in-depth integrated settlement ra43 breakout session rawg member name, airline james shannon, iata

In-depth Integrated SettlementRA43 Breakout Session

RAWG Member Name, Airline

James Shannon, IATA

September 2009SIS P3 – Materials – RA43 IS In-depth Overview 2

In-depth Integrated Settlement Integrated Settlement Overview Member Administration Inputting Your Receivables Validation Closure Receiving Your Payables


Integrated Settlement Overview

BilledEntity

Integrated Settlement

BillingEntity

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Billing & Invoicing ProcessesCentralRepository

“DigitalSignature”Company

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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

Inputting ReceivablesValidation & ClosureReceiving Payables Member Administration


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 Determination& Auto-Billing

DigitalSignature


Member Administration


Member Administration

Users & Roles Contacts Member Profile

Options selected via Member Administration affect every part of your experience with Integrated Settlement


Users & Roles Every participant is set up with a master account, which has permissions to

do everything on Integrated Settlement and create other user accounts There will be a handful of default roles that users can be assigned to, e.g.:

Passenger Officer can do X, Y, and Z Passenger Manager can do X, Y, Z, plus A, B, and C

Users with appropriate permissions can also create new roles with customized permissions, e.g.: “Custom Role #1” can do X, Z, and A “Custom Role #2” can do only Y

All IS users will be in one or more roles


Contacts Revenue accounting and clearing houses involve a number of contacts,

e.g.: Financial Contact, Passenger Interline Contact, etc

Integrated Settlement adds more contacts, e.g.: Validation Failure Contact

Users and contact information are shared, a single person can be assigned to any number of contact positions

Alternatively, a generic contact can be set up (such as “RA Passenger Inquiries”)

Contacts can be searched for on Integrated Settlement and displayed, or downloaded


Member Profile Each Integrated Settlement participant has a group of configurable elements

which make up a profile The profile includes settings such as:

Contact Roles Legal invoice information, such as address, VAT registration number, etc (see E-

Invoicing breakout session) Integrated Settlement preferences, such as how validation errors are handled Third party preferences, such as settings applicable to ACH, ICH, or AIA

Users at the participant can update profile elements where applicable


InputtingReceivables


Inputting Your Receivables IS-IDEC, IS-XML IS-WEB Autobilling Special Considerations

Invoice Numbers Source Codes and Reason Codes

BillingEntity

ProrateEngine

IS-WEB

IS-XML

IS-IDEC

Usage File


IS-IDEC, IS-XML, and IS-WEB File formats: IS-IDEC and IS-XML

Generated by your Revenue Accounting or Financial systems Uploaded via secure FTP IS-IDEC is similar to today’s IDEC format, and is available for Pax and Cargo

billings* IS-XML is an XML standard, available for Pax, Cargo, Misc, and UATP billings*

Web Interface: IS-WEB Online entry via Integrated Settlement’s website Available for Pax, Cargo, Misc, and UATP billings* Your RA or Financial system doesn’t need file creation and upload ability; you

don’t even need a system IS-WEB is also used for other things (e.g. Correspondence, Audit Trail,

Reporting)

* With some exceptions – see the Airline Business Case


Autobilling Autobilling is the automatic creation of passenger prime billings based on an

uplift file The prorate values come from any combination of: NFP final, NFP non-final,

or Stored Own-Prorate The uplift file is uploaded by the billing carrier, Integrated Settlement looks

for available prorates, and adds the prorated coupon details to an invoice Daily revenue recognition files are sent to the billing carrier Just before the end of the period, the invoice is closed and the carrier can

modify the values At the end of the period, the invoice goes through just as any other invoice

uploaded by the carrier – completely transparent to the billed carrier A final posting file is sent to the billing carrier


Invoice Numbers Today, invoice numbers on IDEC are 6 mandatory digits, and 8 optional

alphanumeric characters, for a total of 14 characters Integrated Settlement will support 10 alphanumeric characters The effect on billing entities is small – they must ensure that the 10

characters submitted are unique each year

The effect may be more significant on billed entities When referencing an incoming invoice (e.g. for Rejection Memos), the

full invoice number must be provided; only providing some of the characters will cause a validation error

The billed entity must ensure that all characters are recorded


Source Codes & Reason Codes Source Codes will be mandatory

Rejection Reason Codes are part of the RM record structure They are mandatory and will affect which fields are required (affecting

validation)


Validation


Validation Importance Of Validation Effect Of Validation Online Correction

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Importance of Validation One of the primary problems with IDEC today is the almost absolute lack of

validation of the submitted file Carriers upload all manner of incorrect files and values It becomes the responsibility of the billed carrier to reconcile these values, or to

create an application to fix the incoming values from airline XX, and another application to fix the incoming values from airline YY, etc

Validation will be a key principle of Integrated Settlement

– It will be the billing party’s responsibility to upload valid data –


Effect of validation Validation is one of the first steps that occur when a file is submitted

When entering via IS-WEB, validation will occur whenever data is saved

Validation will occur on a number of levels, including: Mandatory Fields Reference Data (e.g. airport code is correct) Conditional Fields (e.g. “if field A is ‘Y’ then field B must have a value”) Total rows equal the sum of child rows

Failed validation will cause the invoice or entire file to be rejected (depending on the participant’s preference)


Online Correction If a file or invoice fails validation, an email is sent to the billing entity The errors can be corrected online (depending on participant preference)

Only fields not containing values can be corrected Unless the error is in a value field, in which case the invoice or file must be re-

uploaded

If the errors haven’t been corrected by period closure, the invoice or file will not be submitted for clearance (but can be corrected and submitted in the following period)


Closure


Closure After closure Integrated Settlement will (where

applicable): Create invoices Submit invoices to a third party for digital signature Submit invoice amounts to the ICH or ACH

Settlement will occur as today, including deadlines and calendars, protests, fees, etc

Prepare files for billed participant

Billing & Invoicing ProcessesCentralRepository

“DigitalSignature”Company

Settlement Processes

ICH ACH


Receiving Payables


Receiving Your Payables IS-IDEC and IS-XML files will be made available via

secure FTP for download The billing entity’s upload choice will not affect the

billed entity

Alternatively, you can view the billing data on IS-WEB

BilledEntity

IS-WEB

IS-XML

IS-IDEC


Questions?

Email:

[email protected]

SIS Website:

www. t .oria a g.s si

mailto:[email protected]

http://www.iata.org/whatwedo/finance/clearing/sis/index.htm

http://www.iata.org/whatwedo/finance/clearing/sis/index.htm

in-depth integrated settlement ra43 breakout session rawg member name, airline james shannon, iata

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