Components of EDI

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 Components of EDI

The following components and tools are necessary for performing EDI are:-

1) Trade Agreement - a legally binding trade agreement between you and your trading partner.

2) Standard Document Format - the standard agreed-upon format for the document to be electronically transmitted.

3) EDI Translation Management Software- software used to convert the document your application's format into the agreed-upon standard format. For optimum performance, the translation software should be on the same platform as your business application. 

4) Communications Software - a programming tool that enables you to write communications protocols or a separate application. It can be a module to the translator or a separate software application. 

5) Modem - a hardware device used to transmit electronic information between computer systems. The higher the baud rate, the faster the communications will be.

6) VAN - stands for Value Added Network. A network to which you can connect to transmit data from one computer system to another. One network can act as a gateway to another. 

7) Point-to-Point - a direct communication link from one computer to another. Some trading partners offer a direct connection to their EDI computers. Trading partners may opt for this method of communication instead of using a VAN.

                                              OR,

Components of EDI

 There are 3 types of component

 1. Application service 2. Translation service 3. Communication service


 We need some File Types to pass throughout the process.


Edi creates the following files as a document passes through the system:

a)  Internal format file (IFF): It contains a single document for the single trading partner.

b)  External format file(EFF): It contains the same data as the internal format file translated into the appropriate standard document format.

c)  Transmission file: it contains one or more documents for the same trading partner. Documents of the same format are packed into functional groups. The functional groups going to one trading partner are packaged into an interchanged set. An interchanged set. An interchanged set contains one or more functional groups of documents with the same sender and receiver.


 We also need some EDI software to pass out through the process:-

a) Translators:

Every EDI sender and receiver should have an EDI translator. It varies based on the computer on which it is going to reside. The computer may be a microcomputer or a midrange or a mainframe. The translator reads the fixed length file and generates valid Edi standards and maintains control information.


b) Application link software: 

There are 2 components of the software, which are generally used to link the existing business application to the EDI data. One is the translator and the other is application link software. Application link software is used to collect information from the business application and then it formats into a fixed-length computer file and passes it onto translators.


All components are being described below:-

 Application Services:- 

  • It provides the link between application and EDI. It allows you to send documents from an EDI system. 
  • The set of callable routines is used to transfer documents from the business application into EDI document destinations can be either intra-company or external companies.



2. Translation service:- 

  • Converts the outgoing documents from an internal format file to an agreed external format. 
  • Translates internal document from external format to EDI internal format file.


 

3. Communication service:- 

  • The communication service sends and receives transmission files to and from the trading partners either directly or by using a party service called a value-added network(VAN).


                                                                OR,


Components of Electronic Data Interchange EDI


Standard Document Format - A standard format agreed upon by both parties which do not require complicated hardware or software to access information. Both parties communicate directly through a business application.


Translator and Mapper - A translator is used to convert the raw data into meaningful information according to specifications provided by a mapper. A mapper is used to create conversion specifications. It compiles the specification and then gives instructions to the translator on how to convert the data.


Communication Software - A communication software is used to transmit data and convert business documents into a standard format. It follows a standard communication protocol that is incorporated into the software.


Communication Network - A communication network provides a direct link between trading partners who are will to exchange business documents through Electronic Data Interchange EDI.

• Modem - It is a hardware device that transmits data from one computer to another... 

• VAN-A network that connects the computer system of one organization to another. 

• Point to Point link - A direct communication link between two computers.

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