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EDI & E-Business Suite

Posted on February 9th, 2007 by anand |Print This Post Print This Post |Email This Post Email This Post

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This is an article is all about EDI, deal mostly with basics and some information with underline Oracle E business Product within the suite. This article start with a typical business case and describe how this is evolves and how important is in ERP, the article helps you understand the high-level overview of the EDI process.

Why EDI Evolved?

Let us consider a simple business scenario. A Customer from PO department who wants to purchase an item creates a purchase order and then faxes it to the suppliers. At the moment vendor receives the purchase order and manually keys in a sales order. The vendor's system generates a confirmation date that is sent back to the customer via fax or mail. The vendor then ships the goods via a carrier. The carrier delivers the products to the customer. When the goods are shipped, the vendor invoices the customer. The customer makes the payment by check, and the vendor deposits the check in the bank. Finally, funds are transferred from the customer's account to the vendor's account.

Drawing12

 

Figure: Typical business documents exchanged by business partners

Now It clears how much of information needs to be transferred and tracked to run the business, which in reality it is called trading partner. This simple scenario requires the exchange of various documents between several business partners at different times.

All this electronic data was exchanged using floppy disks and other secondary devices. So, ANSI committee was formed to define the standards. Hence the electronic exchange of business documents in a standard format gave birth to what is known as EDI, today the business world had accepted as one of most important entity.

What is EDI?

EDI (Electronic Data Interchange) is the electronic exchange of business documents between the computer systems of business partners, with a standard format over a communication network. It can also be called as paperless exchange.

EDI, electronic funds transfer (EFT), electronic mail and fax are increasingly being used to schedule operations, streamline order fulfilment, and optimise cash flow.

edi11

Standard Formats
The business documents that are been exchanged between business partners need to be in a standard format. ANSI X12 (American National Standards Institute) or EDIFACT (Electronic Data Interchange For administration, Commerce, and Transport) are two standards, which supply a common language for formatting the information content that is been exchanged.

Components
There are five major Components in the EDI Process:

o Sender
o Receiver
o Language
o Content
o Medium

In EDI, the senders and receiver are called trading partners (Customers and Vendors) and the ANSI X12 or EDIFACT standards supply a common language for formatting the information content of common messages.

Oracle's e-Commerce Gateway (EDI Gateway):

A standards-based integration product for Oracle Applications, which allows for companies to integrate Oracle Applications with applications residing inside or outside of the enterprise; communicating via Intranet, Extranet, or Internet.

Oracle's e-Commerce Gateway is independent of all EDI standards and can be integrated with any upstream or downstream process via an ASCII file. Thus, any EDI translator or third party application, that best suits a company's business requirements, can be selected.

Advantage

The major advantage of using Oracle e-Commerce Gateway are listed below:

1. Reduction in labor hours dedicated to data entry
2. Increased data accuracy
3. Quicker communication of key information to and from customers/suppliers resulting in reduced business cycle times and more efficient planning
4. Promotes commonality of business documents and processes

Know the Terminology used in EDI

  • Transaction Set - Business document transmitted between companies (e.g. Purchase Order).
  • Data Segment - Units of data used to communicate specific information within a message (e.g. the header).
  • Data Element - Specific unit of data within a data segment.
  • Trading Partner - Entity such as a customer, supplier, or sister organization with whom electronic commerce is executed.
  • EDI Standards - Agreed to formats for exchanging electronic data (typically developed by representatives of industry verticals).
  • Translator - Software application that translates data into or out of a specific format or standard for processing by an ERP system.

Oracle EDI Gateway - functionality

  • Define Trading Partner Relationships
  • Define Code Conversions
  • Customize Flat File Formats
  • Use Standard Report Submission
    • Initiate Extract Process
    • Initiate Import Process
    • View Extract/Import Process Status

A typical flow can be understood as:

edi

A note on File

  • ASC X12 is the EDI standard for North America and Canada.
  • EDIFACT is the EDI standard for Europe and Asia.

Transaction Supported in Oracle Apps

  • v10.6 - supports 4 transactions
  • v10.7 - supports 4 transactions
  • v11.0 - supports 14 transactions
  • v11i - supports 18 transactions
  • v11i10.2 - supports 23 transactions
  • R12 - data not available

Some Important EDI's Details with Orcle E business suite Modules

Some Important EDI's Details with Orcle E business suite Modules

EDI12

Related Posts

Posted in 11i, EBS Suite, EDI | 11 Comments »Email This Post Email This Post | Print This Post Print This Post

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11 Responses
  1. EDI & E-Business Suite - Part II « Sanjit’s Scrapbook Says:

    […] EDI & E-Business Suite […]

  2. Venki Says:

    Anand,

    The whole website is very interesting and it is very much useful for beginners and for the experienced people. I am going through all the links and it is very interesting to read and learn new things. I would like to get more details about Release12.

  3. EBS - Integration/Interface options Says:

    […] EDI (Electronic Data Interchange) uses industry standard data definitions(US/ANSI/X.12) for transmission of documents such as PO’s, Invoices, Sales Order, etc.Oracle provides some EDI transactions through EDI Gateway.This is also a good options. More details can be found in my last post.1.2 […]

  4. Ershad Says:

    Really very useful Link. I am implimenting R12 for Canada and i need to undesratnd how can i customize the EDI if i the third party needs to send one extra row which Oracle STD program cannot read EDI 820

  5. Sanjit Anand Says:

    Ershad

    EDI 820 is pretty simple. How you are using

    are you using Oracle product or third party transalator for EDI.

    If you are using Oracle product and configure Trading party and elements , there should not be an issue.

    -sanjit

  6. Neil Says:

    Sanjit,
    First of all thanks so much for all this information you’ve put up.
    Is there a step-by-step guide I can follow to setup EDI or have you had any luck following Oracles Implementation and User guides on EDI gateway..just asking because sometimes Oracle’s manuals are not so straightforward…can you advise..can you point me in right direction..i have EDI implementation coming up..
    Neil

  7. Neil Says:

    Sanjit,
    One more thing..what Translator do most companies use for Oracle EDI…? Does DBA set this up…? Thanks very much..Neil

  8. Sanjit Anand Says:

    Neil ,

    It depends what and how you are going to use EDI messaging.Oracle have 2 similar product which you can use. they are E-Commerce gateway,XML Gateway

    But it again its depends how your trading patner uses and sending the details.

    Most modern translators can deal with XML-EDI-XML transforms.

    Here is simple flow based out of one real time implemenation need:

    Step 1:Oracle System
    Lets say you have Oracle installtion ready at your side.

    2. EDI gateway : Use can use oracle provides the EDI Gateway, which allows the user to interact with a GUI or command prompt. The gateway extracts the relevant data from the database for each transaction.

    How it works …take a example of PO
    —————–
    if you want to create an Outbound Purchase Order, 850, the gateway would pull information such as part numbers, quantity, price, and any relevant information in regards to the trading partner. All code conversions and trading partner definitions are stored in the gateway. At this stage, you will need to contact your trading partners and decide on standards, codes and any other relevant information.

    3. Step 3:

    Once the Purchase Order is created, it is extracted to the translator. There are several options when choosing a translator provider.

    There are different Options you can chosse for Translator , few are Sterling, Harbinger etc

    Most of Customer who usses Oracle , Sterling’s Gentran is prefrered one as these are the products from Patners and have seamless integration.

    What the translator do:

    The translator provides the API mapping and converts the extracted EDI transaction into an accepted standard.Now a days depends upon what format is required, it may be ASCI , XML or any other standard format.

    an 810 is an inbound invoice and an 830 is an outbound planning forecast. After the translator stamps the transaction with a standard, the file is ready to be sent to the trading partner.

    There are other option for transmitting the files , one of such example are point-to-point either over the Internet via ftp.

    For this you can use any ftp software package can be used.

    2-3 years back there was other options where companies utlizes store-and-forward mechnism via VAN, that is value added network.

    In that case VAN acts very similar way that post office of postal department work for the trading partners. The VAN receives the file and holds it until the trading partner dials in to the VAN and asks for any files. A VAN provides more security than the Internet

  9. Ershad Says:

    If the EDI file has fileds which vary their lenght from file to file, meaning if the EDI file doesnt have any fixed lenght then how can we define that in Interface File Defnition

  10. Umesh Pendhare Says:

    Its very useful information……..!
    Can you give step by step implementation for Oracle e-commerce gateway.
    Any help will be appriciated…..

  11. Ragh Says:

    Hi,

    This is really very simple basic information.. it is good information for learners.. Thanks Rag

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