EDI is nothing but Electronic data interchange. SAP will support EDI through Intermediate documents (IDOCS).

EDI (Electronic Document interchange) - EDI is the electronic exchange of business documents between the computer systems of business partners, using a standard format over a communication network. EDI is also called paperless exchange. Advantages: Reduced Data entry errors Reduced processing time Availabilty of data in electonic form Reduced paperwork Reduced Cost Reduced inventories and better planning Standard means of communications Better business process EDI has two process 1. Outbound process 2. Inbound process OP: 1.Application document is created. 2.IDOC is generated 3.IDoc is transferred from SAP to Operating system layer 4.Idoc is converted into EDI standards 5.Edi document is transmitted to the business partner 6.The Edi Subsystem report status to SAP IP: 1.EDI transmission received 2.EDI document is converted into an IDOC 3.IDOC is transferred to the SAP layer 4.The application document is created 5.The application document can be viewed. IDOC: IDOC is a container that can be used to exchange data between any two process. Each iDoc is assigned a unique number for tracking and future reference. iDoc Consist of several segments,and segments contain several fields. iDoc contains the following three type of records... 1.One Control Record.

2.One or many Data Record 3.One or many Status record. PORT: Port is used in the outbound process to determine the name of the EDI subsystem program,the directory path where the idoc file will be created at the operating system level,the idoc file names and the rfc desinations. RFC Destination: Used to define the characteristics of communication links to a remote system on which a functions needs to be executed. Partner Profile: Partner profile specified the various componets used in an outbound process ( Partner number,IDoc type,message type,Port,Process code),the mode in which it communicates with the subsystem(batch or immediate) and the person to be notified in case of errors. Message Control Used in pricing,account determination,material determination,and output determination.The message control component enables you to encapsulate business rules with out having to write abap programs. Process: Setup RFC destinations SM59 Port Destinations WE21 Partner Profile WE20 Message control NACE Purchase Order ME21 Check IDOCs WE02,WE05 Explain to me about Idoc? IDoc (for intermediate document) is a standard data structure for electronic data interchange (EDI) between application programs written for the popular SAP business system or between an SAP application and an external program. IDocs serve as the vehicle for data transfer in SAP's Application Link Enabling (ALE) system. IDocs are used for asynchronous transactions: Each IDoc generated exists as a self-contained text file that can then be transmitted to the requesting workstation without connecting to the central database. Another SAP mechanism, the Business Application Programming Interface (BAPI) is used for synchronous transactions. A large enterprise's networked computing environment is likely to connect many geographically distributed computers to the main database. These computers are likely to use different hardware

and/or operating system platforms. An IDoc encapsulates data so that it can be exchanged between different systems without conversion from one format to another. IDoc types define different categories of data, such as purchase orders or invoices, which may then be broken down into more specific categories called message types. Greater specificity means that an IDoc type is capable of storing only the data required for a particular transaction, which increases efficiency and decreases resource demands. An IDoc can be generated at any point in a transaction process. For example, during a shipping transaction process, an IDoc may be generated that includes the data fields required to print a shipping manifest. After a user performs an SAP transaction, one or more IDocs are generated in the sending database and passed to the ALE communication layer. The communication layer performs a Remote Function Call (RFC), using the port definition and RFC destination specified by the customer model. The IDoc is transmitted to the receiver, which may be an R/3, R/2, or some external system.

EDI-ELECTRONIC DATA INTERCHANGE

Added by Saiyog Gonsalves, last edited by Kenny Scott on Feb 09, 2010 (view change)

What is EDI? EDI or Electronic Data Interchange as its called is an application to application transfer of business documents between computers. For this transfer of files to happen, it requires that the sender and receiver agree upon a standard document format for the document that is to be transmitted. EDI is a new way of doing business. EDI provides a new, fast, inexpensive, and safe method of sending purchase orders, invoices, shipping notices and other frequently used business documents.The EDI documents are transferred very quickly, thus saving a lot of time.

How EDI operations work? EDI starts with a trading agreement between you and your trading partner. You make joint decisions about the standard to be used, the information to be exchanged, how the information is to be sent, and when information will be sent. The information can be sent in 2 ways, a direct connection (Point-to-Point), or through a VAN. To send a document, you use your EDI translation software to convert the document format into the agreed upon standard. The translator creates and wraps the document in an electronic envelope and puts the ID for your trading partner on it. If you attempt to do EDI without translation, you run a great risk of transmitting data that your trading partner will not be able to read. Your trading partners may use business applications on computers that are different than yours. The translator ensures that the data you send is converted into a format that your trading partner can use. Advantages of EDI Save Time EDI also saves time over paper processing since the transfer of information from computer to computer is automatic and electronically done. There is no need to With EDI, retyping of information is not required . Also the errors are reduced to the minimum or none. Saves Money As there is no use of paper,the cost of paper and paper processing is saved which is incredibly high compared to a properly implemented EDI program. Improve Customer Service The quick transfer of business documents and marked decrease in errors allow you to do business faster and more efficient.

Disadvantges of EDI Too Many Standards There are too many standards bodies developing standard documents formats for EDI. For example your company may be following the X12 standard format, while your trading partner follows the EDIFACT standard format. Changing Standards Each year, most standards bodies publish revisions to the standards. This poses a problem to EDI users. You may be using one version of the standard while your trading partners are still using older versions. EDI is Too Expensive Some companies are only doing business with others who use EDI. If a company wants to do business with these organizations, they have to implement an EDI program. This expense may be very costly for small companies. Limit Your Trading Partners Some large companies tend to stop doing business with companies who don't comply with EDI. So you can do business with only those companies who are using EDI.