Electronic Data Interchange
Electronic Data Interchange (or EDI) is the electronic exchange of information that businesses need in order to process their financial transactions. EDI was created to help businesses communicate more efficiently and improve the supply chain by moving from paper processes to electronic. For many businesses, this means processing invoices electronically to vendors, which helps to reduce the potential for error and allows for better cash flow management.
Understanding Electronic Data Interchange (EDI) Systems
EDI systems were created in the 1970s to help address the needs of businesses to simplify and automate communications between business partners. At the time, EDI standards were developed to address items like industries and regions, meaning standards were created to ensure that the electronic data being shared between businesses, their vendors and their financial institutions was consistent.
Fast forward to our way of doing business now, and EDI is an important tool for meeting the expectations of vendor partnerships and banks, allowing businesses to process their financials more efficiently. Businesses can mandate that their supplies utilize EDI systems and EDI software as a way to ensure efficiency.
Benefits of Electronic Data Interchange Software
- ACH EDI Remittance Reports are in an easy to understand format and are sent directly to you that includes any addenda information that was sent with incoming ACH transactions posted to your account
- You can use the ACH addenda information to quickly match payments to open accounts receivable entries
- Reports help your customers gain efficiencies in their internal systems and processes
- Reports provide proactive and timely information to customers
- The summary report format shows the most often needed EDI information; the detail report format includes all EDI addenda data included with the payment
EDI Software & Systems for Your Business
Our ACH/EDI Remittance Reporting is part of our Treasury Management suite and provides you with added details regarding your incoming ACH transactions that were sent along with the payment, such as invoice numbers, in an easy to understand, human readable format that you can use to quickly match payments to open accounts receivable entries and have access to the key information that is essential for running your business.
- Converts and provides information from the ACH transaction for each selected SEC code.
- If the addenda records contain properly formatted EDI information, then all of the indecipherable EDI information, such as invoice numbers, is converted and shown in an easy-to-understand, human-readable format.
Receivers, including health care providers, can use this information to match payments to open accounts receivable entries
Getting Started with Our Treasury Management Solutions
Electronic Data Interchange is just one component in equipping your business to run efficiently and effectively while also meeting EDI standards. Our Treasury Management solutions include business online banking and BillPay, positive pay services, and more. Our Treasury Management teams across Pennsylvania and Ohio are ready to help your business go further. Contact us today to get started.
Additional Resources for Your Business
Avoiding Identity Theft – Download our quick guide for information on protecting your business from identity theft
Leverage Your Cash Flow – Treasury Management solutions are essential for managing your cash flow. With the right strategies, you can effectively position your finances in a way that allows you to grow. See how our Treasury Management solutions can help.
Benefits Consulting – The cost of employee benefits is often the second largest expense for businesses. Our Benefits Consulting team would love to connect with you to make sure you’re making the most of this investment
For more than 35 years, Tom McAneny and his brothers have partnered with us to grow their business from a fleet of a station wagon and van to a full-service convenience and grocery store supplier.