What is SAP EDI & Important SAP EDI Transactions

What is SAP EDI

SAP EDI stands for Electronic Data Interchange. It is an electronic exchange of business transactional documents between different applications. It is a industry standard that describes electronic documents. These documents enables the internal transactions between associated companies to be automated. EDI is supported by the intermediate documents(IDOCS).

Electronic Date Interchange allows up to date the information about inventories and status of orders to be processed quickly and on time.For e.g. the supplier delivers the goods to the distributor, this document is automatically processes in the distributor systems.

Electronic Data Interchange (EDI) for Business

EDI is a new modern technology that is used to transfer the documents. In the past days, business organization used to send invoices, Chalan, cheques, etc through mail, courier or fax. However, with EDI, these documents can be easily transferred electronically from one organization to another organization.

EDI – Electronic Data Interchange

Advantage/Benefits of EDI 

• It helps to reduce the errors of data entry
• It reduces the paper work and cost as the data available in the form of electronic documents
• It takes a lot of paper work and manual steps to complete a transaction, but with EDI work has become to complete the business tasks.
• Better processing cycle time
• The procurement source is determined with the help of past orders and long purchase agreements. It helps to create RFQ electronically with the help of electronic data interchange (EDI).
• It helps to improve in business efficiency.
• Electronic data Interchange (EDI) enables faster transaction with real time document transfer.
• Inventory control, reduction of processing errors, transaction cost, manual work, clerical work, etc.

Frequently used SAP EDI Transactions Codes