Technological advances in business have shifted the mindset of many. Not only do they allow for convenience to take the driver’s seat, they have also paved the way for shortcuts; turning the notion of manual labor, in most scenarios, nearly obsolete. Let’s take a look at one of these shortcuts: Electronic Data Interchange (EDI). Once we outline its capabilities, we’ll dive into how the Bista Solutions team utilized it in order to facilitate the lives of Odoo-ers everywhere: EDI Integration with SPS Commerce and Cleo.  

Electronic Data Interchange 

Electronic data interchange is a way of electronically exchanging standardized business information between businesses that communicate with each other electronically (aka trading partners). Simply put, EDI is an automated and paperless form of communication that allows computer-to-computer exchanges of business documents from one company to another.

So how exactly did the EDI shortcut come about?

Long before its creation, businesses relied on moving paper-based documents to communicate with each other. As you can expect, the exchange of information would take days, if not weeks, between these companies. Let’s look at a sample exchange prior to EDI:

1. Buyer creates Purchase Order (PO)
2. Buyer prints PO and sends it to the supplier via mail, fax or email
3. Supplier receives PO and manually enters info in their own management system (i.e. QuickBooks, SAP, Odoo, etc.)
4. Supplier creates an invoice for PO
5. Supplier prints the invoice and sends it to the buyer via mail, fax or email
6. Buyer receives the invoice and manually enters invoice content into their own system

Now let’s look at how simple the process becomes when EDI is involved:

1. Buyer chooses to purchase a good/product
2. Buyer’s EDI system automatically creates an EDI version of a PO and sends it directly to the Supplier
3. Supplier’s ERP (or order management solution) receives the PO and automatically ingests and updates its own system
4. Supplier’s ERP creates an EDI 855 acknowledgement automatically on confirmation of the Sale order and then based on their business flow, EDI Invoice 810 and EDI Shipment 856 will be generated. 

Not only is the process simplified with an EDI, it also saves everyone so much time and money. Additional perks include, enabling order accuracy, enhancing speed, driving business efficiency, establishing security, elevating strategic decisions, and more. 

Now the way in which the data is shared through EDI involves methods like the FTP or API, or the likes of VAN. The image above depicts the process, however you’ll also find EDI numbers marked above each action. These digits indicate the type of report, or the type of communication, that is being shared. You’ll find what they all mean below:

810: Invoice (to send to customer)

811: Consolidated Service Invoice / Statement

846: Inventory Inquiry / Advice (does company have what client needs?)

850: Purchase Order

855: Purchase Order Acknowledgement

856: Advanced Ship Notice (ASN) Manifest

860: Purchase Order Change Request – Buyer Initiated

997: Functional Acknowledgement

So now that we’ve discussed EDI and its benefits – let’s change direction and cover SPS Commerce and Cleo.

SPS Commerce Platform

Standard Procurement System (SPS) Commerce is a part of the SPS Retail Network, and it powers the retail supply chain around the globe. With EDI and SPS Commerce, you can achieve compliance with partners’ order requirements, simplify three-way invoice matching, meet fulfillment model requirements, and so much more.

Cleo Platform 

On the other hand, Cleo is an ecosystem integrated software company that delivers a business-process-driven approach to connect and integrate the core revenue producing business processes between a company and its ecosystem partners. Combine Cleo with EDI and you’re able to connect, transform and route your EDI transactions through your ecosystem without pinlin on the custom code.

EDI Integration with SPS Commerce and Cleo within Odoo

A lot of companies may use SPS Commerce or Cleo to exchange information with their customers or partners. Unfortunately, not all ERPs are compatible with either platform. That’s where Bista Solutions comes into play. The Bista team has created an EDI module within Odoo ERP in order to make this process seamless; and has paved the way for EDI integration with SPS Commerce, and EDI integration with Cleo.

The Bista team did two configurations as outlined below:

SFTP Configuration for File exchange purpose

1. Click on the EDI Module → You will be redirected to the EDI Configuration page
2. Click on Create in order to input your Cleo configuration details
3. Input the following information in order to establish a connection with the server (whichever is being used to input POs and other files by the client)
   1. Input the SFTP Username (ask client for this information)
   2. Input the SFTP Password  (ask client for this information)
   3. Input the Hostname (ask client for this information)
   4. Input the TCP Port (ask client for this information)
4. Make the correct selections for Inbound and Outbound EDI forms
5. Input the appropriate folder name from which the files will be pulled (i.e. Inbound: /testout/)
6. Once information is inputted, always click on the “Test Connection” button to ensure the server is connected (is marked as “success”)

There is another aspect to this configuration. Once we’ve configured the client’s Odoo, we now need to configure our client’s customers’ EDI.

Customer Configuration for EDI Forms requirements

1. Under the Customers section, select the appropriate customer.
2. Click on the “EDI information” tab.
3. Input EDI Config. (ex: Cleo)
4. Input the Trading Partner ID (this is needed because whenever files are imported from the SFTP server, we recognize these files (i.e. a  Purchase Order) and customers via the Trading Partner ID and be able create a sales order against it.)
5. Select the appropriate EDI Form boxes under the Inbound and Outbound sections 
   1. Note: Previously configured EDI forms will appear here. You have the option to check or uncheck the boxes of those forms only. You cannot add new forms. To add new forms, you must configure them during Config.1)

 

How is the importing and exporting of files achieved?

• The Bista team has created Scheduled Actions in Odoo. After uploading the needed files on the server, you can configure the appropriate information within Scheduled Actions. See example below:

What happens when I export invoices or shipments?

• All you need to do is click on the appropriate Data Queue (i.e. Invoice / Shipment) within Odoo and then after selecting the correct reference and going over its details, click on the “Export Order” button. This will send the XML file information back to the server and once you refresh the “/testin/” folder (or whatever your outbound folder is named), you’ll see the updated Shipment/Invoice file there.

Odoo and EDI Integrations with SPS Commerce and Cleo

If you’re looking to add an EDI App to your Odoo ERP, look no further than the Bista Solutions team. We have nearly 2 decades of experience with Odoo, and 3 decades of experience with ERP. Additionally, we have over 200 resources, which means that whether you are looking for an implementation, configuration, customization, development, or support – we can help. So contact our team today for a free consultation where you will be able to see what our team brings to the table and how we can assist you in optimizing your business processes.