EDI, or Electronic Data Interchange, is a system that allows businesses to exchange important documents and data electronically in a standardized format.
Think of it like this: when two companies need to do business together, they often need to send each other documents like purchase orders, invoices, or quotations. Traditionally, this would involve a lot of paperwork, phone calls, or emails, and there's always the risk of human error in transferring that information.
With EDI, instead of manually handling these documents, the computers of the two businesses can automatically send and receive data in a pre-programmed format. This format is designed so that both companies' systems can understand the information without any confusion. This means that processes like ordering products or paying for services can be done faster and more accurately.
EDI automates the exchange of business documents between companies, making it quicker, more reliable, and less prone to errors than manual methods.
What are the benefits of using EDI?
- Reduced manual data entry
- Less prone to errors than OCR (document scanning)
- Easily manage AP processes as a team
What do these files look like?
EDI files are not like a traditional PDF file. If you download and open an EDI file you will see data like below. This has all of the information required for the given document and should capture all the relevant information you would traditionally see on a PDF. This is not meant to be printed or reviewed in this format.
ISA*00* *00* *ZZ*KOJOTECHT *ZZ*HAMMERMILL *240520*2014*U*00401*000000001*1*T*:~GS*PO*DUNDER*HAMMERMILL*20240520*2014*1*X*004010~ST*850*0001~BEG*00*NE*500003**20240520~REF*CR*clwfeh7n30003wmp9l8sfxlcc~REF*P4*12412423*Salesforce Tower~REF*JB*12412423*Salesforce Tower~REF*KT**000002~PER*BD*Procurement Agent*EM*procurement@usekojo.com*TE*650-382-9051~N1*VN*HAMMERMILL VENDOR~N1*BY*Dunder Mifflin~N3*1725 Slough Avenue~N4*Scranton*PA*18501*US~N1*ST*Jim Halpert*92*clw81uhjz01aoa92f037y9zcd~N3*1720 Slough Avenue~N4*Scranton*PA*18501*US~PO1*1*6*EA*7.25*PE*BP*1" EMT~PID*F****1" EMT~PO1*2*40*EA*1.75*PE*BP*1 1/2" PVC~PID*F****1 1/2" PVC~PO1*3*21*EA***BP*1/2" Set Screw Coupling~PID*F****1/2" Set Screw Coupling~PO1*4*1*EA***BP*3/4 PVC FA~PID*F****3/4 PVC FA~PO1*5*500*EA***UL*78325030452*BP*Ideal 452~PID*F****Ideal 452~CTT*5~AMT*TT*113.5~SE*27*0001~GE*1*1~IEA*1*000000001~
What if I still need the PDF?
EDI does not attach or contain a PDF copy. It is industry standard that once EDI integrations are in place that PDF copies are no longer required. This is to reduce data transfer costs and streamline workflows. If you require a PDF in addition to EDI, please contact the supplier directly and request that they send both the EDI transaction and the PDF. Not all suppliers have the capability to send both an EDI file and a PDF copy from their ERP system simultaneously.
What EDI transactions does Kojo Support?
Kojo can send and receive transactions from suppliers via EDI. These transactions include:
Kojo -> Vendor
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EDI 840 (Request For Quotation) - This is the RFQ that is sent from Kojo to the supplier
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EDI 850 (Purchase Order) - This is the Purchase Order that is sent from Kojo to the supplier
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EDI 997 (Functional Acknowledgement) - This is a confirming transaction that Kojo sends to the supplier to let them know that one of the above transactions was successful received.
Vendor -> Kojo
- EDI 843 (Quotation Response) - This is the quote that the supplier would issue to a contractor. This quote could be in response to an EDI 840 (highlighted above) or from an RFQ provided by another source.
- EDI 855 (Order Acknowledgement) - This is the order acknowledgment that the supplier would send to the contractor once the supplier has placed the order in their system.
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EDI 810 (Invoice) - This is the invoice that the supplier sends to a Contractor.
What does the setup process look like?
To ensure a successful EDI integration with Kojo, we follow a structured process:
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Workflow Review and Alignment
Our sales and on-boarding team will assess your current business workflows to determine if they align with standard EDI practices. If your workflow deviates from typical EDI processes, we’ll collaborate with you to understand your operations and recommend adjustments to ensure compatibility. EDI protocols are strict, requiring data to be processed in a precise order for successful exchanges.
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Prerequisites for Vendor Integrations
Before requesting vendor integrations, your accounting software must be integrated with Kojo, and vendor contact information must be updated within the platform. This foundation is essential for seamless communication with Kojo-supported vendors.
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Integration Go-Live Planning
When submitting an integration request, you must specify a target go-live date for the vendor. This date should be set after you’ve gone live with Kojo. Activating integrations prematurely may disrupt your current operations, including quotes, order acknowledgments, and invoice processing.
Note: By adhering to these steps, we ensure a smooth EDI integration process that supports your business needs effectively.
How long does it take to get setup?
Kojo Supported Vendors - Integrating with vendors we already support integrations with will be much faster. When a request is sent via the Kojo portal, it first needs approval from the vendor’s local branch before being submitted to their IT department. We estimate a 2-6+ week timeline for most Kojo supported Vendors.Net New Vendor Integrations - Integrating with Net New Vendors will take longer. Customers need to click “Request New Vendor Integration” from the vendor integration tab in their Kojo account. The vendor will become available to integrate with after our team has connected with the vendor’s corporate IT department, scoped capabilities, and scheduled a development cycle, please be aware that delays may occur.
Note: Development projects may experience delays and timelines can vary for new vendors.
What vendors does Kojo support?
Kojo supported vendors will be available in: Settings > Vendors > Integrations
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