PIDX EC-EDI Essentials-Oct · PDF fileE-commerce is a combination of business strategies ... Different File Structures ... PIDX EC-EDI Essentials-Oct 2000

EC-EDI Essentials

12th Annual E-Biz Conference12 Annual E-Biz Conference

October 9-12, 2000Austin, Texas

Gary StricklandSchlumberger Technology Corporation

� Fundamentals of Electronic commerce (EC), focusing on Electronic Data Interchange (EDI)

� Structure of EDI Information

Session Roadmap

� Structure of EDI Information

� EDI Business Flow and Components

� EDI Benefits and Implementation Barriers

� The Future of EDI

Course Objectives

� At the end of this session, you will understand…

� What EC and EDI are and how they affect your business

� The process of exchanging business � The process of exchanging business documents using EDI

� The components of an EDI system

� What EDI standards are

� The Successes and Failures of EDI

� How EDI is changing

•Business Strategies

E-commerce is a combination of business strategiesand distributed processes using multiple technologiesto manage the electronic exchange of informationwithin and between organizations.

Definition of E-commerce

•Business Strategies

•Distributed Processes

•Multiple Technologies

•Electronic Processing of Information

Business Strategies

� Marketing

� Selling

� Billing

� Buying

Paying� Paying

� Stockholder Relations

� Communications

� Regulatory Reporting

Distributed Processes

SuppliersSuppliersAccountingAccounting

Materials Materials MgtMgt

MfgMfg Global Global SalesSales

HRHR

Commerce CommunityCommerce Community

BanksBanks

GovernmentsGovernmentsTransportationTransportationCompaniesCompaniesCustomersCustomers

ConsumersConsumers

Electronic Exchange of Information

� Credit Card Numbers

� Technical Drawings and Models

� Inventory Availability

Purchase Orders� Purchase Orders

� Shipping Notices

� Invoices

� Electronic Funds Transfer

Multiple Technologies

LAN

OCR

XML

WAN

EmailEDI

EC

Set

Scanning

ERP

Faxing

Bar Coding

Internet

EDI is an EC Technology

WANWANWANWANLANLANLANLAN

XMLXMLXMLXMLEmailEmail

OCROCR

EDI

EC

Set

ERPERPERPERP

ScanningScanningScanningScanning

InternetInternetInternetInternet

Bar codingBar coding

FaxingFaxingFaxingFaxing

EDI

Electronic Data Interchange (EDI) is the application-to-application transfer of key

business information transacted in a standard format

Definition of EDI

•Application to Application•Business Information•Standard Format

Application to Application

MM SOMM

A/P

C/D C/R

SO

SO

Business Information

RFQResp. to

RFQPO

Invoice

ASNRec. Adv.

Rem. Adv.

Yourbiz, Inc. Herbiz, Inc.

Materials Management Application

Sales Order Application

Different File Structures

Purchase Order File Structure for

Yourbiz

Purchase Order File Structure for

Yourbiz

Yourbiz, Inc. Herbiz, Inc.

Translate File Structure

MM Application SO Application

PO in Yourbiz Format

Herco PO Interface

PO in Herbiz Format PO in Herbiz Format

Translate File Structure

Yourbiz, Inc.MM App. Herbiz

InterfaceHerbiz Format

SO App.

Herbiz, Inc.

Hisbiz, Inc.

......

PO File

SO App.

SO App.

Whateverbiz, Inc.

Hisbiz Interface

Whateverbiz Interface

Hisbiz Format

Whateverbiz Format

Standard FormatYourbiz, Inc.

MM App.

PO File

EDI File

EDI File

EDI

EDI Std.

PO File

PO File

SO

SO App.

Herbiz, Inc.

Hisbiz, Inc.

......EDI Std.

EDI FileEDI File

EDI File

EDI Std.

Std.

PO File

PO File

PO App.

App.

Whateverbiz, Inc.

EDI Standards

� ANSI ASC X12 Standard� North America

� UN/EDIFACT Standard� United Nations/Electronic Data Interchange for

Administration, Commerce and Trade

� Global Standard

Europe and some industries in North America� Europe and some industries in North America

� X12 is supposed to convert to EDIFACT

� TRADACOMS Standard� Trading Data Communications Standard

� Great Britain

� XML Standards� Rosetta.net, Microsoft BizTalk ©, ebXML

ANSI ASC X12 Standard

� American National Standards Institute

� Administrator / coordinator of US private sector voluntary standardization system

� Facilitates standard development� Facilitates standard development

ASC X12

� Accredited Standards Committee

� Chartered by ANSI to develop standards for electronic exchange of business transactions

� Comprised of government and industry volunteer membersvolunteer members

� Develops, maintains, interprets, publishes, and promotes the proper use of ANSI standards and UN/EDIFACT international standards for EDI

� The main organization for setting and revising EDI standards for North America

PIDX

� Petroleum Industry Data Exchange

� The EDI Committee of the American Petroleum Institute

Develops industry conventions� Develops industry conventions

� Publishes EDI implementation guides for the petroleum industry

PIDX Implementation Guide

� Identifies business data requirements specific to our industry

� Describes the rules for placing that requirement into an X12 transaction setrequirement into an X12 transaction set

PIDX User Groups

Oil and Gas

CDEX/RPUG - Check Stub Data Exchange

GRADE - Natural Gas Information

LINE - Liquids Network (CODE/COS/PIPENET

Exploration and Production

Joint Interest EDI -

(AFEX/DRILLEX/JIBE/WODEX)

WITS - Wellsite Information

REGS - Regulatory Reporting

Refined Products

Downstream EDI

(PETROEX/RECON/TABS)

Inter-Industry/ Support Functions

AVNET - Aviation Fuel Sales

JUPUG - Joint Utility/ Petroleum Industry

MSDS - Joint Chemical / Petroleum

P&MM - Purchasing & Materials Mgmt

Trading Partners’ IG

� Issue their own Implementation Guide

� Further define the PIDX IG of ASC X12

The X12 Standard Used in EDI

� ASC X12 Standard

� PIDX Industry Conventions

� Your trading partners’ Implementation � Your trading partners’ Implementation Guides

EDI Defined

Electronic Data Interchange (EDI) is the application-to-application transfer of key

business information transacted in a standard format

Overview of EDI Process

Yourbiz


Purchase Order

Herbiz


Purchase Order

Purchase Order

EDI System

Purchase Order File

EDI File

EDI System

Purchase Order File

EDI File

EDI System: Translation


Purchase Order File

EDI System EDI FilePurchase Order

File

Yourbiz, Inc. Purchase Order

PO Number: 1001 PO Date: September 1, 2000

SHIP TO ADDRESS BILL TO ADDRESS

Yourbiz, Inc.

201 West RichardSugar Land, TX 77478

Yourbiz, Inc.

201 West RichardSugar Land, TX 77478

LINEITEM #

OUR PART #

VEN DOR’S PART #

DESCRIPTION QUANTITY UNIT OF MEASURE

PRICE

1. WGT00102 WGT1234L RED BASIC WIDGET 10 dozen $60.001. WGT00102 WGT1234L RED BASIC WIDGET LARGE

10 dozen $60.00

2. WGT00104 WGT1234M RED BASIC WIDGET MEDIUM

15 dozen $56.00

3. WGT00106 WGT1234S RED BASIC WIDGET SMALL

20 dozen $48.00

TOTALS

Total Number of Line Items: 3

Total Quantity Ordered: 45

Total Cost of this Purchase Order: $2,400.00

The Application File

PO # 1001


HDR 100120000901

HSTYOURBIZ, INC. 201 WEST RICHARD SUGAR LANDTX77478

HBTYOURBIZ, INC. 201 WEST RICHARD SUGAR LANDTX77478

LIN001WGT00102WGT1234LRED BASIC WIDGIT LARGE 10DZ60

LIN002RAB00104RBC1234MRED BASIC WIDGIT MEDIUM15DZ56

LIN003RAB00106RBC1234SRED BASIC WIDGIT SMALL 20DZ48

TOT00300450002400.00

PO # 1001

Records in the Application File

HDR 100120000901




LIN002RAB00104RBC1234MRED BASIC WIDGIT MEDIUM15DZ56Records



TOT00300450002400.00

Records

Application File Fields


Record Yourbiz Description

UOMRecord Identifier

Line Item Number

Yourbiz Part #

Vendor Part #

Quantity Ordered

UOM

Unit Cost

Header Record - Record Identifier: HDRStarting

Field Data Type Format Length Position

PONUM Alphanumeric 4 4PODATE Date CCYYMMDD 8 8...Line Item Record – Record Identifier: LIN

Purchase Order File Layout

Line Item Record – Record Identifier: LINStarting

Field Data Type Format Length Position

LINNUM Numeric N0 3 4PARTNO Alphanumeric 8 7VENDNO Alphanumeric 8 15DESCR Alphanumeric 23 23QTYORD Numeric N0 2 46UOM Alphanumeric 2 48UCOST Numeric N0 5 50...

Business Document to Transaction Set

EDI SystemBusiness Document

Transaction Set

Purchase Order 850

Pmt/Rem Advice 820

Invoice810

The Language of EDI (ASC X12 Standard)

Business Document Name

Transaction Set Identifier

Request for Quotation 840 RQResponse to Request for Quotation 843 RR

FunctionalGroup ID

Response to Request for Quotation 843 RRPurchase Order 850 POPurchase Order Acknowledgment 855 PRShip Note/Manifest 856 SHReceiving Advice 861 RCInvoice 810 INPayment Order/Remittance Advice 820 RA

The EDI File

ISA*00* *00* *ZZ*YOURCO *

ZZ*HERBIZ *000901*1212*U*00306 *000000001*0*P*:@

GS*PO*YOURBIZ*HERBIZ*000901*1212*000000001*X*003060@

ST*850*00001@

BEG*00*SE*1001**000901*@

N1*ST*YOURBIZ, INC.@

N3*201 WEST RICHARD@

N4* SUGAR LAND*TX*77478@

N1*BT*YOURBIZ, INC.@

N3*201 WEST RICHARD@850


N4*SUGAR LAND*TX*77478@

PO1*0001*10*DZ*60**CB*WGT00102*VN*WGT1234L@

PID*F****RED BASIC WIDGET LARGE@

PO1*0002*15*DZ*56**CB*WGT00104*VN*WGT1234M@

PID*F****RED BASIC WIDGET MEDIUM@

PO1*0003*20*DZ*48**CB*WGT00106*VN*WGT1234S@

PID*F****RED BASIC WIDGET SMALL@

CTT*3*45@

SE*16*00001@

GE*1*000000001@

IEA*1*000000001@

850

Segments in an ASC X12 EDI file

ISA*00* *00* *ZZ*YOURBIZ *

ZZ*HERBIZ *000901*1212*U*00306

*000000001*0*P*:@


ST*850*00001@

BEG*00*SA*1001**000901*@




N1*BT*YOURCO, INC.@

SegmentsN1*BT*YOURCO, INC.@









CTT*3*45@

SE*16*00001@

GE*1*000000001@

IEA*1*000000001@

Segment ID


Segment ID

Segment IDs for 850 Transaction Set

BEG Beginning Segment for Purchase Order

N1 Name

N3 Address Information

N4 Geographic Location

PO1 Baseline Item Data

PID Product/Item DescriptionPID Product/Item Description

CTT Transaction Totals

ASC X12 Segment Structure

Segment ID

1st Data Element

Data ElementSeparator

Segment Terminator


ID Separator Terminator

Business Document Transaction SetRecord SegmentRecord Identifier Segment ID

Application File EDI File

The Language of EDI (ASC X12 Standard)

Record Identifier Segment IDField Data Element

EDI Translator

TranslatorPurchase Order Records and fields

850 Transaction Set Segments and

?

Records and fields Set Segments and Elements

Map

Map

� A file containing the location of information in a source file and where the data is to be placed in a destination file.

� One map for every standard/version/IG and directiondirection

� Must be built and maintained

� Built through a process called “mapping”

File transfer Direction

Outbound


Inbound


Purchase Order

ApplicationApplication

Mapping

Fields in the LIN Record

RED BASIC WIDGIT LARGE

WGT1234L

WGT00102

001

LIN

*DZ

PO1

*10

*60

*0001

Elements in the PO1 Segment

*10

RED BASIC WIDGIT LARGE

60

DZ *CB

*60

@

*WGT1234L

*VN

*WGT00102

EDI Translator

Herbiz TP Profile

TranslatorPurchase Order Records and fields

850 Transaction Set Segments and

Elements

O850HERBIZ Map

PO to 850

BEG*00*SA*1001**000901*@

HDR 100120000901






TOT00300450002400.00

BEG*00*SA*1001**000901*@













CTT*3*45@

Transaction Set Control Envelope

Purchase Order

Ship To: Yourbiz

Bill To: Yourbuz

Purchase Order:1001

Purchase Order Date:September 1, 2000

(One Business Document)

Buyer Item# Seller Item# Qty UOM Price

1. WGT00102 WGT1234L 10 Dozen $60.00

2. WGT00104 WGT1234M 15 Dozen $56.00

3. RAB00106 WGT1234S 20 Dozen $48.00

PurchaseOrder

Transaction Set Control Envelope (ST/SE)

BEG*00*SA*1001**000901*@








ST*850*00001@







CTT*3*45@

SE*16*00001@

ST*850*0001@BEG*00*SA*1001**000901*@





SE*7*0001@ST*850*0002@

Transaction Set Control Envelope (ST/SE)

ST*850*0002@BEG*00*SA*1002**000901*@





SE*9*0002@

PurchaseOrder

PurchaseOrder

Functional Groups

Functional Group Control

Envelope

Invoice

Transaction Sets

Functional Groups

GS*PO*YOURBIZ*HERBIZ*000901*1130*1*X*003060@ST*850*0001@BEG*00*SA*1001**000901*@N1*ST*YOURBIZ, INC.@N1*BT*YOURBIZ, INC.@PO1*0001*10*DZ*60**CB*WGT00102*VN*WGT1234L@PID*F****RED BASIC WIDGET LARGE@SE*7*0001@

Functional Group (GS/GE) Control Envelope

SE*7*0001@ST*850*0002@BEG*00*SA*1002**000901*@N1*ST*YOURBIZ, INC.@N1*BT*YOURBIZ, INC.@PO1*0001*10*DZ*60**CB*WGT00102*VN*WGT4321L@PID*F****RED BASIC WIDGET LARGE@SE*9*0002@

GE*2*1@

GS*PO*YOURBIZ*HERBIZ*000901*1130*1*X*003060@ST850 SegmentsSEST850 SegmentsSE

GE*2*1@

Functional Group (GS/GE) Control Envelope

GE*2*1@

GS*IN*YOURBIZ*HERBIZ*000901*1130*2*X*003060@ST810 SegmentsSEST810 SegmentsSE

GE*2*2@


ST*850*00001@

BEG*00*SA*1001**000901*@







Functional Group Control Envelope (GS/GE)








CTT*3*45@

SE*16*00001@

GE*1*000000001@

Functional Group Control Envelope (GS/GE)

Functional Identifier Code

Application Sender’s Code

Application Receiver’s Code

Group Control Number

GroupTime

Responsible Agency Code

Version and Release

Date of Transaction


Code Number Release

Interchange Control Envelope

PurchaseOrder

PurchaseOrder

EXPRESS DELIVERY

Interchange

InventoryInformation

EXPRESS DELIVERY

Sender:

Yourbiz

Receiver:

Herbiz

Tracking #: 000000000177975 021760 7

Transaction Sets

Functional Groups

ISA*00* *00* *ZZ*YOURBIZ*ZZ*HERBIZ*000901*1130* X*00306*000000003*1*P*>@GSST850SEST850SEGE

Interchange Control Envelope (ISA/IEA)

GEGSST810SEST810SEGEIEA*2*000000003@

POS NAME

ISA01 = Auth. Cd. Qualifier

ISA02 = Authorization Code

ISA03 = Security Code Qualifier

ISA04 = Security Code

ISA05 = Sender ID Qualifier

ISA06 = Sender ID

ISA07 = Receiver ID Qualifier

Interchange (ISA/IEA) Control Envelope

POS NAME

ISA10 = Time

ISA11 = Standard Agency

ISA12 = Version

ISA13 = Interchange Control #

ISA14 = Ack. Requested

ISA15 = Test Indicator

ISA16 = Sub-element SeparatorISA07 = Receiver ID Qualifier

ISA08 = Receiver ID

ISA09 = Date

ISA16 = Sub-element Separator

IEA01 = # of Included Groups

IEA02 = Interchange Control #

Interchange (ISA/IEA) Control Envelope


ZZ*HERBIZ *000901*1212*U*00306 *000000001*0*P*:@


ST*850*00001@

BEG*00*SA*1001**000901*@





N3*201 WEST RICHARD@N3*201 WEST RICHARD@








CTT*3*45@

SE*16*00001@

GE*1*000000001@

IEA*1*000000001@

Control Segments

Header and trailer segment pairs in a hierarchical structure

Administrative data to help the receiver determine Administrative data to help the receiver determine what was received is what was sent

Control Segments

1. Transaction set envelope

2. Functional group envelope

3. Interchange envelopeInterchange envelope

Transaction Set Control Segments (ST/SE)

• Transaction set envelope

• Allow multiple transaction sets to be transmitted

• Control numbers identify the number of transaction sets grouped together

• Provides a control number indicating the total number of segments included in a transaction setof segments included in a transaction set

(One Business Document)

Purchase Order

PurchaseOrder

Functional Group Control Segments (GS/GE)

• Functional group envelope

• Allow dissimilar transaction sets to be transmitted

• Control numbers identify the number of groups of transaction sets

PurchaseOrder

PurchaseOrder

Invoice

Transaction Sets

Functional Groups

Interchange Control Segments (ISA/IEA)

• Interchange control envelope

• Start and identify an interchange of one or more functional groups

• Contain control numbers for tracking purposes

PurchasePurchaseOrder

PurchaseOrder

InventoryInformation

EXPRESS DELIVERYSender:

Yourbiz

Receiver:

Herbiz

Tracking #: 0000000001

77975 021760 7

Transaction Sets

Functional Groups

Interchange

850 to Herbiz


ZZ*HERBIZ *000901*1212*U*00306 *000000001*0*P*:@


ST*850*00001@

BEG*00*SA*1001**000901*@





N3*201 WEST RICHARD@N3*201 WEST RICHARD@








CTT*3*45@

SE*16*00001@

GE*1*000000001@

IEA*1*000000001@

EDI Process Recap

Yourbiz


Purchase Order

Herbiz


Purchase Order

EDI System

Purchase Order File

EDI File

EDI System

Purchase Order File

EDI File

Business Applications

Reciprocating Business Documents

EDI Business Applications

EDI

Yourbiz Herbiz

PO

PO Ack

ASN

Invoice

Rem Adv

App Adv

Business Applications

Functional Acknowledgments (997)

EDI Business Applications

EDI

Yourbiz Herbiz

PO

PO AckEDI Ack

EDI Ack

ASN

Invoice

Rem Adv

App Adv

EDI Ack

EDI Ack

EDI Ack

EDI Ack

EDI Ack

Functional Acknowledgment (997)

• Provides a way for the receiver’s EDI system to

indicate receipt of senders’ EDI file

• EDI to EDI transfer only

• Does not indicate acceptance

• Does not replace business acknowledgments• Does not replace business acknowledgments

• Allows receiver to comment on the syntactic

correctness of the EDI file

• Offers Nonrepudiation

• Optional

ISAGSST850SEST850SE

997


ISAGSST997SE

GEGSST810SEST810SEGEIEA

997

997SEST997SEGEIEA

Sender’s EDI System


ST*997*000000004@

AK1*IN*000000007@

AK2*810*000000016@

AK5*A@

AK2*810*000000017@AK2*810*000000017@

AK3*REF*000005@

AK4*01*0128*7@

AK5*R@

AK9*P*000002*000002*000001@

SE*000010*000000004@

997 ST/SE Control Segments

ST*997*000000004@

Transaction set ID

Transaction Set

SE*000010*000000004@

Segment Count

Control Number

997 AK1 and AK9 Segments

Acknowledged Group’s Type Acknowledged

Group’s Control Number

AK1*IN*000000007@

# of Transaction Sets in Group

AK9*P*000002*000002*000001@

# of Transaction Sets Received

# of Transaction Sets Accepted

997 Segments AK2 - AK5

AK2*810*000000016@

AK5*A@

AK2*810*000000017@

Transaction Set IDTransaction Set Control Number

Transaction Set was accepted

AK2*810*000000017@

AK3*REF*000005@

AK4*01*0128*7@

AK5*R@ Transaction Set was rejected

5th segment in set, REF had errors

1st data element (DE ref # = 128) had error type 7

EDI Process with 997Yourbiz


Purchase Order

Herbiz


Purchase Order


Purchase Order


Purchase Order

EDI System

Purchase Order File

EDI File

EDI System

Purchase Order File

EDI File

EDI System

Purchase Order File

EDI File

EDI System

Purchase Order File

EDI File

EDI System

EDI File

EDI System

EDI File?

Value Added Networks

Yourbiz Herbiz

EDI File EDI FileVAN

• Mailboxing

• Archiving

• Reporting

• Nonrepudiation

• Interconnecting

• Turnkey EDI

• Consulting

• Security

Benefits of EDI

Reduced Costs

• Reduced administrative handling costs

• Reduced float time for delivery of invoices and

payment of invoices (5+ days)payment of invoices (5+ days)

• Data entry eliminated for receiver of documents

• Improvement in consistency of data

• Efficiencies of cash application (>95%

successful matches Rem. Adv. to Open Items)

Benefits of EDI

Increased Revenues

• Improve customer relationships

• New customer relationships

• Competitive advantage• Competitive advantage

Other

Businesses

Fortune

1000

Using EDI

95%Not Using EDI

98%

U.S. Businesses

Not Using EDI

5%

Using EDI

Not Using EDI

Using EDI

2%

98%

The Grief

• Expensive

• Complex

• Arcane

• Rigid• Rigid

• Slow

Costs of EDI

Business Application

App File

• Application S/W: $100K to $200M+• Technical Support: $K• Forced Upgrades: $K• User Training: $K• Annual licenses: $K• Requires Technical Expertise: $75K - ?

EDI System

EDI File

VAN

• EDI S/W: $K• Annual Licenses: $K• Technical Support: $K• Requires Technical Expertise: $75K - ?• Forced Upgrades: $K

• Charge by the kilo-character: $24K -$100K+

Industry Driver

Rip-and-Read EDI

MM App

Data Entry

PO

MM App

Data Entry

PO

MM App

Data Entry

PO

EDI System

EDI File

VAN

VAN Internet

Trading Partner

EDI File VAN

EDI File

The Future of EDI?

WANWANWANWANLANLANLANLAN

EmailEmail

OCROCR

EDIEDIEDIEDIXML

EC

Set

ERPERPERPERP

ScanningScanningScanningScanning

InternetInternetInternetInternet

Bar codingBar coding

FaxingFaxingFaxingFaxing

EDIEDIEDIEDIXML

The Future of EDI: XML?

• Extensible Markup Language

• A document description language used to describe the structure of

documents

• Designed to be usable over the Internet

• Define your own structure• Define your own structure

• Embraced as a replacement structure for X12, EDIFACT,

TRADACOMS, etc.

The Promise of XML

• “XML makes it easy to share data….”

• “The biggest value will be SMEs get data into their systems….”

• “Easy for humans to read”

• “Easy for machines to process”

• “XML makes quick and dirty implementations compared to EDI”

• “XML allows us to pull from any data source, it simplifies data

distribution and optimizes data exchange”

• “The power of XML is that people are agreeing to a common

technology and common formats”

The Problems with XML

• No Standard – 334 XML Initiatives currently

• Industry drivers are heavily invested in X12, EDIFACT

• Fragmentation among separate XML initiatives

Costs of EDI with XML

Business Application

App File

• Application S/W: $100K to $200M+• Technical Support: $K• Forced Upgrades: $K• User Training: $K• Annual licenses: $K• Requires Technical Expertise: $75K - ?

XML Translator

EDI File

VAN

• XML Translation S/W: $K• Annual Licenses: $K• Technical Support: $K• Requires Technical Expertise: $75K - ?• Forced Upgrades: $K

• VAN charges should go away

Industry Drivers