HUD Electronic Data Interchange

HUD Electronic Data Interchange General Procedures

HUD Electronic Data Interchange is the inter-organizational exchange of business documents in a pre-defined structured format, accomplished by the computer-to-computer exchange of standard formatted business transactions between one or more business partners, known as trading partners. EDI permits trading partners to generate, receive, and process data with little or no human intervention. EDI is an important component of continuing initiatives within the Office of Community Planning and Development (CPD) for the Department of Housing and Urban Development (HUD) to improve the effectiveness and efficiency of government programs through the use of electronic information systems technology.

HUD Electronic Data Interchange projects are conducted under the direction of HUD’s Office of Information Technology (IT). The Office of Information Technology is responsible for providing policy direction and coordination for HUD’s EDI effort. With EDI, standard business documents that were previously sent on paper through the mail can be transmitted instantaneously using telecommunication capabilities. Because transmissions are sent in a standardized, computer-readable format, the time-consuming and errorprone re-keying of information into the receiver’s computer system is unnecessary — the document goes directly from one information system to another. EDI is “paperless trading.”

EDI includes the direct transmission of data between organizations (both sending and receiving) using an intermediary such as a value added communication network. EDI is not facsimile transmission of information nor is it electronic mail. Both of these transmission types are in free format (not standard format) and, therefore, generally require re-keying of data into a computer system.

The benefits of EDI include:

  • Time savings and associated financial savings accrued from:
    • Reduced document processing and transmittal costs;
    • Elimination of keying of redundant information;
    • Reduction of manual reconciliation of information;
    • Correction of data entry errors;
    • Sorting, distribution, and filing of documents;
    • Document mailing or telephoning of information;
  • Improved accuracy;
  • Improved trading partner relationships and client interactions;
  • Improved reconciliation of transactions exchanged.

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