How to find the suiting EDI-solution
What is EDI and API?
What is a document type or transport protocol?
What exactly is routing and why do you need to convert certain documents?
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How to find the suiting EDI-solution
In the modern business world, efficient message exchange with business partners is crucial for the success of any company. Therefore the demand for reliable and individual solutions regarding electronic data exchange is continuously increasing. In this article we want to freshen up EDI basics, go into detail about related EDI processes and show the potentials of an API interface. This will help you to identify and define advantages for your processes. Our international team of specialists supports you with our smart business solutions at every step of your journey to become a digital champion!
Definition EDI
EDI (= Electronic Data Interchange) describes the electronic exchange of business documents (e.g. orders, delivery bills, invoices, etc.) based on international structure and format standards. Electronic Data Interchange processes allow data to be exchanged efficiently and processed within or outside the company. The document standard as well as the protocol used for transmission are decisive for the transmission of different message types. Compared to conventional paper documents, electronic documents can also help your company achieve significant savings. Business transactions can not only be processed faster, but also more reliably and with minimal human intervention. Click here to learn more about EDI basics in our guide.
EDI document types
An EDI document type describes the individual specification of a certain file format regarding the structure and content of an EDI document (e.g. invoice, order). Different EDI formats (e.g. UN/EDIFACT, TRADACOMS, ANSI X.12, VDA, UBL) take the requirements of various stakeholder groups regarding the properties of an EDI document into account. Uniform document standards ensure that both the sender and recipient systems can interpret the exchanged information correctly. Click here to learn more about EDI document types and transport protocols in our guide.
EDI transport protocols
Transport protocols are responsible for the transmission of various document types. Using different EDI protocols (e.g. AS2, AS4, OFTP, OFT2, HTTP/HTTPS), an EDI message is not only transmitted but also encrypted. A protocol type can be interpreted as a kind of language through which different IT systems communicate with each other.
Definition API
The term API (= Application Programming Interface) describes a kind of direct interface for application programming. An API offers other programs the option to directly connect to a system in order to exchange information between applications and other program parts both standardized and structured. Click here to read our guide to learn more about how APIs work and their potential for your business.
Do you already know our EDI Whitepaper?
Routing using the example of IDoc
In general, the correct transmission of EDI messages from a sender to the respective recipient is called routing. For the routing of EDI messages, document formats must meet certain requirements in structure, format and content.
For example, IDoc serves as a central exchange format for importing and exporting business documents to and from an SAP system. IDoc documents can be exchanged between SAP systems via a defined interface in the SAP system. Two variants are available for this purpose. Either via a text-based variant or in the form of an XML representation. After the IDoc document has been exported, it can be used internally within the company or transferred externally to business partners.
However, if not all business partners use SAP, the seamless transfer of the IDoc document is not always possible. If a business partner uses another ERP system, a conversion of the EDI document is inevitable. If the business partner uses an SAP system, different document versions can also prevent the data from being transferred. An exported IDoc document also contains all usage data of the respective document type and therefore also includes SAP-internal information such as partner functions, processing status, internal units of measurement or other information. However, this information is not always suitable for a comprehensive EDI process with external partners. Usually not all information is supposed to be transmitted to external parties, but especially information that is relevant to these business partners.
Conversion using the example of IDoc
EDI converters are specific IT solutions that are used to export business documents, for example in IDoc format, from an SAP system and then convert them into a platform-independent EDI format (e.g. EDIFACT) that can be delivered to the business partner’s EDI service provider. The EDIFACT data received is then converted by the business partner’s EDI service provider into the import format of the target ERP system so that it can be imported without errors. This transfer can also take place in the other direction at any time.
Local EDI-solution
Cloud-based EDI-solution
In the case of a local EDI converter there is a connection to a local converter software responsible for routing, mapping, adding signatures, establishing system connections and monitoring messages. Local EDI converters can establish a direct connection to partners without their own EDI connection. Internally however they require a relatively high level of service and maintenance. External connections to networks such as PEPPOL usually can not be established straight away. This requires a certification as a qualified PEPPOL Access Point. INPOSIA is a PEPPOL Access Point and therfore authorized to connect customers to the PEPPOL network.
Cloud-based EDI solutions are a good option for companies that do not have sufficient internal resources or want to save capacities. With greatly simplified internal processes, a cloud-based solution is a cost-effective option. WebEDI also enables the connection of suppliers who do not have EDI functionalities themselves. Third party networks such as PEPPOL can also be connected. Cloud-based EDI enables the outsourcing of message routing and mapping to an EDI provider. This provider takes over the exchange of messages with your business partners – either directly, if the partner has internal EDI capabilities, or via the partner’s provider.
Learn more about API in our API Management Whitepaper
EDI via API
In addition to the common transport protocols (AS2, OFTP2, SFTP/FTPS), EDI can also be implemented via API. Certain protocols such as SFTP or FTPS do not provide proof that the recipient has actually received the file sent. This makes it difficult to trace a particular message exchange, especially in case of an error. Protocol types like AS2 or AS4 help to overcome this limitation. However, none of these protocols offers complete process traceability. For example, while a message is being sent, only the delivery status of the message can be tracked to the next network, but not beyond. In the ERP system, an outgoing message only indicates that the message was received by the EDI service provider. Even when using modern protocols such as AS2 or AS4, it is not possible to tell whether the message has actually been received by the recipient.
The difference between API connections and traditional transport protocols or interfaces is that the data exchange between ERP systems or an ERP system and an EDI service provider takes place directly via an integrated interface, the API. Metadata such as information about the delivery status of a message is therfore not lost. This data can be viewed and automatically retrieved in real time in the user interface of your ERP system. This significantly increases the performance of your B2B processes and minimizes the risk of errors.
Users can easily identify and quickly correct errors, since information on EDI transfers is available in real time via API. For example, they could check whether an important order was successfully transferred to one of their suppliers or could not be transmitted due to an error. This gives you the opportunity to re-check the order, make any necessary correction or retrigger the order.
Are you interested in our EDI-solution and have further questions?
Get in touch with our EDI experts. We will gladly be of assistance. By phone, email or in person at your premises!
Jennifer Muriniti
INPOSIA EDI Specialist