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    Electronic Data Interchange (EDI) allows the electronic exchange of business documents like purchase orders and invoices between companies using a standard format. Point of sale (POS) systems capture sales data using barcodes and scanners at checkout. Extensible Markup Language (XML) defines common data formats, while eXtensible Business Reporting Language (XBRL) uses XML to exchange financial reports between businesses and regulators.

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    EDI Electronic Document Interchange

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    Electronic Data Interchange (EDI) allows the electronic exchange of business documents like purchase orders and invoices between companies using a standard format. Point of sale (POS) systems capture sales data using barcodes and scanners at checkout. Extensible Markup Language (XML) defines common data formats, while eXtensible Business Reporting Language (XBRL) uses XML to exchange financial reports between businesses and regulators.

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    2 views39 pages

    Edi&pos

    Uploaded by

    mahmoodghanem
    Electronic Data Interchange (EDI) allows the electronic exchange of business documents like purchase orders and invoices between companies using a standard format. Point of sale (POS) systems capture sales data using barcodes and scanners at checkout. Extensible Markup Language (XML) defines common data formats, while eXtensible Business Reporting Language (XBRL) uses XML to exchange financial reports between businesses and regulators.

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    of 39

    EDI & POS Systems

    ATG 383 - Spring 2002


    When to adopt technology?
    • “Things have to change to remain the same”
    • What do we want to accomplish?
    – Lower costs
    – Increase revenues
    – Comply with required standards
    3 Technologies We Will Consider
    • Electronic Data Interchange
    • POS Systems
    • eXtensible Markup Language & eXtensible
    Business Reporting Language
    Electronic Data Interchange
    • Computer to computer
    exchange of business
    information in a
    standard format.
    • EDI is not faxes, e-
    mail, or web sites.
    EDI - General Idea

    In-house system. In-house system.

    Translate into Translate into


    EDI format. in-house format.

    Transmit. Receive.
    EDI - Purchase Order

    Identify need. Create sales order &


    Create purchase order. continue processing.

    Translate into Translate into


    EDI format. in-house format.

    Transmit to vendor. Receive from customer.


    EDI - Acknowledgement

    Match P.O & Create


    acknowledgement. acknowledgement.

    Translate into Translate into


    in-house format. EDI format.

    Receive from vendor. Send to customer.


    Translate In-house Data to
    Common Standard
    • Translation process
    – Data fields in business applications are
    mapped to corresponding fields in EDI
    documents
    • Two Common EDI Standards
    – ANSI X12 in North America
    – EDIFACT outside North America
    • Following examples taken from:
    – http://developer.netscape.com/docs/presentations/xpert/edi/edi.html
    Example of Standards-Based
    EDI Message
    Interchange Group Header

    Functional Group Header


    Transaction A - 1 of 2

    Transaction A - 2 of 2

    Functional Group Trailer


    Functional Group Header
    Transaction B - 1 of 1
    Functional Group Trailer
    Interchange Group Trailer
    EDI Network Options
    Three ways to connect
    Direct Connection Buyers & Sellers

    Partner A Partner B

    Value Added Network

    Partner A mailbox Van mailbox Partner B

    Internet

    Partner A mailbox mailbox Partner B


    Comparison of EDI &
    Traditional Systems
    EDI Traditional
    Faster processing
    Greater accuracy
    Lower start-up costs
    Stronger buyer - vendor
    relationship
    Available to big and
    small businesses
    What can go wrong with EDI?
    What are the controls?
    POS & Scanners
    Retail POS Systems
    • Captures and collects sales
    information at time of sale.
    • Technologies that are
    important for this:
    – Bar codes
    – Scanners & PCs
    – Off the shelf software
    Bar Codes Identify Products
    Bar Codes in Operation

    Scan Bar Code Bar Code Number Look up


    price &
    product info.

    Add amount to Product info & price Update


    customer’s purchase. sales &
    inventory
    records
    • Use POS data to track sales and manage
    inventory.
    • A few of the changes K Mart made:
    – Eliminate use of retail inventory method.
    – Ability to make inquiries of data as the day
    proceeds.
    – Find and adjust overstocked / understocked
    stores.
    • JC Penney sends POS data to VF Corp.,
    maker of Lee and Wrangler jeans.
    • VF watches flow of stock and
    automatically updates a particular item
    once the quantity reaches an agreed-
    upon point.
    • VF uses a flexible manufacturing,
    allowing many small production runs.
    Some Advantages of POS
    • Better customer service. Faster. Fewer
    errors with proper controls.
    • More accurate inventory counting and
    control.
    • Increased productivity through
    automated systems.
    • Opportunity to integrate with EDI for
    improved replenishment time.
    Michigan Scanning Tests
    Store # tested # wrong
    JC Penney 54 18
    Hudson's 59 11
    Sears 63 11
    Target 30 2
    Mervyn's 32 1
    Mont. Ward 15 4
    Scanners and POS -

    What can go wrong?


    What are the controls?
    Using XML to Define Documents
    and
    XBRL for Business Reporting
    A Web Page
    HTML That Created A Web
    Page
    <HTML>
    <HEAD>
    <TITLE>Hello</TITLE>
    </HEAD>

    <BODY>
    <CENTER>
    <H1>Hello again</H1>
    </CENTER>
    </BODY>
    </HTML>
    EDI Message in XML
    Partial XML Document
    <!DOCTYPE Book-Order PUBLIC "-//EDItEUR//DTD Book Order Message//EN">
    <Book-Order Supplier="4012345000094" Send-to="http://www.bic.org/order.in">
    <title>EDItEUR Lite-EDI Book Ordering</title>
    <Order-No>967634</Order-No>
    <Message-Date>19961002</Message-Date>
    <Buyer-EAN>5412345000176</Buyer-EAN>
    <Order-Line Reference-No="0528837">
    <ISBN>0316907235</ISBN>
    <Author-Title>Labaln, Brian/Chrome</Author-Title>
    <Quantity>2</Quantity>
    </Order-Line>
    <Order-Line Reference-No="0528838">
    <ISBN>0856674427</ISBN>
    <Author-Title>Parry, Linda (ed)/William Morris</Author-Title>
    <Quantity>1</Quantity>
    </Order-Line>
    XBRL
    • XML based framework for exchange of
    financial information.
    • Example:
    – <DATE>July 26, 1998</DATE>
    • Describes the information, not the
    presentation. Format flexible.
    XML Tags: The Key
    • <item>
    – <name>CashEquivalents.Cash</name>
    – <label>Cash and Securities</label>
    – <amount period=“1998”>2000</amount>
    – <amount period=“1997”>1000</amount>
    • </item>
    Financial
    Statement
    Financial
    Statement -
    XML/XBRL
    Summary
    • Operation of EDI
    • Operation of POS systems
    • Use of XML and XBRL

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