The EDI Alternative

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Key Facts About EDI   EDI Benefits to Grantees Using IDIS   The EDI Process   EDI Costs   Getting Started with EDI

Grantees who transmit large amounts of data to IDIS may be able to benefit from Electronic Data Interchange (EDI), an alternative to the more common IDIS Internet method. The motivation to use EDI is compelling: Processing and handling a single, multipart paper document over its lifetime can cost from $10 to $40, sometimes more. Conducting business electronically eliminates these paper forms and can slash costs by one-third to one-half. Other benefits include more accurate records, lower data entry costs, lower mailing costs, greater customer satisfaction, better cash management, and reduced turnaround time.

Key Facts About EDI

• EDI is the paperless, computer-to-computer exchange of routine business information using Accredited Standards Committee (ASC) X12 standards.
• HUD has created a program that allows the transfer of EDI-formatted Project and Activity Information from your host system into IDIS. HUD successfully tested this program with the State of Louisiana.

EDI Benefits to Grantees Using IDIS

• Reduces the data entry burden
  
• Eliminates data entry errors caused by duplicate keying
  
• Facilitates the timely collection of data

The EDI Process

• Before data can be transmitted to IDIS, it must be mapped into a text file in a specific format. This can be accomplished either in-house (with a custom-designed EDI Translator) or outsourced to a Vendor.
  
• The text file is sent electronically to HUD via a Value Added Network (VAN).
  
• HUD receives the file, translates it, and updates IDIS with the information the grantee has transmitted.
  
• IDIS generates a report and electronically sends it to the grantee’s mailbox notifying the grantee of any success or failure with the data in the file.
• For more detailed information and a diagram of this process, see Functional Architecture.
  

EDI Costs

• Creation of EDI-formatted text files:
  • In-house option: a one-time outlay for the EDI Translator, plus occasional maintenance/upgrade costs
  • Outsourcing option: periodic payments to a Vendor
• Network services: periodic payments to a VAN

Getting Started with EDI

• Successful implementation of EDI requires an understanding of the options available and some careful planning.
• For more information about this process, see Planning and Implementing EDI.