What is EDI?
A common definition of EDI is that it is a computer-to-computer exchange of business documents in a standard electronic format between business partners.
- Business partners
Business partners decide to exchange business documents using EDI for several reasons, for example: cost savings, speed, or accuracy.
- Business documents
Business partners can exchange any type of business document, for example: orders and invoices.
- Standard electronic format
Because the business documents must be processed by computers, a standard electronic format must be used. Several standard electronic formats exist, for example: EDIFACT and X12. However, business partners can decide to use their own format. You can compare the standard electronic format with languages. So, business partners must decide in which language they want to talk.
- Computer-to-computer exchange
The standard electronic formats are independent of communication methods between computers. Several methods exist, for example: AS1, AS2, or FTP. Businesses typically use an EDI partner to translate and to communicate between business partners.
What is EDI Studio?
EDI Studio extends Microsoft Dynamics 365 for Finance and Operations with EDI functionality. The solution integrates in several Microsoft Dynamics 365 for Operations modules, for example: Accounts receivable, Accounts payable, and Warehouse management. EDI Studio uses Connectivity Studio for the mapping and transport of the standard electronic formats.
On a high level, the EDI Studio features are, using the EDI definition from the previous section:
- Business partners
In EDI Studio, business partners are called parties. To setup a business partner, you must use the party setup.
- Business documents
In EDI Studio, business documents are called document flows.
- Standard electronic format
EDI Studio uses Connectivity Studio for the standard electronic formats.
- Computer-to-computer exchange
EDI Studio uses Connectivity Studio to transport EDI messages between computers.
EDI Studio offers staging journals to validate inbound sales orders, purchase order confirmations, inventory orders, and transfer orders.