Electronic Data Interchange

Grantees that transmit large amounts of data to the Integrated Disbursement and Information System (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 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.

Functional Architecture

EDI text files are 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. Next, 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. This process is shown in detail in the diagram below.

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

Planning and Implementing EDI

Successful implementation of EDI requires an understanding of the options available and some careful planning.

Planning for EDI

• Discuss your prospective EDI implementation budget requirements with your Manager of Information Technology.
• Read the EDI Implementation Guide for detailed information.
• Contact your local CPD Field Office or the HUD EDI Help Desk at CPDEDI@hud.gov for guidance and implementation assistance.
• Define specific actions required to carry out your Operation Methodology.
• Set a Timeline.

Implementing EDI

The following is an example of a basic plan of attack for implementing EDI at the Grantee level:

• Grantee Data Mapping
  • Program Configuration
  • VAN Connection
  • Complete connectivity testing with HUD
  • Grantee goes Live

• Grantee Mapping
  • Establish a relationship between Grantee data and IDIS Tables and Fields.
  • Use the IDIS Data Dictionary to establish:
    • Relationships
    • Field sizes
    • Data type
    • Logic

• Program Configuration
  • Develop a systematic way of compiling and formatting data to meet the standards set forth by the EDI formats. (This will vary from Grantee to Grantee depending on the complexity of their system.)

• VAN/Internet Connection
  • Establish a means of transmitting the data to the HUD VAN mailbox by way of their own VAN.

• Testing
  • Grantee and HUD test the EDI data flow to make sure it has been sent and received correctly.
  • Grantee and HUD test the integrity of the data going into IDIS to verify that the EDI format requirements are correct.
  • HUD provides technical assistance as needed.

EDI FAQs

What is EDI?
Electronic Data Interchange (EDI) is the computer-to-computer exchange of routine business information using Accredited Standards Committee (ASC) X12 standards.

Is EDI similar to email?
No. Unlike email, EDI utilizes a tightly structured data format which allows the data to be processed directly in either the originating or receiving company’s application.

What is a Value Added Network (VAN)?
A VAN is a third-party service organization that provides a variety of services for businesses that want to do business using EDI. Most importantly it provides the communications link between HUD and clients.

What is a Vendor?
In the context of EDI, a Vendor (also known as a "service bureau") is third-party provider of text-formatting services. Vendors receive data from a Grantee and reformat it to comply with EDI standards.

How many transactions can I transmit at a time?
There are no limits imposed by ASC X12 EDI standards. However, there may be software, hardware, or communications limitations.

When and how often can I transmit my transactions?
When and how often you transmit documents depends on the arrangements with the VAN or your trading partner. Currently, HUD IDIS/EDI picks up mail from their VAN mailbox five times a day.

What is mapping?

Mapping is the process of identifying the relationship of the users' standard data elements to the ANSI X12 EDI standard data elements.

What is an EDI Translator?
A translator is a set of software (programs) designed to automatically translate proprietary data formats in ASC X12 standard format for sending. The software reverses the process when data are received. An EDI translator is the computer software used to perform the conversion of application data to and from the X12 standard.

What is a trading partner agreement?
A trading partner agreement is the key document that sets forth the rights and obligations of the trading parties. The HUD trading partner agreements are tailored by HUD to meet the standard practice of the industry—for example, transportation, medical supplies, grocery, or grants processing. Trading partner agreements are stand-alone agreements or they can be provisions in a master agreement. HUD IDIS/EDI uses a master agreement with provisions.