Top EDI Interview Questions (2024)
What is EDI?
What are types of EDI?
Which data format is used in EDI for sending data between two parties?
What is Direct EDI?
What is indirect EDI?
What is Web EDI?
What are the advantages of using EDI?
What is Mobile EDI?
What is an EDI Interchange Header (ISA)?
What is an EDI Functional Group (GS)?
What is the Transaction Header (ST) segment in EDI?
What is an EDI envelope?
What are the different types of EDI messages?
What is an EDI document?
What are the types of EDI standards?
What is a flat-file?
What are the different types of EDI files?
What is an EDI control number?
What are the different types of EDI documents?
What are the most common EDI standards?
Q: What is EDI?
Ans:
Electronic data interchange (EDI) is the concept of businesses transmitting information that's been previously transmitted on paper, such as purchase orders and invoices, via the internet. Electronic data interchange (EDI) technical standards exist to make it easier for organizations to trade financial instruments without having to make special preparations.
Q: What are types of EDI?
Ans:
There are many different forms of EDI and ways to enable EDI in a making the products. Whether you're new to EDI or looking to expand an existing EDI infrastructure to support global business partners, there's a way to use it that fits your company needs, technical capabilities, and budget. Depending on the size and frequency of their transactions, many larger firms use hybrid EDI solutions to communicate with their business partners.
The following are the several approaches that are available:
- Direct EDI/Point-to-point
- EDI via VAN
- EDI via AS2
- Web EDI
- Mobile EDI
- EDI Outsourcing
Take a look at our suggested post :
Q: Which data format is used in EDI for sending data between two parties?
Ans:
ASC X12 is a popular data format for data transfer. Other data formats, such as EDIFACT, are available. EDIFACT is primarily used outside of the United States. ASC X12, often known as X12, is mostly utilized in the United States mainly by the healthcare industry.
Q: What is Direct EDI?
Ans:
Businesses can exchange EDI documents over the Internet using a secure, point-to-point connection. Companies have been using Direct EDI, also known as Point-to-Point EDI, for years. It creates a single, secure communication channel between two business partners.
When we opt for the direct connection option, users need to buy software that allows using all of the agreed-upon protocols, such as AS2, SFTP, and FTPS. Then the user must agree with each of the partners on (1) which of these communication techniques or protocols will use, and (2) which protocol settings the user will use while exchanging your EDI document files. To handle future requirements, users should also consider a software solution that is future-proofed.
Q: What is indirect EDI?
Ans:
An indirect EDI integration is when ERP communicates with customers, suppliers, or 3PLs through a broker or value-added network (VAN). First, ERP sends a message to the broker or VAN with all of the information required from partners.
Q: What is Web EDI?
Ans:
WebEDI is a cloud-based EDI subscription solution that makes connecting and working with EDI simple and easy for our customers.
Web EDI is simply EDI that is done over a web browser. It is a web form that duplicates paper-based documents. Users are allowed to fill out fields on the form with information. After all of the necessary data has been entered, the message is immediately converted into an EDI message and sent via secure Internet protocols like File Transfer Protocol Secure (FTPS), HyperText Transport Protocol Secure (HTTPS), or AS2.
Q: What are the advantages of using EDI?
Ans:
Below are some of the advantages of using EDI:
- Tools for Migrations
- Real-Time Information
- Paperwork is reduced
- Processes without errors
- Fast deliveries with low costs
- Profit Growth Improvement
- Full Support
Q: What is Mobile EDI?
Ans:
A mobile EDI system is one of the types of EDI that allows mobile applications to retrieve EDI data from any EDI system. Even if the user is away for work, this is a reliable and adaptable approach to acquiring any acceptable data.
Q: What is an EDI Interchange Header (ISA)?
Ans:
Almost every EDI document starts with Interchange Control Header (ISA) section. This is the most outer envelope, and it contains all of the EDI data. This segment's goal is to identify the sender and receiver, as well as provide the date, time, and control number information.
Q:What is an EDI Functional Group (GS)?
Ans:
Functional Groups, also known as the inner envelope, are composed of one or more Transaction Groups of the same type that can be assembled together and transmitted as a single transmission. Functional ID code identifies the Transaction Groups that make up a certain Functional Group.
Q: What is the Transaction Header (ST) segment in EDI?
Ans:
It determines the transaction type and assigns the transaction a control number. It is the third segment in EDI transactions (with EDI 837 ).
Q: What is an EDI envelope?
Ans:
Paper envelopes enclose paper documents, while EDI envelopes are similar to paper envelopes. The first EDI data segment in an envelope is called a header segment. A control number data element in the header segment defines the envelope. The last EDI data segment in an envelope is called a trailer segment.
The EDI Envelope is used to send electronic transactions to the business system of a receiving entity. Multiple business transaction sets can be physically gathered, packed, and shipped together in an EDI Envelope, much as multiple paper purchase order documents can be physically grouped, packed, and mailed together to a receiver.
Q: What are the different types of EDI messages?
Ans:
Organization A can transmit several distinct types of EDI messages to Organization B.
Examples:
- Insurance Information
- Purchase Orders
- Medical Claims
- Billing Information
- Payment Information
Q: What is an EDI document?
Ans:
An EDI document is an electronic exchange of data between trading partners that contains the same level of detail as its paper counterpart. EDI document standards are quite diverse; there is an EDI document for almost any type of business document available.
Q: What are the types of EDI standards?
Ans:
SWIFT (banking), TRADACOMS (UK-specific), and VDA are examples of EDI standards.
Q: What is a flat-file?
Ans:
During the computer-to-computer transmission of business documents or data, a flat-file is the most universal format for EDI files.
This type of EDI file could include a variety of information, including headlines and body lines specific to the business. The information held within full documents is indicated by the headlines.
Q: What are the different types of EDI files?
Ans:
EDI support simple file formats:
Variable flat files
When data is separated from one another by a character such as a semicolon, vertical line, or tabulation, it is called a Variable-Sized Flat File (VFF). The most well-known example is the CSV format.Fixed flat file
There is no need to split the data by a character when each field has a fixed amount of characters. This is referred to as a Fixed Flat File (or FFF).
Q: What is an EDI control number?
Ans:
The EDI standards ANSI X12, UN/EDIFACT, and VDA all utilize the Control Number. It is a number found in the header of an EDI document that is used for document validation and ordering between trading partners.
Q: What are the different types of EDI documents?
Ans:
There are many EDI document types available. Following are some of them:
- EDI 180 Return Merchandise Authorization and Notification
- EDI 204 Motor Carrier Load Tender
- EDI 210 Motor Carrier Freight Details and Invoice
- EDI 211 Motor Carrier Bill of Lading
- EDI 214 Transportation Carrier Shipment Status Message
- EDI 215 Motor Carrier Pickup Manifest
- EDI 310 Freight Receipt and Invoice (Ocean)
- EDI 315 Status Details (Ocean)
- EDI 753 Request for Routing Instructions
- EDI 754 Routing Instructions
- EDI 810 Invoice
- EDI 811 Consolidated Service Invoice/Statement
- EDI 812 Credit/Debit Adjustment
- EDI 816 Organizational Relationships
- EDI 819 Joint Interest Billing and Operating Expense Statement
- EDI 820 Payment Order/Remittance Advice
- EDI 823 Lockbox
- EDI 824 Application Advice
- EDI 830 Planning Schedule with Release Capability
- EDI 832 Price/Sales Catalog
Q: What are the most common EDI standards?
Ans:
For various areas such as finance, government, health care, insurance, transportation, and others, there are approximately 300 different types of X12 EDI standards, each delegated by a different three-digit number.