What is EDI?

Answer

EDI, stands for Electronic Data Interchange, is the electronic exchange of structured business data between different applications.

EDI Architecture consists of -

1. EDI-enabled applications :They support the automatic processing of business transactions.
2. The IDoc interface: This was designed as an open interface. The IDoc interface consists of IDoc types and function modules that form the interface to the application.
3. The EDI subsystem: This converts the IDoc types into EDI message types and vice versa. This component of the EDI architecture is not supplied by SAP.

Advantages of EDI process

• Reduced data Entry Errors
• Reduced Processing cycle time
• Availability of data electronic form
• Reduced Paper Work
• Reduced Cost
• Reduced Inventories and Better Planning
• Standard Means of Communicating
• Better Business Processes
• Competitive Advantage