminology - 7 Supplier’s Computer Mail Transfer Billing Clerk Source:

Commerce With EDI Buyer’s Private Mailbox Purchasing Agent Value Added Network Billing Clerk Purchaser’s Computer Supplier’s Private Mailbox Supplier’s Computer Buyer Electronic Post Office Supplier EDI Concepts and Terminology - 8 Source:

Benefits of EDI • Reduces costs • Decreases cycle time • Improves productivity • Improves customer service and satisfaction EDI Concepts and Terminology - 9 Source:

EDI Imperative EDI MUST BE INTERGRATED INTO APPLICATION Not just nice to have Not optional Not an afterthought EDI Concepts and Terminology - 10 Source:

EDI Standards ASC X 12 Standard EDIFACT Standard EDI Concepts and Terminology - 11 Source:

EDI Standards Building Organizations (ANSI) ASC X 12 STANDARDS Accredited Standards Committee X 12 commissioned by ANSI Used Predominantly in North America (UN) EDIFACT STANDARDS ‘EDI For Administration, Commerce and Trade’ Board chartered by the United Nations Used Predominantly in Europe & Asia Considered the International Standard EDI Concepts and Terminology - 12 Source:

EDI Regional Standards ODETTE Organization for Data Exchange Through Telecommunications in Europe Automotive in Europe TRADACOMS Trading Data Communications Standard in Europe EDI Concepts and Terminology - 13 Source:

ASC X 12 Versions/Releases EDI Concepts and Terminology - 14 Source:

EDIFACT Directories EDI Concepts and Terminology - 15 Source:

EDI Standards All STANDARDS have architecture and syntax rules to define Electronic Documents (~Transactions/Messages) Records (~Segments) Data Elements (~Data Element for Standard Codes or Your Data) EDI Concepts and Terminology - 16 Source:

Business Documents to Standard Transactions and Messages X 12 EDIFACT Business Document 810 INVOIC Invoice 850 ORDERS Purchase Order 860 ORDCHG Change Order 832 PRICAT Price/Sales Catalog 857 n/a Shipment and Billing Notice n/a CUSDEC EDI Concepts and Terminology - 17 Customs Declaration Source:

Paper and X 12 Terminology Comparison BUSINESS DOCUMENTS Invoices Purchase Order EQUAL GROUPS OF DATA EQUAL 810 INVOICE 850 PURCHASE ORDER Basic PO Data PO Line Item Schedules INDIVIDUAL DATA PO Number PO Date Part Number Item Quantity Schedule Date EDI Concepts and Terminology - 18 TRANSACTIONS SEGMENTS BEG Segments PO 1 Segments SCH Segments EQUAL DATA ELEMENTS BEG 03 BEG 06 PO 107 PO 102 SCH 01 SCH 06 PO NUMBER PO DATE PROD/SERVC ID CD QTY ORDERED (SCHEDULE) QTY (SCHEDULE) DATE Source:

Hierarchy of Segments Acme Corp PO 53436 5400 Acme Pkwy Contract Acme, PA 17016 95 -276 IT PART QTY PRICE 1 PD 34 1000 1. 142 Header - BEG Beginning - N 1 Name and Address Schedule 500 2 12/05/98 Items (within Header) - PO 1 Item Data 01/05/99 L 2678 1500 5. 17 Schedule 500 12/05/98 500 12/12/98 500 12/19/98 EDI Concepts and Terminology - 19 Delivery Schedules (within Item) - SCH Scheduling Source:

Sample ASC X 12 Purchase Order (850 Transaction) ST~850~123’ BEG~00~SA~P 54356~~~960102~~CN 2345’ N 1~BT~ACME CORP. ~92~AC 323’ N 1~ST~ACME CORP. ~92~AC 9876’ PO 1~1~500~23. 99~CT~BP~PD 34~VP~V 545434’ SCH~200~EA~~~~002~960115’ SCH~300~EA~~~~002~960315’ CTT~1~500’ SE~9~123’ EDI Concepts and Terminology - 20 Source:

ASCX 12 to EDIFACT Comparison ASC X 12 PURCHASE ORDER TRANSACTION ST~850~0001@ BEG~00~SA~P 54356+~~960626~~CN 2345@ N 1~BT~ACME CORP. ~92~AC 323@ N 1~ST~ACME CORP. ~92~AC 9876@ PO 1~01~500~2. 99~CT~BP~18200232~EC~C~VP~GF 9876@ SCH~200~EA~~~~002~960715@ SCH~300~EA~~~~002~960820~ CTT~1~500@ SE~9~0001@ EDI Concepts and Terminology - 21 EDIFACT ORDERS MESSAGE UNH+0001+ORDERS: 2: 921: UN: EIVER 1’ BGM+105+P 54356+9’ DTM+4+960626: 101’ RFF+CT: CN 2345’ NAD+BT+AC 323: 92’ NAD+ST+AC 9876: 92’ LIN+01++1820 -0232: BP’ PIA+1+C: EC+GF 9876: VP’ QTY+21: 500: PCE’ PRI+1: 2. 99: CT: : 1’ SCC+1+DD’ QTY+133: 200’ DTM+2: 960715: 101’ QTY+133: 300’ DTM+2: 960820: 101’ CNS+S’ CTN+2: 1’ CNT+19+1800 UNT+19+0001’ Source:

Sample ASC X 12 Transaction Specifications 850 Purchase Order Functional Group ID=PO Introduction: This standard provides the format and establishes the data contents of a purchase order transaction set. The purchase order transaction set provides for customary and established business and industry practice relative to the placement of purchase orders for goods and services. This transaction set should not be used to convey purchase order changes or purchase order acknowledgment information. EDI Concepts and Terminology - 22 Source:

ASC X 12 Transaction Specifications Header Segments Heading: Pos. No. Seg. ID Name 010 020 040 050 070 080 100 150 210 240 ST BEG CUR REF TAX FOB SSS DTM PWK TD 5 310 360 N 1 PER Transaction Set Header Beginning Segment for Purchase Order Currency Reference Numbers Tax Reference F. O. B. Related Instructions Special Services Date/Time Reference Paperwork Carrier Details (Routing Sequence/Transit Time) LOOP START (200) Name Administrative Communications Contact LOOP END EDI Concepts and Terminology - 23 Req. Des. Max. Notes and Comments Use M M O O O O 1 12 3 1 25 10 25 12 O O 1 3 Source:

ASC X 12 Transaction Specifications Detail Segments Detail: Pos. No. 010 080 090 100 120 130 250 Seg. ID Name PO 1 PKG PO 4 REF SSS ITA SCH TD 5 LOOP START (100000) Purchase Order Baseline Item Data Marking, Packaging, Loading Item Physical Details Reference Numbers Special Services Allowance, Charge or Service Line Item Schedule Carrier Details (Routing Sequence/Transit Time) LOOP END EDI Concepts and Terminology - 24 Req. Des. Max. Notes and Use Comments M O O O O Source: 1 200 1 12 25 10 200 12 n 1

ASC X 12 Transactions Specifications Summary Segments Summary: Pos. No. Seg. ID Name 010 030 CTT SE Req. Des. Transaction Totals Transaction Set Trailer M M Transaction Set Notes 1. 2. The SCH segment is used to specify various quantities of items ordered that are to be scheduled. When this segment is used the unit of measurement code (SCH 02) should always be identical to the unit of measurement code in the associated PO 1 segment (PO 103) and the sum of values of quantity (SCH 01) should always equal the quantity ordered (PO 102) in the PO 1 segment. The number of line items (CTT 01) is the accumulation of the number of PO 1 segments. (CTT 01 If used, hash total (CTT 02) is the sum of the value of quantities ordered (PO 102) for each PO 1 segment. EDI Concepts and Terminology - 25 Source: Max. Use 1 1

ASC X 12 Data Dictionary Data Elements Data Element Number Segment / Position BEG 03 324 PURCHASE ORDER NUMBER M Requirements Designator EDI Concepts and Terminology - 26 AN Data Type 1/22 Minimum/Maximum Length Source:

Transaction Qualifiers X 12 Data Element 92 - Purchase Order Type Code specifying the type of Purchase Order. Type: ID Min=2 Max=2 BK - Blanket Order CF - Confirmation CP - Change to purchase order RE - Reorder SA - Stand alone order EDI Concepts and Terminology - 27 Source:

Data Value Qualifiers X 12 Data Element 374 - DATE/TIME Qualifier Code specifying type of date or time, or both date and time Type: ID Min=3 Max=3 001 002 003 004 005 007 219 - Cancel after Delivery requested Invoice Purchase order Sailing Effective Plugged and abandoned EDI Concepts and Terminology - 28 Source: SCH

ASC X 12 Data Element Qualifiers Examples N 103 66 N 104 ID CODE QUALIFIER C ID 1/2 67 ID CODE C ID DTM 01 374 DATE/TIME QUALIFIER DTM 02 M C 1/30 ID 3/3 373 DATE DT 6/6 PO 106 235 PROD/SERV ID QUALIFIER PO 107 234 PROD/SERV ID O C ID 2/2 EDI Concepts and Terminology - 29 AN 1/30 DE 66 CODE LIST 1 = DUN & BRADSTREET 9 = Duns plus 4 digits 91 = Assigned by Buyer 92 = Assigned by Seller DE 374 CODE LIST 002 = Delivery Requested 010 = Requested Ship 017 = Estimated Delivery 069 = Promised for Delivery DE 235 CODE LIST BP = Buyer part EC = Engineering Change DR = Drawing VP = Vendor Part Source:

ASC X 12 Example Purchase Order Segment PO 101 (PO BASELINE ITEM V 3030) PO 105 639 BASIS UNIT PRICE CODE O ID 2/2 350 PO 102 330 355 PO 104 ASSIGNED ID O ID 1/6 QTY ORDERED M R 1/9 UNIT OF MEASURE. M ID 2/2 C PO 106 PO 107 PO 108 PO 109 235 234 PROD/SERV ID QUALIFER O ID 2/2 PROD/SERV ID C AN 1/30 PO 122 ET CETERA PO 103 PO 123 235 PROD/SERV ID QUALIFER O ID 2/2 234 PROD/SERV ID O AN 1/30 235 UNIT PRICE R 1/14 PROD/SERV ID QUALIFER O AN 2/2 C PO 124 PO 125 235 PROD/SERV ID QUALIFER O AN 2/2 O 234 PROD/SERV ID ID 1/30 PO 1~1~500~EA~23. 99~CT~BP~PD 34~VP~V 545434@ PO 1~01~200~EA~25~EA~BP~B 543567~EC~12~VP~B 5340308@ EDI Concepts and Terminology - 30 212 Source:

ASC X 12 Code Conversion/Cross Referencing Cross-Reference codes to internal application codes. X 12 Data from SENDER N 1*ST*ACME*91*ABC ST* N 1*BT**91 XYZ * *BT REF*CT*CON 24 CT REF*PR*QT 97 PR TD 5**92*UPSBL RECEIVER cross reference SHIP TO ‘ABC’ = ‘NT 1234’ BILL TO ‘XYZ’ = ‘TT 987’ CONTRACT ‘CON 24’ = ‘ 986’ PRICE QUOTE ‘QT 97’= ‘ 9864’ CARRIER ‘UPSBL’ = ‘UPS 2’ MAY BE REQUIRED TO CROSS-REFERENCE CODES BACK TO ORIGINAL CODES FOR RETURNED TRANSACTIONS EDI Concepts and Terminology - 31 Source:

Components in the EDI Process • Business applications • EDI Application Integration Software • EDI Translator • Communications EDI Concepts and Terminology - 32 Source:

EDI Transaction Flow Inb ou nd Applications Table Application Interface Flo w 2 T 1 0 B G 85 9 S 78 35 5520 82 41 Interface Ou tbo File EDI un Translator d. F low EDI Concepts and Terminology - 33 ~ ISA 00 G~ BE T~ ~S N 1 Std. File Source: Data Comm

EDI Application Integration Software EDI EX*tender Flat File Format or Tables Oracle EDI Gateway Flat File Format or Tables Oracle Applications • General Code Conversion • Location Code Conversion • Inbound: Loads Data to Application Interface Tables • Outbound: Extracts Data from base Application EDI Concepts and Terminology - 34 Source:

EDI Translator • Software bridge between EDI Standards and applications • It is the last process before the standard transactions are sent, and the first process after receiving standard transactions • Insulates applications from Standards and Standard versions/releases • Each Trading Partner chooses their own EDI Translator • EDI Gateway is EDI Translator Independent EDI Concepts and Terminology - 35 Source:

EDI Translator Set Up Trading Partner Set Up (Mandatory) Define electronic mailbox Activate transactions Set test/production flags Specify communications method Code Conversion Set Up (Optional) Define internal and external codes Apply code conversion as appropriate EDI Concepts and Terminology - 36 Source:

EDI Translator - Data Functions Perform data mapping Perform code conversion Perform compliance checking Wrap and compress data before sending Unwrap and uncompress data after receiving EDI Concepts and Terminology - 37 Source:

EDI Translator Monitoring Functions Generate Functional Acknowledgments Match Functional Acknowledgments to transaction Generate audit reports Requeue transactions for resubmission EDI Concepts and Terminology - 38 Source:

ASC X 12 810 Invoice Wrapped and Compressed ST~810~189’BIG~980208~TF 87654~980112~KJ 98 76 -34~~PR’N 1~BT~RUNNER UNLIMITED~92~MTB 1 ’N 1~ST~RUNNER UNLIMITED~92~MT 01’N 1~SE~AC ME SUPPLIES~92~AC 987’IT 1~01~100~EA~10~EA ~BP~98754 -987~EC~E~VP~5986 -0834’IT 1~02~2 ~EA~200~EA~BP~BK 454532~EC~W~VP~ 646455 -5 6’TDS~1400’CTT~2@SE~10~189’ Invoice TF 87654 date 2/8/98 for PO KJ 9876 -34 dated 1/12/98 Bill to Runner Unlimited location coded MTB 1; MTB 1 Ship to Runner Unlimited location coded MT 01 Selling Party is Acme Supplies location coded AC 987. There are two line items: IT 1= ‘ 01’ which is the PO line item number. Buyer part is 98754 -987 with engineering change E. The vendor part is 5986 -0834 for 100 units IT 1 =‘ 02’ which is the PO line item number. Buyer part is BK 454532 with engineering change W. The vendor part is 646455 -56 for 200 units EDI Concepts and Terminology - 39 Source:

EDI Implementation Guide • • Used by all Trading Partners (TP’s) Is an agreement on how a transaction is used Makes a generic standard specific Large corporations often force specific Implementation Conventions (IC’s) on TP’s • Governments too • HIPAA - Health Care • Do. D - Department of Defense EDI Concepts and Terminology - 40 Source:

Communications • Value Added Networks (VANs) • Direct Connects • EDI over the Internet • Diskettes, Tape Cartridge EDI Concepts and Terminology - 41 Source:

Value Added Network and Trusted Third Party Services Value Added Network VAN u u u EDI Concepts and Terminology - 42 Electronic Mailbox Central Clearinghouse Secure and Private Backup / Archive Protocol Conversions Simplify Data Communications Source:

EDI Communication Without a VAN Sender 1 Receiver A Sender 2 Receiver B Sender 3 Receiver C Sender 4 Receiver D EDI Concepts and Terminology - 43 Source:

EDI Communication with a VAN Sender 1 VAN Sender 2 Sender 3 Receiver A Receiver B Third. Party Network Sender 4 Receiver C Receiver D VAN EDI Concepts and Terminology - 44 Source:

Value Added Networks • AT & T • IBM Information Exchange • Harbinger • Sterling • GEIS - General Electric Information Services • Trade. Van • . . . EDI Concepts and Terminology - 45 Source:

EDI Versus Web-Based Applications Web-based applications: Do not support mass batches of data Require data entry at sending site Good for status inquiries Good for transactions where EDI cannot be established EDI Concepts and Terminology - 46 Source:

Problems with EDI • Setup is expensive and time consuming • VAN’s can be expensive • Large Trading Partner populations are difficult to manage • EDI is affordable by only large corporations • Hub and Spoke architecture • Good for large company • Difficult and expensive for small company EDI Concepts and Terminology - 47 Source:

Two New EDI Directions • EDI over the Internet • Focuses on Security at message level • Uses S/MIME and PGP/MIME • and public key encryption • XML/EDI • Not concerned with security • Based on existing EDI standards • Integrates standard file format and process logic EDI Concepts and Terminology - 48 Source: