How EDI works

The EDI system requires the installation of EDI software in the client’s computer system to facilitate exchange of transaction documents from one company to the other electronically. For the EDI system to be installed there needs to be a computer system in the company that is in working condition.
The EDI software consists of many components, including EDI mapping, validation and translation software. These three are the most crucial components to the working of the EDI system.  There are others like the reporting system which work after these three crucial components are in place. All the components are interrelated, meaning that none can work without the others. The EDI mapping system is the “pilot light” component of the EDI software system and its function is to chart the source of the information and the destination of the data. It directs all the information from their point of departure to their destination. The translation components of the EDI system make sure that both the source and destinations data have structures that correspond to each other. Translation is done to make sure the data is EID readable. The EDI validation component on the other hand is the component that makes sure that after the mapping and the translation, the data is correct and that all the information had been relayed to the EID system of the businessperson on the other end.