Page 269 - Electronic Commerce

Chapter 5

Operating Buyer Vendor
unit
Manufacturing
Department’s production
management system

Sales
Purchasing
244 Department Department’s
sales order
EDI EDI system
translator EDI translator
computer network computer

Accounting
Accounting
Department Department

Learning

Cengage
Receiving Shipping
Department Bank Department
2015
©
FIGURE 5-6 Information flows in an EDI purchasing process

3. Purchasing also sends electronic messages to the buyer’s Receiving Depart-
ment (so it can plan to accept delivery when it is expected) and to the buyer’s
Accounting Department with details such as the agreed purchase price.
4. When the machine is completed, Manufacturing notifies Accounting and
sends the machine to the vendor’s Shipping Department.
5. The vendor’s Shipping Department sends an electronic message to its
Accounting Department indicating that the machine is ready to ship. It also
sends an electronic message to its EDI translator computer that indicates the
machine is ready to ship. The EDI translator computer converts the message
into a standard 856 transaction set (Advance Ship Notification) and forwards
it through the EDI network to the buyer.
6. The vendor’s Accounting Department sends a message to its EDI
translator computer, which converts the message to the standard invoice
transaction set and forwards it through the EDI network to the buyer’s
EDI translator computer before the buyer’s Receiving Department receives
the machine. The computer then converts the invoice data to a format
that the buyer’s information systems can use. The invoice data becomes
immediately available to both the buyer’s Accounting and Receiving
Departments.

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