Copyrighted material John Tullis 01/29 /00 EDI Overview John Tullis DePaul Instructor...

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Copyrighted material John Tullis 01/29/00 EDI Overview John Tullis DePaul Instructor [email protected]

Transcript of Copyrighted material John Tullis 01/29 /00 EDI Overview John Tullis DePaul Instructor...

Page 1: Copyrighted material John Tullis 01/29 /00 EDI Overview John Tullis DePaul Instructor john.d.tullis@us.arthurandersen.com.

Copyrighted materialJohn Tullis

01/29/00 EDI Overview

John TullisDePaul [email protected]

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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

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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

PO

PO

U.S. Mail - 4 to 6 daysOvernight - costly

Telephone - error pronePaper, FAX, phone - re-

keying

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EDI Solution

StandardizedFormat

RapidErrorless

No re-keyingLess Expensive

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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

PurchasingOrderEntry

Inventory Shipping

AccountsPayable

AccountsReceivable

Advanced Ship Notice (856)

RFQ Response (843)

Purchase Order (850)

Request for Quote (840)

Payment/Remittance (820)

Invoice (810)

Customer Supplier

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EDI - Initiatives

JIT - Just in TimePioneered by the auto industry

ERS - Evaluated Receipts SettlementEliminates 810 - Invoice

VMI - Vendor Managed InventoryVendor is given shelf space & is expected to maximize their profitsPioneered by the retail industry

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Industry Groups

Retail - VICSWarehouse - WINSGrocery - UCSPetroleum - PIDX - www.pidx.orgUtility - UIG - www.uig.org

Auto - AIAG - www.aiag.org

Chemical - CIDX - www.cidx.org

Banking - NACHA (www.nacha.org)

- BAI (www.bai.org)

Computers - COMPTIA - www.comptia.org

UCC - www.uc-council.org

www.ecomworld.com/html/weblinks/weblinks.htm

JUPUG - Joint UtilityPetroleum UsersGroup

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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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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

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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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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.

ApplicationSystem

EDITranslator

EDIStandards

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EDI Architecture

ApplicationSystem

EDITranslator

CommunicationsInterface

EDIData

ApplData

ApplicationSystem

EDITranslator

CommunicationsInterface

ApplData

EDIData

ValueAdded

Network

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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

Communications management becomes more complicated with each additional trading partner so VAN’s are used.

Company A Company B

Company A Company B

Company C Company D

Dial-up

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ValueAdded

Network

Value Added Networks

Company A Company B

Company C Company D

The VAN takes care of the communication conversions between trading partners.

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VAN Interconnections

VAN connections allow Companies A, B, and D to reach Company C on another VAN. Can’t interconnect through to a 3rd VAN.

ValueAdded

Network

Company A Company B

Company C Company D

ValueAdded

Network

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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• RedundancyAdded 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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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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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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EDI Architecture

EDIData

ApplData

ApplicationSystem

EDITranslator

CommunicationsInterface

ValueAdded

Network

PurchasingOrder EntrySAPBAAN,etc.

IBM’s DataInterchangeGEIS’ Application IntegratorHarbinger (TI, Supply Tech, Premenos)Sterling’s GentranTSI’s Mercator

IBM’s Information ExchangeGEISSterling’s Connect Products

IBM’s AdvantisGEISSterlingKleinschmidt, AT&T, MCI, Sprint, etc.

EDI/TPManagement

EDIFECSForesight

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EDI - Components

• Segment is a collection of related information called data elements• Data element is the smallest unit of information

N1*ST*Pete Painfree N/L

Segment

Element Delimiter Element Segment

Delimiter

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EDI Structure

ISAGSST…transaction set (e.g. PO)SEST…transaction set (e.g. PO)SEGEGS…ST… PO Change…SEGEIEA

Interchan

ge Envelope

Fu

n ctional Group

Envelopes

Tran

sactions

Tran

s

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EDI Structure

ISAGSST…transaction set (e.g. PO)SEST…transaction set (e.g. PO)SEGEGS…ST… PO Change…SEGEIEA

Interchan

ge Envelope

ISA Control Number

ISA Control Number &# of Functional Groups

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EDI - Envelopes - ISA/IEA

Element Delimiter

Segment Delimiter

ISA*00* *12* 5555555555*12* 4444444444*991109*1008*U*00402*123456789*1*T*~ N/L

Sub-element Separator

ISA Receiver IDISA Sender ID

ISA Control #

IEA*1*123456789 N/L

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EDI Structure

ISAGSST…transaction set (e.g. PO)SEST…transaction set (e.g. PO)SEGEGS…ST… PO Change…SEGEIEA

Fu

n ctional Group

Envelopes

Group Control Number

Group Control Number &# of Transaction Sets

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EDI - Envelopes - GS/GE

GS*PO*5554443333*4443332222*19991109*0845*456789012*X*0004020 N/L

GS Receiver IDGS Sender ID

GS Control #

Group ID

StandardsVersion

GE*1*456789012 N/L

# TransSets

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EDI Structure

ISAGSST…transaction set (e.g. PO)SEST…transaction set (e.g. PO)SEGEGS…ST… PO Change…SEGEIEA

Tran

sactions

Tran

sTransaction Set Control #

# of Segments &Transaction Set

Control #

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EDI - Envelopes - ST/SE

ST*850*890123456 N/L

ST Control #

Transaction Set

SE*21*890123456 N/L

Segment Count

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EDI Structure

ISAGSST…transaction set (e.g. PO)SEST…transaction set (e.g. PO)SEGEGS…ST… PO Change…SEGEIEA

Interchan

ge Envelope

Fu

n ctional Group

Envelopes

Tran

sactions

Tran

s

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Electronic Data Interchange (EDI)

This section covered:

• General EDI architecture & components • A basic EDI vocabulary

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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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Invoice

Create an EDI Purchase Order (850) based on the following paper invoice.

Assignment!!!

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H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 . 5 5 5 . 5 5 5 5 F a x 5 5 5 . 5 5 5 . 5 5 5 6

T h e f o l l o w i n g n u m b e r m u s t a p p e a r o n a l l r e l a t e dc o r r e s p o n d e n c e , s h i p p i n g p a p e r s , a n d i n v o i c e s :P . O . N U M B E R : 3 4 5 6 1

T o : S h i p T o :A l f r e d A b e l P e t e P a i n f r e eA c m e A s p i r i n C o m p a n y H & P W a r e h o u s e1 0 1 X M L P a r s e r T r a i l 5 4 1 0 S e c r e t P a s s a g eK a u a i , H a w a i i 9 9 2 9 3 P l a n o , T X 7 5 2 9 9

P . O . D A T E R E Q U I S I T I O N E R S H I P V I A F . O . B . P O I N T T E R M S

N o v e m b e r 9 , 1 9 9 9 H e i d i H a p p y U S P S N / A N / A

aQ T Y U N I T D E S C R I P T I O N U N I T P R I C E T O T A L

5 1 2 E a c h 1 0 1 0 1 0 0 - R e g u l a r S t r e n g t h A s p i r i n 1 . 0 0 $ 5 1 2 . 0 0

4 5 C a s e 1 0 1 0 1 1 0 – E x t r a S t r e n g t h A s p i r i n 5 0 . 0 0 $ 2 , 2 5 0 . 0 0

S U B T O T A L $ 2 , 7 6 2 . 0 0

S A L E S T A X 0 . 0 0

S H I P P I N G & H A N D L I N G $ 2 5 . 0 0

O T H E R

T O T A L $ 2 , 7 8 7 . 0 0

1 . P l e a s e s e n d t w o c o p i e s o f y o u r i n v o i c e .

2 . E n t e r t h i s o r d e r i n a c c o r d a n c e w i t h t h e p r i c e s , t e r m s , d e l i v e r y m e t h o d ,a n d s p e c i f i c a t i o n s l i s t e d a b o v e .

3 . P l e a s e n o t i f y u s i m m e d i a t e l y i f y o u a r e u n a b l e t o s h i p a s s p e c i f i e d .

4 . S e n d a l l c o r r e s p o n d e n c e t o :H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 - 5 5 5 - 5 5 5 5 ; F a x 5 5 5 - 5 5 5 - 5 5 5 6

H e i d i H a p p y N o v e m b e r 9 , 1 9 9 9A u t h o r i z e d b y D a t e

Purchase Order

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H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 . 5 5 5 . 5 5 5 5 F a x 5 5 5 . 5 5 5 . 5 5 5 6

T h e f o l l o w i n g n u m b e r m u s t a p p e a r o n a l l r e l a t e dc o r r e s p o n d e n c e , s h i p p i n g p a p e r s , a n d i n v o i c e s :P . O . N U M B E R : 3 4 5 6 1

T o : S h i p T o :A l f r e d A b e l P e t e P a i n f r e eA c m e A s p i r i n C o m p a n y H & P W a r e h o u s e1 0 1 X M L P a r s e r T r a i l 5 4 1 0 S e c r e t P a s s a g eK a u a i , H a w a i i 9 9 2 9 3 P l a n o , T X 7 5 2 9 9

P . O . D A T E R E Q U I S I T I O N E R S H I P V I A F . O . B . P O I N T T E R M S

N o v e m b e r 9 , 1 9 9 9 H e i d i H a p p y U S P S N / A N / A

aQ T Y U N I T D E S C R I P T I O N U N I T P R I C E T O T A L

5 1 2 E a c h 1 0 1 0 1 0 0 - R e g u l a r S t r e n g t h A s p i r i n 1 . 0 0 $ 5 1 2 . 0 0

4 5 C a s e 1 0 1 0 1 1 0 – E x t r a S t r e n g t h A s p i r i n 5 0 . 0 0 $ 2 , 2 5 0 . 0 0

S U B T O T A L $ 2 , 7 6 2 . 0 0

S A L E S T A X 0 . 0 0

S H I P P I N G & H A N D L I N G $ 2 5 . 0 0

O T H E R

T O T A L $ 2 , 7 8 7 . 0 0

1 . P l e a s e s e n d t w o c o p i e s o f y o u r i n v o i c e .

2 . E n t e r t h i s o r d e r i n a c c o r d a n c e w i t h t h e p r i c e s , t e r m s , d e l i v e r y m e t h o d ,a n d s p e c i f i c a t i o n s l i s t e d a b o v e .

3 . P l e a s e n o t i f y u s i m m e d i a t e l y i f y o u a r e u n a b l e t o s h i p a s s p e c i f i e d .

4 . S e n d a l l c o r r e s p o n d e n c e t o :H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 - 5 5 5 - 5 5 5 5 ; F a x 5 5 5 - 5 5 5 - 5 5 5 6

H e i d i H a p p y N o v e m b e r 9 , 1 9 9 9A u t h o r i z e d b y D a t e

BEG*00*NE*34561**19991109**RD*IEL N/L

Purchase Order

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H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 . 5 5 5 . 5 5 5 5 F a x 5 5 5 . 5 5 5 . 5 5 5 6

T h e f o l l o w i n g n u m b e r m u s t a p p e a r o n a l l r e l a t e dc o r r e s p o n d e n c e , s h i p p i n g p a p e r s , a n d i n v o i c e s :P . O . N U M B E R : 3 4 5 6 1

T o : S h i p T o :A l f r e d A b e l P e t e P a i n f r e eA c m e A s p i r i n C o m p a n y H & P W a r e h o u s e1 0 1 X M L P a r s e r T r a i l 5 4 1 0 S e c r e t P a s s a g eK a u a i , H a w a i i 9 9 2 9 3 P l a n o , T X 7 5 2 9 9

P . O . D A T E R E Q U I S I T I O N E R S H I P V I A F . O . B . P O I N T T E R M S

N o v e m b e r 9 , 1 9 9 9 H e i d i H a p p y U S P S N / A N / A

aQ T Y U N I T D E S C R I P T I O N U N I T P R I C E T O T A L

5 1 2 E a c h 1 0 1 0 1 0 0 - R e g u l a r S t r e n g t h A s p i r i n 1 . 0 0 $ 5 1 2 . 0 0

4 5 C a s e 1 0 1 0 1 1 0 – E x t r a S t r e n g t h A s p i r i n 5 0 . 0 0 $ 2 , 2 5 0 . 0 0

S U B T O T A L $ 2 , 7 6 2 . 0 0

S A L E S T A X 0 . 0 0

S H I P P I N G & H A N D L I N G $ 2 5 . 0 0

O T H E R

T O T A L $ 2 , 7 8 7 . 0 0

1 . P l e a s e s e n d t w o c o p i e s o f y o u r i n v o i c e .

2 . E n t e r t h i s o r d e r i n a c c o r d a n c e w i t h t h e p r i c e s , t e r m s , d e l i v e r y m e t h o d ,a n d s p e c i f i c a t i o n s l i s t e d a b o v e .

3 . P l e a s e n o t i f y u s i m m e d i a t e l y i f y o u a r e u n a b l e t o s h i p a s s p e c i f i e d .

4 . S e n d a l l c o r r e s p o n d e n c e t o :H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 - 5 5 5 - 5 5 5 5 ; F a x 5 5 5 - 5 5 5 - 5 5 5 6

H e i d i H a p p y N o v e m b e r 9 , 1 9 9 9A u t h o r i z e d b y D a t e

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

BEG*00*NE*34561**19991109**RD*IEL N/L

Purchase Order

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Copyrighted materialJohn Tullis

H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 . 5 5 5 . 5 5 5 5 F a x 5 5 5 . 5 5 5 . 5 5 5 6

T h e f o l l o w i n g n u m b e r m u s t a p p e a r o n a l l r e l a t e dc o r r e s p o n d e n c e , s h i p p i n g p a p e r s , a n d i n v o i c e s :P . O . N U M B E R : 3 4 5 6 1

T o : S h i p T o :A l f r e d A b e l P e t e P a i n f r e eA c m e A s p i r i n C o m p a n y H & P W a r e h o u s e1 0 1 X M L P a r s e r T r a i l 5 4 1 0 S e c r e t P a s s a g eK a u a i , H a w a i i 9 9 2 9 3 P l a n o , T X 7 5 2 9 9

P . O . D A T E R E Q U I S I T I O N E R S H I P V I A F . O . B . P O I N T T E R M S

N o v e m b e r 9 , 1 9 9 9 H e i d i H a p p y U S P S N / A N / A

aQ T Y U N I T D E S C R I P T I O N U N I T P R I C E T O T A L

5 1 2 E a c h 1 0 1 0 1 0 0 - R e g u l a r S t r e n g t h A s p i r i n 1 . 0 0 $ 5 1 2 . 0 0

4 5 C a s e 1 0 1 0 1 1 0 – E x t r a S t r e n g t h A s p i r i n 5 0 . 0 0 $ 2 , 2 5 0 . 0 0

S U B T O T A L $ 2 , 7 6 2 . 0 0

S A L E S T A X 0 . 0 0

S H I P P I N G & H A N D L I N G $ 2 5 . 0 0

O T H E R

T O T A L $ 2 , 7 8 7 . 0 0

1 . P l e a s e s e n d t w o c o p i e s o f y o u r i n v o i c e .

2 . E n t e r t h i s o r d e r i n a c c o r d a n c e w i t h t h e p r i c e s , t e r m s , d e l i v e r y m e t h o d ,a n d s p e c i f i c a t i o n s l i s t e d a b o v e .

3 . P l e a s e n o t i f y u s i m m e d i a t e l y i f y o u a r e u n a b l e t o s h i p a s s p e c i f i e d .

4 . S e n d a l l c o r r e s p o n d e n c e t o :H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 - 5 5 5 - 5 5 5 5 ; F a x 5 5 5 - 5 5 5 - 5 5 5 6

H e i d i H a p p y N o v e m b e r 9 , 1 9 9 9A u t h o r i z e d b y D a t e

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*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

BEG*00*NE*34561**19991109**RD*IEL N/L

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Copyrighted materialJohn Tullis

H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 . 5 5 5 . 5 5 5 5 F a x 5 5 5 . 5 5 5 . 5 5 5 6

T h e f o l l o w i n g n u m b e r m u s t a p p e a r o n a l l r e l a t e dc o r r e s p o n d e n c e , s h i p p i n g p a p e r s , a n d i n v o i c e s :P . O . N U M B E R : 3 4 5 6 1

T o : S h i p T o :A l f r e d A b e l P e t e P a i n f r e eA c m e A s p i r i n C o m p a n y H & P W a r e h o u s e1 0 1 X M L P a r s e r T r a i l 5 4 1 0 S e c r e t P a s s a g eK a u a i , H a w a i i 9 9 2 9 3 P l a n o , T X 7 5 2 9 9

P . O . D A T E R E Q U I S I T I O N E R S H I P V I A F . O . B . P O I N T T E R M S

N o v e m b e r 9 , 1 9 9 9 H e i d i H a p p y U S P S N / A N / A

aQ T Y U N I T D E S C R I P T I O N U N I T P R I C E T O T A L

5 1 2 E a c h 1 0 1 0 1 0 0 - R e g u l a r S t r e n g t h A s p i r i n 1 . 0 0 $ 5 1 2 . 0 0

4 5 C a s e 1 0 1 0 1 1 0 – E x t r a S t r e n g t h A s p i r i n 5 0 . 0 0 $ 2 , 2 5 0 . 0 0

S U B T O T A L $ 2 , 7 6 2 . 0 0

S A L E S T A X 0 . 0 0

S H I P P I N G & H A N D L I N G $ 2 5 . 0 0

O T H E R

T O T A L $ 2 , 7 8 7 . 0 0

1 . P l e a s e s e n d t w o c o p i e s o f y o u r i n v o i c e .

2 . E n t e r t h i s o r d e r i n a c c o r d a n c e w i t h t h e p r i c e s , t e r m s , d e l i v e r y m e t h o d ,a n d s p e c i f i c a t i o n s l i s t e d a b o v e .

3 . P l e a s e n o t i f y u s i m m e d i a t e l y i f y o u a r e u n a b l e t o s h i p a s s p e c i f i e d .

4 . S e n d a l l c o r r e s p o n d e n c e t o :H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 - 5 5 5 - 5 5 5 5 ; F a x 5 5 5 - 5 5 5 - 5 5 5 6

H e i d i H a p p y N o v e m b e r 9 , 1 9 9 9A u t h o r i z e d b y D a t e

N1*ST*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

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

BEG*00*NE*34561**19991109**RD*IEL N/L

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H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 . 5 5 5 . 5 5 5 5 F a x 5 5 5 . 5 5 5 . 5 5 5 6

T h e f o l l o w i n g n u m b e r m u s t a p p e a r o n a l l r e l a t e dc o r r e s p o n d e n c e , s h i p p i n g p a p e r s , a n d i n v o i c e s :P . O . N U M B E R : 3 4 5 6 1

T o : S h i p T o :A l f r e d A b e l P e t e P a i n f r e eA c m e A s p i r i n C o m p a n y H & P W a r e h o u s e1 0 1 X M L P a r s e r T r a i l 5 4 1 0 S e c r e t P a s s a g eK a u a i , H a w a i i 9 9 2 9 3 P l a n o , T X 7 5 2 9 9

P . O . D A T E R E Q U I S I T I O N E R S H I P V I A F . O . B . P O I N T T E R M S

N o v e m b e r 9 , 1 9 9 9 H e i d i H a p p y U S P S N / A N / A

aQ T Y U N I T D E S C R I P T I O N U N I T P R I C E T O T A L

5 1 2 E a c h 1 0 1 0 1 0 0 - R e g u l a r S t r e n g t h A s p i r i n 1 . 0 0 $ 5 1 2 . 0 0

4 5 C a s e 1 0 1 0 1 1 0 – E x t r a S t r e n g t h A s p i r i n 5 0 . 0 0 $ 2 , 2 5 0 . 0 0

S U B T O T A L $ 2 , 7 6 2 . 0 0

S A L E S T A X 0 . 0 0

S H I P P I N G & H A N D L I N G $ 2 5 . 0 0

O T H E R

T O T A L $ 2 , 7 8 7 . 0 0

1 . P l e a s e s e n d t w o c o p i e s o f y o u r i n v o i c e .

2 . E n t e r t h i s o r d e r i n a c c o r d a n c e w i t h t h e p r i c e s , t e r m s , d e l i v e r y m e t h o d ,a n d s p e c i f i c a t i o n s l i s t e d a b o v e .

3 . P l e a s e n o t i f y u s i m m e d i a t e l y i f y o u a r e u n a b l e t o s h i p a s s p e c i f i e d .

4 . S e n d a l l c o r r e s p o n d e n c e t o :H & P E m p o r i u m2 0 0 0 T r a n s l a t o r D r i v eD a l l a s , T X 7 5 2 0 15 5 5 - 5 5 5 - 5 5 5 5 ; F a x 5 5 5 - 5 5 5 - 5 5 5 6

H e i d i H a p p y N o v e m b e r 9 , 1 9 9 9A u t h o r i z e d b y D a t e

N1*ST*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*2787.00 N/L

AMT*TZ*25.00 N/L

AMT*5*2787.00 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

BEG*00*NE*34561**19991109**RD*IEL N/L

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EDI - Purchase Order (850)

ISA*00* *12* 5555555555*12* 4444444444*991109*1008*U*00402*123456789*1*T*~ N/LGS*PO*5554443333*4443332222*19991109*0845*456789012*X*0004020 N/LST*850*890123456 N/LBEG*00*NE*34561**19991109**RD*IEL N/LN1*SE*Alfred Able N/LN2*Acme Aspirin Company N/LN3*101 XML Parser Trail N/LN4*Kauai*HI*99293 N/LN1*BY*H&P Emporium N/LN3*2000 Translator Drive N/LN4*Dallas*TX*75201 N/LPER*AE*Heidi Happy*TE*5555555555 N/LN1*Pete Painfree N/LN2*H&P Warehouse N/LN3*5410 Secret Passage N/LN4*Plano*TX*75299 N/LPO1*001*512*EA*1.00**VP*1010100 N/LPID*F*Regular Strength Aspirin N/LPO1*002*45*CA*50.00**VP*1010110 N/LPID*F*Extra Strength Aspirin N/LCTT*2 N/LAMT*TZ*25.00 N/LAMT*5*2787.00 N/LSE*21*890123456 N/LGE*1*456789012 N/LIEA*1*123456789 N/L

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Invoice

Create an EDI Invoice (810) based on the following paper invoice.

Assignment!!!

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A c m e A s p i r i n C o m p a n y1 0 1 1 X M L P a r s e r T r a i lK a u a i , H a w a i i , 1 0 1 0 14 4 4 - 4 4 4 - 4 4 4 4 F a x 4 4 4 - 4 4 4 - 4 4 4 5

I N V O I C E N O : 1 4 3 6 7 8 9 9D A T E : N o v e m b e r 1 5 , 1 9 9 9

T o : S h i p T o :H e i d i H a p p y P e t e P a i n f r e eH & P E m p o r i u m H & P W a r e h o u s e2 0 0 0 T r a n s l a t o r D r i v e 5 4 1 0 S e c r e t P a s s a g eD a l l a s , T X 7 5 2 0 1 P l a n o , T X 7 5 2 9 9

S A L E S P E R S O N P . O . N U M B E R D A T E S H I P P E D S H I P P E D V I A F . O . B . P O I N T T E R M S

A l f r e d A b e l 3 4 5 6 1 N o v 1 0 , 1 9 9 9 U S P S N / A N / A

Q U A N T I T Y D E S C R I P T I O N U N I T P R I C E A M O U N T

5 1 2 1 0 1 0 1 0 0 – R e g u l a r S t r e n g t h A s p i r i n 1 . 0 0 $ 5 1 2 . 0 0

4 5 1 0 1 0 1 1 0 – E x t r a S t r e n g t h A s p i r i n 5 0 . 0 0 $ 2 , 2 5 0 . 0 0

S U B T O T A L $ 2 , 7 6 2 . 0 0

S A L E S T A X 0 . 0 0

S H I P P I N G & H A N D L I N G 2 5 . 0 0

T O T A L D U E $ 2 , 7 8 7 . 0 0

M a k e a l l c h e c k s p a y a b l e t o : A c m e A s p i r i n C o m p a n yI f y o u h a v e a n y q u e s t i o n s c o n c e r n i n g t h i s i n v o i c e , c a l l : A l f r e d A b e l @ 4 4 4 - 4 4 4 - 4 4 4 4

T H A N K Y O U F O R Y O U R B U S I N E S S !

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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*

Invoice

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A c m e A s p i r i n C o m p a n y1 0 1 1 X M L P a r s e r T r a i lK a u a i , H a w a i i , 1 0 1 0 14 4 4 - 4 4 4 - 4 4 4 4 F a x 4 4 4 - 4 4 4 - 4 4 4 5

I N V O I C E N O : 1 4 3 6 7 8 9 9D A T E : N o v e m b e r 1 5 , 1 9 9 9

T o : S h i p T o :H e i d i H a p p y P e t e P a i n f r e eH & P E m p o r i u m H & P W a r e h o u s e2 0 0 0 T r a n s l a t o r D r i v e 5 4 1 0 S e c r e t P a s s a g eD a l l a s , T X 7 5 2 0 1 P l a n o , T X 7 5 2 9 9

S A L E S P E R S O N P . O . N U M B E R D A T E S H I P P E D S H I P P E D V I A F . O . B . P O I N T T E R M S

A l f r e d A b e l 3 4 5 6 1 N o v 1 0 , 1 9 9 9 U S P S N / A N / A

Q U A N T I T Y D E S C R I P T I O N U N I T P R I C E A M O U N T

5 1 2 1 0 1 0 1 0 0 – R e g u l a r S t r e n g t h A s p i r i n 1 . 0 0 $ 5 1 2 . 0 0

4 5 1 0 1 0 1 1 0 – E x t r a S t r e n g t h A s p i r i n 5 0 . 0 0 $ 2 , 2 5 0 . 0 0

S U B T O T A L $ 2 , 7 6 2 . 0 0

S A L E S T A X 0 . 0 0

S H I P P I N G & H A N D L I N G 2 5 . 0 0

T O T A L D U E $ 2 , 7 8 7 . 0 0

M a k e a l l c h e c k s p a y a b l e t o : A c m e A s p i r i n C o m p a n yI f y o u h a v e a n y q u e s t i o n s c o n c e r n i n g t h i s i n v o i c e , c a l l : A l f r e d A b e l @ 4 4 4 - 4 4 4 - 4 4 4 4

T H A N K Y O U F O R Y O U R B U S I N E S S !

N1*SE*Acme Aspirin Company N/L

N3*101 XML Parser Trail N/L

N4*Kauai*HI*99293 N/L

BIG*19991115*14367899*19991109*34561 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

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

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ISA*00* *00*12*4444444444*12*5555555555*991115*2345*U*00400*678901234 N/LGS*IN*4443332222*5554443333*19991115*2330*901234567*X*004010 N/LST*810*712345678 N/LBIG*19991115*14367899*19991109*34561*00 N/LN1*ST*Pete Painfree N/LN2*H&P Warehouse N/LN3*5410 Secret Passage N/LN4*Plano*TX*75299 N/LN1*SE*Acme Aspirin Company N/LN3*101 XML Parser Trail N/LN4*Kauai*HI*99293 N/LN1*BY*H&P Emporium N/LN3*2000 Translator Drive N/LN4*Dallas*TX*75201 N/LPER*AE*Heidi Happy*TE*5555555555 N/LIT1*2*45*CA*50.00**VP*1010110 N/LPID*F****Extra Strength Aspirin N/LIT1*1*512*EA*1.00**VP*1010100 N/LPID*F****Regular Strength Aspirin N/LTDS*2767.00 N/LAMT*TZ*25.00 N/LCTT*2 N/LSE*21*712345678 N/LGE*1*901234567 N/LIEA*1*678901234 N/L

Invoice

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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 wasmisinterpreted?

EDI - Unambiguous Information

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EDI - Unambiguous Information

•Data was exchanged in proprietary file formats.

•One group sent data in English measures & the other used metric measures.

NASA’s Mars Climate Orbiter Believed To Be

LostSeptember 23, 1999

NASA/JPL/Caltech

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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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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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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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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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EDI Structure

ISAGSST…transaction set (e.g. PO)SEST…transaction set (e.g. PO)SEGEGS…ST… PO Change…SEGEIEA

Interchan

ge Envelope

Fu

n ctional Group

Envelopes

Tran

sactions

Tran

s

Security Segments

Security Segments

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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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XML-EDI Takes the existing ASC X12 EDI standards and develops XML DTD’s Naming guidelines, etc have been developed

What’s Next? - XML

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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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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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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.