7/21/2019 2.MAPADOC-EDI-1011.pdf

1/2

Electronic Data Interchange, or EDI, is

one of those terms that most of us have

heard, some of us know we need, and

few of us understand.

Fortunately, the technology and

surrounding tools have advanced to

the place where its not necessary to

fully understand the behind-the-scenes

operation of EDI in order to use it.

For those of us with a keen sense of

curiosity, though, or for those who want

to sound informed when asked, we offer

this EDI primer your guide to the basics

of EDI.

What Is EDI?

EDI is the computer to computer

exchange of standard business

documents, such as purchase orders

and invoices, in electronic format. A

standard file format is established for

each kind of document (although they

often get tweaked!) in order to facilitate

the exchange of data across a variety of

platforms and programs.

Setting the Standard

While the EDI requirements for each

individual trading partner will vary, most

trading partners use the ANSI standard

file formats for each document type.

ANSI is the acronym for American

National Standards Institute, which is the

organization that acts as coordinator and

clearing house for information on national

standards, including EDI. Outside of the

USA, EDIFACT is the international EDI

standard developed under the United

Nations.

What Kind of Data Gets

Communicated?

The standard file format for each

document type typically contains

thousands of data elements. In most

trading relationships, only a small subset

of these data elements is necessary.

The data that is communicated is the

data required to generate a sales order

or initiate a shipment things like item

numbers, quantitiess and shipping

addresses.

Navigating the Maps

Mapping software is crucial for integrating

EDI into your accounting application.

Maps interpret the data according to

rules you and/or your trading partner

have established. Maps also ensure the

right data gets passed to your accounting

application and, in turn, the right data is

written to the outbound files.

Mapping software can do some tricks,

such as cross referencing UPC codes

to your inventory codes. They also can

house turnaround data - data not used by

you, but required by your trading partner.

How Does EDI Work?

Heres an example of how a typical EDI

relationship between you and your trading

partner, Big Company, might work.

Big Company initiates an 850 Purchase

Order and uploads the order to its Value

Added Network (VAN), which delivers it to

your electronic mailbox. Note that some

companies no longer use VANs, favoring

the newer AS2 protocol to send EDI

transactions.

Your EDI translation software validates

that the file is in the proper format and

sends an acknowledgement transaction

(997) back to Big Company over the VAN.

Your mapping software (MAPADOC)

verifies that the data elements it is

expecting are contained in the file, and

then writes the data from the file into

your Sage ERP MAS 90, MAS 200, or

MAS 500 sales order module, creating

one or more new orders.

SWK MAPADOC EDI | FOR Y OUR I NFOR MATI ON

2011 SWK Technologies, Inc.

EDI 101

A Simple Guide to Electronic Data Interchange

EDI joins manufacturers, distributors, and retailerstogether in a world-wide business to businessnetwork.

7/21/2019 2.MAPADOC-EDI-1011.pdf

2/2

As you generate the invoices for those

orders, the mapping software constructs

an 810 Invoice file in the format Big

Company wants, and then hands that file

to the translation software that uploads it

to the VAN for delivery to Big Company.

EDI Benefits to You

While many businesses may feel that EDI

is a necessary requirement imposed on

them by a trading partner, there canbe

distinct benefits for your organization.

With EDI, you can eliminate much of the

paper pushing associated with processing

sales orders and invoices. Since these

documents are received and sent

electronically, you can save the overhead

associated with filing and postage.

Integrating EDI with your Sage ERP

MAS 90, MAS 200 or MAS 500

system eliminates much of your data

entry burden. Incoming orders are

created automatically with minimal user

intervention. Since these orders are often

coming from larger customers, they

may contain dozens or even hundreds

of line items, so the time savings can be

significant.

By eliminating the paper routing andmanual data entry, most companies

enjoy increased order accuracy. Routine

data entry and processing errors are

eliminated improving customer

satisfaction and minimizing the possibility

of charge backs from your trading

partners.

Benefits of EDI

Speed

Data can move between computer

systems with little or no delay, resulting

in better cash flow, faster buy-cell cycle

time, shorter order lead times, and even

reduced inventories.

Accuracy

Errors are reduced due to the elimination

of manual and duplicate data entry. This

boosts overall efficiency and minimizes

the risk of costly charge backs, leading to

improved trading partner relationships.

Simplicity

EDI standards specify how data will be

formatted and where it can be found,

minimizing any burden on your IT staff.

Security

EDI can be accessed only by authorized

users, and audit trails and archives add to

security. Electronic confirmations ensure

receipt no chance of something getting

lost in the mail. EDI data cannot be

easily changed by unauthorized users and

is not susceptible to viruses.

2011 SWK Technologies, Inc. All rights reserved. MAPADOC and the MAPADOC product and service names mentioned herein are registered trademarks or trademarks of SWK

Technologies, Inc. The Sage logo and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities. All

other trademarks are the property of their respective owners.

About SWK Technologies, Inc.

SWK Technologies, Inc. is a

unique IT consulting company

providing strategies and solutions

to meet its clients information and

business management needs.

As a Sage Software Partner,

SWK Technologies offers best of

breed solutions for accounting and

business management, humanresources and payroll, customer

relationship management (CRM),

job management, and warehouse

management.

Specializing in collaborative

commerce, or the communication

and cooperation between

suppliers and customers,

SWK Technologies publishes

MAPADOC, an embedded EDI

solution for Sage ERP MAS 90,

Sage ERP MAS 200 and Sage

ERP MAS 500. MAPADOC EDI is

used successfully by companies

in dozens of industries trading

with hundreds of different trading

partners.

SWK Technologies, Inc.

520 Regent Street

Suite 520

Livingston, New Jersey 07039

(866) MAPADOC or (866) 627-2362

(973) 758-6120 fax

www.mapadoc.com

Commonly Transmitted

EDI Documents

850 Purchase Orders

810 Invoices

812 Credit / Debit Memos

846 On Hand Inventory Data

940 Fulfillment Orders

855 PO Acknowledgements

870 Order Status Reports

816 Store Lists

852 Product Activity Reports

754 Shipping Logistics Instructions

856 Shipment Notices