Electronic document interchange (EDI) allows businesses to exchange documents like orders and invoices electronically instead of using paper. EDI standards were developed to facilitate this exchange between trading partners in a consistent format. Using EDI provides benefits like reduced errors, faster processing, lower costs, and access to electronic data. While early systems required custom formats for each partner, evolving standards now allow any partners using the same standard to exchange documents electronically. SAP systems support EDI using IDocs to represent documents that are exchanged securely and asynchronously between different systems.

1. Electronic Document
Interchange

2. What is
Electronic Document Interchange ?

3. What is Electronic Document Interchange ?
Electronic Data Interchange (EDI) is about
doing business and carrying out transactions
with your trading partners electronically.

4. What is Electronic Document Interchange ?
EDI covers most things that are traditionally
done using paper-based communication, for
example placing orders with suppliers and
carrying out financial transactions.

5. Benefits Of EDI
 Reduced Data Entry Errors
 Reduced Processing Cycle Time.
 Availability of Data in Electronic form.
 Reduced Paper work.
 Reduced Cost.
 Standard means of communication
 Better business process
 Competitive Advantage.

6. History of EDI

7. History of EDI
EDI technologies have evolved as a natural
data carrier replacing the paper document.
It is not a new concept or a new practice. EDI
has existed for over two decades in Europe
and North America.

8. History of EDI
Early electronic interchanges used proprietary formats
agreed upon between two trading partners.
This required a new program each time a new partner
was added to the existing system.
In the 1960’s, some industry groups began a cooperative
effort to develop industry EDI standards for purchasing,
transportation, and financial applications.
Many of these standards supported only intra-industry
trading, which led to a large number of EDI formats.

9. History of EDI
In 1979, the Accredited Standards Committee (ASC) X12
was formed to develop a generic EDI standard.
In 1993, Version 3, Release 4 contained 192 standards.
There are over 100 additional standards in development.
In the U.S., the most commonly used standard is ANSI
X12, coordinated by the American National Standards
Institute (ANSI).
While in Europe, it is the Electronic Data Interchange for
Administration, Commerce, and Transportation
(EDIFACT) standard.

10. History of EDI
Recognizing the value of EDI as a key business enabler
early on, SAP has provided support for EDI since R/3
Release 2.2x and continues to enhance its solution.

11. Sample Scenario
Document
IDoc
SAP System R/3 NON SAP System
IDoc IDoc
Transaction
EDI Subsystem Message EDI Subsystem

12. EDI Subsystem Responsibilities
EDI subsystem
partner profile translator archive
addresses message handling monitor
mappings communication
Administration Run time
Management of partner profiles & addresses. Mapping compliant with EDI standards.
Management of mappings. Interchange handling and envolping of
Management of cross reference tables. messages.
Partner and document dependent processing. EDI standard specific functionlity, e.g.
Monitoring Functional & Interchange
Acknowledgements.
Status control and report.
Archiving of documents according to legal Communication gateway functions.
requirements.

13. IDoc Concept
 Asynchronous
 Document-related
System 1 System 2
SAP  Document
Document
IDoc  Transaction
 Message
 R/3 System  EDI subsystem
 R/3 System
 R/2 System
 3rd party software

14. Process Code, Port and Partner Profile
SAP Application
Process Partner
Port
Code Profile
System 2
e.g. EDI subsystem

15. Typical Business Documents exchanged by business partners
Customer Vendor
Request For Quotation
Quotation
Purchasing Purchase Order Order Mgmt
Sales Order
Shipping Notice Shipping
Receiving
E Billing
INVOIC
Accounts
Accounts
Account/ Payment Info
Remittance Advice / Payment Data /
Account Info
Customer EFT
Bank Vendor

16. Industries
REQOTE
Customer
QUOTES Vendor
PRICAT
ORDERS/ORDCHG
ORDRSP
TXTRAW
IMPINV DESADV
TXTRAW STPPOD
INVOIC EXPINV
REMADV
Bank
PAYEXT CREADV
DEBADV LOCKBX
FINSTA FINSTA

17. EDI Enabled
Application
Application
Selection Document
Program
IDOC
Network
Outbound
Triggering
Program
IDOC File
EDI EDI
Subsystem Document