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Introduction to SIS. RA43 James Shannon, IATA. Goal & Agenda. Project Overview The Need For IS Vision IS Solution & Features Benefits & Changes Next Steps. To familiarize you with Simplified Interline Settlement and prepare you for tomorrow’s breakout sessions. Project Overview.

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introduction to sis

Introduction to SIS

RA43

James Shannon, IATA

goal agenda
Goal & Agenda
  • Project Overview
    • The Need For IS
    • Vision
  • IS Solution & Features
  • Benefits & Changes
  • Next Steps

To familiarize you with Simplified Interline Settlement and prepare you for tomorrow’s breakout sessions

SIS P3 – Materials – RA43 Intro to SIS

slide3

Project Overview

SIS P3 – Materials – RA43 Intro to SIS

interline settlement today
Interline Settlement - Today

Paper invoices, with coupon listing, coupons, rejects, supporting documents

(monthly)

Settlement sheets – (weekly)

Recap sheets - weekly

Billed

Entity

ACH

Billing

Entity

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)

Previously released sales record

GDSs

BSPs

F&F: receives NFP value

AIA F&F

SIS P3 – Materials – RA43 Intro to SIS

sis vision
SIS Vision

Fundamentally change, simplify and integrate the interline settlement process, delivering tangible financial benefits to the industry.

  • Invoices are electronic and not backed by paper
  • Prime passenger billings do not require paper invoices or coupon listings
  • IDEC formats are maintained with increased record types
  • Passenger rejects, including any attachments, are submitted electronically without paper
  • Cargo and Mail billings are electronic and paperless
  • Miscellaneous billings (including any supporting information) are electronic, whether as data or with attachments
  • Settlement action directly from ET systems is enabled

SIS P3 – Materials – RA43 Intro to SIS

sis phase 3
SIS Phase 3

Phase 1

Feasibility

Phase 2

Requirements

Development

Phase 3

Implementation

  • Phase 1 – Feasibility followed FC96 in May 2007
  • Phase 2 – Requirements Development ran from December 2007-July 2008. Included the initial RFI
  • Phase 3 was too large to handle as a single operation, and was split:
    • Phase 3a became the RFP and selection process, from which the Kale/iPayables proposal was chosen
    • Phase 3b is the current System Design and requirements finalisation phase
    • Phase 3c is the System Development and Pilot testing

SIS P3 – Materials – RA43 Intro to SIS

phase 3 steering working groups
Phase 3 - Steering & Working Groups

Airline participation has been essential to the progress that SIS had made:

  • Steering Group
  • Passenger WG
  • Cargo WG
  • Miscellaneous WG
  • IT WG

 Over 60 participants from over 30 carriers

  • ICH Operations WG

SIS P3 – Materials – RA43 Intro to SIS

slide8

ISSolution & Features

SIS P3 – Materials – RA43 Intro to SIS

interline settlement today9
Interline Settlement - Today

Paper invoices, with coupon listing, coupons, rejects, supporting documents

(monthly)

Settlement sheets – (weekly)

Recap sheets - weekly

Billed

Entity

ACH

Billing

Entity

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)

Previously released sales record

GDSs

BSPs

F&F: receives NFP value

AIA F&F

SIS P3 – Materials – RA43 Intro to SIS

integrated settlement
Integrated Settlement

Settlement Processes

ICH

ACH

Central

Repository

Processes at time of Sales

NFP

engine

ARC

COMPASS™

Integrated Settlement

IS-WEB

IS-WEB

Billed

Entity

Billing

Entity

“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

SIS P3 – Materials – RA43 Intro to SIS

11

September 2008

slide11
No F12 files.

No recap sheets, either.

Nothing that you submit to the ICH or ACH today can be submitted after migration.

SIS P3 – Materials – RA43 Intro to SIS

main features of is
Main Features of IS
  • File Formats & Validation
  • Passenger
    • Time of Sales – NFP final, NFP non-final, and Own Prorate Storage
    • Value Determination & Autobilling
    • Sampling
    • Correspondence
    • Audit Trail
  • Differences for Cargo
  • Differences for Miscellaneous
  • Bringing It All Together
    • Member Administration
    • Processing Dashboard
    • Document Storage

SIS P3 – Materials – RA43 Intro to SIS

slide13

File Formats & Validation

SIS P3 – Materials – RA43 Intro to SIS

file formats

Settlement Processes

ICH

ACH

Central

Repository

Processes at time of Sales

NFP

engine

ARC

COMPASS™

File Formats

Integrated Settlement

Format Conversion:

  • Billed Entity’s choice of format does not depend on the billing carrier’s

IS-WEB

IS-WEB

Billed

Entity

Billing

Entity

“Digital

Signature”

Company

IS-XML

IS-XML

Enabling Processes

Enabling Processes

Billing & Invoicing Processes

IS-IDEC

IS-IDEC

Prorate

Engine

Usage File

Send files

(or enter online)

Receive (or download) invoices

Validation

Format Conversion

SIS P3 – Materials – RA43 Intro to SIS

file formats is idec
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)

500 byte records (instead of 160 byte)

Every carrier will need system enhancements to support IS-IDEC

SIS P3 – Materials – RA43 Intro to SIS

17

September 2008

file formats is xml
File Formats – IS-XML

New XML format for Integrated Settlement

Based on IATA Aviation Invoice Standard, used by IATA InvoiceWorks

Identical fields and validation requirements to IS-IDEC

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 of IS-XML

IS-XML format is more flexible and thus better than IS-IDEC for variable record structure (like Miscellaneous billings)

Potential Benefits of IS-IDEC

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 fixed record structure

SIS P3 – Materials – RA43 Intro to SIS

18

September 2008

is web record structure
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

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

Won’t be as user-friendly as a dedicated, local system

 Not an alternative to a Revenue Accounting system

SIS P3 – Materials – RA43 Intro to SIS

19

September 2008

is web for everybody
IS-WEB For Everybody

IS-WEB is also used for other web-based services

Audit Trail

Pax & Cargo Correspondence

Online Corrections after validation failure

Processing Dashboard

Airline profile updates

Web Analysis Reports

View and print invoices in a standard format

Extensive user access controls (your company’s administrator can grant detailed permissions)

SIS P3 – Materials – RA43 Intro to SIS

20

September 2008

breakdown records
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 P3 – Materials – RA43 Intro to SIS

21

September 2008

example breakdowns pax rejection memo
Example Breakdowns (Pax Rejection Memo)

Rejection Memo

(SFI = 21)

Reason Breakdown

(SFI = 31)

Coupon Breakdown

(SFI = 32)

VAT Breakdown

(SFI = xx)

Reason Breakdown

(SFI = 31)

Coupon Breakdown

(SFI = 32)

VAT Breakdown

(SFI = xx)

Coupon Breakdown

(SFI = 32)

VAT Breakdown

(SFI = 34)

Tax Breakdown

(SFI = 33)

Tax Breakdown

(SFI = 33)

Tax Breakdown

(SFI = 41)

SIS P3 – Materials – RA43 Intro to SIS

22

September 2008

validation

Settlement Processes

ICH

ACH

Central

Repository

Processes at time of Sales

NFP

engine

ARC

COMPASS™

Validation

Integrated Settlement

Validation:

  • Guarantees links between records (e.g. 2nd and 1st RMs)
  • Enforces timeframes and “order” (1st RM -> 2nd RM -> 3rd RM)
  • Ensures file is properly formed
  • Other validations

IS-WEB

IS-WEB

Billed

Entity

Billing

Entity

“Digital

Signature”

Company

IS-XML

IS-XML

Enabling Processes

Enabling Processes

Billing & Invoicing Processes

IS-IDEC

IS-IDEC

Prorate

Engine

Usage File

Send files

(or enter online)

Receive (or download) invoices

Validation

Format Conversion

SIS P3 – Materials – RA43 Intro to SIS

examples of validation
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 only 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

Billing entity will be notified of validation results

Invoices (and possibly files) failing validation will not go any further

SIS P3 – Materials – RA43 Intro to SIS

25

September 2008

slide23

Passenger

SIS P3 – Materials – RA43 Intro to SIS

time of sales now optional
Time of Sales – Now (Optional)

Billed

Airline

Settlement sheets – (weekly)

Recap sheets - weekly

Billing

Airline

ACH

F3– (weekly)

F12 – (weekly)

F1 – net amounts of inv

F2 - summary

ICH

ATPCO

Pax IDEC File (monthly)

Pax IDEC File (monthly)

(incl F&F pre IDEC

Validation)

prorate

engine

prorate

engine

ARC-Compass

(NFP storage)

Previously released sales record

Sales Records,

NFPs

GDSs

BSPs

F&F: receives NFP value

All: May receive sales records

AIA F&F

Sales Records

Optional Proration,

Storage, Switching

SIS P3 – Materials – RA43 Intro to SIS

27

September 2008

time of sales with is
Time of Sales – With IS

Settlement Processes

ICH

ACH

Central

Repository

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

Processes at time of Sales

ARC

COMPASS™

NFP

engine

Sales Records or

Own Prorates

Sales Records,

NFPs, &

Sales Carrier’s

Own Prorates

Optional Proration (final & non-final), Storage, Switching

SIS P3 – Materials – RA43 Intro to SIS

28

September 2008

neutral fare prorates with is
Neutral Fare Prorates – With IS

NFP engine will be available to carriers for FIRST & FINAL™ (NFP Final) and non-F&F (NFP non-final) purposes

NFP non-final could minimize rejections without any obligation by the carriers

Own prorate storage and switching will allow the sales carrier to upload prorates, which are then forwarded or made available to the billing carrier

SIS P3 – Materials – RA43 Intro to SIS

29

September 2008

time of billing now
Time of Billing – Now

Billed

Airline

Billing

Airline

Pre-IDEC Validation

for F&F NFP values

(updates the PMI)

ATPCO

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 P3 – Materials – RA43 Intro to SIS

30

September 2008

submitting billing information with is
Submitting Billing Information – With IS

Settlement Processes

ICH

ACH

ARC

COMPASS™

Integrated Settlement

Billing File / Data

(similar to today)

Billing File / Data

(similar to today)

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

Central

Repository

Prorate

Engine

Usage File

Processes at time of Sales

NFP

engine

Billing Value Confirmation

(Leaves “Original PMI”, updates “Value Confirmation PMI”)

SIS P3 – Materials – RA43 Intro to SIS

31

September 2008

time of billing is value determination
Time of Billing – IS Value Determination

Settlement Processes

ICH

ACH

Processes at time of Sales

NFP

engine

ARC

COMPASS™

Integrated Settlement

Billing File / Data

(similar to today)

Billing File / Data

(similar to today)

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

Central

Repository

Prorate

Engine

Usage File

Usage File

Prorate Values

SIS P3 – Materials – RA43 Intro to SIS

32

September 2008

time of billing is auto billing
Time of Billing – IS Auto-Billing

Settlement Processes

ICH

ACH

Central

Repository

Processes at time of Sales

NFP

engine

ARC

COMPASS™

Integrated Settlement

Billing File / Data

(similar to today)

No Billing File

From Carrier

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

Usage File

Billing and Invoice Files

Created Within IS

Daily Revenue Recognition File

Weekly Invoice Posting File

SIS P3 – Materials – RA43 Intro to SIS

33

September 2008

sampling
Sampling

Provisional Invoice (as today with prime coupon billing, but with elements from Forms A and B)

Universe Adjustment (Form C)

Digit Evaluation (Forms D and E)

Form G (ACH)

Rejection Memos & Correspondence (as today with non-sample but with elements from Forms F and XF)

 All via IS-IDEC, IS-XML, and IS-WEB

SIS P3 – Materials – RA43 Intro to SIS

34

September 2008

pax cargo correspondence
Pax & Cargo Correspondence

Settlement Processes

ICH

ACH

Processes at time of Sales

NFP

engine

ARC

COMPASS™

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

Central

Repository

Prorate

Engine

Usage File

Enter Correspondence

(including attachments)

Receive Correspondence

(including attachments)

Validation

SIS P3 – Materials – RA43 Intro to SIS

35

September 2008

pax cargo correspondence33
Pax & Cargo Correspondence

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

SIS P3 – Materials – RA43 Intro to SIS

36

September 2008

audit trail rejection history
Audit Trail & Rejection History

With operational data being stored:

Future records (e.g. rejections) don’t 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

Drill down through tickets, coupons, tax breakdowns, correspondences, etc

View audit trail of linked correspondences, rejections, and prime billings

Find outgoing correspondences that haven’t been responded to

Go directly to appropriate action (create RM, create correspondence, create billing memo)

SIS P3 – Materials – RA43 Intro to SIS

37

September 2008

audit trail example view
Audit Trail (example view)

Create Correspondence

SIS P3 – Materials – RA43 Intro to SIS

38

September 2008

slide36

Key Differences forCargo & Misc

SIS P3 – Materials – RA43 Intro to SIS

key differences for cargo
Key Differences for Cargo
  • All cargo record types also represented in IS-IDEC, IS-XML, and IS-WEB
  • The IATA e-freight project will introduce e-electronic formats (structured data) for these supporting documents over time
  • Before then, carriers can bilaterally decide to use e-electronic formats, or to not transfer supporting documents at all

SIS P3 – Materials – RA43 Intro to SIS

key differences for miscellaneous
Key Differences for Miscellaneous
  • IS-IDEC cannot be used for Miscellaneous billings (only IS-XML and IS-WEB)
  • All Miscellaneous billings are uniquely defined by a charge category and charge code, allowing for routing to the correct person/department, automatic posting, or even automatic reconciliation
  • Examples:

SIS P3 – Materials – RA43 Intro to SIS

slide39

Bringing it Together

SIS P3 – Materials – RA43 Intro to SIS

bringing it all together
Bringing it All Together
  • Member Administration will contain centralized preferences for your company:
    • User Administration with the ability to create users and roles, customize user permissions
    • Member Profile to set your own preferences, such as:
      • Who to contact for ICH alerts, file validation failures, etc
      • Rules as to how IS will operate for your company (apply digital signatures, allow corrections, etc)
  • Processing Dashboard will provide a centralized overview of all submitted files and their statuses throughout the Integrated Settlement

SIS P3 – Materials – RA43 Intro to SIS

supporting documents
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 P3 – Materials – RA43 Intro to SIS

44

September 2008

supporting documents with is
Supporting Documents – With IS

Settlement Processes

ICH

ACH

Central

Repository

Processes at time of Sales

NFP

engine

ARC

COMPASS™

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

Batch Transfer

e.g. FTP

Batch Transfer

e.g. FTP

SIS P3 – Materials – RA43 Intro to SIS

45

September 2008

central repository supporting docs
Central Repository & Supporting Docs

What?

Any type of accepted supporting document (image, PDF, 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?

Discussed in more detail during the Breakout Sessions

SIS P3 – Materials – RA43 Intro to SIS

46

September 2008

slide44

Benefits & Changes

SIS P3 – Materials – RA43 Intro to SIS

key benefits of is billing carrier
Key Benefits of IS – Billing Carrier
  • Substantial savings due to:
    • Reduction in paper, postage and courier fees
    • Reduction in internal paper handling and supply chain efforts
    • No more loss of supporting documents and re-creation of invoices
    • Automation of billing directly from uplifts (e.g. Auto-Billing)
    • Optional à la carte service of “Integrated Settlement”

SIS P3 – Materials – RA43 Intro to SIS

key benefits of is billed carrier
Key Benefits of IS – Billed Carrier

Substantial savings due to:

  • Reduction in internal paper handling and supply chain efforts(e.g. registration, and reconciliation of invoices to payment)
  • Automated data
  • Less manual intervention
  • Data quality improvements on IS-IDEC
  • Pax Rejection Memos, Billing and Credit Memo electronically
  • Cargo Original AWB, Rejection and Charge Memo electronically
  • Supporting Documents immediately available in electronic presentation

SIS P3 – Materials – RA43 Intro to SIS

key benefits of is
Key Benefits of IS
  • Rejection Memo & Correspondence process improvements due to:
    • Enforcement of RAM rules (RM stage and correspondence)
    • Opportunity to detect duplicate rejections of the same original billing
    • All rejections and correspondence link to previous billings; information and supporting documents do not have to be re-uploaded
    • Time-limit reduction possibilities for Rejection Memos and Correspondence
  • Risk management and process improvements due to:
    • Fewer items outstanding for a shorter period of time
    • Future potential time-limit reduction for prime / original billings
  • Benefits to the environment due to reduction of paper and shipping
  • Alliance objectives complemented by SIS

SIS P3 – Materials – RA43 Intro to SIS

airline changes where applicable
Airline Changes (where applicable)
  • Change from IDEC to IS-IDEC
    • 500 bytes instead of 160 bytes
    • Follow rules in RAM
    • Some detail records mandatory (e.g. taxes)
    • Other elements mandatory (e.g. Source Code)
  • Choose and implement other submission formats (IS-XML, IS-WEB)
  • Prepare to scan and upload supporting documents
  • Implement e-billing (possible legal implications)

SIS P3 – Materials – RA43 Intro to SIS

slide49

Next Steps

SIS P3 – Materials – RA43 Intro to SIS

next steps
Next Steps

This Week

    • Breakout Sessions

Back at Your Office

  • Airline Business Case (on the SIS website)
  • IS Participation Guide (see the breakout session)
  • Internal Planning and Budgeting (based on the IS Participation Guide and the Migration breakout session)

SIS P3 – Materials – RA43 Intro to SIS

thank you
Thank you.

Email:

sis@iata.org

SIS Website:

www.iata.org/sis

SIS P3 – Materials – RA43 Intro to SIS