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February 22, 2008

1 EDI Source explains 3 major areas in EDI that may be costing your company unnecessary EDI chargeback fees.

You have made the decision to implement an EDI solution that will grow your business and improve sales, manufacturing and shipping processes related to EDI. Implementing EDI technology eliminates a significant number of manual EDI tasks but if you are not prepared you can be faced with costly “chargebacks.”

Unfortunately, EDI chargebacks have become a profit center for some trading partners, so being aware of potential errors will certainly help. Your EDI solution may take care of some of the discrepancies through error checking or automatic validation, but without accurate data and proper document structure, there is room for error.

It is often difficult to determine why these chargebacks have occurred, so the best way to avoid them is to be prepared. EDI chargebacks are applied when an invoice or ASN does not contain the correct information, or does not match the PO or shipment. The discrepancy in an EDI or ASN document can be caused by missing or incorrect UPC codes, line items, store numbers, etc.

By utilizing EDI solutions that that have been implemented effectively and that offer a direct line of EDI technical support, you can eliminate unnecessary chargebacks.

Here are three ways you can eliminate unnecessary chargebacks.

Data Accuracy. It is imperative to properly format your Advance Ship Notice. By using ASN Complete with built in error validation, you are eliminating many potential errors before the ASN is even sent!

EDI Document Structure. Proper EDI document structure is a key factor. EDI Complete’s straightforward presentation eliminates cluttered screens and presents your data clearly and concisely. EDI Complete automatically configures each trading partner from the raw EDI data minimizing errors due to manual data entry. And, if there is a need to investigate a chargeback, EDI Complete allows you to find the information you need in seconds with automatic functional acknowledgement reconciliation tracking, enhanced search, archiving, and backup capabilities.

Professional Guidance. Allowing our knowledgeable EDI consultants to advise you and customize your EDI solution will greatly reduce the number of chargebacks you may face. Many times, chargebacks can be reversed if you can prove to the trading partner the problem was fixed or did not occur on your end. Making sure that you have the proper format and documentation will help when needing to dispute a chargeback.

Contact an EDI Solutions Consultant to find out more about how to eliminate or avoid costly chargebacks and keep an eye out for our upcoming hands-on EDI workshop on “How to Reduce Chargebacks.”

This workshop along with our ongoing EDI training classes will provide you with the tools necessary to become a successful and efficient EDI partner.