Integrated Settlement Interfaces

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SIS Simplified Interline Settlement

• Integrated Settlement Interfaces
• 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
• Input Formats Overview
• Files (IS-IDEC IS-XML)
• Web Interface (IS-WEB)
• Validation
• 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 detailed in the
  relevant presentations (Pax prime, Pax non-prime,
  Cargo/Miscellaneous)

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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
Usage File
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Input Formats

• Files (upload download)
• IS-IDEC
• IS-XML
• IS-WEB
• Others Usage File for Pax
• All contain same fields and record structure
• Billing carrier can use any format at any time
  (input combination)
• Billing carriers choice doesnt affect billed
  carrier (format conversion)
• Available formats depend on functionality (see
  other webcasts)
• This presentation applies to Passenger, Cargo,
  and Miscellaneous

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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)
• 400 byte records (instead of 160 byte)

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File Formats IS-XML

• New XML format for Integrated Settlement
• Based on IATA Aviation Invoice Standard,
  developed by the Airport Invoice Task Force
  (AITF) and currently used by IATA InvoiceWorks
• Identical fields and validation requirements to
  IS-IDEC

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IS-WEB

• Web-based user interface to create, read, and
  delete invoices and records
• Identical fields and validation requirements to
  IS-IDEC and IS-XML
• Validation in real-time minimizes possibility of
  later validation errors
• View and print records in a standard format
• Same system as for other web-based services
  (Audit Trail, airline profile updates, etc)
• Extensive user access controls (administrator
  grants view/edit and upload of supporting
  documents per user per area)

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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
• Coupon (C3 on Pax IDEC) breakdown records
• Tax, VAT breakdown
• Breakdown records for Rejection, Billing, Credit
  Memos
• Reason Breakdown, Coupon Breakdown (with Tax
  VAT)
• Breakdown records for Other Charges (Cargo only)

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Passenger Rejection Memo Breakdowns
Rejection Memo (SFI 21)
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Validation

• Validation will be necessary in the Integrated
  Settlement environment as quality data is
  essential
• No paper invoice or back up to determine what
  the electronic data means
• Uploaded data is no longer a data exchange file
  in support of a paper invoice, but rather the
  base for invoicing and settlement
• Some existing fields will continue to be passed
  through the system without validation for use on
  a bilateral basis

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Examples of Validation

• Format Rules
• Ensures data types (e.g. numbers), length, etc
• Correct Values
• Settlement method is one of five values (e.g. ICH
  or ACH), but also depends on which clearing house
  the carrier is a member of
• 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

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Results of Validation

• Timeline
• Will occur within a maximum of 6 hours after
  submission
• Will also occur after closure if the file was
  submitted on time (but failures cant be fixed in
  that period)
• Notification of validation results sent to
  submitting carrier
• Success
• Files go on to next step of IS (e.g. e-invoicing
  settlement)
• Failure (options and permissions to be set in
  profile)
• Invoice or entire file is held until corrected
• Web Correction (IS-WEB interface)
• Delete (then, optionally, resubmit)

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Other File Format Features

• 20 character airlines own use field (only for
  Pax)
• Value signs (/-) where appropriate

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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