SIS Functional Review Kuala Lumpur ICH UG 2010 James SHANNON.
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Transcript of SIS Functional Review Kuala Lumpur ICH UG 2010 James SHANNON.
SIS Functional ReviewKuala Lumpur ICH UG 2010
James SHANNON
October 2010SIS – ICH UG 2010 – SIS Refresher 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
October 2010SIS – ICH UG 2010 – SIS Refresher 4
Project Overview
October 2010SIS – ICH UG 2010 – SIS Refresher 5
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)
October 2010SIS – ICH UG 2010 – SIS Refresher 6
SIS VisionFundamentally 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
October 2010SIS – ICH UG 2010 – SIS Refresher 7
ISSolution & Features
October 2010SIS – ICH UG 2010 – SIS Refresher 8
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)
October 2010SIS – ICH UG 2010 – SIS Refresher 9SIS – Materials – RA42 Breakout Interfaces & Validation 9
Integrated Settlement
BilledEntity
Integrated Settlement
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
October 2010SIS – ICH UG 2010 – SIS Refresher 10
IS Overview – One Level Down
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 DeterminationDigital
Signature
October 2010SIS – ICH UG 2010 – SIS Refresher 11
No F12 files.No recap sheets, either.
Nothing that you submit to the ICH or ACH today can be submitted after migration.
October 2010SIS – ICH UG 2010 – SIS Refresher 12
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
October 2010SIS – ICH UG 2010 – SIS Refresher 13
File Formats & Validation
October 2010SIS – ICH UG 2010 – SIS Refresher 14
File Formats
BilledEntity
Integrated Settlement
BillingEntity
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
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
October 2010SIS – ICH UG 2010 – SIS Refresher 1616
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
October 2010SIS – ICH UG 2010 – SIS Refresher 1717
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
October 2010SIS – ICH UG 2010 – SIS Refresher 1818
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
October 2010SIS – ICH UG 2010 – SIS Refresher 1919
IS-WEB For EverybodyIS-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)
October 2010SIS – ICH UG 2010 – SIS Refresher 2020
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)
October 2010SIS – ICH UG 2010 – SIS Refresher 2121
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)
October 2010SIS – ICH UG 2010 – SIS Refresher 22
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)
October 2010SIS – ICH UG 2010 – SIS Refresher 23
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)
October 2010SIS – ICH UG 2010 – SIS Refresher 24
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)
October 2010SIS – ICH UG 2010 – SIS Refresher 25
Validation
BilledEntity
Integrated Settlement
BillingEntity
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
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
October 2010SIS – ICH UG 2010 – SIS Refresher 2727
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
October 2010SIS – ICH UG 2010 – SIS Refresher 28
Passenger
October 2010SIS – ICH UG 2010 – SIS Refresher 2929
Time of Sales – Now (Optional)
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
Sales RecordsF&F: receives NFP value
All: May receive sales records
Optional Proration,Storage, Switching
Sales Records,NFPs
ICHF12 – (weekly)
F1 – net amounts of invF2 - summary
F3– (weekly)
ACHRecap sheets - weeklySettlement sheets –
(weekly)
October 2010SIS – ICH UG 2010 – SIS Refresher 3030
Time of Sales – With IS
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
Sales Records,NFPs, &
Sales Carrier’sOwn Prorates
Sales Records orOwn Prorates Optional Proration (final &
non-final), Storage, Switching
October 2010SIS – ICH UG 2010 – SIS Refresher 3131
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
October 2010SIS – ICH UG 2010 – SIS Refresher 3232
Time of Billing – 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)
October 2010SIS – ICH UG 2010 – SIS Refresher 3333
Submitting Billing Information – With IS
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
Billing File / Data(similar to today)
Billing Value Confirmation(Leaves “Original PMI”, updates “Value Confirmation PMI”)
Billing File / Data(similar to today)
October 2010SIS – ICH UG 2010 – SIS Refresher 3434
Time of Billing – IS Value Determination
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
Usage File
Prorate Values
Billing File / Data(similar to today)
Billing File / Data(similar to today)
October 2010SIS – ICH UG 2010 – SIS Refresher 3535
Time of Billing – IS Auto-Billing
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
Usage File
Weekly Invoice Posting File
Daily Revenue Recognition File
No Billing FileFrom Carrier
Billing and Invoice FilesCreated Within IS
Billing File / Data(similar to today)
October 2010SIS – ICH UG 2010 – SIS Refresher 3636
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
October 2010SIS – ICH UG 2010 – SIS Refresher 3737
Pax & Cargo Correspondence
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
Enter Correspondence(including attachments)
Receive Correspondence(including attachments)
Validation
October 2010SIS – ICH UG 2010 – SIS Refresher 3838
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
October 2010SIS – ICH UG 2010 – SIS Refresher 3939
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)
October 2010SIS – ICH UG 2010 – SIS Refresher 4040
Audit Trail (example view)
Activity Date Record / Supporting Docs
1st Correspondence 1 May $35; “I do not agree with your calculation…”
3rd Rejection 1 Apr $50; Long Explanation.doc
2nd Rejection 1 Mar $100; “See attached”; ticket.jpg
1st Rejection 1 Feb $100; “No coupon in our system”
Prime Billing 1 Jan $100
Create Correspondence
October 2010SIS – ICH UG 2010 – SIS Refresher 41
Key Differences forCargo & Misc
October 2010SIS – ICH UG 2010 – SIS Refresher 42
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
October 2010SIS – ICH UG 2010 – SIS Refresher 43
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:
Charge Category Charge Code
GroundHandling Baggage
GroundHandling Cargo
PartnerAlliance FF Miles
October 2010SIS – ICH UG 2010 – SIS Refresher 44
Bringing it Together
October 2010SIS – ICH UG 2010 – SIS Refresher 45
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
October 2010SIS – ICH UG 2010 – SIS Refresher 4646
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.
October 2010SIS – ICH UG 2010 – SIS Refresher 4747
Supporting Documents – With IS
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
Batch Transfer
e.g. FTPBatch Transfer
e.g. FTP
October 2010SIS – ICH UG 2010 – SIS Refresher 4848
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
October 2010SIS – ICH UG 2010 – SIS Refresher 49
Benefits & Changes
October 2010SIS – ICH UG 2010 – SIS Refresher 50
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”
October 2010SIS – ICH UG 2010 – SIS Refresher 51
Key Benefits of IS – Billed CarrierSubstantial 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
October 2010SIS – ICH UG 2010 – SIS Refresher 52
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
October 2010SIS – ICH UG 2010 – SIS Refresher 53
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)
October 2010SIS – ICH UG 2010 – SIS Refresher 54
Next Steps
October 2010SIS – ICH UG 2010 – SIS Refresher 55
Next StepsThis Week
Breakout Sessions
Back at Your Office Airline Business Case (on the SIS website) IS Participation Guide (see the breakout session) Internal Planning and Budgeting (based on the IS Participation Guide and
the Migration breakout session)
October 2010SIS – ICH UG 2010 – SIS Refresher 56
Thank you.
SIS Website:
www.iata.org/sis