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EDI 850
AN EDI 850 is a specific type of Electronic Data Interchange (EDI)
document to be processed. The EDI 850 is a type of purchase order. There
are a number other type of EDI documents including the 856 advance
ship notices and the 810 invoices. An EDI 850 is exchanged between
computers that act on behalf of the companies; in EDI parlance these
computers are often referred to as trading partners. The EDI 850 document,
much like the other specialized EDI documents, must be exchanged with
the trading partner in the specified format as prescribed by accepted
standards.
EDI 850 in the EDI Communication Process
An EDI 850 document is the EDI documented format version of a paper
order in a company’s purchasing system. During the EDI communication
process, the buyer prepares the order (the EDI 850), has it approved,
and then the translation process begins. The order is converted into
an EDI compatible document- the EDI 850 purchase order. Next, the EDI
850 document must be transmitted to the intended party.
The buyer’s computer EDI 850
The buyer’s computer system sends the EDI 850 document directly
to the trading partner or through a VAN. A VAN acts as an intermediary
between trading partners for the purposes of facilitating communications. In
this manner a VAN is similar to the US Post office. The VAN connects
with the recipient's VAN (the supplier), and the transmission begins.
The VAN is responsible for making sure that the EDI 850 document is
sent and received (the document is sometimes referred to as a “mailbag”).
The final destination computer is responsible for processing the EDI
850 order.
Transmitting the EDI 850
This transmission can be done in a variety of ways. The EDI 850 document
can be sent through the Internet, a Bulletin Board System (BBS), a
modem, or Value Added Network (VAN). Most EDI 850 documents are sent
through a Value Added Network (VAN). The EDI 850 document is kept secure
throughout the entire transmission process through a variety of security
features, including passwords, user ID and encryption. The EDI 850
document is also kept authentic through a series of editing and checking
procedures also done as part of the security process. Transmission
of the EDI 850 document is a critical step that is often an afterthought
for most companies This can be a significant mistake since it
means the EDI 850 document might be using improper communications means.
Translating the EDI 850
Now that the EDI 850 document has been received by the recipient,
it must be translated into a usable format. EDI 850 translation software
can be the interface between the EDI 850 document that was received
and the computer’s infrastructure and applications. The translating
software will take the EDI 850 document and translate it into a useable
file format for the computer system (usually a file of fixed length,
variable length, or XML tagged). A “mapper” is used to
change the tagged file (formerly the EDI 850 document) into a format
that is compatible with the ERP, a large, enterprise-wide system that
coordinates all aspect of a company’s business communication.
At this point, the EDI 850 document is not longer an Electronic Data
Exchange document (written in computer code), but a useable purchase
order file that a company can process. This process can be reversed
to send other documents that are often associated with the EDI 850
as is the case for EDI 810 documents (invoices).
