Faster transfer and processing
What is EDI?
Electronic Data Interchange (EDI) is used to exchange business documents electronically. The documents are exchanged in the form of structured data. EDI covers electronic processes, protocols for exchange and communication, and standards for exchange. For the exchange process, a standard must be selected that both parties can use. In addition, a consistent format is defined in which the documents are exchanged. Data quality as well as data validity are important prerequisites for the automation of data exchange, which is why it is important to monitor them constantly.
Advantages of EDI
Automated electronic data exchange brings many advantages for companies. Here we have listed some important advantages for you:
What are EDI messages?
EDI messages represent the documents that are exchanged electronically in the EDI process. These include delivery bills, invoices, purchase orders, credit notes and shipping orders. Before the EDI messages leave the sender, the validity must be thoroughly checked to ensure that they also comply with the standard that the parties have selected.
Problems with EDI messages
If EDI messages are non-compliant, this can lead to significant problems as well as unnecessary costs. When a non-compliant EDI message is sent, the business process is interrupted, which can lead to high fines. In addition, the EDI message must be returned or reposted, which also results in additional costs for the sender. The corrective actions that need to be taken usually take place manually, which also means more costs than the automated variant. In addition to the extra effort and cost, it also requires trained and highly skilled IT personnel to perform the error corrections, which again also involves high costs. To avoid problems like the ones mentioned above, we advise you to always make sure that the EDI messages you send are compliant and of high quality. INPOSIA as an experienced EDI provider always has the right solution for you to stay compliant!
Typical errors with EDI messages
It is particularly important that all measures and requirements are clarified and agreed before data exchange. This is because these play an important role in the further processing of the documents by the recipient. If the agreements are not adhered to as previously agreed, this can lead to errors in the content and technical aspects of the EDI message.
Content errors
This concerns the data content that is transmitted. If the content is more or less or even different than agreed, this leads to errors at the receiver. If data that are interdependent are subject to errors, this also leads to massive problems in the further processing of the data content.
Technical errors
These errors occur when the structure or data format is incorrect. Often a different structure or a different format than previously agreed is used. If then, for example, additional fields are present or fields are even missing, errors can occur in the output of the EDI message. In addition, the recipient must inform the sender if he has made changes to the format or the structure and vice versa, because this also often results in errors.
Good and comprehensible communication is therefore particularly important here, as this makes it easy to avoid the above-mentioned mistakes.
What is EDI compliance?
EDI compliance describes the specifications that the parties agree upon and establish with each other before sending an EDI message. It is important that each document sent complies exactly with the agreed requirements, otherwise at least one of the two parties will not be able to process the documents and the above-mentioned problems will occur. If it is a B2B company, they usually have an EDI guideline in which all the requirements are described. For B2G companies, the EDI requirements are mostly anchored in government laws and guidelines. It is important that each business partner has a transformer that converts the EDI format from and to their ERP system. It is also important to verify that EDI messages conform to a trading partner’s EDI standards and requirements. This can be easily done for you by an EDI interface, like INPOSIA.
Now you are well informed about the most important aspects around EDI,
EDI messages and EDI compliance. If you have any further questions, INPOSIA as an experienced EDI provider will be happy to assist you!
You would like to digitize? Contact us now!
We are happy to be there for you – by phone, by e-mail, or personally at your site!
Muzaffer Havcarci
INPOSIA e-Invoicing-Specialist
