EInvoicing 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

3
The Legal Invoice
4
The Legal Invoice

• Reference Information
• Member Administration Locations
• Digital Signature
• E-Archiving
• A note about legal compliance

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

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

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

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

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 companys responsibility
  to know the local laws and enable the options
  which will make your invoices compliant

10
Value Added Taxes
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 companys 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

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

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

14
Decentralisation of Submissions
15
Decentralisation of Submissions

• Today there are limits on the number of F12s and
  recap sheets (ACH) submitted to the clearing
  houses
• Often, the participants 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
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, its now more likely that
  individual departments will submit directly to
  Integrated Settlement

Pax
SIS
Cargo
Misc
Financial Dept
Other Misc
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

18
Receivables And Payables
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

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 ICHs 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

21
Example dashboard screen
22
Example dashboard screen
23
Questions?

• Email
• sis_at_iata.org
• SIS Website
• ?www.iata.org/sis