SIS – Simplified Interline Settlement

1. SIS – Simplified Interline Settlement Integrated Settlement Interfaces and Validation RA42 Breakout Session

2. Overview of this Presentation • Introduction & Scope of Presentation • Input Formats Overview • Files (IS-IDEC & IS-XML) • Web Interface (IS-WEB) • Validation • Supporting Documents • Questions & Answers SIS – Materials – RA42 Breakout Interfaces & Validation

3. IDEC WG Members • Terry Palmer, BA (chair) • Kevin Sams, AA • Gilles Clochette, AF • Raj Bhavnani, EK • Cho YoonHyun, KE • Astrid Schorfheide, LH • Vera Fidalgo, TP • Joe Rochford, VS • Terry Delaney, IATA • Gianna Monsch, IATA SIS – Materials – RA42 Breakout Interfaces & Validation

4. IDEC WG Members - RAWG Representing the Revenue Accounting Working Group: • Gilles Clochette, AF SIS – Materials – RA42 Breakout Interfaces & Validation

5. WG Meetings • February – Europe (2 days) • April – Canada (2 days) • May – Europe (2 days) • June – Canada (2 days) • Additional sub-meetings for File Validation • 3 further conference calls and homework due each meeting SIS – Materials – RA42 Breakout Interfaces & Validation

6. Interline Settlement - Now Paper invoices, with coupon listing, coupons, rejects, supporting documents (monthly) Settlement sheets – (weekly) Recap sheets - weekly Billed Airline ACH Billing Airline F3– (weekly) F12 – (weekly) F1 – net amounts of inv F2 - summary ICH ATPCO Cargo IDEC File (monthly) Cargo IDEC File (monthly) Pax IDEC File (monthly) Pax IDEC File (monthly) (incl F&F pre IDEC Validation) prorate engine prorate engine ARC-Compass (NFP storage) GDSs BSPs Previously released sales record F&F: receives NFP value All: May receive sales records AIA F&F SIS – Materials – RA42 Breakout Interfaces & Validation

7. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ SIS – General Overview Integrated Settlement IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML Overall Processes Overall Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File SIS – Materials – RA42 Breakout Interfaces & Validation

8. Input Formats This presentation applies to Passenger, Cargo, and Miscellaneous. • Files (upload & download) • IS-IDEC • IS-XML • IS-WEB • Others – Usage File for Pax • All contain same fields for a given record type • Billing carrier can use any format at any time (“input combination”) • Billing carrier’s choice doesn’t affect billed carrier (“format conversion”) • Available formats depend on functionality (see other sessions) SIS – Materials – RA42 Breakout Interfaces & Validation

9. 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) SIS – Materials – RA42 Breakout Interfaces & Validation

10. File Formats – IS-IDEC • Every carrier will need system enhancements to support IS-IDEC • IS-IDEC vs. IS-XML is an IT decision – it is immaterial to the RA department • Potential Benefits • 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 permanent record structure SIS – Materials – RA42 Breakout Interfaces & Validation

11. 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 SIS – Materials – RA42 Breakout Interfaces & Validation

12. File Formats – XML • 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 • IS-XML format is more flexible and thus better than IS-IDEC for non-permanent record structure (like Miscellaneous billings) SIS – Materials – RA42 Breakout Interfaces & Validation

13. 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 • Download records created via IS-WEB in an excel file  Not an alternative to a Revenue Accounting system SIS – Materials – RA42 Breakout Interfaces & Validation

14. IS-WEB • 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 SIS – Materials – RA42 Breakout Interfaces & Validation

15. IS-WEB Additional Features • Same system as for other web-based services • Audit Trail • Airline profile updates  Discussed in other presentations • View and print invoices in a standard format • Extensive user access controls (administrator grants view/edit and upload of supporting documents per user per area) SIS – Materials – RA42 Breakout Interfaces & Validation

16. 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) SIS – Materials – RA42 Breakout Interfaces & Validation

17. Coupon Breakdown (SFI = 32) Reason Breakdown (SFI = 31) Coupon Breakdown (SFI = 32) Reason Breakdown (SFI = 31) VAT Breakdown (SFI = xx) Coupon Breakdown (SFI = 32) VAT Breakdown (SFI = xx) VAT Breakdown (SFI = 34) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) Example Breakdowns (Pax Rejection Memo) Rejection Memo (SFI = 21) SIS – Materials – RA42 Breakout Interfaces & Validation

18. Validation SIS – Materials – RA42 Breakout Interfaces & Validation

19. 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 SIS – Materials – RA42 Breakout Interfaces & Validation

20. 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 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 SIS – Materials – RA42 Breakout Interfaces & Validation

21. 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 can’t 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) SIS – Materials – RA42 Breakout Interfaces & Validation

22. Other Features Of File Formats • 20 character “airline’s own use” field (only for Pax) • Value signs (+/-) where appropriate SIS – Materials – RA42 Breakout Interfaces & Validation

23. Supporting Documents SIS – Materials – RA42 Breakout Interfaces & Validation

24. 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. SIS – Materials – RA42 Breakout Interfaces & Validation

25. Settlement Processes ICH ACH Central Repository Processes at time of Sales NFP engine ARC COMPASS™ Supporting Documents – With IS Integrated Settlement IS-WEB IS-WEB Billed Airline Billing Airline “Digital Signature” Company IS-XML IS-XML TBD TBD Enabling Processes Enabling Processes Billing & Invoicing Processes IS-IDEC IS-IDEC Prorate Engine Usage File Batch Transfer e.g. FTP Batch Transfer e.g. FTP SIS – Materials – RA42 Breakout Interfaces & Validation

26. 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 SIS – Materials – RA42 Breakout Interfaces & Validation

27. Uploading Supporting Documents • Manually Via IS-WEB • Search for or browse to a billing and upload single documents • Automatically via a batch upload (to be determined by vendor) • IS-XML – Multiple supporting documents could be embedded in the XML format • Other transfer protocols (e.g. FTP) – Supporting documents uploaded in a batch format SIS – Materials – RA42 Breakout Interfaces & Validation

28. Uploading Supporting Documents Potential Issues • PC-attached single-document scanners very inefficient • RA system might not have capability to attach scanner • Matching supporting documents and billings could cause errors SIS – Materials – RA42 Breakout Interfaces & Validation

29. Uploading Supporting Documents Potential Solution • Batch Header produced (printed from RA system or created manually) • Documents compiled in batches with batch header • All documents scanned into one single PDF document • IS or software at carrier could split PDF, remove batch headers, and attach documents to their respective billings SIS – Materials – RA42 Breakout Interfaces & Validation

30. Thank you. Email: sis@iata.org SIS Website: www.iata.org/whatwedo/finance/clearing/sis/index.htm SIS – Materials – RA42 Breakout Interfaces & Validation