Understanding Electronic Data Interchange

This chapter discusses:

PeopleSoft Electronic Data Interchange (EDI).
Common EDI terms.
EDI standards.
Paper documents compared with EDI standard documents.
PeopleSoft supported EDI transactions.

PeopleSoft Electronic Data Interchange

Electronic Data Interchange is a method companies use to exchange data and transact business electronically. For example, using EDI a company can submit an order to a vendor, and the vendor can acknowledge and fulfill the order without paper changing hands or any contact between company representatives.

EDI provides a standard format for transaction data, allowing trading partners to communicate in a common language. As such, it is an important part of an electronic commerce strategy. Electronic commerce is a means to extend business processes to include suppliers, customers, and employees in a fully integrated supply chain. It can yield shorter cycle times, more efficient inventory management, and better knowledge sharing throughout your extended enterprise. To see these benefits, you need an integrated enterprise application system that you can extend and customize for your supply chain, while still maintaining enterprise information integrity.

EDI is a crucial part of business-to-business commerce. When computers exchange data using EDI, the data is transmitted in EDI Standard format so that it is recognizable by other systems using the same EDI Standard format. Companies who use EDI have their own translator software package to convert the data from the EDI Standard format to their computer system's format. Companies that exchange EDI data are called trading partners.

The following diagram illustrates the inbound and outbound transactions used by PeopleSoft:

PeopleSoft supported EDI transactions

Common EDI Terms

Archive	To store data for possible future reference.
Data element	An individual piece of information within an EDI Standard document. You group data elements to form data segments.
EDI Standard	A standardized format that defines the syntax, structure, and content of the inbound and outbound document data. ANSI ASC X12 - Cross-industry standard WINS - Warehouse industry UCS - Grocery industry TRADACOMS - Retail - UK EDIFACT - Commercial export and transport - international ODETTE - Motor and component suppliers - Europe In recent years, a United Nations committee has been working to reconcile ANSI ASC X12 with EDIFACT to further standardize EDI on an international basis.
Electronic Commerce	A business environment that includes computer-to-computer, application-to-application, and person-to-person exchange of information.
Electronic Data Interchange (EDI)	Electronic Data Interchange (EDI) is the paperless, computer-to-computer exchange of business transactions, such as purchase orders and invoices, in a standard format with standard content.
Inbound document	A document that you receive from your trading partner using EDI. Also referred to as an inbound transaction.
Mapping	The process of converting information from one table structure to another. The translation software performs this process.
Outbound document	A document that you send to your trading partner using EDI. Also referred to as an outbound transaction.
Segment	A predefined set of functionally related data elements.
Standard document	An EDI document that you exchange with your trading partner, such as a purchase order or sales order. Also called a transaction set in the ANSI ASC X12 or a message in the EDIFACT EDI standards.
Trading partner	A company (usually a customer or supplier) with whom you exchange EDI documents.
Translator software	The software that converts data from an application table format to an EDI Standard format, and from EDI Standard Format to application table format. The data is exchanged in an EDI Standard format, such as ANSI ASC X12, EDIFACT, UCS, or WINS.

EDI Standards

To exchange documents with trading partners, you must convert the data to and from EDI Standard formats. EDI standards are the requirements for the format and content of EDI business documents. EDI standards determine the correct order and location of the units of data in an EDI document. All EDI transactions are defined by EDI standards.

EDI standards developers design and publish EDI Standard formats for various kinds of documents, such as purchase orders or invoices, that you might exchange with your trading partners.

All EDI standards include the following components:

Element	The smallest component in an EDI Standard.
Segments	Groups of elements.
Transaction sets	Also called messages, transaction sets are groups of segments.

EDI Standard format is comparable to the language that you speak. For instance, an element of the EDI Standard can be compared to a word. A segment in the EDI Standard is comparable to a sentence. A transaction set in the EDI Standard is comparable to a paragraph or a document. In the EDI Standard, just as in the language that you speak, elements (or words) are combined to form a segment (or a sentence). Segments (or sentences) are combined to create a Transaction set (or paragraph or document).

Two commonly used EDI standards are:

EDI for Administration, Commerce, and Transport (EDIFACT) - generic international.
American National Standards Institute/Accredited Standards Committee X12 (ANSI ASC X12) - generic.

Both ANSI ASC X12 and EDIFACT also contain subgroups, including:

Automotive Industry Action Group (AIAG).
Chemical Industry Data Exchange (CIDX).
Electronics Industry Data Exchange (EIDX).
Voluntary Interindustry Communications Standards (VICS).
Textile/Apparel Manufacturing Communications (TAMCS).
Sundries and Apparel Findings Linkage Council (SAFLINC).
U.S. government.

Paper Documents Compared with EDI Standard Documents

Information from a paper document corresponds to information in an EDI Standard document. The following example illustrates a paper purchase order:

Paper document

This example illustrates the same purchase order in EDI Standard format:

EDI Standard format

PeopleSoft Supported EDI Transactions

This table summarizes the EDI inbound or outbound transactions, their associated technologies, related applications, application-specific PeopleBook information, and integration broker setup information:

EDI Transaction	Inbound or Outbound	Technology	PeopleSoft Application	PeopleBook Reference (Application Setup)	Integration Broker Information
Advanced Shipping Notice (X.12 856)	Outbound	Application message Flat file (FLO)	Inventory	See Creating Shipping Documentation. See EIPs for Fulfillment Transactions.	File Layout Definition: ADVANCED_SHIPPING_NOTICE Message Name: ADVANCED_SHIPPING_NOTICE Queue: ADVANCED_SHIPPING_NOTICE Handler: N/A Batch Publish Rule: DVANCED_SHIPPING_NOTICE File Rule: N/A
Advanced Shipping Receipt (X.12 856)	Inbound	Application message Flat file (FLO)	Purchasing	See Receiving Shipments.	File Layout Definition: ADVANCED_SHIPPING_RECEIPT Message Name: ADVANCED_SHIPPING_RECEIPT Queue: ADVANCED_SHIPPING_NOTICE Handler: AdvancedShippingReceipt Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI
Billing Invoice (X.12 810)	Outbound	Application message Flat file (FLO)	Billing	See Processing EDI Transactions in PeopleSoft Billing.	File Layout Definition: BILLING_INVOICE_NOTICE Message Name: BILLING_INVOICE_NOTICE Queue: BILLING_INVOICE Handler: ROUTERSENDHDLR Batch Publish Rule: BILLING_INVOICE_NOTICE File Rule: N/A
Interunit Expected Receipt (X.12 943)	Outbound	Application message Flat file (FLO)	Inventory	See EIPs for Fulfillment Transactions. See Understanding Warehouse Management Systems.	File Layout Definition: INTERUNIT_EXPECTED_RECEIPT Message Name: INTERUNIT_EXPECTED_RECEIPT Queue: INTERUNIT_EXPECTED_RECEIPT Handler: ROUTERSENDHDLR Batch Publish Rule: INTERUNIT_EXPECTED_RECEIPT File Rule: N/A
Interunit Receipt (X.12 944)	Inbound	Application message Flat file (FLO)	Inventory	See Receiving and Putting Away Stock. See Integrating to Warehouse Management Systems.	File Layout Definition: INTERUNIT_RECEIPT Message Name: INTERUNIT_RECEIPT Queue: INTERUNIT_RECEIPT Handler: InterunitReceipt Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI Electronic Data Collection Feature Data Rules
Inventory Adjustment (X.12 947)	Inbound	Application message Flat file (FLO)	Inventory	See Making Stock Quantity Adjustments and Transfers Within the Business Unit. See Integrating to Warehouse Management Systems.	File Layout Definition: INVENTORY_ADJUSTMENT Message Name: INVENTORY_ADJUSTMENT Queue: INVENTORY_MANAGEMENT Handler: InventoryAdjustment Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI Electronic Data Collection Feature Data Rules
Inventory Balance Notification (X.12 846)	Outbound	Application message Flat file (FLO)	Inventory	See EIPs for Fulfillment Transactions. See Managing Consigned Purchases Inventory.	File Layout Definition: INV_BAL_NOTIF_BUS_UNIT INV_BAL_NOTIF_VENDOR Message Name: INV_BAL_NOTIF_BUS_UNIT INV_BAL_NOTIF_VENDOR Queue: INV_BALANCE_NOTIFICATION Handler: N/A Batch Publish Rule: INV_BAL_NOTIF_BUS_UNIT INV_BAL_NOTIF_VENDOR File Rule: N/A
Item Price List (X.12 832)	Inbound	Application message Flat file (FLO)	Inventory	See Understanding Item Price List and Item Master Enterprise Integration Points.	File Layout Definition: ITEM_PRICELIST_LOAD Message Name: ITEM_PRICELIST_LOAD Queue: ITEM_CATALOG_PRICE Handler: ItemPriceListLoad Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI
Payments (X.12 820)	Inbound	Application message Flat file (FLO)	Receivables	See Receiving Payments Electronically.	File Layout Definition: PAYMENT_LOAD Message Name: PAYMENT_LOAD Queue: PAY_AND_REMIT Handler: PaymentLoad Batch Publish Rule: N/A File Rule: N/A
Payments (X.12 820)	Outbound	EDI Manager	Payables	See Processing Batch Vouchers.	N/A
Price Sales Catalog (X.12 832)	Outbound	Application message Flat file (FLO)	Order Management	See PeopleSoft Enterprise Order Management 9.0 PeopleBook.	File Layout Definition: PRODUCT_PRICELIST_SYNC Message Name: PRODUCT_PRICELIST_SYNC Queue: N/A Handler: N/A Batch Publish Rule: PRODUCT_PRICELIST_CUSTOMER_ID File Rule: N/A
Purchase Order Acknowledgement and Purchase Order Change Acknowledgement (X.12 855, 865)	Inbound	Application message Flat file (FLO)	Purchasing	See Creating Purchase Orders Online.	File Layout Definition: PURCHASE_ORDER_ACKNOWLEDGEMENT Message Name: PURCHASE_ORDER_ACKNOWLEDGEMENT Queue: PURCHASE_ORDER Handler: PurchaseOrderAcknowledgement Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI
Purchase Order and Purchase Order Change (X.12 850, 860)	Outbound	Application message Flat file (FLO)	Purchasing	See Creating Purchase Orders Online.	File Layout Definition: PURCHASE_ORDER_DISPATCH Message Name: PURCHASE_ORDER_DISPATCH Queue: PURCHASE_ORDER Handler: N/A Batch Publish Rule: PURCHASE_ORDER_DISPATCH_BU File Rule: N/A
Request for Quote (X.12 840)	Outbound	Application message Flat file (FLO)	Purchasing	See Managing Requests for Quotes.	File Layout Definition: PO_REQUEST_FOR_QUOTE Message Name: PO_REQUEST_FOR_QUOTE Queue: PO_REQUEST_FOR_QUOTE Handler: N/A Batch Publish Rule: PO_REQUEST_FOR_QUOTE_BU File Rule: N/A
Request for Quote Response (X.12 843)	Inbound	Application message Flat file (FLO)	Purchasing	See Managing Requests for Quotes.	File Layout Definition: PO_REQUEST_FOR_QUOTE_RESPONSE Message Name: PO_REQUEST_FOR_QUOTE_RESPONSE Queue: PO_REQUEST_FOR_QUOTE Handler: PoRequestForQuoteResponse Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI
Return to Vendor (X.12 180)	Outbound	Application message Flat file (FLO)	Purchasing	See Managing Vendor Returns.	File Layout Definition: RETURN_TO_VENDOR Message Name: RETURN_TO_VENDOR Queue: RETURN_TO_VENDOR Handler: N/A Batch Publish Rule: RETURN_TO_VENDOR_BU RETURN_TO_VENDOR_VENDOR File Rule: N/A
Sales Order (X.12 850)	Inbound	Application message Flat file (FLO)	Order Management	See Using Sales Order and Quotation Enterprise Integration Points, Using Sales Order and Quotation Enterprise Integration Points.	File Layout Definition: SALES_ORDER_LOAD Message Name: SALES_ORDER_LOAD Queue: SALES_ORDER_LOAD Handler: SalesOrderLoad Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI
Sales Order (X.12 850)	Inbound	Application message Flat file (FLO)	Order Management	See Using Sales Order and Quotation Enterprise Integration Points.	File Layout Definition: EDI_TXN_850 Message Name: EDI_TXN_850 Queue: SALES_ORDER_LOAD Handler: N/A Batch Publish Rule: N/A File Rule: EDI_TXN_850
Sales Order Acknowledgement (X.12 855)	Outbound	Application message Flat file (FLO)	Order Management	See Using Sales Order and Quotation Enterprise Integration Points.	File Layout Definition: SALES_ORDER_ACKNOWLEDGEMENT Message Name: SALES_ORDER_ACKNOWLEDGEMENT Queue: SALES_ORDER_ACKNOWLEDGEMENT Handler: ROUTERSENDHDLR Batch Publish Rule: SALES_ORDER_ACK_CUSTOMER_ID File Rule: N/A
Sales Order Change (X.12 860)	Inbound	Application message Flat file (FLO)	Order Management	See Using Sales Order and Quotation Enterprise Integration Points.	File Layout Definition: SALES_ORDER_CHANGE_LOAD Message Name: SALES_ORDER_CHANGE_LOAD Queue: SALES_ORDER_CHANGE_LOAD Handler: SalesOrderChangeLoad Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI
Sales Order Change Acknowledgement (X.12 865)	Outbound	Application message Flat file (FLO)	Order Management	See Using Sales Order and Quotation Enterprise Integration Points.	File Layout Definition: SALES_ORDER_CHANGE_NOTICE Message Name: SALES_ORDER_CHANGE_NOTICE Queue: SALES_ORDER_CHANGE_NOTICE Handler: ROUTERSENDHDLR Batch Publish Rule: SALES_ORDER_CHG_CUSTOMER_ID File Rule: N/A
Sales Quote (X.12 840)	Inbound	Application message Flat file (FLO)	Order Management	See Using Sales Order and Quotation Enterprise Integration Points.	File Layout Definition: SALES_QUOTE_LOAD Message Name: SALES_QUOTE_LOAD Queue: SALES_QUOTE_LOAD Handler: SalesQuoteLoad Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI
Sales Quote (X.12 840)	Inbound	Application message Flat file (FLO)	Order Management	See Using Sales Order and Quotation Enterprise Integration Points.	File Layout Definition: EDI_TNX_840 Message Name: EDI_TNX_840 Queue: SALES_ORDER_LOAD Handler: N/A Batch Publish Rule: N/A File Rule: EDI_TNX_840
Sales Quote Acknowledgement (X.12 845)	Outbound	Application message Flat file (FLO)	Order Management	See Using Sales Order and Quotation Enterprise Integration Points.	File Layout Definition: SALES_QUOTE_NOTICE Message Name: SALES_QUOTE_NOTICE Queue: SALES_QUOTE_NOTICE Handler: ROUTERSENDHDLR Batch Publish Rule: SALES_QUOTE_NOTICE_CUSTOMER_ID File Rule: N/A
Shipping Notification (X.12 945)	Inbound	Application message Flat file (FLO)	Inventory	See EIPs for Fulfillment Transactions. See Integrating to Warehouse Management Systems.	File Layout Definition: SHIPPING_NOTIFICATION Message Name: SHIPPING_NOTIFICATION Queue: SHIPPING_NOTIFICATION Handler: ShippingNotification Batch Publish Rule: N/A File Rule: SCM_INBOUND_EDI
Shipping Order Release (X.12 940)	Outbound	Application message Flat file (FLO)	Inventory	See EIPs for Fulfillment Transactions. See Integrating to Warehouse Management Systems.	File Layout Definition: SHIPPING_ORDER_RELEASE Message Name: SHIPPING_ORDER_RELEASE Queue: SHIPPING_ORDER_RELEASE Handler: ROUTERSENDHDLR Batch Publish Rule: SHIPPING_ORDER_RELEASE File Rule: N/A
Vouchers (X.12 810)	Inbound	EDI Manager	Payables	See Processing Batch Vouchers.	N/A

EIP Examples

PeopleSoft provides you with the following EIP setup and processing examples:

Sales Order Inbound
Sales Order Acknowledgement
Purchase Order Dispatch
Advanced Shipping Notice
Billing Invoice