EDI Document: A Traditional Business Document Or Something New?
EDI Document is a single business document transmitted via EDI and comprised of data elements, segments and envelopes formatted according to a particular EDI standard. EDI contains the same data that is contained inside its paper equivalent.
When trading partners create an EDI document, such as a purchase order, they must adhere to the strict formatting rules of the standard they are using. These requirements define exactly where and how each piece of information in the document will be translated. Let’s take a purchase order as an example: when the EDI translator of the receiving party defines an incoming EDI purchase order, it will immediately understand where to find the partner’s company name, the purchase order number, the items ordered, the price etc. Then data is fed into the receiver’s order entry system in the corresponding format reducing any manual order entry.
There exist different types of EDI documents depending on an industry. Specific EDI standards depend on the type of business sector as well. Usually an EDI document is often referred to by the corresponding number, e.g. – 810 Invoice, 850 Purchase Order, 856 Advance Ship Notice. As there exist hundreds of EDI documents, in many cases it is impossible for some companies to process all of them. However, actually they do not have to.
Signing an EDI Trading Partner Agreement, business partners agree which type of Electronic Data Interchange communication they will use, including standards, transaction type, mapping specifications and other requirements. The company does not need to be ready to implement all existing transactions. Third-party EDI providers offer service for those who do not have an in-house EDI solution – they process EDI documents and handle the ready business document for the customer.
If the company decided to implement Electronic Data Interchange and process documents itself, it should have required software and the staff should be trained. To receive the basic knowledge about EDI in all industries (including Health Care) or to make the qualification of your staff higher, join our seminars and online webinars.