Integrated Settlement Interfaces

Webcasts

SIS – Simplified Interline Settlement

August 2008 SIS – Materials – Pax Prime Billing 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 ------------------------------>

August 2008 SIS – Materials – Pax Prime Billing Webcast 3

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 ------------------------------>

August 2008 SIS – Materials – Pax Prime Billing Webcast 4

Overview of this webcast Simplified Interline Settlement Webcasts

Input Formats Overview Files (IS-IDEC & IS-XML) Web Interface (IS-WEB) Validation

Next Steps Questions & Answers

August 2008 SIS – Materials – Pax Prime Billing Webcast 5

Presenters Gianna Monsch, External Consultant

Project Management

James Shannon, IATAProject Coordination

August 2008 SIS – Materials – Pax Prime Billing Webcast 6

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

August 2008 SIS – Materials – Pax Prime Billing Webcast 7

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

August 2008 SIS – Materials – Pax Prime Billing Webcast 8

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 detailed in the relevant presentations (Pax prime, Pax non-prime, Cargo/Miscellaneous)

August 2008 SIS – Materials – Pax Prime Billing Webcast 9

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)

August 2008 SIS – Materials – Pax Prime Billing Webcast 10

SIS – Simplified Interline Settlement

BilledAirline

Integrated Settlement

BillingAirline

Enab

ling

Proc

esse

s

Billing & Invoicing ProcessesCentralRepository

“DigitalSignature”Company

Enab

ling

Proc

esse

s

Settlement Processes

ICH ACH

Processes at time of SalesNFP

engineARC COMPASS™

ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

August 2008 SIS – Materials – Pax Prime Billing Webcast 11

Input Formats Files (upload & download)

IS-IDEC IS-XML

IS-WEB Others – Usage File for Pax

All contain same fields and record structure Billing carrier can use any format at any time (“input combination”) Billing carrier’s choice doesn’t affect billed carrier (“format conversion”) Available formats depend on functionality (see other webcasts)

This presentation applies to Passenger, Cargo, and Miscellaneous

August 2008 SIS – Materials – Pax Prime Billing Webcast 12

File Formats – IS-IDEC No longer data exchange file, but rather used to create

an invoice and settlement file Similar to IDEC, with enhancements:

Existing fields made mandatory (source codes, etc) New records added (Rejection Memos, tax breakdowns, etc) New fields added (for e-billing, additional info, etc) Unnecessary records / fields removed (batch total records, etc)

400 byte records (instead of 160 byte)

August 2008 SIS – Materials – Pax Prime Billing Webcast 13

File Formats – IS-XML New XML format for Integrated Settlement Based on IATA Aviation Invoice Standard, developed by

the Airport Invoice Task Force (AITF) and currently used by IATA InvoiceWorks

Identical fields and validation requirements to IS-IDEC

August 2008 SIS – Materials – Pax Prime Billing Webcast 14

IS-WEB Web-based user interface to create, read, and delete

invoices and records Identical fields and validation requirements to IS-IDEC

and IS-XML Validation in real-time minimizes possibility of later validation

errors View and print records in a standard format Same system as for other web-based services (Audit

Trail, airline profile updates, etc) Extensive user access controls (administrator grants view/edit

and upload of supporting documents per user per area)

August 2008 SIS – Materials – Pax Prime Billing Webcast 15

Breakdown Records Breakdown Records have been added where necessary to provide

for detailed, possibly repeating, data and to provide for large amounts of text

E.g., a coupon can have 0 or more tax breakdown records, each detailing a tax type and amount

Coupon (C3 on Pax IDEC) breakdown records: Tax, VAT breakdown

Breakdown records for Rejection, Billing, Credit Memos: Reason Breakdown, Coupon Breakdown (with Tax & VAT)

Breakdown records for ‘Other Charges’ (Cargo only)

August 2008 SIS – Materials – Pax Prime Billing Webcast 16

Passenger Rejection Memo Breakdowns

Rejection Memo(SFI = 21)

Reason Breakdown(SFI = 31)Reason Breakdown

(SFI = 31)

Coupon Breakdown(SFI = 32)Coupon Breakdown

(SFI = 32)Coupon Breakdown(SFI = 32)

Tax Breakdown(SFI = 33)Tax Breakdown

(SFI = 33)Tax Breakdown(SFI = 33)

VAT Breakdown(SFI = xx)VAT Breakdown

(SFI = xx)VAT Breakdown(SFI = 34)

August 2008 SIS – Materials – Pax Prime Billing Webcast 17

Validation Validation will be necessary in the Integrated Settlement

environment as quality data is essential: No paper invoice or “back up” to determine what the electronic

data means Uploaded data is no longer a data exchange file in support of a

paper invoice, but rather the base for invoicing and settlement

Some existing fields will continue to be passed through the system without validation for use on a bilateral basis

August 2008 SIS – Materials – Pax Prime Billing Webcast 18

Examples of Validation Format Rules

Ensures data types (e.g. numbers), length, etc Correct Values

Settlement method is one of five values (e.g. ICH or ACH), but also depends on which clearing house the carrier is a member of

Mandatory Fields Source Code, Ticket Issuing Airline, Coupon Number, etc

Rejection & Correspondence Timeframes and Order Enforced 1st RM 2nd RM 3rd RM Correspondence

Mandatory Breakdown Records Are Present Tax breakdown records are present if coupon tax is populated and the

breakdown record sums match the tax field

August 2008 SIS – Materials – Pax Prime Billing Webcast 19

Results of Validation Timeline

Will occur within a maximum of 6 hours after submission Will also occur after closure if the file was submitted on time (but

failures can’t be fixed in that period) Notification of validation results sent to submitting carrier Success

Files go on to next step of IS (e.g. e-invoicing & settlement) Failure (options and permissions to be set in profile)

Invoice or entire file is held until corrected Web Correction (IS-WEB interface) Delete (then, optionally, resubmit)

August 2008 SIS – Materials – Pax Prime Billing Webcast 20

Other File Format Features 20 character “airline’s own use” field (only for Pax) Value signs (+/-) where appropriate

August 2008 SIS – Materials – Pax Prime Billing Webcast 21

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

August 2008 SIS – Materials – Pax Prime Billing Webcast 22

Questions?

Email:

sis@iata.org

SIS Website:

www. t .or .w tw o. n n . l.ia a g ha ed fi a cece

r n .s s. n x. tma i g i i de h