ELECTRONIC DATA INTERCHANGE

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ITT PROJECT ALL ABOUT E.D.I.

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Presented by -:

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A cknowledgement I Dedicate this Project to My Teachers as well as my friends who helped me in making this project. I want to thank all these people for contributing a lot to my Project Work.

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CONTENTS INTRODUCTION NEEDS PROCESSING OF EDI FEATURES TYPICAL EDI CONFIGURATION BENEFITS COMPONENTS OF EDI INTERACTION FILE TYPES EDI SOFTWARE EDI SERVICES EDI RETAIL EDI IN ACCOUNTS EDI STANDARDS BARRIERS TO EDI

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WHAT IS E.D.I. ???? EDI Stands for Electronic Data Interchange Refers to electronically Interchanging of Data between Computer systems. It means transfer of structured data for processing from Computer to computer using agreed Protocols.

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Needs Of Networking Infrastructure EDI assumes availability of wide area network to which organization can subscribe. Organization must subscribe to common network. Organizations must load appropriate EDI Software.

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Edi service network Vendors Customers Branch Distributors Stores Banks Transportation Abc company Notes, Documents Images, letters, Purchase Orders, Invoices etc . Company having edi software.

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Processing of e.d.i. messages External user interface External user interface EDI SERVICE NETWORK Application Translation Services EDI Services Network Access Control Translation Services Application EDI Services Network Access Control

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Features Of EDI Eliminates the need for paper bases system by providing an electronic link between Companies. There is no need to retype or print data again & again it can be forward in a predefined manner. EDI reduces the cost & time for transferring the data. One can safely transfer the data With Security codes & backup system provided by computers .

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COMPANIES HAVING E.D.I. SYSTEM BANK OF AMERICA BLOOMBERG BMV COCA COLA MC DONALDS KFC L’OREAL LONDON DRUGS MERCEDES BENZ NISSAN PIZZA HUT PANASONIC TROPICANA UNILEVER WALMART MAYBELLINE

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THE FOLLOWING IS THE TYPICAL EDI CONFIGURATION One to many Manufacture SUPPLIER SUPPLIER SUPPLIER Many to many Manufacture Manufacture Manufacture SUPPLIER SUPPLIER SUPPLIER

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Benefits Of EDI Generation of a file containing the processed document by the application program. Conversion of the document into an agreed standard format. Electronic transmission of the file containing the document over the network, which may link the originating company and its trading partner. Arrival of the file containing the document at the trading partner, translation into the correct format and finally its transfer to the recipient’s application. Automatic generation of the receipt and its delivery over the network to the originating company. On the concluding note EDI has made it possible to transfer trading partner’s information in a easy and fast manner……………..

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EDI COMPONENTS EDI format DBMS format EDI system Application services Software services Communication services

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INTERACTION BETWEEN THREE E.D.I. COMPONENTS…………………… BUSINESS APPLICATION TRADING PARTNER APPLICATION SERVICE TRANSMITION SERVICE COMMUNICATION SERVICE

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File Types Internal Format File- Contains a single document for trading partner. External Format File- Contains the same date as the internal format file translated into the appropriate standard document format. Transmission File- Contains one or more documents for the same trading partner.

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EDI Software Translator- It reads the fixed length file & generates valid EDI standards and maintains the control information. Application Link Software- It is used to link the existing business application to EDI data. As well as collect information; format it into a fixed length and passes it on the translator.

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EDI Services Application Service Translation Service Communication Service

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Application Services Business Application Management-Interface File Server Callable Routines Documents Documents Internal Format File Internal Format File

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TRANSLATION SERVICE Internal Format File Internal Format File Transmission file Transmission file FILE SERVER EXTERNAL FORMAT FILE EXTERNAL FORMAT FILE C T TFS TFB C: Converter; T:Translator TFB: Transmission File Builder TFS: Transmission File Splitter MANAGEMENT INTERFACE

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COMMUNICATION SERVICE The Communication Service sends & receive transmission files to and from the trading partners either directly or by using party service called a Value Added Networks (VAN).

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E.D.I. IN RETAIL ! The systems and processes that retailers have in place for sending orders and receiving stock. Most retailers have different processes, systems and requirements in place, but they all tend to follow the same basic principles and our systems are adaptable enough to meet any test.

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Edi in accounts n auditing The technology revolution in audit and accounts began in the summer of 1954. I.T. changed the way data was stored ,retrieved and handled. Due to this introduction of information technology in accounts the routine auditors are able to establish a proper computerized auditing system. The auditing profession struggled to develop a new set of tools, technique and system knowledge. Key points regarding the EDI in auditing………….(overview) Audit tapes Equity funding scandal IBM Emerging technologies Microcomputers and networks Database management systems UPC AIS(ERP) Telecommunications WWW and Internet

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Main areas where edi Useful to an accountant Transfer of accounts Audit systems

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Working of an it audit system. Transfer of accounts It simply refers to transfer of prepared accounts to the client. Many Organizations uses EDI System. One of them is Genpact. Genpact is a B.P.O which uses EDI system for transferring the data. They make Accounts For other companies and then transfer the data the concerned company after completion through EDI system. Acquire data control process store Produce info By internal auditors, audit committee and management. To Investors, creditors, government

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EDI and other similar technologies save a company money by providing an alternative to, or replacing, information flows that require a great deal of human interaction and materials such as paper documents, meetings, faxes etc. Reduced the handling costs of sorting, distributing, organizing, and searching paper documents. Reduced errors, such as shipping and billing errors. EDI can be an important component of just-in-time production systems as it is fast. Advantages over paper systems………

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EDI Standards Transaction Set Standards : These define the procedural format and data content requirement for specified business transactions. E.g., Purchase Orders. Data Dictionary and Segment Dictionary : Defines the precise content for data element and data segment used in building transaction set. Transaction control standard : Define the format for the information required to control the data interchange.

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Barriers to implementation Business process change. Cost in time and money in the initial set-up. Technical perspective that EDI is a data format. < HTML> <HEAD> <TITLE> EDI </TITLE> </HEAD> </HTML>

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BIBLIOGRAPHY WWW.WIKIPEDIA.COM WWW.GOOGLE.COM WWW.AICPA.COM WWW.YAHOO.COM WWW

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THE END !

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