EDI stands for Electronic
Data Interchange. EDI is the process of sending and receiving
electronic business documents between companies with a minimum
of human intervention. The original document has to be translated
into a format that complies with an EDI standard for exchanging
information using EDI. 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.
EDI is commonly used instead of faxing and mailing paper
documents. It improves the efficiency of communicating documents
such as Purchase Orders, Invoices and Advance Ship Notices.
Other common EDI documents are Functional Acknowledgements,
Purchase Order Changes, Product Data Activity Reports, Payment
Remittance Advices and Order Status Inquiries.
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