ROLE OF ELECTRONIC DATA INTERCHANGE (EDI) IN IMPROVING THE EFFICIENCY OF ACCOUNTING TRANSACTIONS

Abstract

Accounting transactions are basically distinguished into two types which includes inventory, bills, invoices, purchases, sales transactions etc. These are accounts payable and the other is accounts receivable. When the accounting transactions are limited to one organisation the efficiency will be more. When the transactions sphere is extended to different departments and different organisations. The efficiency will be dropped. Electronic Data Interchange is a computerisation process to improve the efficiency of accounting transactions with the extended operations. This can be possible with the Information technology process. Now a days all the organizations are using digital information. Every organisation has adopted different platforms. When the accounting transactions are need to be exchanged within different organizations with different information systems, Electronic Data Interchange is one which can transform the information suitable for other organisation.In this paper we strongly recommend EDI to reduce the processing time for data exchange involved in advanced business transactions of present day to day accountingSystem.
finally we concluded  Electronic Data Interchange is a new concept in information technology widely used for accounting and financial transactions. EDI is widely used in different applications to perform the data retrieval and data availability with the special mechanism.