EDI doesn't have to be difficult! You just need to get started on the right foot!

Transcription

1 EDI doesn't have to be difficult! You just need to get started on the right foot! Session ID: Prepared by: Craig Davied Grant Thornton - Director

2 Your presenter Craig Davied Director, Technology Solutions Kansas City, MO Executive summary Craig is a Director with Grant Thornton in the Technology Solutions practice. He has over 18 years of consulting experience, across a diverse set of companies and industries. Craig's experiences include planning and program management of multi-faceted implementation projects, hands on management and implementation of ERP software packages, business process reengineering and system architecture design. Prior to Grant Thornton, Craig was a founding member of MarketSphere s JD Edwards practice in 2002 and was responsible for managing and delivering projects, practice development, solution design and staff management. He has deep experience with the processes and configuration of the JDE Finance and Distribution modules, specifically with the General Ledger, Accounts Payable, Accounts Receivable, Job Cost, Contract Billing, Procurement / Subcontracts, Sales, Inventory, and Advanced Pricing. Craig also has experience with multiple releases of the software. Prior to joining Grant Thornton Consulting from MarketSphere, Craig was an experienced consultant in a Big 5 consulting organization and has over 17 years of professional experience. 2

3 About Grant Thornton One of the world's leading organizations of independent audit, tax and advisory firms Grant Thornton LLP2 (U.S.) $1.4 billion revenues 6,456 personnel3 529 partners 57 offices 38,000 people in over 100 countries 65% of Grant Thornton International Ltd1 Forbes Global 100 companies US $4.7 billion revenues served by Grant Thornton International member firms 40,197 personnel3 2,975 partners 725 offices 6th largest global accounting and consulting firm 58% 58% of 2013 of 2013 Fortune Fortune 3

4 Grant Thornton: 2015 JD Edwards Partner Excellence Award winner Our work at Renewable Energy Group (REG) was recognized because of its transformational nature and cross-pillar influence. The upgrade project at Renewable Energy Group (REG) was central to our award application. The project consisted of the following initiatives and went live in January 2015: JD Edwards upgrade from 8.12 to 9.1 release all financials, distribution (including OTM for Logistics), manufacturing, and asset management modules Implementation of BI Publisher for all internal and external forms Document Imaging integration with Perceptive Software (Lexmark) Customer Self-Service portal Oracle Transportation Management (OTM) integration Customization obsolescence significant reduction ERP Governance program initiated to instill accountability and ownership through business process owners and an operating group to strategically align the business with IT Centralized Master Data Management protocols implemented Commodity Training Risk Management (CTRM) system integration with JD Edwards order management and contract management Converted old menus and task views to E1 pages for and end-user self-service experience OneView Reporting REG purchased OVR licenses for future adhoc reporting and BI dashboards Lyle Ekdahl, SVP, Product Development, Oracle presents Greg Davis with the award during the JD Edwards Summit Gala 4

5 Grant Thornton: 2015 Oracle Excellence Award winner We are proud to serve Serta Simmons Bedding, LLC, winner of the 2015 Oracle Excellence Award for Fusion Middleware Innovation in the Big Data and Business Analytics category 100% 90% 275% improvement in Analytics due to system stability and enhanced analytics reduction in Time to Produce Standardized Reporting with 9 business days saved per month improvement in Availability Access to the analytic reports by users Left to right: Siddhartha Agarwal, Oracle John Miksich, Grant Thornton Robert Bosley, Serta Simmons Bedding Jeff Silverman, Grant Thornton Carl Yost, Grant Thornton Matthew Bradley, Oracle 5

6 What is Business Harmony? 6

7 Improve Grant Thornton: The difference is clear Quick Wins Stabilize Feed Boutique Firm Foundational Technical depth to drive quick wins and thought leadership to develop a strategic roadmap for transformation Transform Drive Strategic Platform Large SI 7

8 Upcoming events Find Grant Thornton at these upcoming events: Date 4/19/2016 5/3/2016 5/19/2016 6/1/2016 6/2/2016 6/6/2016 6/7/2016 6/8/2016 6/26/2016 7/19/2016 8/8/2016 9/18/2016 Event Achieving Harmony in Health Care Financial Reporting Planning for Profitability The CFO Strategy Summit The CFO Strategy Summit The CFO Strategy Summit OHUG Global Conference The CFO Strategy Summit The CFO Strategy Summit ODTUG Kscope16 PeopleSoft RECONNECT JD Edwards INFOCUS Oracle OpenWorld Location Webcast Webcast Palo Alto, CA Orange County, CA San Diego, CA New Orleans, LA Los Angeles, CA Seattle, WA Chicago, IL Rosemont, IL Denver, CO San Francisco, CA 8

9 Agenda What is EDI? How does it work? EDI Standards Paper vs. Electronic Comparison EDI Software EDI Communication EDI with JD Edwards Setup Features Transactional Processes Process Flow Diagrams EDI Benefits / Pitfalls to Avoid Getting Started Keys to Success Questions 9

10 What is EDI? Electronic Data Interchange (EDI) is an electronic communication method that provides standards for exchanging date via any electronic means. By adhering to the same standard, two different companies or organizations, even in two different countries, can electronically exchange documents (such as purchase order, invoice, shipping notices, and many others). EDI standards (including X12, EDIFACT, ODETTE etc.), some of which address the needs of specific industries or regions. EDI can be formally defined as the transfer of structured data, by agreed message standards, from one computer system to another without human intervention 10

11 What is EDI? Value Added Network (VAN) is a hosted service offering that acts as an intermediary between business partners sharing standards based or proprietary data via shared business processes. Trading partners are companies that do business via EDI EDI documents generally contain the same information that would normally be found in a paper document used for the same organizational function A transaction set refers to a type of electronic document or message to communicate to another trading partner 11

12 How EDI Works The APL Group quote 664 danbury Ct Wilson, ct RFQ # /07/95 1 WIDGET # dz gizmos ST* NTE**Ship Complete N1 *SE* The Apl Grp Inc... N3 *664 DANBURY Converts Internal Data Format to ANSI X12 (outbound) Converts ANSI X12 Standard format to Internal Format (inbound) 12

13 EDI Standards All EDI Standards include the following components: Elements, which are the smallest component in an EDI Standards Segments, which are groups of elements Transaction sets (also called messages), which are groups of segments EDI Standard format is comparable to the language that you speak. For instance, an element can be compared to a word a segment is comparable to a sentence A transaction set is comparable to a paragraph or a document In the EDI Standard, just as in the language that you speak, elements (or words) are combined to form a segment (or a sentence). Segments (or sentences) are combined to create a Transaction set (or paragraph or document). 13

14 EDI Standards EDI requires companies to agree on standards Compatible hardware and software Agreed upon electronic form format Two commonly used EDI Standards are: EDI for Administration, Commerce, and Transport (EDIFACT) - generic international American National Standards Institute/Accredited Standards Committee X12 (ANSI ASC X12) - generic Subsets of ANSI ASC X12 include: Transportation Data Coordinating Committee (TDCC) - transportation industry, including air, rail, motor, and ocean Uniform Communication Standard (UCS) - grocery industry Both ANSI ASC X12 and EDIFACT also contain subgroups, including: Automotive Industry Action Group (AIAG) Chemical Industry Data Exchange (CIDX) Electronics Industry Data Exchange (EIDX) Voluntary Interindustry Communications Standards (VICS) Textile/Apparel Manufacturing Communications (TAMCS) Sundries and Apparel Findings Linkage Council (SAFLINC) 14

15 Paper Document Exchange Data Entry PO Computer Computer Post Office Purchaser Invoice 15

16 Electronic Data Exchange Data Entry PO Computer Computer VAN Purchaser Invoice 16

17 Paper vs. EDI Envelope Elements Address Information Information Receipt Information Routing Date and Time Stamp Audit and Version Control Identification Information 17

18 Paper vs. EDI Envelope Elements EDI enveloping can be compared functionally to postal envelopes. Envelope = Interchange Cleveland ECRC [electronic address] ABC Company [electronic address] ISA*05* *01*PASSWORD01*01* SENDERID ENTIFIC*01*ReceiveidentifI*950919*1503*U *00304* *1*T* ^ GS... ST..... SE... GE... IEA*1* ^ 18

19 Paper vs. EDI Folders An EDI folder can be compared functionally to a functional group of specific transactional set documents. Folder = Functional Group GS*PO*CECRC01*DISC* *1426* 0001*X*003050^ ST*850* SE*17*1001 GE*1*

20 Paper vs. EDI Documents The paper business document and its components can be compared with the EDI transaction set. Date: 12/31/15 Purchase Order # Paper Document = EDI Transaction Set 4001 PURCHASE ORDER Vendor: ABC Supplies P.O. Box 180 Baltimore, MD Quantity 2 Ship To: Cleveland ECRC 2415 Woodland Avenue Cleveland, OH Description Legal Pads LP8X11 Price $8.00/DZ Amount $16.00 ST*850*0001^ BEG*00*NE*4001**151231^ N1*VN*ABC Supplies^ N3*P.O.Box 180^ N4*Baltimore*MD*21239^ N1*ST*Cleveland ECRC^ N3*2415 Woodland Avenue^ N4*Cleveland, OH 44115^ PO1*1*2*DZ*8.00**VP*LP8X11^ CTT*1^ SE*11*

21 Paper vs. EDI Data Elements EDI data elements are the specific header details which describe what is being communicated. Date: 12/31/15 Purchase Order # 4001 PURCHASE ORDER Vendor: ABC Supplies P.O. Box 180 Baltimore, MD Ship To: Cleveland ECRC 2415 Woodland Avenue Cleveland, OH Data Elements N1*VN*ABC Supplies^ 21

22 Paper vs. EDI Data Segments EDI data segments are the specific line item details which describe what is being communicated. Date: 12/31/15 Purchase Order # 4001 PURCHASE ORDER Vendor: Ship To: Line Item = Data Segment Quantity 2 Cleveland ECRC 2415 Woodland Avenue Cleveland, OH Description Legal Pads LP8X11 Price $8.00/DZ Amount $16.00 PO1*1*2*DZ*8.00**VP*LP8X11^ 22

23 Paper vs. EDI Syntax EDI syntax are specific characters that separate data segments are being communicated. Data Segment Delimiter Code = Qualifier N1*VN*ABC Supplies^ Separator = Element Delimiter 23

24 EDI Software EDI Software translates business documents into a standard format for transmission Translation Software Features EDI Standards Mapping capabilities Document support Communication functionality with VANs Additional Considerations: Software applications / environments to maintain Utilization with ERP System Hosted and / or SaaS models are available 24

25 EDI Software 1. Document Support Database 4. Translation Communications 2. Mapping X12 3. Standards Support 25

26 EDI Communication Buyer Post Office Seller 26

27 EDI Communication Buyer Supplier 1 A 2 B 3 C 4 D 27

28 EDI with JD Edwards Activation / Setup Transactional (Z-File) Processing Inbound Outbound Common Transaction Sets Process / Data Flow Seamless EDI / Automation Exception Processing Success Factors 28

29 Activating EDI For Trading Partners Batch Processing Mode I = Inhibited From Processing (Off) P= Production (On) Note: Must also setup for Suppliers on the Supplier Master application 29

30 Item Cross Reference Within Item Cross Reference (P4104), you can define relationships between your company's item numbers and each trading partner's item numbers. You can also set up substitute or replacement items that can be ordered for your customers if the item ordered is out of stock. If you are ordering items from a supplier, you can set up replacement items to order for your company if the supplier does not have the item you need in stock. 30

31 850 Inbound Purchase Orders 1. Run the R47002C to convert data from your flat file (which originated in your translation software package) into the sales order inbound z-file tables Data formatting or additional development will likely be necessary 31

32 850 Inbound Purchase Orders 2. Data is populated in the following files : F47011 EDI Order Header F47012 EDI Order Detail 3. Run the R EDI Inbound Purchase Order Edit report to process the orders into the Sales Order files (F4201/F4211) Calls version of the P4210 Sales Order Entry 32

33 850 Inbound Purchase Orders 4. Review your report output from the R47011 If records did not successfully process, you will need to review your work center errors to determine the data issues 5. Update your unprocessed transactions within the P47010 Status Inquiry / Revisions application 33

34 850 Inbound Purchase Orders 6. Review successfully processed sales orders within the P4210 Sales Order Entry application. 34

35 850 Inbound Purchase Orders E1 Review and Revise EDI Order Process E1 Sales Order Creation Process E1 Inbound EDI 850 Process External Inbound EDI PO Process E1 Inbound 850 Transaction Set Processing Flat File Customer PO / Translated / Inbound 850 Customer PO / untranslated Customer VAN SDQ F47011 EDI PO Header F47012 EDI PO Detail R47011 EDI Inbound PO Create UBE No Yes F47013 PO Detail SDQ F4201 Sales Order Header P4210 F4706 EDI Order Address Info Other F47 Tables F4714 EDI Order Text Lines Header F4211 Sales Order Detail F4715 EDI Order Text Lines Detail The R47011 runs in the background, it calls the P4210 application (Sales Order Entry) and creates a Sales Order in E1 Was Sales Order Creation successful Yes or No? The P47010 is used to inspect, review and revise data in the EDI Tables in EnterpriseOne P47010 Inbound EDI Order Inquiry Application F47011 EDI PO Header F47012 EDI PO Detail 35

36 810 Outbound Sales Order Invoice 1. Run the R42565 Invoice Print report to generate sales invoices for your Sales Order Turn on EDI Processing within the EDI tab 36

37 810 Outbound Sales Order Invoice 2. The R42565 Invoice Print will call the R47042 Invoice Extraction program This will load invoice data into the F47046/F47047 Outbound Invoice files 3. Run the R47042C - EDI Invoice Extraction Conversion Program to convert the invoice information to a flat file format. This data file can now be sent by your EDI translation software package in order to send this data to your VAN Data formatting or additional development will likely be necessary 37

38 Common Transaction Sets Inbound 812 Credit / Debit Adjustments 816 Organizational Relationships 820 Payment Advices 824 Application Advices 832 Price Catalog 850 Purchase Orders 852 Point of Sale 856 Inbound ASNs 860 P.O. Changes 861 Receiving Advices 864 Credit Authorization 870 Order Status Inquiry Outbound 211 Electronic Bill of Lading 810 Invoice 855 P.O. Acknowledgement 856 ASN 864 Credit Authorizations 38

39 EDI Impact Across Your Company EDI has an impact on all departments within your company: Sales (Account) Representatives Customer Service / Order Management Operations / Shipping Accounting Cash Management / Collections Information Systems 42

40 EDI Considerations Use the following questions to determine the scope of your implementation: What types of software and hardware do you need to run EDI? How many people do you need to support your EDI operations? Can your existing staff support your EDI operations? What kind of education does your staff need to handle EDI? How will implementing EDI affect your company's overall operations? Which departments in your company will experience an increase or decrease in workload? What are the costs and benefits of implementing EDI? Will management be involved in and committed to this project? 43

41 EDI Benefits Cost Savings Reduction of Employee hours involved in handling of documents Reduction in the Cost of Funds Transfer Reduction in the cost of storage space No mailing costs Speed Forwarding of documents through a computer network is faster than mail Accuracy EDI minimizes the need for rekeying information Communication is direct and easily verifiable No mail is lost Security Information is less susceptible to interception and falsification System Integration EDI software can be integrated with internal software for further automation 44

42 EDI Benefits Increased Business Opportunities Increased competitiveness in the marketplace Greater Customer Satisfaction Improved delivery of goods and services Reduction In Order Time Shorter fulfillment cycle Reduced errors Increased information integrity through reduced manual data entry Reduced clerical work for the manual manipulation of documentation Better Cash Management Decreased time in generating payments and invoices Decreased time in recording receipts of payment 45

43 Potential EDI Pitfalls The follow are key areas that need to be addressed in order to have a successful EDI integration with your existing business environment: Lack of consistency with internal business operations Lack of data standardization within companies Lack of ownership of EDI data & processes Lack of communication between all necessary departments Lack of communication between trading partners as data parameters change EDI is NOT seamless 46

44 How do I get started with EDI? 1. You and your trading partner (a.k.a. company to do business with) need to agree on the following terms before trading EDI documents: What are the legal ramifications of EDI transactions? How many Standard EDI documents will you trade? How many trading partners will you have? 2. Select a Value Added Network (VAN) provider 3. Select a translator software package 4. To prepare your system for Data Interface for Electronic Data Interchange implementation, you should: Perform a detailed system analysis Set up the translator software Set up the JDE EDI / Electronic Commerce system (system code 47) Complete mapping documents (using translation software) for specific transaction sets with your trading partner(s) Complete additional development to assist with transitioning data from JDE to your EDI translation software / VAN Test communications with a trading partner to verify that you have set up your system correctly prior to transacting in Production 47

45 Keys to Success Master Data Management Need to determine what information will be stored in JDE vs. the EDI translation software (mappings) Mass updates to data Minimize customer specific processes Data archival / retrieval of EDI formats Cross reference for customers and items Error resolution processing Standard error checking Custom error checking Process automation Audit tracking Re-process transactions in error Communication throughout business to support operations Process to purge completed transactions 48

46 QUESTIONS 49

47 Quest is the home for PeopleSoft and JD Edwards Users Visit the Quest International Users Group Booth #323 Let us show you how to leverage the Quest community to maximize your ERP investment Receive your personalized Quest Activation Plan & learn how to make the most of your membership Plus, find out more about our upcoming events PeopleSoft RECONNECT (July 19-21) and JD Edwards INFOCUS (August 8-10) 50