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SIS Functional Review

SIS Functional Review. Kuala Lumpur ICH UG 2010 James SHANNON. Goal & Agenda. Project Overview The Need For IS Vision IS Solution & Features Benefits & Changes Next Steps. To familiarize you with Simplified Interline Settlement and prepare you for tomorrow’s breakout sessions.

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SIS Functional Review

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  1. SIS Functional Review Kuala Lumpur ICH UG 2010 James SHANNON

  2. Goal & Agenda • Project Overview • The Need For IS • Vision • IS Solution & Features • Benefits & Changes • Next Steps To familiarize you with Simplified Interline Settlement and prepare you for tomorrow’s breakout sessions SIS – ICH UG 2010 – SIS Refresher

  3. Project Overview SIS – ICH UG 2010 – SIS Refresher

  4. Interline Settlement - Today Paper invoices, with coupon listing, coupons, rejects, supporting documents (monthly) Settlement sheets – (weekly) Recap sheets - weekly Billed Entity ACH Billing Entity F3– (weekly) F12 – (weekly) F1 – net amounts of inv F2 - summary ICH ATPCO Cargo IDEC File (monthly) Cargo IDEC File (monthly) Pax IDEC File (monthly) Pax IDEC File (monthly) (incl F&F pre IDEC Validation) prorate engine prorate engine ARC-Compass (NFP storage) Previously released sales record GDSs BSPs F&F: receives NFP value AIA F&F SIS – ICH UG 2010 – SIS Refresher

  5. SIS Vision Fundamentally change, simplify and integrate the interline settlement process, delivering tangible financial benefits to the industry. • Invoices are electronic and not backed by paper • Prime passenger billings do not require paper invoices or coupon listings • IDEC formats are maintained with increased record types • Passenger rejects, including any attachments, are submitted electronically without paper • Cargo and Mail billings are electronic and paperless • Miscellaneous billings (including any supporting information) are electronic, whether as data or with attachments • Settlement action directly from ET systems is enabled SIS – ICH UG 2010 – SIS Refresher

  6. ISSolution & Features SIS – ICH UG 2010 – SIS Refresher

  7. Interline Settlement - Today Paper invoices, with coupon listing, coupons, rejects, supporting documents (monthly) Settlement sheets – (weekly) Recap sheets - weekly Billed Entity ACH Billing Entity F3– (weekly) F12 – (weekly) F1 – net amounts of inv F2 - summary ICH ATPCO Cargo IDEC File (monthly) Cargo IDEC File (monthly) Pax IDEC File (monthly) Pax IDEC File (monthly) (incl F&F pre IDEC Validation) prorate engine prorate engine ARC-Compass (NFP storage) Previously released sales record GDSs BSPs F&F: receives NFP value AIA F&F SIS – ICH UG 2010 – SIS Refresher

  8. Integrated Settlement Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Integrated Settlement IS-WEB IS-WEB Billed Entity Billing Entity “Digital Signature” Company IS-XML IS-XML Overall Processes Overall Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File SIS – Materials – RA42 Breakout Interfaces & Validation SIS – ICH UG 2010 – SIS Refresher 9

  9. IS Overview – One Level Down ICH ACH IS-WEB Interface ICH Interface ACH Validation IS-WEB Supp. Doc. Invoice PDF Supp. Doc. IS-XML Billing Outward IS-IDEC Billing Record DB IS-XML Supp. Doc. IS-IDEC Supp. Doc. Digital Signature Billing Value Confirmation Validation & Correction(IS-WEB) Value Determination Usage File Digital Signature Billing Carrier ATOS ATPCO ATPCO SIS – ICH UG 2010 – SIS Refresher

  10. No F12 files. No recap sheets, either. Nothing that you submit to the ICH or ACH today can be submitted after migration. SIS – ICH UG 2010 – SIS Refresher

  11. Main Features of IS • File Formats & Validation • Passenger • Time of Sales – NFP final, NFP non-final, and Own Prorate Storage • Value Determination & Autobilling • Sampling • Correspondence • Audit Trail • Differences for Cargo • Differences for Miscellaneous • Bringing It All Together • Member Administration • Processing Dashboard • Document Storage SIS – ICH UG 2010 – SIS Refresher

  12. File Formats & Validation SIS – ICH UG 2010 – SIS Refresher

  13. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ File Formats Integrated Settlement Format Conversion: • Billed Entity’s choice of format does not depend on the billing carrier’s IS-WEB IS-WEB Billed Entity Billing Entity “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File Send files (or enter online) Receive (or download) invoices Validation Format Conversion SIS – ICH UG 2010 – SIS Refresher

  14. 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) 500 byte records (instead of 160 byte) Every carrier will need system enhancements to support IS-IDEC SIS – ICH UG 2010 – SIS Refresher 16

  15. File Formats – IS-XML New XML format for Integrated Settlement Based on IATA Aviation Invoice Standard, used by IATA InvoiceWorks Identical fields and validation requirements to IS-IDEC Every carrier will need to make system enhancements to support IS-XML IS-IDEC vs. IS-XML is an IT decision – it is immaterial to the RA department Potential Benefits of IS-XML IS-XML format is more flexible and thus better than IS-IDEC for variable record structure (like Miscellaneous billings) Potential Benefits of IS-IDEC Relatively little system development for carriers with a sophisticated IDEC solution in place already IS-IDEC format is more efficient (processing, storage, and internet bandwidth) than IS-XML for a fixed record structure SIS – ICH UG 2010 – SIS Refresher 17

  16. IS-WEB Record Structure Web-based user interface to create and receive invoices and records Identical fields and validation requirements to IS-IDEC and IS-XML Validation in real-time minimizes possibility of later validation errors Potential Benefits The web interface is hosted by IATA, so no system development is required by carriers Potential Negatives More internet bandwidth will be required than file formats, and the connection will have to be stable Won’t be as user-friendly as a dedicated, local system  Not an alternative to a Revenue Accounting system SIS – ICH UG 2010 – SIS Refresher 18

  17. IS-WEB For Everybody IS-WEB is also used for other web-based services Audit Trail Pax & Cargo Correspondence Online Corrections after validation failure Processing Dashboard Airline profile updates Web Analysis Reports View and print invoices in a standard format Extensive user access controls (your company’s administrator can grant detailed permissions) SIS – ICH UG 2010 – SIS Refresher 19

  18. 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 Examples Coupon Prime Billing breakdown records: Tax, VAT breakdown Breakdown records for Rejection, Billing, Credit Memos: Reason Breakdown, Coupon Breakdown (with Tax & VAT) SIS – ICH UG 2010 – SIS Refresher 20

  19. Example Breakdowns (Pax Rejection Memo) Rejection Memo (SFI = 21) Reason Breakdown (SFI = 31) Coupon Breakdown (SFI = 32) VAT Breakdown (SFI = xx) Reason Breakdown (SFI = 31) Coupon Breakdown (SFI = 32) VAT Breakdown (SFI = xx) Coupon Breakdown (SFI = 32) VAT Breakdown (SFI = 34) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 41) SIS – ICH UG 2010 – SIS Refresher 21

  20. Example Breakdown • Invoice • Invoice Header Information • Prime Billings (Source Code Summary) • 1st Stage Rejections (Source Code Summary) • 2nd Stage Rejections (Source Code Summary) • 3rd Stage Rejections (Source Code Summary) • Billing Memos (Source Code) • Credit Memos (Source Code Summary) • Invoice Summary • Invoice VAT Summary ($100) • Invoice VAT Breakdown ($80) • Invoice VAT Breakdown ($20) SIS – ICH UG 2010 – SIS Refresher

  21. Example Breakdown • Billing Memos ($100) (Source Code Summary) • Billing Memo #1 ($10) • Billing Memo #2 ($50) • Billing Memo #3 ($40) • VAT Summary ($20) • VAT Breakdown ($5) • VAT Breakdown ($5) • VAT Breakdown ($5) • VAT Breakdown ($5) SIS – ICH UG 2010 – SIS Refresher

  22. Example Breakdown • Billing Memo #3 ($40) • Coupon #1 ($10) • Coupon #2 ($10) • Coupon #3 ($20) • VAT Summary • VAT Breakdown (multiple) • Tax Summary • Tax Breakdown (multiple) SIS – ICH UG 2010 – SIS Refresher

  23. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Validation Integrated Settlement Validation: • Guarantees links between records (e.g. 2nd and 1st RMs) • Enforces timeframes and “order” (1st RM -> 2nd RM -> 3rd RM) • Ensures file is properly formed • Other validations IS-WEB IS-WEB Billed Entity Billing Entity “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File Send files (or enter online) Receive (or download) invoices Validation Format Conversion SIS – ICH UG 2010 – SIS Refresher

  24. Examples of Validation Format Rules Ensures data types (e.g. numeric/alphanumeric), length, etc as defined Correct Values e.g. Settlement method cannot be “ACH” if both airlines are only ICH members 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 Billing entity will be notified of validation results Invoices (and possibly files) failing validation will not go any further SIS – ICH UG 2010 – SIS Refresher 27

  25. Passenger SIS – ICH UG 2010 – SIS Refresher

  26. Time of Sales – Now (Optional) Billed Airline Settlement sheets – (weekly) Recap sheets - weekly Billing Airline ACH F3– (weekly) F12 – (weekly) F1 – net amounts of inv F2 - summary ICH ATPCO Pax IDEC File (monthly) Pax IDEC File (monthly) (incl F&F pre IDEC Validation) prorate engine prorate engine ARC-Compass (NFP storage) Previously released sales record Sales Records, NFPs GDSs BSPs F&F: receives NFP value All: May receive sales records AIA F&F Sales Records Optional Proration, Storage, Switching SIS – ICH UG 2010 – SIS Refresher 29

  27. Time of Sales – With IS Settlement Processes ICH ACH Central Repository Integrated Settlement IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File Processes at time of Sales ARC COMPASS™ NFP engine Sales Records or Own Prorates Sales Records, NFPs, & Sales Carrier’s Own Prorates Optional Proration (final & non-final), Storage, Switching SIS – ICH UG 2010 – SIS Refresher 30

  28. Neutral Fare Prorates – With IS NFP engine will be available to carriers for FIRST & FINAL™ (NFP Final) and non-F&F (NFP non-final) purposes NFP non-final could minimize rejections without any obligation by the carriers Own prorate storage and switching will allow the sales carrier to upload prorates, which are then forwarded or made available to the billing carrier SIS – ICH UG 2010 – SIS Refresher 31

  29. Time of Billing – Now Billed Airline Billing Airline Pre-IDEC Validation for F&F NFP values (updates the PMI) ATPCO Pax IDEC File (monthly) Pax IDEC File (monthly) (incl F&F pre IDEC Validation) prorate engine prorate engine ARC-Compass (NFP storage) GDSs BSPs Previously released sales record F&F: receives NFP value All: May receive sales records AIA F&F SIS – ICH UG 2010 – SIS Refresher 32

  30. Submitting Billing Information – With IS Settlement Processes ICH ACH ARC COMPASS™ Integrated Settlement Billing File / Data (similar to today) Billing File / Data (similar to today) IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Central Repository Prorate Engine Usage File Processes at time of Sales NFP engine Billing Value Confirmation (Leaves “Original PMI”, updates “Value Confirmation PMI”) SIS – ICH UG 2010 – SIS Refresher 33

  31. Time of Billing – IS Value Determination Settlement Processes ICH ACH Processes at time of Sales NFP engine ARC COMPASS™ Integrated Settlement Billing File / Data (similar to today) Billing File / Data (similar to today) IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Central Repository Prorate Engine Usage File Usage File Prorate Values SIS – ICH UG 2010 – SIS Refresher 34

  32. Time of Billing – IS Auto-Billing Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Integrated Settlement Billing File / Data (similar to today) No Billing File From Carrier IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File Usage File Billing and Invoice Files Created Within IS Daily Revenue Recognition File Weekly Invoice Posting File SIS – ICH UG 2010 – SIS Refresher 35

  33. Sampling Provisional Invoice (as today with prime coupon billing, but with elements from Forms A and B) Universe Adjustment (Form C) Digit Evaluation (Forms D and E) Form G (ACH) Rejection Memos & Correspondence (as today with non-sample but with elements from Forms F and XF)  All via IS-IDEC, IS-XML, and IS-WEB SIS – ICH UG 2010 – SIS Refresher 36

  34. Pax & Cargo Correspondence Settlement Processes ICH ACH Processes at time of Sales NFP engine ARC COMPASS™ Integrated Settlement IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Central Repository Prorate Engine Usage File Enter Correspondence (including attachments) Receive Correspondence (including attachments) Validation SIS – ICH UG 2010 – SIS Refresher 37

  35. Pax & Cargo Correspondence 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 SIS – ICH UG 2010 – SIS Refresher 38

  36. Audit Trail & Rejection History 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 Drill down through tickets, coupons, tax breakdowns, correspondences, etc View audit trail of linked correspondences, rejections, and prime billings Find outgoing correspondences that haven’t been responded to Go directly to appropriate action (create RM, create correspondence, create billing memo) SIS – ICH UG 2010 – SIS Refresher 39

  37. Audit Trail (example view) Create Correspondence SIS – ICH UG 2010 – SIS Refresher 40

  38. Key Differences forCargo & Misc SIS – ICH UG 2010 – SIS Refresher

  39. Key Differences for Cargo • All cargo record types also represented in IS-IDEC, IS-XML, and IS-WEB • The IATA e-freight project will introduce e-electronic formats (structured data) for these supporting documents over time • Before then, carriers can bilaterally decide to use e-electronic formats, or to not transfer supporting documents at all SIS – ICH UG 2010 – SIS Refresher

  40. Key Differences for Miscellaneous • IS-IDEC cannot be used for Miscellaneous billings (only IS-XML and IS-WEB) • All Miscellaneous billings are uniquely defined by a charge category and charge code, allowing for routing to the correct person/department, automatic posting, or even automatic reconciliation • Examples: SIS – ICH UG 2010 – SIS Refresher

  41. Bringing it Together SIS – ICH UG 2010 – SIS Refresher

  42. Bringing it All Together • Member Administration will contain centralized preferences for your company: • User Administration with the ability to create users and roles, customize user permissions • Member Profile to set your own preferences, such as: • Who to contact for ICH alerts, file validation failures, etc • Rules as to how IS will operate for your company (apply digital signatures, allow corrections, etc) • Processing Dashboard will provide a centralized overview of all submitted files and their statuses throughout the Integrated Settlement SIS – ICH UG 2010 – SIS Refresher

  43. Supporting Documents Supporting documents can be attached to most record types (including Pax Prime Billings, Cargo, Miscellaneous) Two types of supporting documents: Electronic Presentation - Supporting document that is digital but not in a defined and structured format. The document might be a PDF file or an image that a computer can read but not extract data from. E-Electronic Document – Supporting document that is in a defined and structured format which can be parsed by a computer. Example formats are IDEC, XML, or CSV. SIS – ICH UG 2010 – SIS Refresher 46

  44. Supporting Documents – With IS Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Integrated Settlement IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File Batch Transfer e.g. FTP Batch Transfer e.g. FTP SIS – ICH UG 2010 – SIS Refresher 47

  45. Central Repository & Supporting Docs What? Any type of accepted supporting document (image, PDF, 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? Discussed in more detail during the Breakout Sessions SIS – ICH UG 2010 – SIS Refresher 48

  46. Benefits & Changes SIS – ICH UG 2010 – SIS Refresher

  47. Key Benefits of IS – Billing Carrier • Substantial savings due to: • Reduction in paper, postage and courier fees • Reduction in internal paper handling and supply chain efforts • No more loss of supporting documents and re-creation of invoices • Automation of billing directly from uplifts (e.g. Auto-Billing) • Optional à la carte service of “Integrated Settlement” SIS – ICH UG 2010 – SIS Refresher

  48. Key Benefits of IS – Billed Carrier Substantial savings due to: • Reduction in internal paper handling and supply chain efforts(e.g. registration, and reconciliation of invoices to payment) • Automated data • Less manual intervention • Data quality improvements on IS-IDEC • Pax Rejection Memos, Billing and Credit Memo electronically • Cargo Original AWB, Rejection and Charge Memo electronically • Supporting Documents immediately available in electronic presentation SIS – ICH UG 2010 – SIS Refresher

  49. Key Benefits of IS • Rejection Memo & Correspondence process improvements due to: • Enforcement of RAM rules (RM stage and correspondence) • Opportunity to detect duplicate rejections of the same original billing • All rejections and correspondence link to previous billings; information and supporting documents do not have to be re-uploaded • Time-limit reduction possibilities for Rejection Memos and Correspondence • Risk management and process improvements due to: • Fewer items outstanding for a shorter period of time • Future potential time-limit reduction for prime / original billings • Benefits to the environment due to reduction of paper and shipping • Alliance objectives complemented by SIS SIS – ICH UG 2010 – SIS Refresher

  50. Airline Changes (where applicable) • Change from IDEC to IS-IDEC • 500 bytes instead of 160 bytes • Follow rules in RAM • Some detail records mandatory (e.g. taxes) • Other elements mandatory (e.g. Source Code) • Choose and implement other submission formats (IS-XML, IS-WEB) • Prepare to scan and upload supporting documents • Implement e-billing (possible legal implications) SIS – ICH UG 2010 – SIS Refresher

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