Presentation is loading. Please wait.

Presentation is loading. Please wait.

From paper to e-Invoicing Kuala Lumpur ICH UG 2010 - Breakout Session Bruno Roussel.

Similar presentations


Presentation on theme: "From paper to e-Invoicing Kuala Lumpur ICH UG 2010 - Breakout Session Bruno Roussel."— Presentation transcript:

1 From paper to e-Invoicing Kuala Lumpur ICH UG Breakout Session Bruno Roussel

2 SIS – From Paper to e-Invoicing Agenda  Invoicing today  Problems with the paper cycle  SIS e-Invoicing benefits  SIS is not just an IT project  The steps to consider  IS-Web vs. IS-XML  SIS e-Invoicing  Charge Category  Charge Code  Invoice structure  Sample  Interoperability between IATA SIS and IATA e-Invoicing  Best practices  Question & Answer

3 October Paper Invoicing in ICH world today Print Paper Invoice Mail Invoice Finance Receives Paper Invoice Supporting documents are compare to the invoice Accountant Invoice Data Entry AP Clerk Airline Financial System Typical paper process Engineering Accountant SIS – From Paper to e-Invoicing Supporting document Photocopy Scan The invoice enters the validation workflow for approbation

4 Problems with the paper cycle  Needs people to consolidate the invoices and supporting docs  Needs people to put it in envelopes etc  Needs to be sent somewhere, possibly delivered to a collection point first  Needs to be AWBd, couriered or posted  Needs someone at the other end to receive it, take it out of envelopes and distribute it  Needs someone to check it’s all there  Needs someone to check it reconciles with settlements  Etc etc etc

5 Paper versus Electronic Invoice processing The Internet XML Supplier Transmit Invoice Electronically Transmit Invoice Electronically E-invoicing process Print Paper Invoice Mail Invoice Supplier Receives Paper Invoice Approves Invoice on Paper Airline Manager Invoice Data Entry AP Clerk Airline System Typical paper process Airline System October 2010SIS – From Paper to e-Invoicing5

6 SIS e-Invoicing benefits  Reduce cost of paper process  Improve efficiency :  Data quality  Speed of information  Automation  Access to detailed information  Audit trail  Uses IATA IS-XML e-Invoice Standard  Contributes to the green initiative October 2010SIS – From Paper to e-Invoicing6

7 October SIS is not just an IT project You have to reengineer the current process to adapt to SIS:  Will you generate Invoices in each department or centrally ?  How will you Capture detailed information of the invoice at the source?  Which level of automation would you like to achieve? SIS – From Paper to e-Invoicing

8 October  How to reconcile the invoices against clearing house settlement?  Today claims may not match IDEC or invoice  Tomorrow all the information will be consistent  Will you reconcile invoices against purchase order?  Reconcile the invoices against your account posting based on:  Your operational system  Contract database  Aircraft schedules Define your objective SIS – From Paper to e-Invoicing SIS is not just an IT project

9 October The steps to consider 1/2  Define a project team including all involved parties (Finance, IT…)  Depending on your objectives define the changes in your business processes and IT systems:  Analyze the process changes :  Creation of invoices for example:  Gathering all mandatory and recommended information for the invoice  Numbering of invoices unique per billing entity per year (10 AN)  Generating invoices out of your financial system (e.g. SAP)  Validation/ approval of outgoing/incoming billings  Reconciliation SIS – From Paper to e-Invoicing

10 October The steps to consider 2/2  Depending on your objectives define the changes in your business processes and IT systems:  Analyze the impact on your IT system:  Third party software (Product Road map)  In-house systems  File exchanges  ERP  Workflow ……  Develop  Test  Implement SIS – From Paper to e-Invoicing

11 October IS-Web vs. IS-XML  IS-XML:  Could be generated/ processed from different systems including ERP or financial systems  Easy to handle large amount of invoices  Ease the use of workflow validation  Increase IT project requirements  IS-WEB:  Allows multiple locations to capture their invoices easily  Suitable for small amount of invoices  Workflow validation could be set up in SIS  Simplify SIS implementation  Payable invoices as PDF view

12 SIS e-Invoicing  SIS will allow legal e-Invoicing  NOTE – not legal in some countries yet  PDF or XML could be used as the legal invoice.  Billing entity choice  In case of an XML invoice an additional XML file will be created  Legal XML is a subset of the IS-XML October 2010SIS – From Paper to e-Invoicing12

13 SIS e-Invoicing  The files may need a Digital Signature (DS)  This digitally signed file should be archived in accordance with legal rules  You may have to print the incoming invoice in your country if the electronic format is not considered as legal:  You can do this yourself, or  You can ask the billing entity to send you a paper copy, but this will be charged as defined in IATA RAM Chapter A13 October 2010SIS – From Paper to e-Invoicing13 Please refer to the plenary presentation for more details about legal compliance

14 SIS e-Invoicing process without DS Billed Airline Integrated Settlement Billing Entity Overall Processes Billing & Invoicing Processes Central Repository Overall Processes Settlement Processes ICHACH Processes at time of Sales NFP engine ARC COMPASS™ IS-WEB IS-XML IS-IDEC Usage File IS-WEB IS-XML IS-IDEC Billing information file Legal PDF Legal XML Legal PDF Legal XML e-Invoice 1 2 Create invoice 4 3 October 2010SIS – From Paper to e-Invoicing14

15 Billed Airline Integrated Settlement Billing Entity Overall Processes Billing & Invoicing Processes Central Repository “Digital Signature” Company Overall Processes Settlement Processes ICHACH Processes at time of Sales NFP engine ARC COMPASS™ IS-WEB IS-XML IS-IDEC Usage File IS-WEB IS-XML IS-IDEC Billing information file Legal PDF Legal XML Legal PDF Legal XML e-Invoice Create the invoice Sign the invoice 4 “Validation DS” Company Validate the DS 5 3 October 2010SIS – From Paper to e-Invoicing15 SIS e-Invoicing with DS

16  Billed Entity: One zip file per billing category will include for every billed invoice:  PDF invoice with embedded DS OR  A copy of the invoice in PDF and the Legal XML file and a separate DS creation file and a separate Legal XML file DS verification log AND  PDF Listing including line item details AND  IS-XML  Supporting document if any  Billing Entity: One zip file per billing category will include for every billing invoice:  PDF invoice with embedded DS OR  PDF copy of the invoice and Legal XML file and a separate DS creation file  PDF Listing including line item details  Supporting document if any October 2010SIS – From Paper to e-Invoicing16 File dispatch

17 October Charge Category  Invoices are standardized and structured  12 Charge Categories SIS – From Paper to e-Invoicing Airport Mail ATC Miscellaneous Cargo Partner Alliance Engineering Property Flight Ops Service Provider Ground Handling IT Services One charge category only allowed per invoice

18 October Charge Code  84 different possibilities to classify an invoice SIS – From Paper to e-Invoicing Example charge category Engineering charge code:  Handling LM  Lease  Loans  Misc  MRO - Maintenance  MRO - Repairs & Overhaul  Pool Several charge codes allowed per invoice

19 October Invoice Structure Composed of :  Invoice Header  Line Item  Line Item details (replace supporting document) Including :  Legal fields  Required by law  Mandatory fields  Substitution allowed for one year  Recommended fields  R for recommended for one year and will become mandatory  RA for recommended always  Optional fields  Additional information not required to reconcile, may be used within Alliance

20 October Ground Handling / Catering Invoice sample

21 October Supporting document

22 October SIS – From Paper to e-Invoicing LocationCode Invoice or Line Item Level AN5M IATA airport code or UN/LOCODE or city code if non-airport. AircraftTypeCodeLineItemDetailAN3MIATA aircraft types Dictionary defined (IATA aircraft type codes) '0' (Numeric Zero) will also be allowed as substitution value FlightNoLineItemDetailAN8M Unique flight identifier: Shown in field 7 of the ICAO flight plan consisting of either the aircraft reg. or the flight number (which itself consists of the two or three character airline designator code followed by an up to 4 digit number with optional Quebec single suffix letter). SIS e-Invoicing fields Mandatory: Ground Handling / Catering

23 October SIS – From Paper to e-Invoicing ProductIDLineItemDetailAN25R Supplier code for the product or service. ContractNoLineItemDetailAN25R CabinClassLineItemDetailA1R Values: C,Y,F FlightDateTimeLineItemDetailDT R Date&Time allowing to identify the flight the service is related to YYYY-MM-DDThh:mm:ss Time is optional AddOnChargeNameLineItemDetailAN30RAName of the AddOnCharge Possible Values: Discount; Fees etc AddOnChargeAmountLineItemDetailN18,3RA Amount of the AddOnCharge. This can have a negative value for discount SIS e-Invoicing fields Recommended: Ground Handling / Catering

24 October Original invoice is missing:  Mandatory fields:  Charge Category: Ground Handling  AircraftTypeCode: Substitution “ 0 ”  FlightNo: CHARTER  Recommended fields  CabinClass  ContractNo

25 October SIS invoice view

26 October SIS supporting document

27 October Corresponding IS-XML Line Item SIS – From Paper to e-Invoicing 2 Catering Catering at CLE - Condiments See ISPG for further details

28 October Corresponding IS-XML Line Item Details SIS – From Paper to e-Invoicing 1 2 Catering at CLE - Condiments ER Z Y Charter

29 October IS-XML, IS-IDEC, IS-Web Interoperability between IATA SIS and IATA e-Invoicing Invoices from SIS can be routed to IATA e-Invoicing for additional services, such as workflow, and printing/distribution services CH Airline CH Associate Airline and non-airline PAX, Cargo, MISC MISC Digital signing Premium Functionality Invoice receiving Airline Paper Printing and distribution services IS-XML, IS-IDEC, IS-Web (IS)XML, Web Archiving Configurable Routing (airline specific) MISC IS-XML, IS-Web

30 October Fiscal dematerialization (digital signature + storage) Premium functionality: Invoice validation PO & receipt match Routing & approval Dispute resolution Payment status Reporting Invoice Senders ERP Paper Scanning and data capture services File Transfer XML CSV Web entry ERP Web receipt Web PO, Status, Codes,… Invoice Receivers XML Invoice + supporting documents Printing and distribution services Paper Invoice + supporting documents

31 Best Practices  e-Invoicing is a complete change for your organization, benefit from that to design optimal processes  Use of Charge Category and Charge Code allows appropriate routing of the invoice for validation, and GL posting  Use segregation of tasks to ensure better controls on overall validation process  The sooner the better, project could be implemented in several phases, but be ready to process incoming billing from day one in an electronic manner October 2010SIS – From Paper to e-Invoicing31

32 Best Practices  Automate the reconciliation with the maximum of electronic data possible, general ledger posting against CH settlement...  Automate the matching of PO and invoices or contract  Generation and integration of electronic data should be automated.  Leveraging your existing ERP system will ensure an all electronic data world  Use the IATA IS-XML e–Invoice standard, develop once, connect to all. October 2010SIS – From Paper to e-Invoicing32

33 October 2010SIS P3 – ICH User Group – From Paper to e-Invoicing33 Question & Answer e-Invoicing contact in IATA:  for any request to add information in the IS XML such as charge category charge code or new business requirement  for any question related to InvoiceWorks

34 Thank you. SIS Website:  October 2010SIS – From Paper to e-Invoicing34


Download ppt "From paper to e-Invoicing Kuala Lumpur ICH UG 2010 - Breakout Session Bruno Roussel."

Similar presentations


Ads by Google