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EDI for the Finance/Bank industry
Financial EDI (FEDI) let you exchange payment payments related information between businesses with a standard format. Financial EDI works much like non-Financial EDI - which involves the electronic exchange of business data such as price quotes, purchase orders, and shipping information, however, the main different is that in order to move a payment, a bank must be also involved. The buyer and seller must work closely with their banks to exchange a Financial EDI transaction. Financial EDI is playing a more significant role in today's payment and collection cycles. Today, estimates are that 60,000 companies doing EDI in the U.S. and a growing percentage is starting to understand and adopt FEDI.

Financial EDI in the corporate world
Financial EDI has been used by corporations in the last six years and during that time it has been increasingly become the prefered payment method since more and more trading partners have seen the advantage provided to their competitors and have consequently started using an EDI platform for their own company. Many corporations are looking to outsource their payments processing, which include sending an EDI file to the bank. That file will contain all the payment instructions. The bank will commit all payment orders, wire transfers, and then will print and mail the payable checks. That way, a company can handle electronically with all of the payments. From the collection point of view, companies are also transfering the receivables process by having remittance information collected by their bank, through the ACH, lockbox, or wire transfer payments, then if being sent electronically to the companies accounts receivable computer system for automatic cash application.

Financial EDI include the following steps:
  1. The buyer/originator, extracts payment information from the company accounts payable system.
  2. The buyer generates EDI document, the ANSI X12 820 transaction set
  3. The buyer send the EDI document to its bank for processing.
  4. The bank takes the EDI 820 document and save it into a file format so that it can be sent through the Automated Clearinghouse (ACH) network as an ACH transaction.
  5. The ACH network sends the payment data to the seller's/receiver's, bank.
  6. The receiving bank credits the seller's account with the proceeds and delivers the remittance information to the seller for automatic accounts receivable posting. The remittance data can be sent in different formats such as ANSI X12 820 or 823 format, and in a BAI format.

Common Finance EDI transactions are listed here:

Finance Industry
X12
154 Secured Interest Filing
812 Credit/Debit Adjustment
820 Payment Order/Remittance Advice
821 Financial Information Reporting
823 Lockbox
827 Financial Return Notice
828 Debit Authorization
829 Payment Cancellation

Amosoft is familiar with the Finance/Bank EDI documents, and our EDI services and solutions support all of them. Our EDI integration solutions provides full integration of EDI and your ERP system. Amosoft can help with EDI integration and implementation, beginning to and End solution full custom tailored to your specific needs. For companies who have low volume of EDI documents every month we developed our Web-EDI solution. The web solution is very easy to use and has the fill and look of using an email.
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