EDI Flow Flashcards
Explain the process illustrated in the diagram.
The process begins with the Purchase Organization sending a proposal to the Supplier. If the Supplier agrees, they sign the agreement and a purchase order is sent back to the Purchase Organization. Once the terms and conditions are agreed upon and bar codes are matched, the Purchase Organization initiates the payment process through its bank (PO Bank). The PO Bank then transfers the payment via EFT (Electronic Funds Transfer) to the Supplier’s Bank. Upon receiving the payment, the Supplier Bank sends a receipt back to the Supplier.
What does the Purchase Organization send to the Supplier initially?
Proposal.
What happens after the Supplier signs the agreement?
The Purchase Organization sends a purchase order to the Supplier.
What documents are involved between the Purchase Organization and the Supplier?
Proposal, Agreement, Purchase Order.
What role do bar codes play in this process?
Bar codes are used for matching and verification between the Purchase Organization and the Supplier.
What does PO Bank stand for and what is its role?
PO Bank stands for Purchase Organization Bank, and its role is to transfer the payment to the Supplier’s Bank via EFT.
How is the payment transferred from PO Bank to Supplier Bank?
The payment is transferred via EFT (Electronic Funds Transfer).
What does the Supplier Bank send back to the Supplier upon receiving the payment?
Receipt.
What ensures the terms and conditions are met between the Purchase Organization and the Supplier?
The terms and conditions are ensured through the agreement signed between the two parties.
What happens once the payment takes place?
The PO Bank transfers the payment to the Supplier Bank, and the Supplier Bank issues a receipt to the Supplier.
