cargo & miscellaneous billing webcasts sis – simplified interline settlement

Cargo & Miscellaneous Billing

Webcasts

SIS – Simplified Interline Settlement

August 2008 SIS – Materials – Cargo Misc Webcast 2

Welcome to the SIS webcast! Audio available over this webcast or via a dial-in number

Phone Number: +1 514 392 3303 Conference ID: 7026529

1 hour long 30 minute presentation 30 minute Question & Answer (Q&A) session

Please hold all questions until the second half You will be unable to speak All questions must be typed into a Q&A window

which will appear later

Feedback can be entered using the statusbox on your screen ------------------------------>


Welcome to the SIS webcast! Audio available over this webcast or via a dial-in number

You should now be able to hear something if youraudio is working! If not, you need to dial in:

Phone Number: +1 514 392 3303 Conference ID: 7026529

1 hour long 30 minute presentation 30 minute Question & Answer (Q&A) session

Please hold all questions until the second half You will be unable to speak All questions must be typed into a Q&A window

which will appear later

Feedback can be entered using the statusbox on your screen ------------------------------>


Overview of this webcast Simplified Interline Settlement Webcasts & Introduction Interline Settlement Today & Scope of Webcast

Cargo Billing Miscellaneous Billing Central Repository & Supporting Documents Audit Trail & Rejection History (Cargo Only) E-Invoicing File Formats

Next Steps Questions & Answers


Presenters Gianna Monsch, External Consultant

Project Management

James Shannon, IATAProject Coordination


SIS Webcasts August 6

Passenger Billings (including prime, sampling, auto-billing, non-prime, audit trail, and supporting documents)

August 7 Integrated Settlement Data Interfaces (including IS-WEB and validation) Cargo & Miscellaneous (including Cargo original billings and rejections)

September 3 General SIS Webcast (repeat of webcast done in July)

See http://www.iata.org/whatwedo/finance/clearing/sis/webcast.htm for schedules and materials


Introduction to SIS (General Webcast) “Integrated Settlement” is based on the principles of completely paperless

billing, invoicing, and settlement

Benefits include: Data quality improvements to the billed carrier Billing carrier’s upload format doesn’t impact billed carrier’s download format Reduction in paper and courier fees and internal supply chain (paper handling)

costs Automation & Optional Services Quicker cash flow due to reduced rejection timeframes

‘Airline Profile’ to be a centralized database for all IS options and permissions

IS features discussed are subject to change


Non-core Functionality Core functionality of SIS enables paperless billing and settlement. The non-core functionality is considered by the SIS Working Groups

to be “value-added services”; its final inclusion is dependent upon implementation costs and airline demand and will likely be billed to carriers separately, based on usage.

Non-core functionality is coloured orange on the following pages


Interline Settlement - Now

ICH

ATPCO

(incl F&F pre IDECValidation)

BilledAirline

BillingAirlineCargo IDEC File (monthly)

Pax IDEC File (monthly)

F12 – (weekly)F1 – net amounts of inv

F2 - summary

Cargo IDEC File (monthly)

Pax IDEC File (monthly)

F3– (weekly)

Paper invoices, with coupon listing, coupons, rejects, supporting documents(monthly)

AIA F&FF&F: receives NFP value

All: May receive sales records

ARC-Compass(NFP storage)

Previously released sales record

prorateengine prorate

engine

GDSsBSPs

ACHRecap sheets - weeklySettlement sheets –

(weekly)


SIS – Simplified Interline Settlement

BilledAirline

Integrated Settlement

BillingAirline

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Billing & Invoicing ProcessesCentralRepository

“DigitalSignature”Company

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Settlement Processes

ICH ACH

Processes at time of SalesNFP

engineARC COMPASS™

ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Other

IS-WEB

IS-XML

IS-IDEC


Cargo Billing


Cargo Billing – with IS Original Billings Rejection Memo & Charge Memo (same record but different

fields used)

Correspondence Can also be sent outside of Integrated Settlement (e.g. via email)


Cargo Billing – Original Billings

BilledAirline


BillingAirline

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ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Other(TBD)

IS-WEB

IS-XML

IS-IDEC

Billing File / Data(similar to today)


*Core / non-core file formats have not yet been fully defined


Cargo Billing – RMs, CMs, Correspondence

BilledAirline


BillingAirline

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ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Other

IS-WEB

IS-XML

IS-IDEC



*Email / other for correspondence is a unilateral choice made by the billing airline

Email or Other(correspondence only)


Correspondence – With IS Correspondence can include an “authority to bill” flag

which identifies when the authority to bill has been issued

Not tied to settlement periods like transactions in Integrated Settlement – real-time and similar to e-mail but via IS-WEB interface

Validation ensures no “cross-over” – correspondence can only be in reply to another correspondence (or 3rd-stage RM) and cannot be out-of-order


Miscellaneous Billing


Miscellaneous Billing

BilledAirline


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ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Other

IS-WEB

IS-XML

IS-IDEC

Billing File / DataBilling File / Data


Supporting Documents


Supporting Documents – With IS

BilledAirline


BillingAirline

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ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

* Could be used with all record types (including prime coupon billings, Cargo, etc)

? ?


Central Repository & Supporting Docs What?

Any type of supporting document (image, PDF, IS-XML, etc)

How long? As long as the data is operationally required

When? Before or after the associated record is uploaded (with “pending

attachments” flag, which allows for notifications if not uploaded)

How? To be determined in the next phase with the help of the supplier


Audit Trail(Cargo Only)


Audit Trail & Rejection History (Cargo) With operational data being stored:

Future records (e.g. rejections) don’t need supporting documents re-attached

IS-WEB can be used to search and take action on previous billings: Search & browse through all records for which your carrier billed

or was billed View audit trail of linked correspondences, rejections, and

original billings Find outgoing correspondences that haven’t been responded to Go directly to appropriate action


Audit Trail Analysis & Reporting (Cargo) Search by prefix code, coupon number, source code,

billing period, authority to bill, etc Drill down through tickets, coupons, tax breakdowns,

correspondences, etc Viewing and downloading of analysis (reporting)

available Actions (where applicable):

View the rejection history Create a rejection memo Create correspondence Create a billing memo


Cargo & IATA e-freight Currently all cargo attachments are “electronic presentation”

(scanned images or other visual representations) When IATA e-freight is fully implemented:

Most records will be “e-electronic” (a structured, machine-readable format) and the format will be required by IS

Both the billed and billing carriers will have digital copies of some records, which will no longer need to be attached in IS

Before e-freight is fully implemented, carriers may bilaterally choose to send the e-electronic records or to not send any records


E-Invoicing


E-Invoicing

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BillingAirline

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IS-WEB

IS-XML

IS-IDEC

Other

IS-WEB

IS-XML

IS-IDEC



Create invoice file (where applicable)

Optionally create and verify digital signature

Optionally store e-invoice in a legal archive

Settle claims via ICH / ACH Make invoice (incl. optional

digital signature and verification) available for download


E-Invoicing Carriers can submit a:

Billing file containing all information necessary to be a legal invoice, therefore submitting a legal invoice

Billing file without necessary data (such as reference data or digital signature)

IS adds the necessary data or digital signature, thereby creating the legal invoice

IATA will be legally mandated by the carriers to supplement the billing file with this information

Invoice will be made available via IS-WEB


E-Invoicing Need for digital signature depends on both billing and

billed carriers (option in airline profile and specified on upload file)

Legal e-invoice archive will be an option for carriers that need it

Billed carriers do not need to be concerned with the billing carriers’ requirements pertaining to e-invoices (or vice versa) – IS will handle this with the input of individual carriers


E-Invoicing Reference Data

An invoice contains legally-required fields (e.g. VAT number, company name, etc)

Those fields can be stored in the airline profile and added during the legal invoice creation

Or the billing carrier can upload them in the billing file (any discrepancies between the uploaded data and the profile will be sent in an alert)

Settlement Method New field that designates how the billing will be settled: ICH,

ACH, bilaterally, or not at all


E-Invoicing - General Claims and protests will be settled with the clearing

houses like today


Cargo & Miscellaneous File FormatsProcess IS-IDEC IS-XML IS-WEB

Cargo – Original Billing* Cargo – RMs, CMs, Correspondence Miscellaneous – All * Non-core file formats have not yet been defined; “Other” (such as CSV) will be non-core and based on carrier needs

Subject to change based on costs and carrier demand See ‘IS File Formats’ and ‘Pax Non-Prime’ webcasts for more information


Next Steps – Sep to Dec 2008 Webcasts through September RA annual meeting (September 08)

Presentation and breakout sessions for information and discussion

FinCom (September 08) Update on SIS (they strongly support the project)

Board of Governors (December 08) They wish to see radical change and will decide the way forward They will be looking for initiatives that reduce operating costs,

improve data quality, and help to meet environmental objectives

SIS Project Team Continues the momentum through to Phase 3


Questions?

Email:

[email protected]

SIS Website:

www.iata.org/whatwedo/finance/clearing/sis/index.htm

mailto:[email protected]

cargo & miscellaneous billing webcasts sis – simplified interline settlement

Documents

general sis webcast

settlement slide

validation cargo miscellaneous

cargo original billings

materials http

paperless billing

change slide

settlement benefits