The Basic Steps of EDI
The process of sending an electronic document requires a series of steps on the part of both the sending and receiving partners.
Steps the Sender Must Take
- Document preparation
Information necessary to produce a business document (purchase order, invoice, etc.) is collected in an electronic file. - Outbound translation
The electronic file is converted by the sender's translation software into the standard format (following ASC X12 standards and Rail Industry Guidelines). - Outbound communication
The sender's computer connects to a VAN; upon successful receipt, the VAN processes and routes the transaction to the electronic mailbox of the receiver.
Steps the Receiver Must Take
- Inbound communication
The receiver's computer connects with the VAN and receives any files waiting in its electronic "in" box. - Inbound translation
The receiver's translation software "maps" or translates the electronic file from the ASC X12 standard message format into a format that the receiver's internal system can understand. - Document processing
The receiver's internal document processing system takes over and the newly received document is handled according to normal internal procedures.