15/02/2022

EDI Glossary

EDI has a lot of jargon and it can be hard to understand. We’ve put together some of the key words to help make it easier for you.

Advance Shipping Notice (ASN)

This message tells a buyer when the goods will be shipped, how they’ve been packed and the estimated arrival date. This can also referred to as a Delivery Notice or Despatch Advice.

EDIFACT

This stands for Electronic Data Interchange For Administration, Commerce and Transport. It’s an international EDI standard that was developed by the United Nations. Types of EDIFACT messages include 96A and D01B. They’re commonly used in the retail industry here in Australia.

Translation

The conversion from one file format to another.

ERP system

Also known as an Enterprise Resource Planning system. This software is used by companies to manage much of their business activity – they’re like an accounting package on steroids. Examples of ERP systems include SAP, Oracle, Pronto, JD Edwards and Sage.

Gateway

A Gateway is the central point that enables the exchange of messages between systems (often provided by a value added network, or a VAN). It mediates the differences between your software and those of your trading partners. If you think of a hub and spoke model, the Gateway is the hub, and you and your trading partners are the spokes. Through MessageXchange, Gateways can be configured per customer to have specific business rules, mappings, error handling and more.

GLN

A Global Location Number (GLN) is a unique number that is assigned to locations to enable them to be identified worldwide. These global location numbers can be used to identify any legal, physical and functional locations. They’re issued by the standards body GS1. GLNs are also used in the EDI to identify a business to exchange messages with.

GS1

GS1 is a worldwide not-for-profit that encourages the use of standards in business to create efficiency in supply chains and overall business. GS1 develops and publishes standards for barcodes, product data and EDI. They’re the organisation that issue GLNs and GTINs.

GTIN

This stands for Global Trade Item Number. It’s a unique identifier for each product. If you look at a barcode, they’re often GTINs. Here in Australia, they’re issued starting with a 93 or 94.

iDoc

iDoc stands for intermediate document. It’s a data structure for electronic data interchange between application programs written for the popular SAP business system or between an SAP application and an external program.

Mapping

Mapping refers to translating, or converting, one file format to another. For example, if your software outputs a CSV file and your trading partner requires an EDIFACT file, your EDI VAN would ‘map’ the CSV file to EDIFACT.

Message type

An structured set of data covering the requirements for a specified type of transaction, for example, an invoice or purchase order.

MIG

A MIG, or message implementation guide, details the file structure that your trading partner requires. A MIG is usually written for each message type required by that trading partner. You can see examples of MIGs on our website: home.messagexchange.com/resources/migs/

Network service provider

A company that maintains an EDI network on behalf of businesses, also known as a value added network. They offer its services and capabilities to others for a fee.

SFTP

Secure file transfer protocol. A network protocol that provides file transfer over the web securely using authentication and encryption.

SSCC (serial shipping container code)

An 18-digit number that is used to identify logistics units. It allows whoever it is receiving the goods to track them throughout the journey, and gives them more insight into what’s inside a shipping unit.

SSCC label

The label is linked to the ASN. The label has one or more barcodes on it, which includes the SSCC number. Often in retail, these are scanned when receiving the goods to mark them as received in the retailer’s software and to identify exactly what’s in the package.

Transmission protocol

Transmission protocol refers to how your messages will get from your software to your VAN. Some examples include sFTP or AS2. Choosing your transmission protocol largely depends on the level of security required as well as the need for timely, real-time information.

VAN

VAN is the acronym for Value Added Network; they’re the company that provides an EDI service. VANs enable your EDI capability to be scalable because they sit at the core of your trading network and enable the routing of messages, which reduces the impact of change. At MessageXchange we combine the VAN capability with Gateway capability so message routing can be combined with message mapping, business rules business intelligence reporting, custom error handling, notifications and the top level of security.

Web-based EDI

A method of EDI that allows users to send and receive EDI from an internet browser portal. It does involve manual inputting of information.

XML

The abbreviation for extensible markup language – it is a file format commonly used by software to export and/or import data. If you want to learn more about EDI for your business, request a call back from our EDI experts below.

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EDIRetailersSuppliers

04/11/2021

eInvoicing Glossary

If you’re just getting started, eInvoicing jargon can be hard to understand. So we’ve put together some of the key words to help make it easier for you.

ABN

This stands for Australian business number. It’s a unique number that identifies a business in Australia. It helps identify your business to others when ordering and invoicing. And in the eInvoicing world, it’s a number you can send and/or receive eInvoices from/to.

Access Point

eInvoicing is done through a four-corner model. You can think of it like a phone network, where your network service provider, and the service provider of the person you’re trying to call, are the Access Points. Access Point are the service providers that connect to each other.

API

This stands for application programming interface. It’s a messaging protocol. An API is a way for others to push information to you, or retrieve information from you. And by you, I mean your software.

AS4

This stands for applicability statement 4. It’s a messaging protocol. AS4 can exchange messages in near-real time and supports the ability to send back delivery notifications, so the sender knows their message has been received. It’s considered highly secure and has high availability, meaning it’s always active to be used.

B2G

Stands for business-to-government. it refers to business that’s conducted between a business and government Business level response (BLR) A business level response can be sent from a company to their supplier once they receive an invoice. It can give the supplier an update on the invoice, like whether it’s been accepted, rejected, paid, queried, or something else.

CSV

This stands for comma separated values. It’s a file format. Think of it like very simple Excel spreadsheet. In fact, you can open these files in Excel.

Electronic data interchange (EDI)

Electronic Data Interchange (EDI) refers to the structured transmission of data between organisations electronically. It’s used to transfer documents electronically from one system to another i.e. from one trading partner to another trading partner.

eInvoicing

It’s the exchange of eInvoices in a structured, electronic format. It’s not be confused with sending a PDF invoice. PDFs aren’t machine-readable. eInvoices are sent directly from one software package to another.

ERP system

This stands for enterprise resource planning system. In simple terms, it’s what most businesses use to manage their accounts payable and receivables. Generally, ERP systems are a little more complex than your typical accounting package. Think of SAP, Oracle, Pronto and more.

File format

This refers to the way information in a document is stored and organised. PDF, JPG and PNG are all file formats. When it comes to eInvoicing, file formats are relevant because your software will export and import a certain type of file format. You might also see the acronym UBL used a bit. That’s the file format, or standard, used for eInvoices when they’re sent between Access Points. It’s not an issue if your software doesn’t export and import a UBL file – a well-rounded eInvoicing provider will be able to map your file format to and from the UBL format for you.

Four corner model

eInvoicing happens through a four-corner model, where corners one and four are the supplier and customer, and corners two and three are Access Points. Access Points connect to each other to exchange eInvoices.

Gateway

Our customers will generally have their own ‘gateway’ on the MessageXchange service. All of your business’ requirements are setup in your gateway, like mappings, reports and more. Your software connects to your gateway, and your gateway connects to the outside world. All eInvoices you send or receive will go through your gateway.

GLN

This stands for global location number. They’re a unique number given to a location, usually a business address, to identify it. They’re heavily used in electronic data interchange (or EDI) trade. GLNs are issued by your local GS1 organisation.

Interoperability

The ability of diverse systems and companies to work together.

Mapping

Mapping refers to translating, or converting, one file format to another. For example, if your software outputs a file format that isn’t the Peppol standard, UBL, your eInvoicing service provider may be able to ‘map’ the file so it conforms.

Message level response (MLR)

Whereas a business level response (BLR) is issued once a business receives the invoice and is, or is about to process it, a message level response is often issued before it can even get to the recipient. The Peppol standard has certain requirements, and if these aren’t met, an invoice may be rejected. A message level response lets the sender of an eInvoice know if the message has been rejected because of an error within the message. One example is that the syntax is incorrect.

MessageXchange

MessageXchange is an eInvoicing service provider. Find out more at messagexchange.com

Messaging protocol

In simple terms, a messaging protocol is a way to get files, or messages, from A to B; from software to software. Think of it like transport. If you wanted to get from Sydney to Melbourne, you can fly, drive, take a bus or a train. Each have their pros and cons. Just like each messaging protocol have their benefits. Some examples of messaging protocols are sFTP, API and AS4. The messaging protocol a company chooses to use will largely depend on what their software is capable of using, how much the company would like to invest in it, what level of security they need and the features they need, for example whether they need to exchange messages in near-real time or not.

NZBN

This stands for New Zealand business number. It’s a unique number that identifies a business in New Zealand. And in the eInvoicing world, it’s a number you can send and/or receive eInvoices from/to. An NZBN is in fact the same as a GLN.

Order-to-pay

The combined end-to-end trade process from the buyer’s perspective (order, delivery, invoice and payment).

Peppol

Peppol stands for Pan-European Public Procurement On-Line. It’s a standard of e-procurement, which we use in Australia and New Zealand to exchange eInvoices. When we say ‘standard’, it stipulates how Access Points should connect with each other, the file format invoices should be sent in and more. Having one standard makes it easier for businesses to trade with multiple organisations, because they can connect once and exchange eInvoices with anyone else in the Peppol network.

Purchase order

Document sent by a buyer to a supplier to inform them that they wish to purchase goods, services or works.

Service provider

A service provider that connects to a supplier and buyer directly. The supplier connects to the service provider which enables them to connect to multiple buyers and/or suppliers. Think of it like a phone service provider like Telstra or Optus, but this service provider is for eInvoicing.

sFTP

This stands for SSH (or secure) file transfer protocol. It’s a messaging protocol. You can think of it like a mail box; files are dropped into an sFTP folder (think of a folder on your desktop), often in batches, and they’re picked up by whoever is receiving the files. All of this is usually done automatically by having a process run periodically in the background. As you can probably tell, sFTP transfer is doesn’t support real-time messaging. But, it is one of the cheapest and easiest messaging protocols to use.

SML

This stands for service metadata lookup. Sounds complicated, I know. But think of it like a phone book of sorts. Access Points use the SML when they receive an eInvoice, to look up where it should go. The SML lists ABNs, NZBNs, GLNs that have registered for eInvoicing, as well as the Access Point provider that company uses. Have a look at the diagram on page 3 to see how it fits in.

SMP

This stands for service metadata publisher. Once an Access Point gets the information needed from the SML, it then asks the relevant SMP what documents that company can receive. If the company has registered to receive that type of document, the Access Point will send it on. Have a look at the diagram on page 3 to see how it fits in.

Syntax

Syntax refers to the rules that define the structure of the code of a message. Without going into too much detail, some of you might have seen basic code like text here. This tells the software where the element begins, the value of an element, and where that element ends. For example, on an invoice it might look like Cupcakes. Access Points will expect a message structured in a certain way, that is, using the correct syntax. In the eInvoicing world, if the syntax is incorrect, the Access Point receiving the message should send back a message level response (MLR).

UBL

This stands for universal business language. You probably won’t need to worry too much about this if you’re not in an IT role. It’s a file format. Just like you might use a JPG, PNG or GIF image file format.

XML

This stands for extensible markup language. It’s a file format. It looks like code to us, but holds all the information in a structured, machine-readable format. If you want to learn more about eInvoicing, sign up to our newsletter to get the latest information and useful resources.

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E-invoicinggovernmentRetailersSuppliers

07/09/2021

Retailers: Here’s why you should add eInvoicing to your arsenal

eInvoicing has brought about a new way to send invoices electronically. Like EDI, eInvoicing uses a network model, where each business either connects to the network themselves or uses a service provider. Unlike EDI though, eInvoicing uses a true standard file format exchanged between Access Points, or service providers. You might be thinking EDI also uses standard, and you’re somewhat right. There are standards like EDIFACT in use, but the reality is that retailers generally have their own unique business rules for suppliers to adhere to. Having one true standard to exchange brings a lot of benefits. Here’s why you, as a retailer, should consider using eInvoicing:

It’s easily accessible by your suppliers

Many accounting software packages such as Xero and MYOB offer eInvoicing solutions to their customers today. The solutions are largely integrated with their software making it simple for their customers to exchange eInvoices. Xero and MYOB account for 90% of the small business market, which means a majority of your SME customers could be able to issue you eInvoices today!

It’s low cost or even free for many of your suppliers!

Cost is a big constraint for suppliers complying with EDI requirements. The major players in the accounting software space are proving eInvoicing as part of their product or for a low add-on cost. There are also eInvoicing solutions, like Colladium, that allow suppliers to send eInvoices for free. What better way to onboard suppliers than a free web portal!

Your suppliers only need to connect to the network once to connect with many

eInvoicing through the Peppol network uses a standardised file format. Unlike EDI, it means your suppliers only need to connect to the network once, then they can exchange eInvoices with anyone else on the network. This makes compliance for your suppliers so much easier. Plus, if any of your suppliers are already using Peppol eInvoicing, they can start issuing you eInvoices today!

The network is set to grow

Right now, Peppol eInvoicing supports the exchange of electronic invoices, but that’s expected to change. The purchase order (PO) is currently being reviewed to be added as another message type and more are being looked at. Eventually we could see all supply chain messages being added to the Peppol network. Plus, the Australian and New Zealand Governments have offered incentives for their suppliers to issue eInvoices, so as more businesses get onboard, the more of your suppliers will be ready to exchange eInvoices.

Ready to add eInvoicing to your arsenal? Here’s how…

Adding eInvoicing to your arsenal only takes a few steps:
  1. Contact an eInvoicing service provider Here at MessageXchange, we offer both EDI and eInvoicing services. We’ll translate your software’s native file format messages to the Peppol UBL file. All you’ll need to do is a bit of testing.
  2. Connect to the Peppol network No need to worry, we’ll do the work for you.
  3. Go live! Start sending and receiving eInvoices!
If you’re interested in learning more about adding eInvoicing to your electronic messaging, get in touch with our team.

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12/08/2021

The reasons for not being left behind in eInvoicing

eInvoicing is taking off. Businesses are realising the benefits and starting to reap the rewards. Here are some reasons to get ready sooner rather than later and not risk getting left behind.

Start seeing the benefits now

If you’re a supplier to a government agency that’s eInvoicing enabled, and have a contract less than $1 million, you have the benefit of getting paid in 5 days. Government suppliers are already enabling eInvoicing to help their cash flow through faster payment. So how much do you stand to save from implementing eInvoicing now? Sources show a paper invoice or PDF invoice costs around $30.87 and $27.67 respectively to process, and an eInvoice costs only $9.18. Say you send or receive 10 eInvoices a week, that’s a weekly saving of $184 to $217.

Be in a position to say yes to eInvoicing customers straight away

If you’re asked to issue eInvoices, you can do so straight away. You won’t need to spend time finding a solution. If you’re a supplier to a government agency, that’s eInvoicing enabled, and have a contract less than $1 million, you also have the benefit of getting paid in 5 days. Government suppliers are already enabling eInvoicing to help their cash flow through faster payment.

Get enabled before the rush

With an eInvoicing mandate set for all federal government agencies, and possibly other groups soon after, a lot of organisations will be looking to sign up. This will inevitably lead to a rush in demand and possible delays in implementation. This will also lead to suppliers getting involved in the rush. Now is a good time to get enabled if you happen to be a supplier to a government agency or a supplier to an agency.

Being prepared for the possible mandate

You might have heard about a potential eInvoicing mandate for businesses in Australia. The mandate is currently being reviewed by business leaders and industry experts. However, it’s likely to happen in some form, so getting in early will help you avoid any delays and reap the benefits sooner.

How do you get started?

eInvoicing doesn’t need to be complicated:
  1. Find out if your existing software is eInvoicing-capable
  2. If not, talk to an eInvoicing service provider like MessageXchange
    • Fill in a form with your business details and work out which products works best for you
    • Get connected to MessageXchange
    • Start exchanging eInvoices
And don’t forget, eInvoicing helps businesses:
  • Cost savings Studies have found that it costs $30.87 to process a paper invoice, $27.67 a PDF invoice, and only $9.18 to process an eInvoice.
  • Easier invoice processing Removes the need for unnecessary data entry – the invoice just appears in your software.
  • Fewer errors Because much of the data entry is removed.
  • Exchange of invoices directly to and from software To reduce the risk of invoices going astray, reduce the time to receive them and reducing data entry errors.
  • Secure Security measures, like encryption at rest and in transit, are implemented throughout the eInvoicing network so your data remains secure along the way.
If you want to learn more about implementing eInvoicing in your business, get in touch with our team.

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E-invoicinggovernmentRetailersSuppliers

06/08/2021

EDI in the retail industry

Major players in the retail industry have taken advantage of the benefits of electronic data interchange (EDI) over the last 30 years. But there are still some companies that use paper-based procurement. This shows EDI still has potential to deliver even more benefits and savings to the industry. EDI in the retail industry allows companies to electronically exchange documents like purchase orders, despatch advices, invoices and other documents with suppliers. It replaces the manual process of sending these documents via email, fax and other ways of communication. Businesses in the retail industry generally issue a high volume of orders and EDI helps to improve operational efficiency and reduce the turnaround time to process purchase orders and invoices. It also has added benefits like providing more visibility and better customer service.

How is EDI used in the retail industry?

EDI is extensively used in the retail industry. This sector uses EDI for procurement, shipping as well as invoicing. In the procurement process, two basic EDI documents are used: purchase order and purchase order response. The buyer sends the purchase order to the supplier and the supplier then sends the purchase order response back to the buyer. This tells the buyer what can be fulfilled. In the second stage, shipping, the main EDI document used is the advance shipping notice. The supplier sends the ASN to the retailer to notify them about the shipment. It tells the buyer things like what’s being sent in each package, when it’ll be sent, by whom and more. In the final stage, the supplier issues an EDI invoice and sends it to the retailer. The retailer’s accounts payable team can generate an EDI remittance advice and send it to the supplier to confirm payment.

Why is EDI important in the retail industry?

Customer demands for good quality products, competitive deals and low prices have grown enormously, but the expectation for fast delivery has increased more than ever. Retailers today struggle to keep up with the high delivery frequency and keep count of stock (SKUs). EDI helps in automating this process. EDI purchase orders enable retailers to specify store destination with quantities of each product in a single document, the supplier, on the other hand, processes these purchase orders, ships products directly to the stores and sends advance shipping notice with details of products and quantities being shipped. It is because of this EDI process that retailers are able to fast track the delivery process, have visibility of SKUs and reduce human errors and turnaround time. There are also benefits when it comes to receiving invoices. For retailers who receive thousands of invoices a month, the time it takes to enter each invoice into their accounting software can really add up. Not to mention it opens the floodgates to mistakes being made. It’s easy to do a quick calculation of what this might cost a business by multiplying the number of invoices by the time it takes to enter each one by staff members’ salary. It all adds up. Some retailers use scanning or optical character recognition (OCR) but this is usually error-prone and can chew up time just fixing the errors. These processing figures can be slashed if a retailer uses EDI to receive invoices directly into their software. It’s like magic. EDI gives a competitive advantage to companies in the fast-moving retail sector. The Good Guys approached us with the aim to get their suppliers trade electronically with them. They saw EDI as a strategy to have an edge over their competitors. Learn more on how MessageXchange helped The Good Guys achieve this objective and get tremendous results here.

Benefits of EDI for retailers, suppliers and distributors

It reduces errors and saves costs

Traditional procurement involves a lot of manual processes. There is a potential for expensive errors with every instance of human intervention. EDI eliminates manual work, automates the process and reduces transaction errors by 30 to 40 percent. Retailers and suppliers can save costs and reduce errors with EDI integration. They can save up to 90 percent of invoicing costs with EDI.

Shorter transaction times

EDI messages can be exchanged in minutes in contrast to the paper-based documents which can take days to be delivered. These reduced cycles lead to faster invoice processing and improved cash flow. Retailers receive EDI invoices directly into their software so they can process them quickly and efficiently. Target, an Australian department store that operates more than 300 stores in the country, wanted to achieve visibility and remain current and transparent in the fast-moving retail industry. Read how MessageXchange helped Target achieve their goal here.

It frees up time for staff to spend on more valuable tasks

EDI in the retail industry helps to automate processes and lets employees focus more on higher value tasks. Instead of spending time data entry, your staff can spend time on more strategic work to help your business grow. EDI helps both retailers and suppliers to streamline their business process and use their resources mindfully.

EDI documents used in the retail industry

[vc_column width="1/4" css=".vc_custom_1618271818355{padding-right: 10px !important;}"]

Message Types

Purchase Order

Purchase Order Response

Invoice

Despatch Advice

Remittance Advice

Product Catalog

Functional Acknowledgement

[vc_column width="1/3" css=".vc_custom_1628228479994{padding-right: 10px !important;padding-left: 10px !important;}"]

Description

Sent from buyer to supplier to order goods or services

Sent from the supplier to the buyer to let them know how much of the order can be fulfilled, and any discrepancies from the original order

Sent from the buyer to the supplier for payment of the goods or services

Sent from the supplier to the buyer to let them know when and how the goods will be shipped

Sent from the buyer to the supplier to confirm payment

Sent from the supplier to the buyer with up-to-date product and pricing information

An automated response sent from a receiver of an EDI message to confirm receipt of the message

[vc_column width="1/6" css=".vc_custom_1628228971532{padding-right: 10px !important;padding-left: 10px !important;}"]

ANSI X12

850

855

810

856

820

832

997

[vc_column width="1/6" css=".vc_custom_1628229725830{padding-right: 10px !important;padding-left: 10px !important;}"]

EDIFACT

ORDERS

ORDRSP

INVOIC

DESADV

REMADV

PRICAT

CONTRL

If you want to learn more about how EDI works in the retail industry, have a look at our case studies or request a call back from our EDI experts below.

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EDIRetailersSuppliers

03/08/2021

Capture nonfulfillment earlier in the piece: Enter purchase order responses (PORs)

Businesses often don’t find out if an order can be fulfilled until part of that order arrives, or it never turns up. This is where adding a purchase order response (POR) to your EDI messages can help. A purchase order response is sent by the supplier to let the buyer know if their order can be fulfilled. A POR will often include:
  • the related purchase order number
  • an accept or reject indication
  • the number of products the supplier can fulfill
  • the price per unit
  • scheduled despatch date
  • backorder dates, if applicable.

Benefits of purchase order acknowledgement

Capture nonfulfillment earlier in the piece

The POR makes it clear what can be fulfilled. You won’t have to wait to see what turns up – the supplier should let you know much earlier on. It’s also a good way to keep your own customers in the loop about when their order will be ready.

Say goodbye to pricing surprises

No one likes surprises when it comes to getting an invoice. PORs help keep everyone on the same page because the supplier can let you know how much they’ll be supplying the goods for and if they’ll charge you any shipping costs. By getting this information before the shipment is sent and the invoice is issued, you can settle disputes earlier and avoid delays.

Streamline two- or three-way matching

Matching invoices against an order can be challenging if your suppliers don’t fulfill the orders in full. Adding PORs to your EDI messages makes sure everything up-to-date in your systems, so matching is a breeze, saving your team time and effort.

So to conclude…

Adding a purchase order response to your EDI messages can really improve visibility of your supply chain – it gives you clarity on what suppliers can fulfill. But why is this important?
  • You know what you’re going to receive earlier on in the piece
  • You have more transparency on what they’ll ask you to pay before getting the final invoice
  • You’ll reduce the amount of manual data entry, saving time and reducing errors.
If you’re interested in PORs and capturing non-fulfillment earlier, get in touch with our team.

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EDIRetailers

22/07/2021

Which reigns supreme: on-premise or cloud-based EDI?

In the age of digital transformation, customer demands are constantly evolving. It’s important for businesses to not only keep up with those demands but also invest in upgrading their technology to suit. Electronic data interchange or EDI has been around for decades and it’s still an effective way for supply chains to standardise communication. However, some traditional EDI methods have their limitations that make it difficult for businesses to meet demands in today’s sometimes-turbulent times

On-premise EDI software

On- premise EDI software is owned by the business using it and everything from implementation to running the solution is usually done internally. The software is physically on-site and is operated from an in-house server with a connection to an ERP system. On-premise EDI solutions require the company to have an EDI software license, an in-house server, a network and IT staff to support the software.

Cloud- based SaaS EDI software

With cloud-based SaaS EDI, the software is hosted in the cloud (i.e not on-site) and managed by a third-party service provider. Cloud EDI is web- based and is convenient as companies don’t need to invest in any infrastructure, additional resources or licenses. The cloud EDI service provider maintains the software, networks, servers, security and importantly the maintenance for you.

On-premise vs cloud-based SaaS EDI

On-premise EDI software is a more traditional way of exchanging electronic documents through software that is purchased up-front and you own a license to it. It’s your responsibility to complete all software upgrade and backups. Whereas cloud-based, outsourced EDI is more modern and is slowly overtaking on-premise EDI. It’s usually based on a subscription model where businesses pay their service providers for use and maintenance of their solution.

The key differences in on-premise and cloud EDI are:

Cost:

On-premise EDI: An on-premise software requires a lot of effort and can come with large up-front and on-going costs. The initial investment of buying and implementing the software, servers and network and the on-going maintenance and operating cost makes on-premise EDI can be expensive. It may also require extra resources to manage the service within the business. Cloud- based EDI: On the other hand, a cloud-based EDI service is relatively more cost effective and customers have the added bonus of only paying for what they use. Customers don’t have to worry about the maintenance and operating cost as the cloud service provider takes care of all of that, and it’s included in the subscription cost.

Security:

On-premise EDI: Security is the primary concern of many organisations when it comes to procurement and financial transactions. Even though it is believed by many that on-premise EDI solution is more secure as it is in -house and the potential of the information being leaked is less, there are numerous measures that have to be taken to keep your data secure. Your team need to stay on top of security patches and make sure the software is constantly up-to-date to cater for any vulnerabilities. Cloud- based EDI: With cloud-based EDI software, the service provider should have multiple security protocols to keep your data safe. For example, MessageXchange is ISO27001 certified. We maintain the service to this standard and we're audited for this. We also have a team dedicated to ensuring our software it always up-to-date and not exposed to vulnerabilities.

Scalability:

On-premise EDI: When your business grows and you need to trade more electronic documents, on-premise EDI can require you to purchase additional hardware and make more investments to cater for the growth. It can be difficult to scale up your business seamlessly if you’re using on-premise EDI software. Cloud- based EDI: With cloud-based EDI software, it’s pretty easy to scale up your business if your EDI provider has the right infrastructure. Your service provider takes care of the scalability and you can spend more time on the more important tasks for your business and continue to grow. Here at MessageXchange, we’re constantly monitoring the message volumes going through our service to ensure we have ample room to cater for our customers requirements. If you want to learn more about cloud-based SaaS EDI solutions and understand how we can help your business, request a call back from our EDI experts below.

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EDIRetailersSuppliers

21/07/2021

eInvoicing FAQs

1. What integration options do you offer?

We can integrate with any ERP system but some of the common ones we offer integration with are MYOB AccountRight/New Essentials, TechnologyOne CiAnywhere, Basware, Microsoft Dynamics, Oracle (on premise and cloud), SAP (on premise and cloud), NetSuite and Intuit Quickbooks. We’re continuing to add more cloud software to our eInvoicing products, so keep checking back!

2. What is your pricing?

eInvoicing Connect:

eInvoicing Connect is our simplest product for you to get up and running with eInvoicing quickly, easily and with minimal investment. Here’s how it’s charged:
  • Annual subscription to MessageXchange's eInvoicing Access Point: $50
  • Credits: $50 for 1,000 credits
    • Credits are charged at $50 for 1,000 credits. 1 credit is 10kb, or part thereof, of data.
    • For more information on how billing works, click here.
*Support charges may apply

eInvoicing Gateway:

Our eInvoicing Gateways give you full flexibility on how you implement eInvoicing. You can choose your connection protocol (sFTP, AS2, API or something else) and we can map your software’s native file format (like XML or CSV) to the Peppol UBL. Our pricing depends on your requirements – if we need to do any mapping, and customisations and the volume of eInvoices you exchange. Fill out the request a quote form on our website so we can send you some more accurate pricing.

3. Can I send/receive eInvoices with attachments?

Yes, the Peppol standard supports attachments in eInvoices and our solution supports this too. Attachments can be in formats such as PDF, CSV and xlxs.

4. How long does it take to implement eInvoicing?

The implementation time varies with every solution. For eInvoicing Connect, implementation takes about 1 day in total, which also includes testing. For eInvoicing Gateways, the implementation time varies depending on your requirements and complexities.

5. What is the biggest challenge when it comes to eInvoicing?

On-boarding suppliers can be a challenge. Because eInvoicing is still in its early stages, there can be a lack of awareness of it, as well as reluctance to get onboard. We offer free- and low-cost-solutions to help get suppliers on-boarded. Colladium, a business network for collaboration and trade, allows companies to register for eInvoicing within minutes. It's free to use and is accessible from a web browser for companies to send and receive Peppol-compliant eInvoices. We also offer low-cost eInvoicing integrations to MYOB and TechnologyOne through our eInvoicing Connect product, with plans to this available to other software users in the future.

6. How can I see if my trading partners can send/receive eInvoices?

Anyone can search the Peppol directory to find out if a business can receive eInvoices. We also offer integrated solutions to our customers to easily check if their trading partners are eInvoicing enabled. Have a chat with us to find out more. And if you try to send an eInvoice to someone who can’t receive it, we’ll let you know!

7. I need a purchase order number/bank details/something else to process an invoice in my software. How do I make sure I receive this on eInvoices?

For customers who subscribe to an eInvoicing Gateway, we can configure your own business rules in your Gateway to check that incoming invoices have certain data present, like an order number or bank details. If we find that the eInvoicing doesn’t have these details, we can automatically send a response message (business level response or BLR) back to the sender to let them know that the invoice has been accepted or rejected and notify them of what action they need to take, if any. Have a chat with our team to find out more. Talk to our team about getting started with eInvoicing.

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E-invoicinggovernmentRetailersSuppliers

13/07/2021

Advanced shipping notices: Get more visibility of your orders

So you’re trying to improve visibility of your orders? There is a way – it’s called an advanced shipping notices (ASNs).

What is an ASN?

ASNs are provided by the supplier to let their customer know:
  • what is in the shipment
  • the delivery date and time
  • where the shipment is going
  • the product details
  • how it’s packaged
  • the carrier information.
Suppliers send the ASN to retailers once the shipment has been packed, allowing the retailer to plan to receive the goods.

How does an ASN work?

Retailers send the order through EDI as usual, and the supplier can respond with a purchase order response (POR) or acknowledgement (POA). When the supplier is ready to ship the goods:
  1. The supplier prepares the goods for delivery
  2. The supplier enters all the information on the ASN. This includes what goods are packed into what carton or pallet, if the goods are perishable or have a batch number, these details will go on there too, the supplier will enter the delivery date and more.
  3. The ASN will generate a serial shipping container code (SSCC) and label for each carton or pallet being created. The supplier will then print these labels and attach them to each package.
  4. When the supplier sends the ASN, the retailer receives the advanced shipping notice into their software for planning. It will include all the information the supplier had input in step 2.
  5. When the retailer receives the goods, they can simply scan the SSCC labels, which can be matched against the ASN information they received, to know exactly what’s come in.

The benefits of ASNs

It improves supply chain visibility

ASNs bring you a step closer to supply chain automation. ASNs will give you an understanding of what you’re receiving straight into your business systems. Your warehouse team can use this information to plan for the delivery in advance. They can also allow suppliers to add SSCC labels providing information of individual packing units (pallet, carton, etc). This allows buyers to cross check what has been received with what is in the ASN.

It can reduce warehouse costs

By knowing in advance what you’ll be receiving, your warehouse team can plan ahead. This ensures you can organise staff when you need them saving time and money. Cost savings in goods receiving activity can be as high as 40 to 50% .

It required much less manual data entry

ASNs are received directly into your business systems. No need for manual inputting of data which can produce costly errors.

It improves customer service

Customers want to know when they’ll be receiving their orders. Retailers, especially those using drop shipping, can send some of the delivery data from the ASN to customers. Customers will then be able to keep track of their order. If you’re interested in ASNs and gaining more visibility of your supply chain, get in touch with our team.

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EDIRetailers

29/06/2021

Creating an eInvoicing compliance program to onboard your suppliers

If you’re onboarding a lot of partners, knowing all parties can send and receive eInvoices is very important. But this is where it gets complicated and time consuming, unless you have an eInvoicing compliance program.

What is an eInvoicing compliance program?

It makes sure ensures suppliers learn how eInvoice you complete with the information and format you need. This could be to make sure your two-, three or four-way matching works, or to make sure the data can be input into your software correctly, or even to help with your automated approval processes.

What does a compliance program check for?

Normally they check:
  • each eInvoice features the information you need, like a purchase order number or payment details
  • the invoice only has characters that your software can accept, like no special characters or adherence to character limits
  • all the elements are in the right place.

There are two types of compliance programs…

1. Manual

  1. a supplier sends you an eInvoice
  2. you review it closely to ensure it meets your criteria
  3. you ask your supplier to amend any issues
  4. you manually repeat this via phone/email until they get it right (particularly time consuming if you’re onboarding a lot of suppliers)
As you can see, manual processing takes a lot of time. In fact, you might even need a few temps get you through.

2. Automated

With an automated program like Colladium it’s a lot easier.
  1. You tell us your requirements
  2. we configure the workflow and business rules
  3. you invite your suppliers to register on Colladium
  4. your supplier upload their eInvoice to Colladium, which automatically reviews it and lets suppliers know if there’s any problems
  5. This 100% automated process keeps repeating until everything is perfect. No temps or staff involved. Just maximum productivity and full visibility of each supplier’s progress.

Why an automated program?

  • It’s a lot less hassle, no phoning/emailing to suppliers to fix errors
  • It’s cheaper
  • It’s 100% automated so no extra staff needed
  • Your team’s free to get on with their jobs.

How to work out if you need an automated compliance solution

Ask yourself, do you:
  • have a lot of suppliers to onboard?
  • lack time and resources?
  • have set invoicing rules for suppliers?
  • don’t want valuable staff time wasted running a manual system?
If you answered YES to any of these then the answer is YES! Get in touch with our team today to learn more about eInvoicing compliance programs.

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E-invoicingRetailers

28/06/2021

The benefits of an eInvoicing mandate for software providers

Right now, a lot of software providers are holding back on enabling eInvoicing due to low demand. However, an eInvoicing mandate would completely change this in 3 ways.

1. Demand for eInvoicing enabled software will explode

If there’s a mandate, businesses will be scrambling for eInvoicing solutions. And while existing customers will want to use their current software, businesses without a financial software will want one ASAP.

2. Welcome to your new revenue stream

You could offer eInvoicing as a premium feature for existing customers or as a standalone product for businesses. Lots of options.

3. Your competitive advantage is waiting

Software that allows eInvoicing will be a differentiator. Xero and MYOB are currently offering eInvoicing to their customers.

MessageXchange offers two solutions to help you integrate eInvoicing

eInvoicing Gateway

  1. Choose your protocol and file format and we’ll connect you.
  2. We translate your file into the Peppol eInvoice file format.
  3. When you or a customer sends or receives an eInvoice, we’ll facilitate it through the Peppol network.
  4. We can help you provide additional services for your customers, including:
    • Reporting To allow your customers to get more insights from the eInvoices they receive or even to track the number of eInvoices exchanged.
    • Business process management To allow you customers to add additional checks on eInvoices they receive like dates being in the future or having a PO number on the eInvoice and build escalation processes around them.
    • And more.
  5. There are minimal changes needed on your side.

eInvoicing Connect

Our eInvoicing Connect product makes it easy for your customers to get onboard to eInvoicing. We connect to your cloud-based software so your customers can subscribe to a low cost solution. Contact us to find out more. Get in touch with our team to learn more about how eInvoicing can improve your business.

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E-invoicingRetailers

20/05/2021

Benefits of an eInvoicing mandate for businesses

The possibility of an eInvoicing mandate for Australian businesses is generating a lot of talk. Right now, the government is seeking feedback on the best way to do this. While mandates can be daunting, this one offers businesses significant benefits.

Direct benefits

  • faster payment
  • automated invoicing processes
  • reduced costs and paper use
  • fewer errors
  • improved security.
Check out our Benefits of eInvoicing for businesses infographic for more.

Businesses will get paid faster

At any given point it’s estimated that unpaid invoices for Australian businesses total $26 billion. According to sources, eInvoicing will reducing payment times and:
  • improve on-time payment by 15%+
  • reduce processing time by up to 65%.

$28b saved over 10 years

Australia exchanges 1.2 billion invoices p.a. eInvoice processing is around 70% cheaper than traditional invoice processing, saving the economy an estimated $28 billion over 10 years.

Business has a reason to get onboard

A mandate will hasten the crucial digitisation of business. More eInvoicing means more businesses on the network making it work better for users, delivering significant benefits for everyone.

The broader digitisation of business and trade

We can all agree digitisation is the future. eInvoicing simplifies trade for many businesses by reducing processes and international trade barriers while improving systems and providing more growth opportunities.

More software will allow eInvoicing

An eInvoicing mandate for business will drive software providers to integrate eInvoicing into their products.

What we’ve seen from other mandates

In Australia Single Touch Payroll (STP) was mandated. It forced employers to disclose payroll and tax information to the ATO after every payday. Without it, businesses would still be using an error prone, paper-based and manual reporting system. Employees would also need a PAYG summary when they do their tax returns.

So, what’s the takeaway of a possible eInvoicing mandate?

An eInvoicing mandate would kick off great things for Australian businesses as they streamline their legacy processes and reduce costs. But adoption is key and an eInvoicing mandate will ensure this. Get in touch with our team to learn more about how eInvoicing can improve your business.

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