Question

How can Electronic Data Interchange (EDI) facilitate the billing and accounts receivable process?

Answer 1

Electronic Data Interchange (EDI) facilitates the billing and accounts receivable process

The basic document created in the billing process is the sales invoice. Many companies still print paper invoices and send them to customers in the mail. Batch processing of invoices may create cash flow problems because of the time it takes invoices to flow through the regular mail system.

Companies that use EDI can create a quicker turnaround for payment, and save costs by reducing paper handling and processing. Depending on the number of invoices processed per year, these savings can be significant.

As an alternative to using a magnetic tape to receive payment information from the bank, you can set up the system to receive information electronically using EDI. When you process EDI transactions, you might use a trading partner and translator software to prepare the records for JD Edwards EnterpriseOne tables. After the information is received in the JD Edwards EnterpriseOne EDI tables, you can review and revise it before the system transfers it to the Electronic Receipts Input table (F03B13Z1).

The JD Edwards EnterpriseOne Accounts Receivable system can process inbound electronic receipts for these two types of payment transaction sets:

• 823 - Lockbox

• 820 - Payment Order

The process to receive, revise, add, and remove payment information is the same, regardless of the transaction set that you use. After you successfully process EDI inbound receipts, the transactions are ready for automatic receipt processing