It can be included in standing agreements or can stand on its own as a document. A. EDI only sends and delivers documents. It does not allow others to access to your internal data. For sensitive documents, many software packages and VANs off encryption and authentication services. Authentication assigns an electronic key to each trading partner and transaction.
Encryption scrambles the transmission.
In addition, functional acknowledgments ensure that the company gets the document. In addition, transactions such as Purchase Order acknowledgments ensure that the Purchase Order was received from the appropriate party. Invoice and purchase order data must represent inventory and dollar figures. The audit trails that are established via EDI are perfect for the auditing team to research. In fact, electronic files take up less room than paper files.