Cargo

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SIS Simplified Interline Settlement

• Cargo Miscellaneous Billing
• Webcasts

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Welcome to the SIS webcast!

• Audio available over this webcast or via a
  dial-in number
• Phone Number 1 514 392 3303
• Conference ID 7026529
• 1 hour long
• 30 minute presentation
• 30 minute Question Answer (QA) session
• Please hold all questions until the second half
• You will be unable to speak
• All questions must be typed into a QA
  windowwhich will appear later
• Feedback can be entered using the statusbox on
  your screen ------------------------------gt

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Welcome to the SIS webcast!

• Audio available over this webcast or via a
  dial-in number
• You should now be able to hear something if
  youraudio is working! If not, you need to dial
  in
• Phone Number 1 514 392 3303
• Conference ID 7026529
• 1 hour long
• 30 minute presentation
• 30 minute Question Answer (QA) session
• Please hold all questions until the second half
• You will be unable to speak
• All questions must be typed into a QA
  windowwhich will appear later
• Feedback can be entered using the statusbox on
  your screen ------------------------------gt

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Overview of this webcast

• Simplified Interline Settlement Webcasts
  Introduction
• Interline Settlement Today Scope of Webcast
• Cargo Billing
• Miscellaneous Billing
• Central Repository Supporting Documents
• Audit Trail Rejection History (Cargo Only)
• E-Invoicing
• File Formats
• Next Steps
• Questions Answers

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Presenters

• Gianna Monsch, External ConsultantProject
  Management
• James Shannon, IATAProject Coordination

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SIS Webcasts

• August 6
• Passenger Billings (including prime, sampling,
  auto-billing, non-prime, audit trail, and
  supporting documents)
• August 7
• Integrated Settlement Data Interfaces (including
  IS-WEB and validation)
• Cargo Miscellaneous (including Cargo original
  billings and rejections)
• September 3
• General SIS Webcast (repeat of webcast done in
  July)
• See http//www.iata.org/whatwedo/finance/clearing/
  sis/webcast.htm for schedules and materials

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Introduction to SIS (General Webcast)

• Integrated Settlement is based on the
  principles of completely paperless billing,
  invoicing, and settlement
• Benefits include
• Data quality improvements to the billed carrier
• Billing carriers upload format doesnt impact
  billed carriers download format
• Reduction in paper and courier fees and internal
  supply chain (paper handling) costs
• Automation Optional Services
• Quicker cash flow due to reduced rejection
  timeframes
• Airline Profile to be a centralized database
  for all IS options and permissions
• IS features discussed are subject to change

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Non-core Functionality

• Core functionality of SIS enables paperless
  billing and settlement.
• The non-core functionality is considered by the
  SIS Working Groups to be value-added services
  its final inclusion is dependent upon
  implementation costs and airline demand and will
  likely be billed to carriers separately, based on
  usage.
• Non-core functionality is coloured orange on the
  following pages

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Interline Settlement - Now
Paper invoices, with coupon listing, coupons,
rejects, supporting documents (monthly)
Recap sheets - weekly
Settlement sheets (weekly)
Billed Airline
ACH
Billing Airline
F12 (weekly) F1 net amounts of inv F2 -
summary
F3 (weekly)
ICH
ATPCO
Cargo IDEC File (monthly)
Cargo IDEC File (monthly)
Pax IDEC File (monthly)
Pax IDEC File (monthly)
(incl FF pre IDEC Validation)
prorate engine
prorate engine
ARC-Compass (NFP storage)
Previously released sales record
GDSs BSPs
AIA FF
FF receives NFP value All May receive sales
records
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SIS Simplified Interline Settlement
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
Other
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Cargo Billing
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Cargo Billing with IS

• Original Billings
• Rejection Memo Charge Memo (same record but
  different fields used)
• Correspondence
• Can also be sent outside of Integrated Settlement
  (e.g. via email)

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Cargo Billing Original Billings
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
Other (TBD)
Billing File / Data (similar to today)
Billing File / Data (similar to today)
Core / non-core file formats have not yet been
fully defined
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Cargo Billing RMs, CMs, Correspondence
Email or Other (correspondence only)
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
Other
Billing File / Data (similar to today)
Billing File / Data (similar to today)
Email / other for correspondence is a unilateral
choice made by the billing airline
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Correspondence With IS

• 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

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Miscellaneous Billing
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Miscellaneous Billing
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
Other
Billing File / Data
Billing File / Data
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Supporting Documents
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Supporting Documents With IS
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
Could be used with all record types (including
prime coupon billings, Cargo, etc)
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Central Repository Supporting Docs

• What?
• Any type of supporting document (image, PDF,
  IS-XML, 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?
• To be determined in the next phase with the help
  of the supplier

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Audit Trail(Cargo Only)
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Audit Trail Rejection History (Cargo)

• With operational data being stored
• Future records (e.g. rejections) dont 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
• View audit trail of linked correspondences,
  rejections, and original billings
• Find outgoing correspondences that havent been
  responded to
• Go directly to appropriate action

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Audit Trail Analysis Reporting (Cargo)

• Search by prefix code, coupon number, source
  code, billing period, authority to bill, etc
• Drill down through tickets, coupons, tax
  breakdowns, correspondences, etc
• Viewing and downloading of analysis (reporting)
  available
• Actions (where applicable)
• View the rejection history
• Create a rejection memo
• Create correspondence
• Create a billing memo

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Cargo IATA e-freight

• Currently all cargo attachments are electronic
  presentation (scanned images or other visual
  representations)
• When IATA e-freight is fully implemented
• Most records will be e-electronic (a
  structured, machine-readable format) and the
  format will be required by IS
• Both the billed and billing carriers will have
  digital copies of some records, which will no
  longer need to be attached in IS
• Before e-freight is fully implemented, carriers
  may bilaterally choose to send the e-electronic
  records or to not send any records

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E-Invoicing
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E-Invoicing

• Create invoice file (where applicable)
• Optionally create and verify digital signature
• Optionally store e-invoice in a legal archive
• Settle claims via ICH / ACH
• Make invoice (incl. optional digital signature
  and verification) available for download

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
Other
Billing File / Data (similar to today)
Billing File / Data (similar to today)
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E-Invoicing

• Carriers can submit a
• Billing file containing all information necessary
  to be a legal invoice, therefore submitting a
  legal invoice
• Billing file without necessary data (such as
  reference data or digital signature)
• IS adds the necessary data or digital signature,
  thereby creating the legal invoice
• IATA will be legally mandated by the carriers to
  supplement the billing file with this information
• Invoice will be made available via IS-WEB

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E-Invoicing

• Need for digital signature depends on both
  billing and billed carriers (option in airline
  profile and specified on upload file)
• Legal e-invoice archive will be an option for
  carriers that need it
• Billed carriers do not need to be concerned with
  the billing carriers requirements pertaining to
  e-invoices (or vice versa) IS will handle this
  with the input of individual carriers

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E-Invoicing

• Reference Data
• An invoice contains legally-required fields (e.g.
  VAT number, company name, etc)
• Those fields can be stored in the airline profile
  and added during the legal invoice creation
• Or the billing carrier can upload them in the
  billing file (any discrepancies between the
  uploaded data and the profile will be sent in an
  alert)
• Settlement Method
• New field that designates how the billing will be
  settled ICH, ACH, bilaterally, or not at all

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E-Invoicing - General

• Claims and protests will be settled with the
  clearing houses like today

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Cargo Miscellaneous File Formats

• Subject to change based on costs and carrier
  demand
• See IS File Formats and Pax Non-Prime
  webcasts for more information

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Next Steps Sep to Dec 2008

• Webcasts through September
• RA annual meeting (September 08)
• Presentation and breakout sessions for
  information and discussion
• FinCom (September 08)
• Update on SIS (they strongly support the project)
  
• Board of Governors (December 08)
• They wish to see radical change and will decide
  the way forward
• They will be looking for initiatives that reduce
  operating costs, improve data quality, and help
  to meet environmental objectives
• SIS Project Team
• Continues the momentum through to Phase 3

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Questions?

• Email
• sis_at_iata.org
• SIS Website
• ?www.iata.org/whatwedo/finance/clearing/sis/index.
  htm