E-Invoicing with IS

1. E-Invoicing with IS RA43 Breakout Session Michael Uebber, LH Nick Coote, IATA

2. E-Invoicing with Integrated Settlement • The “Legal” Invoice • Value Added Taxes • Attaching Supporting Documents • Decentralisation of Submissions • Receivables and Payables SIS P3 – Materials – RA43 E-Invoicing with IS

3. The “Legal” Invoice SIS P3 – Materials – RA43 E-Invoicing with IS

4. The “Legal” Invoice • Reference Information • Member Administration – Locations • Digital Signature • E-Archiving • A note about legal compliance SIS P3 – Materials – RA43 E-Invoicing with IS

5. Reference Information • In many countries, a legal invoice requires a set of key fields such as address, VAT registration number, etc • It would be difficult for a billing entity to keep this information up-to-date for all potential billed entities • All SIS participants will be required to enter this type of data in their Member Profile • Includes the necessary data to make an invoice legal by default • Invoice can be loaded by the airline in full, or can be built by SIS using default data from the reference tables • SIS will be mandated by participants to fill in any missing info on submission on both the “from” and “to” sides of an invoice SIS P3 – Materials – RA43 E-Invoicing with IS

6. Member Administration – Locations • Some participants will have separate entities that need to send or receive invoices, such as a separate cargo entity or an office in another country (for VAT purposes) • Via the Member Administration section on IS-WEB, participants can set up multiple locations, each with different reference information • There will be a default location, or invoices can be sent to “XX123 Location #2” and IS will fill in the relevant information Specifying different locations will not affect the routing of the invoice, just the reference information that is added SIS P3 – Materials – RA43 E-Invoicing with IS

7. Digital Signature • Some jurisdictions require a digital signature to be attached to an invoice before it can be considered “legal” • Every participant will update their member profile to specify if they need digital signatures on the outgoing or incoming invoice, or both • Before settlement, IS will, on behalf of the participants, create any necessary digital signature • The digital signature will be downloadable for storage SIS P3 – Materials – RA43 E-Invoicing with IS

8. E-Archiving • Jurisdictions may require storage of digital invoices for varying amounts of time • During this time, the invoices and any applicable digital signature needs to be accessible for any audits, sometimes stored in the local country • While a participant will be able to download the invoice and digital signature for local storage, they can also mandate that Integrated Settlement stores it on their behalf SIS P3 – Materials – RA43 E-Invoicing with IS

9. A note about legal compliance • Legal invoice can be either the data file or the PDF, but only one of them can be the original • Integrated Settlement will provide the tools (some of which are detailed on the previous slides) that will help your company ensure legal compliance with regards to invoices • However, it will be your company’s responsibility to know the local laws and enable the options which will make your invoices compliant SIS P3 – Materials – RA43 E-Invoicing with IS

10. Value Added Taxes SIS P3 – Materials – RA43 E-Invoicing with IS

11. Value Added Taxes • The new record types (IS-IDEC, IS-XML, and IS-WEB) will support Value Added Taxes on all records • VAT can be added to an existing record/invoice (e.g. a prime coupon) or a separate invoice can be created with just VAT records • It will be your company’s responsibility to determine whether VAT applies, how much it should be, and where to put it • SIS will validate the integrity of your invoice, but not the validity of your submission SIS P3 – Materials – RA43 E-Invoicing with IS

12. Attaching Supporting Documents • The need for supporting documents in SIS is being minimized wherever possible (See JPSC Agenda item P14) • Where sensible, rules will be rewritten to make supporting documents optional • Where supporting documents are mandatory, they might be made part of the record structure • Supporting documents come from two main sources • Pieces of paper (coupons, receipts, etc)  These need to be scanned • Digital files (ETs, extracts from contracts, etc)  These only need to be converted to a valid format and account for approx 90% of attachments in Pax • Supporting documents which are uploaded will need to be in a neutral format such as .txt, .csv, .pdf, .jpg, .etc • Participants can explicitly accept other document types SIS P3 – Materials – RA43 E-Invoicing with IS

13. Linking Supporting Documents • Attachments will have to be associated with invoices or records • Attachments can be uploaded one-by-one via IS-WEB • A zip file with many attachments can be uploaded to IS and: • Manually associated via screens on IS-WEB • Contain attachments in a defined folder structure so that IS can automatically associate the attachments • Contain an index file that matches attachments to records so that IS can automatically associate the attachments  SIS, Kale, and the Working Groups analysed potential options and the above were chosen as the easiest ways to attach considering existing systems and scanners SIS P3 – Materials – RA43 E-Invoicing with IS

14. Decentralisation of Submissions SIS P3 – Materials – RA43 E-Invoicing with IS

15. Decentralisation of Submissions • Today there are limits on the number of F12s and recap sheets (ACH) submitted to the clearing houses • Often, the participant’s financial department is responsible for collecting the amounts to be billed, consolidating, and submitting to the clearing houses Pax Financial Dept Clearing House Cargo Misc Other Misc SIS P3 – Materials – RA43 E-Invoicing with IS

16. Decentralisation of Submissions • In the future, submissions to IS can happen more frequently and will need to contain more information • While the financial department could maintain responsibility for collecting and consolidating all invoices, it’s now more likely that individual departments will submit directly to Integrated Settlement Pax SIS Cargo Misc Financial Dept Other Misc SIS P3 – Materials – RA43 E-Invoicing with IS

17. Decentralisation of Submissions - Result • RA departments may have more responsibility for submitting payables directly to SIS • RA and financial departments will need better coordination to prevent duplicates, ensure timely submission, and resolve any problems • SIS will provide screens and reports to track incoming files, offering those with access (probably financial departments) a consolidated view SIS P3 – Materials – RA43 E-Invoicing with IS

18. Receivables And Payables SIS P3 – Materials – RA43 E-Invoicing with IS

19. Receivables And Payables • Depending on internal processes, receivables may be submitted by different departments, and payables may be immediately routed to their respective departments • During migration, the picture is even more complicated, with F12 files and recap sheets being submitted directly to the clearing houses and the paper invoices and supporting documents sent by mail SIS P3 – Materials – RA43 E-Invoicing with IS

20. Receivables And Payables • Several features will be offered in order to simplify the receivable and payable processes: • The ICH will attempt to recognize duplicate submissions (invoice and billing data submitted to IS, settlement details submitted via F12 to the ICH) and contact the billing participant where necessary • The ICH’s F3 report will show which invoices were submitted via F12 and which were submitted via IS, allowing for tracking of hard copy documents expected via post • IS will offer a Financial Dashboard which will display all the outgoing (receivables) files for the active periods SIS P3 – Materials – RA43 E-Invoicing with IS

21. Example dashboard screen SIS P3 – Materials – RA43 E-Invoicing with IS

22. Example dashboard screen SIS P3 – Materials – RA43 E-Invoicing with IS

23. Questions? Email: sis@iata.org SIS Website: www.iata.org/sis SIS P3 – Materials – RA43 E-Invoicing with IS