EDI Integration and Why Its Important to Your Business

EDI Integraion

In its most simple form, EDI (el

ectronic facts Interchange) generation lets in the laptop-to-computer change of enterprise documents in a standard digital format between exceptional enterprise partners. The perks of transferring to an EDI platform that focuses on EDI integration encompass:

  • Reduced costs 
  • Automated workflows 
  • Faster document processing
  • Fewer errors
  • Smoother relationships with partners and customers

EDI transactions contain critical information t business exchanges, and a popular example of an EDI in action of that of EDI order processing.

So, how does EDI work?

First, a buyer submits a purchase  order for a product from a supplier, next the supplier sends an invoice, and finally, both parties exchange acknowledgement receipts.

What is EDI Integration?

EDI integration is created when an EDI workflow is established between trading partners. EDI integration is achieved through two steps:

  1. Establishing the EDI documents, protocol transactions, and endpoint that will use to exchange data with your trading partner
  2. Converting EDI data into a format that can be used in your own back-end technical environments, such as your ERP system or accounting solution.

The EDI files in the center are then converted into a proprietary file ( IDOC, JSON, or another  ERP-specific format) that can be easily ingested  into the back-end systems on the left and the right (SAP, Acumatica, etc.)

It is important to note that EDI integration occurs in both directions, originating from an ERP, or originating from a trading partner.