EDI Basics
A high level introduction to EDI - business process focused
High Level EDI Business Flow
Various documents need to be exchanged during the lifecycle of a business transaction. A generic flow is shown below, this focuses on the business processes, not a particular EDI implementation (we’ll get to that later).
There may be other communication, for example business process/contracts may dictate that all changes are requested and approved by email prior to the ERP systems being modified.
Example Business Flow
Buyer (customer) creates a purchase order (PO)
PO is sent to supplier via EDI
Supplier loads a Sale Order in response to the PO, with optional changes.
Supplier acknowledges PO (with any changes)
Buyer changes quantity of a line (part)
Buyer-initiated Change Request is sent to supplier via EDI
Supplier implements or rejects changes
Supplier sends summary of changes/rejects to buyer via EDI
Supplier needs to delete a line as they can no longer supply
Supplier sends supplier-initiated change request to buyer/customer via EDI
Buyer receives change request and implement or rejects changes
Supplier ships material
Supplier sends an Advance Ship Notice (shipping manifest) via EDI
Supplier sends invoice via EDI
Typical EDI Document Types
Purchase Order
The Purchase Order, or PO, is sent from buyer to supplier. It is similar to a paper purchase order.
Typical Contents
A PO sent to a supplier typically contains:
Customer Purchase Order (PO) Number
Line level information: part codes, quantities and prices
Delivery Schedule (due date)
Incoterms
Delivery and invoice addresses
Document Numbers
ASC X12: 850
UN/EDIFACT: ORDERS
TRADACOMS: Order File
Purchase Order Acknowledgement
The Purchase Order Acknowledge is sent from supplier to buyer. It confirms acceptance of the buyer’s Purchase Order along with any changes required by the supplier (for example pricing or scheduled delivery dates).
Typical Contents
A PO Acknowledgement sent to a buyer typically contains:
Customer Purchase Order (PO) Number
Line level information: part codes, quantities and prices
Delivery Schedule
Document Numbers
ASC X12: 855
UN/EDIFACT: ORDRSP
TRADACOMS: Acknowledgement of Order File
Purchase Order Change Request
Purchase Order Change Request documents may be sent from supplier to buyer (supplier initiated) or from buyer to supplier (buyer-initiated).
Typical Contents
Original PO Number
Currency
Delivery and Invoice Addresses
Line(s) Add/Delete/Change code
Line part code, price, quantity and Unit of Measure codes
Document Numbers
ASC X12: 860 (buyer initiated) and 865 (supplier initiated)
UN/EDIFACT: ORDCHG
TRADACOMS: ?
Advance Ship Notice(ASN)
The Advance Ship Notice, or ASN, electronically communicates the contents of a shipment to a trading partner. It is sent in advance of the shipment arriving at the partner’s facility, this gives the receiver time to arrange storage space or onward logistics.
Typical Contents
An ASN sent to a customer typically contains:
Customer Purchase Order (PO) Number
Carrier information, such as name and tracking/Airway Bill number
Estimated Time of Arrival
Line level information such as part codes and quantities
Item or pack level information such as serial numbers
Document Numbers
ASC X12: 856
UN/EDIFACT: DESADV
TRADACOMS: Delivery Notification File
Invoice
The electronic Invoice document is similar to a paper invoice.
Typical Contents
An Invoice sent to a customer typically contains:
Customer Purchase Order (PO) Number
Estimated Time of Arrival
Line level information such as part codes, quantities, prices and taxes.
Untaxed, tax and total amounts
Invoice currency
Payment due date
Payment address
Document Numbers
ASC X12: 810
UN/EDIFACT: INVOIC
TRADACOMS: Invoice File