SAP EDI Integration: How to Implement EDI with SAP

Electronic Data Interchange (EDI) and the SAP enterprise resource planning (ERP) system have been fundamental technologies for businesses for many years. EDI allows companies to automate and streamline their supply chain management processes, while SAP offers a comprehensive suite of applications for managing different aspects of business operations.

When these two technologies are integrated, companies can significantly enhance their operations. Integrating EDI with SAP means that data flows seamlessly between systems, reducing errors and manual tasks. This integration boosts efficiency throughout the supply chain, from order processing to inventory management and beyond. Ultimately, it leads to smoother business operations, improved communication with partners, and better management of resources.

This blog post will explore the synergy between SAP ERPs and EDI, highlighting their collaborative functionalities, the benefits reaped from their integration, potential hurdles to overcome, and the key strategies for achieving successful integration. It will also delve into typical SAP EDI transactions, providing a comprehensive understanding of how these technologies complement each other and optimize business operations.

What is SAP EDI?

SAP EDI refers to the integration of Electronic Data Interchange (EDI) technology within the SAP ERP system. EDI is a standardized method for exchanging business documents electronically between different computer systems, without human intervention. SAP ERP, on the other hand, is a comprehensive suite of integrated applications designed to support various business processes, including finance, human resources, sales, procurement, and supply chain management.

When SAP ERP is integrated with EDI, it allows for seamless electronic communication and data exchange between SAP systems and the explicit systems. Explicit Systems can be suppliers, customers, and logistics providers. This integration enables companies to automate and streamline their business processes, including order processing, invoicing, shipping, and inventory management. Business data exchanges through documents referred to as IDocs.

Does SAP provide EDI?

SAP doesn't offer a complete, standalone EDI solution, it does provide several components and capabilities to support EDI transactions within your SAP ecosystem. Here's a breakdown:

What SAP Does Offer:

• IDocs: SAP's internal format for data exchange, used as an intermediate step between your internal data and EDI messages.
• Mapping tools: Tools like WEBMAP1 allow you to map data elements between IDocs and specific EDI standards.
• Communication channels: SAP supports various communication channels like VANs, FTP, and secure internet connections for sending and receiving EDI messages.

What SAP Doesn't Offer?

A dedicated EDI translator or converter: SAP doesn't provide a built-in tool to directly convert between your SAP data and various EDI standards.

SAP provides the "foundation" for EDI within your SAP environment but doesn't offer a complete end-to-end solution. You can choose between using additional components from SAP (like PI/PO or CPI) or third-party tools and services to build your full EDI solution. The best option depends on your specific needs, budget, technical expertise, and the complexity of your EDI requirements.

Outsourcing EDI operations to service providers can simplify management and reduce internal workloads.

What is an IDoc in SAP?

SAP's IDoc Interface, short for Intermediate Document Interface, plays a crucial role in facilitating data exchange between various systems, both within and outside the SAP ecosystem. SAP's IDoc Interface is a foundational building block for data exchange and integration within SAP environments. Its standardized structure and functionalities support efficient communication with trading partners, external systems, and other SAP applications.

How does SAP EDI work?

SAP EDI works by facilitating the exchange of electronic business documents between the SAP ERP system and external trading partners' systems using standardized formats and communication protocols. Here's an overview of how SAP EDI typically operates:

1. Data is created in the SAP system. This could be a sales order, an invoice, a purchase order, or any other type of business document.
2. The data is translated into a standard format. EDI uses standard formats, such as EDIFACT or ANSI ASC X12, so that different systems can understand each other.
3. The data is sent to a trading partner. This can be done through a variety of methods, such as a Value Added Network (VAN), a secure FTP site, or directly over the internet.
4. The trading partner's system receives the data and translates it back into its own format.
5. The data is processed in the trading partner's system. This could involve creating a new sales order, generating an invoice, or updating inventory levels.

What are SAP EDI Integration Platforms?

SAP offers several platforms and tools for EDI integration within its ecosystem. Here are used for SAP EDI integration:

SAP Process Integration (PI) / Process Orchestration (PO): SAP PI/PO serves as a middleware platform for integrating EDI systems, within the SAP landscape. It provides tools for designing, configuring, and monitoring integration scenarios, including support for EDI message formats and communication protocols. SAP PI/PO facilitates the seamless exchange of EDI messages between SAP systems and external partners, ensuring data accuracy and compliance.

SAP Cloud Platform Integration (CPI): SAP CPI is a cloud-based integration platform-as-a-service (iPaaS) offering that enables seamless connectivity between cloud and on-premises systems. It provides pre-built integration content and adapters for EDI integration, allowing organizations to quickly set up and configure EDI connections. SAP CPI supports EDI standards such as ANSI X12, EDIFACT, and others, and offers features for message mapping, transformation, and routing.

What Are Outbound and Inbound EDI Mapping Processes in SAP?

In SAP EDI, mapping plays a crucial role in both outbound and inbound processes, ensuring smooth data exchange with your trading partners.

Outbound Process: The SAP Outbound EDI Mapping Process involves transforming data from your SAP system into a format your trading partner understands, specifically an EDI message conforming to their chosen standard. The outbound process begins by creating application documents within the SAP system. These documents are then converted into a standardized, intermediary format. Following this, the intermediary document is transformed into an EDI standard document format, ensuring compatibility with the recipient's system.

Inbound Process: The SAP Inbound EDI Mapping Process involves transforming data received from your trading partners in an EDI message format into a structure your SAP system understands.

SAP EDI Architecture

There are indeed three key aspects of SAP EDI architecture. While I previously provided a more comprehensive overview, here's a direct response focusing on the three key aspects:

1. Integration platform:

This is the heart of the architecture, facilitating the connection between your SAP system and external trading partners. Popular options include on-premise platforms like SAP Process Integration/Orchestration (PI/PO) and cloud-based solutions like SAP Cloud Platform Integration (CPI). These platforms offer tools and capabilities for:

• Mapping: Transforming data between IDocs and EDI standards.
• Communication: Sending and receiving EDI messages via various channels (VANs, FTP, etc.).
• Processing: Validating, routing, and processing EDI messages.

2. IDoc Interface:

This forms the bridge between your internal SAP data and the EDI world. IDocs act as standardized containers for data formatted specifically for SAP, enabling seamless exchange with external systems.

They consist of:

• Header: Information about the IDoc itself, partner details, and message type.
• Data segments: Represent specific business entities like purchase orders or invoices.
• Status records: Track the processing status of an IDoc (sent, received, processed).

3. Communication channels:

These define the pathways for data exchange between your SAP system and trading partners. Secure and reliable options include:

• Value Added Networks (VANs): Dedicated networks for EDI exchange offering security and reliability.
• Secure File Transfer Protocol (FTP): More direct connections used for specific scenarios.
• Secure internet connections: Advanced setups requiring strong security measures.

Understanding these three core aspects is crucial for designing and implementing an effective SAP EDI architecture.

SAP EDI Benefits

Integrating EDI into your SAP ecosystem comes with numerous benefits that can streamline your business operations and improve collaboration with trading partners. Here are some key advantages to consider:

Reduced Errors and Costs:

• Automation: Automating data exchange eliminates manual entry errors and associated costs.
• Increased Data Accuracy: Streamlined data flow minimizes errors and ensures data consistency across systems.
• Reduced Paperwork: Paperless transactions save costs associated with printing, postage, and document storage.

Improved Efficiency and Visibility:

• Faster Processing: Electronic transactions significantly reduce processing times, leading to faster order fulfilment and payments.
• Real-Time Visibility: Gain real-time insights into inventory levels, order status, and shipment details, fostering proactive decision-making.
• Enhanced Collaboration: Streamlined communication with trading partners improves collaboration and coordination.

Increased Compliance and Competitiveness:

• Industry Standards: Adherence to EDI standards ensures compliance with industry regulations and legal requirements.
• Competitive Advantage: EDI enables faster response times and improved service levels, enhancing competitiveness.
• Global Reach: Connect with a wider range of trading partners regardless of location, expanding your market reach.

Additional Benefits:

• Reduced Inventory Levels: Improved forecasting and faster lead times allow for optimized inventory management.
• Enhanced Customer Satisfaction: Timely deliveries and accurate order fulfillment improve customer satisfaction.
• Scalability and Flexibility: Easily adapt to changing business needs and integrate with new trading partners.

SAP EDI offers a powerful solution for organizations seeking to improve efficiency, accuracy, and collaboration within their supply chain. By weighing the benefits against the potential challenges, you can determine if EDI is the right fit for your business.

What are SAP EDI Transaction Codes?

In SAP, various transaction codes (T-codes) are used to perform tasks related to Electronic Data Interchange (EDI) integration. Here are some common SAP EDI transaction codes:

• WE02: Display IDoc.
• WE05: List IDocs.
• WE19: Test tool for processing inbound IDocs.
• WE20: Partner Profile.
• WE21: Port definition.
• WE30: IDoc types (development).
• WE31: IDoc segments (development).
• WE60: Documentation for IDoc types and segments.
• WE81: Message type (development).
• WE82: Message types for IDoc processing (development).
• BD64: Maintain distribution model.
• WE42: Process codes for IDoc types.
• WE43: IDoc enhancements.
• WE81: Logical message types.
• WE82: Assignment of logical message types to IDoc types.
• WE42: Assign function modules to message types.

These transaction codes are commonly used for configuring, monitoring, and managing EDI processes within the SAP system. They allow users to define partner profiles, maintain communication settings, monitor IDoc processing, and perform various other tasks related to EDI integration.

To learn more about how Infocon Systems can take care of your EDI needs with SAP, please don’t hesitate to give us a call at +1 888-339-0722 or email sales@infoconn.com. We’d love to hear from you.