SIS – Simplified Interline Settlement SIS Functional Review San Diego, ACH Annual Meeting 2011...

SIS – Simplified Interline SettlementSIS Functional Review

San Diego, ACH Annual Meeting 2011

Gianna Monsch, aerwise

SIS P3 – ACH Annual Meeting - SIS Functional Review 2 February 2011

Agenda

General & Basics

IS Functionality – more in detail

Special Cases

February 2011SIS P3 – ACH Annual Meeting - SIS Functional Review 3

SIS Overview


Interline Settlement - Today

ICH

ATPCO

(incl F&F pre IDECValidation)

BilledEntity

BillingEntityCargo 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

ARC-Compass(NFP storage)

Previously released sales record

prorateengine prorate

engine

GDSsBSPs

ACHRecap sheets - weeklySettlement sheets –

(weekly)


Integrated Settlement

BilledEntity


BillingEntity

Ove

rall

Proc

esse

s

Billing & Invoicing ProcessesCentralRepository

“DigitalSignature”Company

Ove

rall

Proc

esse

sSettlement 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


File Formats


File Formats

BilledEntity


BillingEntity

Enab

ling

Proc

esse

s



Enab

ling

Proc

esse

s

Settlement Processes

ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

Send files(or enter online)

Receive (or download) invoices

ValidationFormat Conversion

Format Conversion: Billed Entity’s choice of format

does not depend on the billing carrier’s

Invoice Data Input

Passenger Freight Non-Transportation UATP

IS-IDEC IS-IDEC - -

IS-XML IS-XML IS-XML IS-XML

IS-WEB IS-WEB IS-WEB IS-WEB


Invoice Input Data Files can be transferred using secure FTP or secure HTTP protocols

Members also have an option of manually capturing Invoice information on IS-WEB


Input & Output Formats Files (upload & download)

IS-IDEC-Passenger and Cargo IS-XML-Passenger, Cargo, Miscellaneous and UATP

IS-WEB-All Others – Usage File for Pax

All formats contain same fields for a given record type Billing participant can use any format at any time (“input combination”) Billing participant choice doesn’t affect billed participant (“format conversion”) Billing participant may submit billing data as often as they want Billing data files to be uploaded to IS via iiNet

Record layouts and descriptions are documented in the Integrated Settlement Participant Guide (ISPG) located at: http://www.iata.org/whatwedo/finance/clearing/sis/Pages/materials-ISPG.aspx

http://www.iata.org/services/finance/sis/Pages/support-materials.aspx

http://www.iata.org/services/finance/sis/Pages/support-materials.aspx


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


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 Non-Transportation 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


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)


Example Breakdowns (Pax Rejection Memo)

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 = 41)

VAT Breakdown(SFI = xx)VAT Breakdown

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


IS-WEB 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

IS transaction fees 25% higher

Not an alternative to a Revenue Accounting system


Validation


Validation

BilledEntity


BillingEntity

Enab

ling

Proc

esse

s



Enab

ling

Proc

esse

s


ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

Send files(or enter online)

Receive (or download) invoices

ValidationFormat Conversion

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


Sanity Check First, Then Validation Files will go through and must pass, “Sanity Check” before moving to the

next, more rigorous, “Validation” process

Sanity Check will: Check for formatting issues

Validation will: If errors encountered, file will continue to go through Validation process and

report all errors In IS-WEB Email with validation error report (in detail) as per Member Profile

Take up to 4 hours to complete CAUTION: Be sure to finalize your invoices allowing enough time for

validation to complete and time to correct any errors before the submission deadline (same as Recap Sheet due date and time)


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


After Validation Validated invoice billing totals sent to the ACH for settlement

Clearing House will combine the IS billing totals with the Recap Sheet billing totals and settle the combined totalCAUTION: Do not add IS billing totals to a Recap Sheet or it will be billed to the other participant TWICE

The billed participant may retrieve their billed and settled invoices data via the IS Web(At period end – as per IS Calendar)

The billed participant will be able to retrieve their billed data files (At period end – as per IS Calendar)

The billed participant will receive a billing file at the end of each period instead of one time per month


Correspondence


Correspondence

BilledAirline


BillingAirline

Enab

ling

Proc

esse

s



Enab

ling

Proc

esse

s


ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

Enter Correspondence(including attachments)

Receive Correspondence(including attachments)

Validation


Correspondence Correspondence can include an “authority to bill” flag which identifies when

the authority to bill has been granted Not tied to settlement periods like transactions in Integrated Settlement –

real-time and similar to e-mail but via IS-WEB interface Notifications sent when Correspondence has been created and sent to you

Additional notifications sent when time limits are set to expire Validation ensures

no “cross-over” – correspondence can only be in reply to another correspondence

(or 3rd-stage RM Pax and Freight or 2nd stage RM ACH non transport) cannot be out-of-order


Supporting Documents


Supporting Documents Supporting documents can be attached to most record types (including Pax

Prime Billings, Freight, Non-Transportation)

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.


Supporting Documents – With IS

BilledAirline


BillingAirline

Enab

ling

Proc

esse

s



Enab

ling

Proc

esse


ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

Batch Transfer

e.g. FTPBatch Transfer

e.g. FTP


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)S


Audit Trail


Audit Trail & Rejection HistoryWith 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)


Member Profile


Bringing it All Together Member Administration will contain centralized preferences for your

company: User Administration with the ability to create users and customize user

permissions Member Profile to set your own preferences, such as:

Who to contact for IS 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


Key Differences forFreight & Non-

Transport


Key Differences for Freight All freight 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


Key Differences for Non-Transportation IS-IDEC cannot be used for Non-Transportation billings (only IS-XML and IS-WEB)

All Non-Transportation and UATP 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

UATP: carriers can opt-in to a service, where UATP-ATCAN will send the billing (via IS-XML) to SIS on behalf of the billing carriers.

Non-Transportation and UATP use Rejection Invoices (not Memos) and Credit Notes (not Memos)

Examples:Charge Category Charge Code

GroundHandling Baggage

GroundHandling Cargo

PartnerAlliance FF Miles


Questions?


Agenda

General & Basics


Special Cases


SIS Overview

BilledEntity


BillingEntity

Ove

rall P

roce

sses



Ove

rall P

roce

sses


ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC


Only the functionality is shown, which you are allowed to use

(Member Profile – User – Permissions)

Upcoming Milestones Alerts(from the system and

additionally sent by email to this user)

Messages from SIS-OperationOn behalf of- SIS-Ops- ICH Ops- ACH OpsAnnouncements


Insight into IS(Integrated Settlement)


IS – Integrated Settlement

BilledEntity


BillingEntity

Ove

rall P

roce

sses



Ove

rall P

roce

sses


ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

Billing & Invoicing Processes

BillingRecord DB


Billing and Invoicing Process

IS-XML

IS-IDECBillingRecord DB Supp.

Doc.

Usage File

ATPCO

InvoicePDF

BillingOutward

IS-WEB

IS-XML

IS-IDEC

Supp.Doc.

Supp.Doc.

DigitalSignature

Validation &Correction (IS-WEB)

Billing Carrier

Billing Value Confirmation

ATPCOATOS

InterfaceACH

ACH

InterfaceICH

ICH

IS-WEB

ValidationSupp. Doc.

Value Determination& Auto-Billing

DigitalSignature


IS-WEB For EverybodyIS-WEB is also used for other web-based services Audit Trail Pax & Cargo & Miscellaneous 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)


IS-WEB - Various Processes

BillingRecord DB

MemberAdministration

IS-WEB

ProcessingDashboard

CorrespondenceWeb Analysis

Reports

Audit Trail


Correspondence is sent immediately

BilledEntity


BillingEntity

Ove

rall P

roce

sses



Ove

rall P

roce

sses


ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

IS Validation


IS Validation of Data Files (1 of 4)

Sanity Checks (General) File naming convention Duplicate filename check Successful Decompression of file Invalid character set check


Accept Invoice

Data Files

Perform Sanity Checks

Perform Detail

Validation

Further Processing

IS Validation of Data Files (2 of 4) Sanity Checks (IS-IDEC)

Bad Structure check (missing mandatory record/incorrect sequencing)

Missing mandatory fields within records check

Incorrect record length/counts/ data type check

Inclusion of Non-migrated transaction checks

Sanity Checks (IS-XML) Check against XML schema

definition file Total number of Invoices and

Total amounts listed in Transmission Summary

Inclusion of Non-migrated transaction checks


In case of Sanity Check Errors, the entire file is rejected. Invoice data is not loaded in the Billing Record Database.

IS Validation of Data Files (3 of 4)

Detail Validation Reference Data validation (e.g. Airline Codes, Airport Codes, Tax Codes, etc)

Settlement Details (e.g. Settlement Method Indicator, Currency of Clearance, etc)

Calculation of Total Values (e.g. Sum of all amounts specified at coupon level should be equal to the total amount of the respective Source Code, etc)

Billing Audit Trail check in case previous billing was through IS (e.g. Link information provided for a Rejection Memo, Rejection Stage, etc)

Invoice Number check to be unique within a Calendar year across Billing Categories (Pax, Cargo, UATP, Misc) for a Billing Entity


Accept Invoice

Data Files

Perform Sanity Checks

Perform Detail

Validation

Further Processing

IS Validation of Data Files (4 of 4) All errors encountered are reported in the Validation Report Validation report is made available in 2 to 4 hours of receipt of the

Invoice File

Actions in case of Error Sanity Check Error: Correct the errors reported and submit a fresh file Non Correctable Error: Correct the errors reported and submit the Invoice/file Correctable Error: If Online Correction option is used then Correct the error on

IS-WEB and revalidate the Invoice OR Correct the errors reported and re-submit the Invoice/file

Note: Any online correction made only in IS will result in Billing Data to be out of sync with the Carrier’s Internal Accounting System


Supporting Documents


Supporting Documents (1 of 5) 100% Paperless billings in SIS

Invoice data as well as Supporting Information to be in electronic format If IS Format Invoice data provided then there is NO need to provide printed

and/or scanned copies of: Invoices Listings (Coupon Listing, Rejection/Billing/Credit Memos etc) Memos (Rejection/Billing/Credit Memos) Paper Coupons to support Prime Billings

IS Format provide placeholders to provide Detailed Reason for raising a Memo Prorate Slip Details

Supporting Documents uploaded and linked in IS need not be re-uploaded while rejecting the billing. Only new Supp Docs (if any) need to be provided


Supporting Documents (2 of 5) Electronic File Type Supported

» Plain text files (.txt and .csv)» Plain HTML files (.htm and .html) without any embedded hyperlinks or image file

references» Rich Text files (.rtf)» Portable Document Format files (.pdf)» JPEG Image files (.jpg or .jpeg) – Min Resolution 200 dpi» TIFF Image files (.tif or .tiff) - Min Resolution 100 dpi

IS will only validate the file extension and not the content Additional file formats accepted by the members can be specified in the

Member Profile Supporting Documents can be provided even after the Billing Period

Closure till the Supporting Documents Linking Deadline timestamp


Supporting Documents (3 of 5) Linking of Supporting Documents

Manually linked on IS-WEB Automatically Linked by IS if a Supporting Documents zip file with Index

information (Folder based, CSV Index file based or XML Index file based) is provided


Passenger Freight Non-Transportation UATP

Prime Billing Coupon Original AWB Invoice Invoice

Rejection MemoBilling MemoCredit Memo

Rejection MemoBilling MemoCredit Memo

RM/BM/CM Coupon Breakdown

RM/BM/CM Coupon Breakdown

Supporting Documents (4 of 5) Automated Linking by IS

» Reads the Index information provided in the Supporting Documents Zip file» Searches for the transaction referred by the Index file in its Billing Record Db» If a match found, links the Supporting Documents to the transaction


Billing Month Billed Airline Invoice No File Name

Jan 2010 P1 125 IN231138 Loadsheet.pdf

Jan 2010 P1 125 IN232339 Lounge-Access.jpg

Jan 2010 P1 157 PXB133433 LoanDetails.txt

Supporting Documents (5 of 5) IS will only consider transactions of Invoices which are successfully

validated for Automatic Linking IS will take care of timing issues

Supporting Document File submitted first and Invoice File (IS-IDEC, IS-XML) submitted later

Supporting Document File submitted and Invoice successfully validated later In case IS not able to link documents due to invalid/incorrect Index

information, correction of Index will be allowed through IS-WEB


IS Outputs


IS Outputs (1 of 2) IS Output files are made available to Billed Entities by the “Billing Output

Generation Date” as published in the IS Calendar which is typically 3 days after Billing Period Closure

Outputs include: Invoice Files in IS-IDEC and/or IS-XML format As a Billed Participant :

PDF Copy of Invoices Detailed Listings (Coupon listing, RM/BM/CM Listing... Etc) Digital Signature and Other Legal files Memo copies (RM, BM, CM) Supporting Documents


IS Outputs (2 of 2)


PAX-P-AA-0001-20120403

BA-0125

INV-ACBCE12345

E-INVOICE

LISTINGS

MEMOS

SUPPDOCS


Questions?


Agenda

General & Basics


Special Cases


Passenger


Some of the Changes Source Codes

Are mandatory for all billings Stages of rejections now have unique source codes

Rejections Have rejection memo numbers Standardized method to calculate and display billed, accepted and rejected amounts

Batches No longer limited to 200 transactions. Expanded to 99,999 Numbers must be unique within an invoice, but not within a clearance period or clearance month

Invoices Invoice number is A/N and XXXX in length; number must be unique, across all billing categories,

for a calendar year i.e.: Passenger invoice numbers cannot duplicate UATP, Non-Transportation or Freight invoice numbers

More information in tomorrows presentation


Sampling Provisional Invoice (as today with prime coupon billing, but with elements from Forms

A and B) Coupon level taxes and breakdown records included in provisional billing

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

Optional Service allows the billed airline to receive one monthly file for provisional billings; in addition to a file at the end of each period


Processes at time of Sales – ChangesNFP engine will be available to carriers for FIRST & FINAL™ (NFP Final) and non-F&F (NFP non-final) purposes (as today)

NFP non-final could minimize rejections without any obligation by the carriers Additional fields have been added to the records

New Optional Functionalities Own Prorate Switching and Storage process will allow

the sales carrier to send prorated coupons to ATPCO (Record 6) which are then forwarded or made available to the addressed carrier (planned uplifting

carrier) Additionally carriers can have these values checked via the BVC (Billing Value

Confirmation) process at time of billing Storage: Coupon records are also stored in the ARC Compass database and can be

used in Auto-Billing.


Billing Value Confirmation


Pre IDEC Validation – Now

ATPCO

(incl F&F pre IDECValidation)

BilledAirline

BillingAirline

Pax IDEC File (monthly)Pax IDEC File (monthly)

AIA F&F

ARC-Compass(NFP storage)

Previously released sales record

prorateengine prorate

engine

GDSsBSPs

F&F: receives NFP valueAll: May receive sales records

Pre-IDEC Validationfor F&F NFP values

(updates the PMI)


Billing Value Confirmation – With IS

BilledAirline


BillingAirline

Enab

ling

Proc

esse

s



Enab

ling

Proc

esse


ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

Billing Value Confirmation(Leaves “Original PMI”, updates “Value Confirmation PMI”)


Value Determination&

Auto-Billing


Value Determination

BilledAirline


BillingAirline

Enab

ling

Proc

esse

s



Enab

ling

Proc

esse


ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

Usage File

Prorate Values


Auto-Billing

BilledAirline


BillingAirline

Enab

ling

Proc

esse

s



Enab

ling

Proc

esse

s


ICH ACH



ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File

IS-WEB

IS-XML

IS-IDEC

Usage File

Weekly Invoice Posting File

Daily Revenue Recognition File

No Billing FileFrom Carrier

Billing and Invoice FilesCreated Within IS


Questions?

Questions?

We’d be glad to address all your questions through the SIS Forums, register for an account at:

www.iata.org/SISForum

76

Thank you.

February 2011SIS P3 – ACH Annual Meeting - SIS Functional Review

http://www.iata.org/SISForum

SIS – Simplified Interline Settlement SIS Functional Review San Diego, ACH Annual Meeting 2011...

Documents

Transcript of SIS – Simplified Interline Settlement SIS Functional Review San Diego, ACH Annual Meeting 2011...