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Electronic Data Interchange Interview Questions

Home »Electronic Data Interchange Interview questions

  • What is EDI?

    • The computer-to-computer electronic exchange of machine-processable business documents in a standard format.
    • An electronic alternative to paper, fax, and phone-based transactions used by companies to communicate with one another.

  • What are EDI Drivers?

    • Ability to strengthen partnerships
    • Improve business processes
    • A communication tool to allow new ways to do business
    • A preferred way of doing business among Fortune 500 companies
    • A business basic for the industry
  • How is EDI Used?

    • EDI is used as a strategic tool to reduce expenses, streamline business procedures, and create a competitive advantage.
  • How is EDI Started?
    Usually Reactive or Proactive.


S A P - R E S O U R C E S

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  • Lack of understanding
  • No direction
  • Lack of regulated program
  • &Quot;Jury Rig&Quot; third-party solution
  • Clearly defined business need
  • Defined Corporate direction
  • Controlled program
  • &Quot;Selected&Quot; trading partners
  • Impartial &Quot;third-party&Quot; input
  • How does EDI Work?
    Purchase Ordering Example

    1. The buyer enters order information into the production database, which generates a purchase order on the computer. The order information is then channeled through a number of interface programs.
    2. The interface software programs perform edits and checks on the document and direct the order data into predefined EDI intermediate files.
    3. The EDI intermediate files contain information in a form that the EDI translation software can read.
    4. The translation software is a set of programs that translates the interface file data into a document formatted according to EDI standards that the supplier's computer can recognize.
    5. The electronic document now consists of a file that contains the order data in a predefined, recognizable order.
    6. The communications software adds appropriate communications protocols to the EDI document in preparation for transmission via telephone lines.
    7. Using a modem and telephone line, the buyer transmits the EDI purchase order to a VAN (Value added network). Think of this as a mailbox.
    8. The communications software on the supplier's computer picks up the document from the VAN, interprets and/or converts the communications protocols to open the electronic document.
    9. The purchase order is now in a standard, recognizable format in a file and is available to the supplier's computer.
    10. The supplier's translation software interprets the documents from the EDI format and places the order information in EDI intermediate file(s).
    11. The EDI intermediate files contain the translated purchase order information.
    12. The interface programs perform edits and checks before the data is integrated with the supplier's production database.
    13. The application software on the supplier's computer can now process the buyer's order.
  • What is the most common EDI cycle?

    • Customer transmits EDI 850 (purchase order)
    • Supplier transmits EDI 997 (functional acknowledgement)
    • Supplier transmits EDI 856 (advance ship notice)
    • Customer transmits EDI 997 (functional acknowledgement)
    • Supplier transmits EDI 810 (electronic invoice)
    • Customer transmits EDI 997 (functional acknowledgement)
    • Customer transmits EFT (Electronic Funds Transfer) Payment
  • What are EDI Benefits?

    • Builds closer business partnerships
    • Reduces/eliminates manual handling of data, errors and rework
    • Transfers information faster and more accurately
    • Automates routine transactions
    • Improves productivity and business controls
    • Reduces costs
    • Shortens transaction processing cycles
    • Enhances data accuracy
    • Lowers inventory levels
    • Contributes to better in-stock positions
    • Lowers freight costs
    • Provides Quick Response capability
    • Improves cash-flow management
    • Creates a competitive advantage
  • What are EDI Benefits Summary/ReQuirements?
    Benefits ReQuires Business Process Examples
    1. Operational EDI transactions Ordering - Purchase Order
    Purchase Order Acknowledgement
    2. Tactical Internal Process
    Forecasting - based on SIT
    - Availability
    - Increased inventory turns
    3. Strategic Internal and External
    Process Re-engineering
    Quick Response - Market Share
    Supply Chain Mgmt - Sustained

  • What is the Link between EDI and Profits?
    EDI the tool EDI the features EDI the benefits
    Shared forecasts Inventory turns increase Cut costs!
    Transaction automation Reduced labor Cut costs!
    Integration with systems Fewer errors, rework,
    less paper
    Cut costs!
    Electronic payments Better cash flow Cut costs!
    Shared sales and
    inventory data
    Improved availability Increase sales!
    Integration and high
    speed data transfer
    Access to Quality
    Increase sales!
    Transaction automation People add value Increase sales!

  • Why move to EDI?

    • Allow machines to process business transactions while people develop and enhance business relationships
    • Strengthen internal and external business relationships through &Quot;information partnering&Quot;
    • Promote Electronic Commerce through EDI and other information solutions
    • Improve the supply chain by making accurate information available Quickly and inexpensively
    • Reduce operating costs by re-designing business processes and automating routine tasks
  • We created an EDI Vendor and created all reQuired output conditions. However no IDOC is generated when PO is printed. Why?
    Go to Header->output for the PO. The output type shall be '6'. The status shall be '1'. If the status is '0' check the timing. If the status is '2' , go to 'GOTO->Processing Log' and the explanation for non-generation of IDOC can be seen.

  • How can we create / upload IDOC's from legacy system to SAP?
    Third party tools like Mercator and Gentran may be used to convert Legacy files to Idoc format. These tools  provide an IDOC tree import facility, SAP provides the export facility. You can transfer the Idoc layouts from SAP to these tools automatically and then map.

  • We want to receive an outbound EDI 855 IDOC only if E2EDP20 -scheduling confirmation segment is present. Else get an &Quot;error&Quot; status preventing triggering the EDI subsystem.
    User exit logic has to be added in function IDOC_INPUT_ORDRSP.

    # Set up a test flag and set it off when the IDOC header is read.
    # Turn the flag ON when the EDP20 segment is read.
    # Interrogate this flag when the next segment after EDP20 in the same IDOC comes in. If it is on ,you have an EDP20 coming in.
    # Issue an error status 51 with suitable message for whichever condition you don't want the IDOC to be processed, This will stop the IDOC from posting.

  • Where ever PO is sent to the vendor via EDI, we want an acknowledgement of the PO by vendor. Which fields are updated and what should be my procedure?
    Execute Program: IDOC_INPUT_ORDRSP
    Process code: ORDR
    Message type: ORDRSP
    The confirmation process allows the supplier to return an acknowledgment. Only Dates and Quantities can be changed The information is stored in the PO and can be viewed via Item->Confirmation->Overview. The PO can be flagged as 'confirmation reQuired' so that Pos without acknowledgement receipt can be monitored. Control keys and tolerances (days and Quantities) have to be customized.

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