01/29/00
EDI Overview
John Tullis
DePaul Instructor
john.d.tullis@us.arthurandersen.com
Copyrighted material
John Tullis
04/15/00 EDI
At the end of this presentation you will:
• Know the definition of EDI
• Understand the history & development of EDI
• Understand standards bodies & how standards
are developed
• Understand a basic EDI information flow
• Understand EDI industry initiatives & groups
Copyrighted material
John Tullis
Electronic Data Interchange (EDI)
The idea behind EDI is to standardize the
format of commonly used business documents
(such as purchase orders or invoices) so that
they can be sent in electronic form from one
business computer application to another
business computer application.
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The Problem
U.S. Mail - 4 to 6 days
Overnight - costly
Telephone - error prone
Paper, FAX, phone - rekeying
P
O
P
O
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EDI Solution
Rapid
Errorless
No re-keying
Less Expensive
Standardized
Format
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EDI Standards - Definition
Electronic Data Interchange (EDI) is the
system to system exchange of unambiguous
business information in a standard format.
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EDI Standards - History
• 1960’s - Private company specific
• Sears
• Kmart
• 1970’s - Public industry specific
• TDCC (transportation)
• UCS (grocery)
• WINS (warehouse)
• 1979 - American National Standards Institute
(ANSI) chartered the Accredited Standards
Committee (ASC X12) to develop uniform
standards for electronic interchange of
business transactions.
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EDI Standards - History
• 1980’s - Cross industry implementation of EDI
using ANSI ASC X12 standards.
• 1990’s - International implementation of EDI
using UN/EDIFACT
• 2000’s - Next generation of business messaging?
• Web forms based EDI?
• EDIINT - EDI using the internet for
transport?
• OO-EDI - international effort from
CEFACT?
• XML?
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EDI Standards - X12 Development Process
ANSI ASC X12 (American National Standards
Institute Accredited Standards Committee X12)
• Voluntary organization
• Meets 3 times per year - February, June,
October
• Develops standards in committees
• Uses consensus process in standards
development
• There are currently 328 transaction sets (10/99)
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EDI Standards - X12 Versions & Releases
• Standards (major releases)
• Voted on by full ANSI membership (e.g.
2000, 3000, 4000…)
• Rarely (if ever) implemented
• Draft Standards for Trial Use (sub-releases)
• Voted on by full X12 membership (e.g.
2030, 3050, 4020…)
• Are implemented
• Issue three DTSU’s per year
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Standards Bodies
ASC X12 develops, maintains, interprets, publishes
and promotes the proper use of American National and
UN/EDIFACT International Electronic Data
Interchange Standards.
www.X12.org
The Data Interchange Standards Association (DISA) is
a not-for-profit organization that supports the
development and use of electronic data interchange
standards in electronic commerce. DISA serves as the
secretariat for ASC X12.
www.disa.org
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Standards Bodies
As the international focal point for trade facilitation
standards and recommendations, UN/ECE develops
instruments to reduce and automate procedures and
paperwork. The Centre for Facilitation of Procedures
and Practices for Administration, Commerce and
Transport (CEFACT) develops and maintains the only
international standard for electronic data interchange
(UN/EDIFACT). This standard is used to exchange
structured information between computers and is
critical to the implementation of management
techniques such as "just-in-time" manufacturing.
www.unece.org/cefact
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Standards Bodies
XML.ORG is a self-supporting community resource
designed to provide a credible source of accurate,
timely information about the application of XML in
industrial and commercial settings. Hosted by
OASIS, the world's leading independent organization
for the standardization of XML applications in
electronic commerce, XML.org serves as a reference
for XML vocabularies, DTDs, schemas, and
namespaces.
www.xml.org
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EDI Procurement Process
Request for Quote (840)
Purchasing
RFQ Response (843)
Purchase Order (850)
Inventory
Accounts
Payable
Advanced Ship Notice (856)
Invoice (810)
Payment/Remittance (820)
Customer
Order
Entry
Shipping
Accounts
Receivable
Supplier
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EDI - Initiatives
JIT - Just in Time
Pioneered by the auto industry
ERS - Evaluated Receipts Settlement
Eliminates 810 - Invoice
VMI - Vendor Managed Inventory
Vendor is given shelf space & is expected
to maximize their profits
Pioneered by the retail industry
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Industry Groups
Retail - VICS
UCC - www.uc-council.org
Warehouse - WINS
Grocery - UCS
Petroleum - PIDX - www.pidx.org
JUPUG Utility - UIG - www.uig.org
Joint Utility
Auto - AIAG - www.aiag.org
Petroleum Users
Group
Chemical - CIDX - www.cidx.org
Banking - NACHA (www.nacha.org)
- BAI (www.bai.org)
Computers - COMPTIA - www.comptia.org
www.ecomworld.com/html/weblinks/weblinks.htm
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Industry Groups
Health - HEDIC (www.hedic.org)
AFEHCT(www.afehct.org)
WEDI (www.wedi.org)
HIPAA (aspe.os.dhhs.gov/admnsimp)
Insurance - ACCORD
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Proprietary Standards
• Air Transport -Spec 2000 standard
• Keyword, delimited file
• Mappings to X12 and EDIFACT
• www.ata.org
• Banking - ACH standard
• Keyword, delimited file
• CCD - Cash Concentration & Disbursement
• CCD+ - CCD with one addenda record
• CTX - Corporate Trade Exchange has 99,999
addenda
• www.nacha.org
• www. bai.org
•Banking - SWIFT
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John Tullis
Electronic Data Interchange (EDI)
This section covered:
• The definition of EDI
• The history & development of EDI
• Standards bodies & how standards are
developed
• A basic EDI information flow
• EDI industry initiatives & groups
Copyrighted material
John Tullis
Electronic Data Interchange (EDI)
At the end of this next section you will:
• Understand a general EDI architecture & its
components
• Learn basic EDI vocabulary
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John Tullis
EDI Architecture
Since each application has its own internal format &
standard, EDI standards were developed to define a common
format for each business document.
Thus, a translator is needed to convert from internal formats
to the standard format.
Application
System
EDI
Translator
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John Tullis
EDI
Standards
EDI Architecture
Application
System
Communications
Interface
Appl
Data
EDI
Data
EDI
Translator
Value
Added
Network
EDI
Translator
EDI
Data
Appl
Data
Communications
Interface
Application
System
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John Tullis
EDI - Terms
• Trading Partner - The sending and/or receiving
party involved in the exchange of EDI transmissions
• Translator - converts files from one format to
another
• Communications Interface - takes a file, wraps it in a
communications envelope, and sends it to a VAN or
vice versa
• Value Added Network (VAN) - provides store &
forward mailboxing services
http://pages.prodigy.com/edibooks/edigloss.html
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EDI Communications

Company A
Dial-up
Company B
Company A
Company B
Company C
Company D

Communications management becomes more complicated with
each additional trading partner so VAN’s are used.
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Value Added Networks
Company A
Company B
Value
Added
Network
Company C
Company D
The VAN takes care of the communication conversions between
trading partners.
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VAN Interconnections
Company A
Company C
Value
Added
Network
Value
Added
Network
Company B
Company D
VAN connections allow Companies A, B, and D to reach Company C
on another VAN. Can’t interconnect through to a 3rd VAN.
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John Tullis
EDI - Value Added Networks (VANs)
VAN (Value Added Network) allows the exchange of
data between trading partners by providing mailbox
(store & forward) services.
• Provide routing services for each trading partner
• Independent third party
• Provide non-repudiation on message delivery
• Security
• 24 x 7 reliability
• Redundancy
Added Services
• Header conversions
• EDI to fax conversion
• Archiving
• Re-transmissions
• Carbon copies
• Check for missing batches
• Compliance checking for adherence to standards
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John Tullis
VAN Pricing
In general, the sender pays to send a transmission
and the receiver pays to receive a transmission.
• Some VANs allow charges to be split between the
trading partners. e.g. 100% to one, 75%-25%...
Each VAN has their own pricing scheme making
comparison difficult. They also offer volume
discounts. In general, pricing is based on some
combination of:
• Envelope charge
• Number of segments within the envelope
• Kilo-character charge
Rule of thumb - Each transaction is less than the
cost of a stamp.
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John Tullis
EDI Over the Internet
EDIINT - EDI Over the Internet - www.ediint.org
• Viewed as a cost saver
• Companies need to carefully evaluate savings based
on a risk assessment. For example:
• Adding & maintaining security
• Providing backups
• Providing retransmissions
• Building non-repudiation into the process (ensure
that “they got it”)
• Monitoring & follow-up to ensure that
transmissions are received
• Reliability/redundancy
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John Tullis
EDI Architecture
Application
System
Purchasing
Order Entry
SAP
BAAN,
etc.
EDI/TP
Management
EDIFECS
Foresight
EDI
Translator
Appl
Data
IBM’s DataInterchange
GEIS’ Application Integrator
Harbinger
(TI, Supply Tech, Premenos)
Sterling’s Gentran
TSI’s Mercator
Value
Added
Network
EDI
Data
Communications
Interface
IBM’s Information Exchange
IBM’s Advantis
GEIS
GEIS
Sterling’s Connect Products
Sterling
Kleinschmidt, AT&T, MCI, Sprint, etc.
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EDI - Components
• Segment is a collection of related information
called data elements
• Data element is the smallest unit of
information
Segment
N1*ST*Pete Painfree N/L
Element
Delimiter
Element
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Segment
Delimiter
EDI Structure
Trans
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Transactions
ISA
GS
ST
…transaction set (e.g. PO)
SE
ST
…transaction set (e.g. PO)
SE
GE
GS
…ST… PO Change…SE
GE
IEA
EDI Structure
ISA
GS
ST
…transaction set (e.g. PO)
SE
ST
…transaction set (e.g. PO)
SE
GE
GS
…ST… PO Change…SE
GE
IEA
ISA Control Number
ISA Control Number &
# of Functional Groups
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John Tullis
EDI - Envelopes - ISA/IEA
Element
Delimiter
ISA Sender ID
ISA Receiver ID
ISA*00*
*12* 5555555555*12* 4444444444*
991109*1008*U*00402*123456789*1*T*~ N/L
ISA Control #
Sub-element
Separator
IEA*1*123456789 N/L
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John Tullis
Segment
Delimiter
EDI Structure
ISA
GS
ST
…transaction set (e.g. PO)
SE
ST
…transaction set (e.g. PO)
SE
GE
GS
…ST… PO Change…SE
GE
IEA
Group Control Number
Group Control Number &
# of Transaction Sets
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John Tullis
EDI - Envelopes - GS/GE
Group ID
GS Sender ID
GS Receiver ID
GS*PO*5554443333*4443332222*19991109*0845*
456789012*X*0004020 N/L
GS Control #
Standards
Version
# Trans
Sets
GE*1*456789012 N/L
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John Tullis
EDI Structure
Transaction Set Control #
# of Segments &
Transaction Set
Control #
Transactions
Trans
ISA
GS
ST
…transaction set (e.g. PO)
SE
ST
…transaction set (e.g. PO)
SE
GE
GS
…ST… PO Change…SE
GE
IEA
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John Tullis
EDI - Envelopes - ST/SE
Transaction Set
ST*850*890123456 N/L
ST Control #
SE*21*890123456 N/L
Segment Count
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John Tullis
EDI Structure
Trans
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John Tullis
Transactions
ISA
GS
ST
…transaction set (e.g. PO)
SE
ST
…transaction set (e.g. PO)
SE
GE
GS
…ST… PO Change…SE
GE
IEA
Electronic Data Interchange (EDI)
This section covered:
• General EDI architecture & components
• A basic EDI vocabulary
Copyrighted material
John Tullis
EDI - Transaction Sets
• Transaction Set
• Represents a business process such as
purchase orders, invoices, transcripts...
• Composed of Segments
• Consists of header, detail, and summary
areas
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John Tullis
Invoice
Create an EDI Purchase Order (850) based on the
following paper invoice.
Assignment!!!
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John Tullis
Purchase Order
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555.555.5555 Fax 555.555.5556
The following number must appear on all related
correspondence, shipping papers, and invoices:
P.O. NUMBER: 34561
To:
Ship To:
Pete Painfree
H&P Warehouse
5410 Secret Passage
Plano, TX 75299
Alfred Abel
Acme Aspirin Company
101 XML Parser Trail
Kauai, Hawaii 99293
P.O. DATE
REQUISITIONER
SHIP VIA
F.O.B. POINT
TERMS
November 9, 1999
Heidi Happy
USPS
N/A
N/A
QTY
UNIT
DESCRIPTION
512
Each
1010100 - Regular Strength Aspirin
45
Case
1010110 – Extra Strength Aspirin
UNIT PRICE
1.00
a
TOTAL
$
512.00
50.00
$2,250.00
SUBTOTAL
$2,762.00
SALES TAX
0.00
SHIPPING & HANDLING
$
25.00
OTHER
TOTAL
1.
Please send two copies of your invoice.
2.
Enter this order in accordance with the prices, terms, delivery method,
and specifications listed above.
3.
Please notify us immediately if you are unable to ship as specified.
4.
Send all correspondence to:
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555-555-5555 ; Fax 555-555-5556
Heidi Happy
Authorized by
Copyrighted material
John Tullis
$2,787.00
November 9, 1999
Date
Purchase Order
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555.555.5555 Fax 555.555.5556
The following number must appear on all related
correspondence, shipping papers, and invoices:
P.O. NUMBER: 34561
BEG*00*NE*34561**19991109**RD*IEL N/L
To:
Alfred Abel
Acme Aspirin Company
101 XML Parser Trail
Kauai, Hawaii 99293
Ship To:
Pete Painfree
H&P Warehouse
5410 Secret Passage
Plano, TX 75299
P.O. DATE
REQUISITIONER
SHIP VIA
F.O.B. POINT
TERMS
November 9, 1999
Heidi Happy
USPS
N/A
N/A
QTY
UNIT
DESCRIPTION
512
Each
1010100 - Regular Strength Aspirin
45
Case
1010110 – Extra Strength Aspirin
UNIT PRICE
1.00
a
TOTAL
$
512.00
50.00
$2,250.00
SUBTOTAL
$2,762.00
SALES TAX
0.00
SHIPPING & HANDLING
$
25.00
OTHER
TOTAL
1.
Please send two copies of your invoice.
2.
Enter this order in accordance with the prices, terms, delivery method,
and specifications listed above.
3.
Please notify us immediately if you are unable to ship as specified.
4.
Send all correspondence to:
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555-555-5555 ; Fax 555-555-5556
Heidi Happy
Authorized by
Copyrighted material
John Tullis
$2,787.00
November 9, 1999
Date
Purchase Order
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555.555.5555 Fax 555.555.5556
N1*BY*H&P Emporium N/L
BEG*00*NE*34561**19991109**RD*IEL
N/L
N3*2000 Translator Drive N/L
To:
Ship To:
Alfred Abel
Pete Painfree
N4*Dallas*TX*75201 N/L
Acme Aspirin Company
H&P Warehouse
101 XML Parser Trail
5410 Secret Passage
Kauai, Hawaii 99293
Plano, TXPER*AE*Heidi
75299
Happy*TE*5555555555 N/L
The following number must appear on all related
correspondence, shipping papers, and invoices:
P.O. NUMBER: 34561
P.O. DATE
REQUISITIONER
SHIP VIA
F.O.B. POINT
TERMS
November 9, 1999
Heidi Happy
USPS
N/A
N/A
QTY
UNIT
DESCRIPTION
512
Each
1010100 - Regular Strength Aspirin
45
Case
1010110 – Extra Strength Aspirin
UNIT PRICE
1.00
a
TOTAL
$
512.00
50.00
$2,250.00
SUBTOTAL
$2,762.00
SALES TAX
0.00
SHIPPING & HANDLING
$
25.00
OTHER
TOTAL
1.
Please send two copies of your invoice.
2.
Enter this order in accordance with the prices, terms, delivery method,
and specifications listed above.
3.
Please notify us immediately if you are unable to ship as specified.
4.
Send all correspondence to:
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555-555-5555 ; Fax 555-555-5556
Heidi Happy
Authorized by
Copyrighted material
John Tullis
$2,787.00
November 9, 1999
Date
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555.555.5555 Fax 555.555.5556
N1*BY*H&P Emporium N/L
N3*2000 Translator Drive N/L
The following number must appear on all related N4*Dallas*TX*75201 N/L
correspondence, shipping papers, and invoices:
PER*AE*Heidi Happy*TE*5555555555 N/L
P.O. NUMBER: 34561
To:
Ship To:
N1*ST*Pete Painfree N/L
Alfred Abel
Pete Painfree
Acme Aspirin Company
H&P Warehouse
N2*H&P Warehouse N/L
101 XML Parser Trail
5410 Secret Passage
Kauai, Hawaii 99293
Plano, TX 75299
N3*5410 Secret Passage N/L
BEG*00*NE*34561**19991109**RD*IEL N/L
N4*Plano*TX*75299 N/L
P.O. DATE
REQUISITIONER
SHIP VIA
F.O.B. POINT
TERMS
November 9, 1999
Heidi Happy
USPS
N/A
N/A
QTY
UNIT
DESCRIPTION
512
Each
1010100 - Regular Strength Aspirin
45
Case
1010110 – Extra Strength Aspirin
UNIT PRICE
1.00
a
TOTAL
$
512.00
50.00
$2,250.00
SUBTOTAL
$2,762.00
SALES TAX
0.00
SHIPPING & HANDLING
$
25.00
OTHER
TOTAL
1.
Please send two copies of your invoice.
2.
Enter this order in accordance with the prices, terms, delivery method,
and specifications listed above.
3.
Please notify us immediately if you are unable to ship as specified.
4.
Send all correspondence to:
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555-555-5555 ; Fax 555-555-5556
Heidi Happy
Authorized by
Copyrighted material
John Tullis
$2,787.00
November 9, 1999
Date
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555.555.5555 Fax 555.555.5556
N1*BY*H&P Emporium N/L
N3*2000 Translator Drive N/L
The following number must appear on all related N4*Dallas*TX*75201 N/L
correspondence, shipping papers, and invoices:
PER*AE*Heidi Happy*TE*5555555555 N/L
P.O. NUMBER: 34561
To:
Ship To:
N1*ST*Pete Painfree N/L
Alfred Abel
Pete Painfree
Acme Aspirin Company
H&P Warehouse
N2*H&P Warehouse N/L
101 XML Parser Trail
5410 Secret Passage
Kauai, Hawaii 99293
Plano, TX 75299
N3*5410 Secret Passage N/L
BEG*00*NE*34561**19991109**RD*IEL N/L
N4*Plano*TX*75299 N/L
P.O. DATE
REQUISITIONER
SHIP VIA
F.O.B. POINT
TERMS
November 9, 1999
Heidi Happy
USPS
N/A
N/A
QTY
UNIT
DESCRIPTION
512
Each
1010100 - Regular Strength Aspirin
45
Case
1010110 – Extra Strength Aspirin
PO1*001*512*EA*1.00**VP*1010100 N/L
PID*F*Regular Strength Aspirin N/L
PO1*002*45*CA*50.00**VP*1010110 N/L
PID * F*Extra Strength Aspirin N/L
1.
Please send two copies of your invoice.
2.
Enter this order in accordance with the prices, terms, delivery method,
and specifications listed above.
3.
Please notify us immediately if you are unable to ship as specified.
4.
Send all correspondence to:
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555-555-5555 ; Fax 555-555-5556
UNIT PRICE
1.00
a
TOTAL
$
512.00
50.00
$2,250.00
SUBTOTAL
$2,762.00
SALES TAX
0.00
SHIPPING & HANDLING
$
25.00
OTHER
TOTAL
Heidi Happy
Authorized by
Copyrighted material
John Tullis
$2,787.00
November 9, 1999
Date
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555.555.5555 Fax 555.555.5556
N1*BY*H&P Emporium N/L
N3*2000 Translator Drive N/L
The following number must appear on all related N4*Dallas*TX*75201 N/L
correspondence, shipping papers, and invoices:
PER*AE*Heidi Happy*TE*5555555555 N/L
P.O. NUMBER: 34561
To:
Ship To:
N1*ST*Pete Painfree N/L
Alfred Abel
Pete Painfree
Acme Aspirin Company
H&P Warehouse
N2*H&P Warehouse N/L
101 XML Parser Trail
5410 Secret Passage
Kauai, Hawaii 99293
Plano, TX 75299
N3*5410 Secret Passage N/L
BEG*00*NE*34561**19991109**RD*IEL N/L
N4*Plano*TX*75299 N/L
P.O. DATE
REQUISITIONER
SHIP VIA
F.O.B. POINT
TERMS
November 9, 1999
Heidi Happy
USPS
N/A
N/A
QTY
UNIT
DESCRIPTION
512
Each
1010100 - Regular Strength Aspirin
45
Case
1010110 – Extra Strength Aspirin
PO1*001*512*EA*1.00**VP*1010100 N/L
PID*F*Regular Strength Aspirin N/L
PO1*002*45*CA*50.00**VP*1010110 N/L
PID * F*Extra Strength Aspirin N/L
1.
Please send two copies of your invoice.
2.
Enter this order in accordance with the prices, terms, delivery method,
and specifications listed above.
3.
Please notify us immediately if you are unable to ship as specified.
4.
Send all correspondence to:
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
555-555-5555 ; Fax 555-555-5556
UNIT PRICE
1.00
a
TOTAL
$
512.00
50.00
$2,250.00
SUBTOTAL
$2,762.00
SALES TAX
0.00
SHIPPING & HANDLING
$
25.00
OTHER
TOTAL
$2,787.00
CTT*2*2787.00 N/L
AMT*TZ*25.00 N/L
AMT*5*2787.00 N/L
Heidi Happy
Authorized by
Copyrighted material
John Tullis
November 9, 1999
Date
EDI - Purchase Order (850)
ISA*00*
*12* 5555555555*12* 4444444444*991109*1008*U*00402*123456789*1*T*~ N/L
GS*PO*5554443333*4443332222*19991109*0845*456789012*X*0004020 N/L
ST*850*890123456 N/L
BEG*00*NE*34561**19991109**RD*IEL N/L
N1*SE*Alfred Able N/L
N2*Acme Aspirin Company N/L
N3*101 XML Parser Trail N/L
N4*Kauai*HI*99293 N/L
N1*BY*H&P Emporium N/L
N3*2000 Translator Drive N/L
N4*Dallas*TX*75201 N/L
PER*AE*Heidi Happy*TE*5555555555 N/L
N1*Pete Painfree N/L
N2*H&P Warehouse N/L
N3*5410 Secret Passage N/L
N4*Plano*TX*75299 N/L
PO1*001*512*EA*1.00**VP*1010100 N/L
PID*F*Regular Strength Aspirin N/L
PO1*002*45*CA*50.00**VP*1010110 N/L
PID*F*Extra Strength Aspirin N/L
CTT*2 N/L
AMT*TZ*25.00 N/L
AMT*5*2787.00 N/L
SE*21*890123456 N/L
GE*1*456789012 N/L
IEA*1*123456789 N/L
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John Tullis
Invoice
Create an EDI Invoice (810) based on the following
paper invoice.
Assignment!!!
Copyrighted material
John Tullis
Acme Aspirin Company
1011 XML Parser Trail
Kauai, Hawaii, 10101
444-444-4444 Fax 444-444-4445
INVOICE NO: 14367899
DATE: November 15, 1999
To:
Ship To:
Pete Painfree
H&P Warehouse
5410 Secret Passage
Plano, TX 75299
Heidi Happy
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
SALESPERSON
P.O. NUMBER
DATE SHIPPED
SHIPPED VIA
F.O.B. POINT
TERMS
Alfred Abel
34561
Nov 10, 1999
USPS
N/A
N/A
QUANTITY
512
45
DESCRIPTION
UNIT PRICE
1010100 – Regular Strength Aspirin
1010110 – Extra Strength Aspirin
AMOUNT
1.00
$ 512.00
50.00
$2,250.00
SUBTOTAL
$2,762.00
SALES TAX
0.00
SHIPPING & HANDLING
25.00
TOTAL DUE
$2,787.00
Make all checks payable to: Acme Aspirin Company
If you have any questions concerning this invoice, call: Alfred Abel @ 444-444-4444
material
THANK YOUCopyrighted
FOR YOUR
BUSINESS!
John Tullis
Invoice
ISA*
GS*
ST*
BIG*
N1*
N2*
N3*
N4*
N1*
N3*
N4*
PER*
N1*
N2*
N3*
N4*
IT1*
PID*
PO1*
PID*
TDS*
TXI*
AMT*
CTT*
SE*
GE*
IEA*
Copyrighted material
John Tullis
Acme Aspirin Company
1011 XML Parser Trail
Kauai, Hawaii, 10101
444-444-4444 Fax 444-444-4445
INVOICE NO: 14367899
DATE: November 15, 1999
N1*SE*Acme Aspirin Company N/L
N3*101 XML Parser Trail N/L
N4*Kauai*HI*99293 N/L
To:
Ship To:
Pete Painfree
H&P Warehouse
5410 Secret Passage
Plano, TX 75299
Heidi Happy
H&P Emporium
2000 Translator Drive
Dallas, TX 75201
N1*ST*Pete Painfree N/L
N2*H&P Warehouse N/L
N3*5410 Secret Passage N/L
N4*Plano*TX*75299 N/L
BIG*19991115*14367899*19991109*34561 N/L
SALESPERSON
P.O. NUMBER
DATE SHIPPED
SHIPPED VIA
F.O.B. POINT
TERMS
Alfred Abel
34561
Nov 10, 1999
USPS
N/A
N/A
QUANTITY
512
45
DESCRIPTION
UNIT PRICE
1010100 – Regular Strength Aspirin
1010110 – Extra Strength Aspirin
IT1*2*45*CA*50.00**VP*1010110 N/L
PID*F****Extra Strength Aspirin N/L
IT1*1*512*EA*1.00**VP*1010100 N/L
PID*F****Regular Strength Aspirin N/L
AMOUNT
1.00
$ 512.00
50.00
$2,250.00
SUBTOTAL
$2,762.00
SALES TAX
0.00
SHIPPING & HANDLING
25.00
TOTAL DUE
$2,787.00
Make all checks payable to: Acme Aspirin Company
If you have any questions concerning this invoice, call: Alfred Abel @ 444-444-4444
material
THANK YOUCopyrighted
FOR YOUR
BUSINESS!
John Tullis
TDS*2767.00 N/L
AMT*TZ*25.00 N/L
CTT*2 N/L
Invoice
ISA*00*
*00*12*4444444444*12*5555555555*991115*2345*U*00400*678901234 N/L
GS*IN*4443332222*5554443333*19991115*2330*901234567*X*004010 N/L
ST*810*712345678 N/L
BIG*19991115*14367899*19991109*34561*00 N/L
N1*ST*Pete Painfree N/L
N2*H&P Warehouse N/L
N3*5410 Secret Passage N/L
N4*Plano*TX*75299 N/L
N1*SE*Acme Aspirin Company N/L
N3*101 XML Parser Trail N/L
N4*Kauai*HI*99293 N/L
N1*BY*H&P Emporium N/L
N3*2000 Translator Drive N/L
N4*Dallas*TX*75201 N/L
PER*AE*Heidi Happy*TE*5555555555 N/L
IT1*2*45*CA*50.00**VP*1010110 N/L
PID*F****Extra Strength Aspirin N/L
IT1*1*512*EA*1.00**VP*1010100 N/L
PID*F****Regular Strength Aspirin N/L
TDS*2767.00 N/L
AMT*TZ*25.00 N/L
CTT*2 N/L
SE*21*712345678 N/L
GE*1*901234567 N/L
IEA*1*678901234 N/L
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John Tullis
EDI - Unambiguous Information
Remember Electronic Data Interchange (EDI) is the
system to system exchange of unambiguous
business information in a standard format.
What has happened recently where data was
misinterpreted?
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John Tullis
EDI - Unambiguous Information
NASA’s Mars Climate
Orbiter Believed To Be
Lost
September 23, 1999
•Data was exchanged in
proprietary file formats.
•One group sent data in
English measures & the other
used metric measures.
NASA/JPL/Caltech
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John Tullis
EDI - Legal Issues
Trading Partner Agreement (TPA) - defines the terms
and conditions for exchanging business documents
electronically
• Generally based on the model trading partner
agreement from the American Bar Association
(www.abanet.org)
• Sometimes part of a larger business agreement
• Contains documents for exchange, timing of
exchanges, networks used
• Not required by some trading partners
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John Tullis
EDI - Audit & Control
Functional Acknowledgment (997) is the EDI equivalent to the
post office’s “return receipt requested” form.
• Should be a required response to all transaction sets
• Automatically generated by the translator
• “Good” 997 indicates that the transaction is
syntactically correct, nothing more
• Provides proof-of-delivery (non-repudiation)
• Must be tracked. Follow up missing 997’s with
trading partner
Non-repudiation
• Functional acknowledgment (997)
• Application acknowledgment (824, 855)
• VAN reports
• Mailbag/TA3 (for interconnects)
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John Tullis
EDI - Trading Partner Management
Trading Partner Information
• Must keep contact name (both business & technical)
for all transaction sets
• Need to keep a call tracking history
• Need to keep track of trading partner change requests
Version control/migration
• Some industries use the convention that only the
current and 2 prior versions are maintained
• Takes about 18 months for a Hub to migrate off a
version
• Suppliers versions are dictated by their customer’s
capabilities
Implementation guides
• Most industries have created an implementation guide
to define what segments and qualifiers are acceptable.
This provides a normalization of the data.
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John Tullis
EDI - Security
• Most EDI sent through a VAN is not additionally
secured.
• The subject matter expert determines the need for
security.
• X12 supports both encryption & authentication
• Security segments are inserted between the ISA/IEA
and GS/GE envelopes.
• Financial transactions are secured by encryption. This
is generally dictated by the bank.
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John Tullis
EDI Structure
Transactions
ISA
Security Segments
GS
ST
…transaction set (e.g. PO)
SE
ST
…transaction set (e.g. PO)
SE
GE
GS
…ST… PO Change…SE
GE
Security Segments
IEA
Trans
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John Tullis
Barriers to EDI Implementations
• Too difficult to implement
• Too expensive, especially for the small to medium
enterprise (SME)
• Cost of translator & network
• Lack of programming expertise
• Applications aren’t integrated
• Takes too long to make changes to the standards
• Standards have become too generic and require
industry implementation guides
• Business rules are not retained with the standard
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John Tullis
What’s Next? - XML
XML-EDI
 Takes the existing ASC X12 EDI standards
and develops XML DTD’s
 Naming guidelines, etc have been developed
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John Tullis
EDI - XML Initiatives
X12 Communications & Control Committee has published a
tutorial detailing how to render an X12 document into XML.
ASC X12 syntax:
N4*Dallas*TX*75201 N/L
Corresponding XML syntax:
<N4_GeographicInfo>
<City>
Dallas
</City>
<StateOrProvince>
TX
</StateOrProvince>
<PostalCode>
75201
</PostalCode>
</N4_GeographicInfo>
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John Tullis
EDI - XML Initiatives
UN/CEFACT
• Announced on 09/20/99 a joint work effort with
OASIS to develop a technical framework to enable
XML to be used in a consistent manner for
exchanging all electronic business data.
• 18 month project
• Results to be posted to XML.org and uncefact.org
• Co-chaired by Klaus-Dieter Naujok/Harbinger &
Bob Sutor/IBM
www.unece.org select XML Initiative
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John Tullis
EDI & XML
EDI ain’t broke….it isn’t dead….it isn’t going away in
the near term….
Corporations have large investments in EDI and EDI
serves the 20% of the trading partners that comprise
80% of the business.
It’s the other 80% of the trading partners - the small to
medium enterprises - where XML has potential.
Thus, XML opportunities will be found masking as EDI
problems/opportunities.
Copyrighted material
John Tullis