To exchange information using EDI, documents must be translated into a format that complies with an EDI standard. Mapping is the initial process that describes how each element of the original document, such as a purchase order or invoice, relates to an "EDI transaction" that complies with the standard being used. The translation software uses this mapping to translate the EDI transactions so they can be used by the receiving organization.
EDI Standards
The sender and receiver must use the same standards so that everyone is speaking the same language. The American National Standards Institute (ANSI) Accredited Standards Committee (ASC) X12 defines EDI standards. This is a cross- industry standards body with representation from many industries interested in EDI. The X12 standards serve as a common business language allowing all EDI trading partners to communicate electronically with one another. At TXU, we also follow guidelines developed by the Utility Industry Group (UIG), a subgroup of ANSI. It has been a key group in establishing standards for transactions commonly used by utility companies and their business partners.
How Documents Are Sent
Data which is standardized through EDI software on both TXU's and the Trading Partner's computer is transmitted directly from one company's computer to the others through a third party network or VAN (Value Added Network). A VAN acts much the same way as a post office except that the data is retrieved on request by the addressee directly into their computer.
EDI transmission typically involves the following process:
A. The sender assembles the data using its own business application system
B. This data is translated into an EDI standard format (i.e., transaction set)
C. The transaction set is transmitted through a value added network (VAN)
D. The transaction set, in EDI standard format, is translated into files that are usable by the receiver's business application system
E. The files are processed using the receiver's business application system
EDI Process - Customers
Your EDI bill will contain the same information that is on
your paper bill and you will still have the same amount of time to pay. With EDI, the only difference will be how you receive your bill and send your payment. Listed below are the steps that your bill and its remittance will follow through EDI:
The bill is generated onTXU's computer and processed through translation software to EDI standards.
The bill is then sent to the customer's electronic mailbox on the VAN. Companies do not have to use the same VAN to communicate with one another.
The customer retrieves the EDI bill from the VAN and converts it for processing by its business application.
The customer responds by the same process with a payment/remittance order to TXU which is sent electronically through the banking system.
EDI Process - Suppliers
Listed below are the steps that the electronic purchase order, invoice, and payment will follow through Electronic Data Interchange:
A purchase order is generated on TXU's computer and processed through translation software to EDI standards.
The purchase order is then sent to the supplier's electronic mailbox on the VAN. Companies do not have to use the same VAN to communicate with one another.
The supplier retrieves the EDI purchase order from the VAN and converts it for processing by its business application.
The supplier responds by the same process with an EDI invoice TXU retrieves the EDI invoice from the VAN and converts it for processing by its business application.
TXU responds with a remittance order for payment to the supplier which is sent electronically through the banking system.