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

2. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation2 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

3. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation3 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

4. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation4 IDEC WG Members - RAWG Representing the Revenue Accounting Working Group:  Gilles Clochette, AF

5. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation5 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

6. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation6 Interline Settlement - Now ICH ATPCO (incl F&F pre IDEC Validation) Billed Airline Billing Airline Cargo IDEC File (monthly) Pax IDEC File (monthly) F12 – (weekly) F1 – net amounts of inv F2 - summary Cargo IDEC File (monthly) Pax IDEC File (monthly) F3– (weekly) Paper invoices, with coupon listing, coupons, rejects, supporting documents (monthly) AIA F&F F&F: receives NFP value All: May receive sales records ARC-Compass (NFP storage) Previously released sales record prorate engine prorate engine GDSs BSPs ACH Recap sheets - weekly Settlement sheets – (weekly)

7. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation7 SIS – General Overview Billed Airline Integrated Settlement Billing Airline Overall Processes Billing & Invoicing Processes Central Repository “Digital Signature” Company Overall Processes Settlement Processes ICHACH Processes at time of Sales NFP engine ARC COMPASS™ Prorate Engine IS-WEB IS-XML IS-IDEC Usage File IS-WEB IS-XML IS-IDEC

8. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation8 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)

9. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation9 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)

10. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation10 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

11. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation11 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

12. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation12 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)

13. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation13 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

14. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation14 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

15. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation15 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)

16. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation16 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)

17. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation17 Example Breakdowns (Pax Rejection Memo) Rejection Memo (SFI = 21) Reason Breakdown (SFI = 31) Reason Breakdown (SFI = 31) Coupon Breakdown (SFI = 32) Coupon Breakdown (SFI = 32) Coupon Breakdown (SFI = 32) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) Tax Breakdown (SFI = 33) VAT Breakdown (SFI = xx) VAT Breakdown (SFI = xx) VAT Breakdown (SFI = 34)

18. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation18 Validation

19. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation19 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

20. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation20 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  1 st RM  2 nd RM  3 rd 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

21. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation21 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)

22. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation22 Other Features Of File Formats  20 character “airline’s own use” field (only for Pax)  Value signs (+/-) where appropriate

23. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation23 Supporting Documents

24. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation24 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.

25. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation25 Supporting Documents – With IS Billed Airline Integrated Settlement Billing Airline Enabling Processes Billing & Invoicing Processes Central Repository “Digital Signature” Company Enabling Processes Settlement Processes ICHACH Processes at time of Sales NFP engine ARC COMPASS™ Prorate Engine IS-WEB IS-XML IS-IDEC Usage File IS-WEB IS-XML IS-IDEC TBD Batch Transfer e.g. FTP Batch Transfer e.g. FTP

26. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation26 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

27. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation27 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

28. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation28 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

29. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation29 Uploading Supporting Documents Potential Solution 1. Batch Header produced (printed from RA system or created manually) 2. Documents compiled in batches with batch header 3. All documents scanned into one single PDF document 4. IS or software at carrier could split PDF, remove batch headers, and attach documents to their respective billings

30. September 2008SIS – Materials – RA42 Breakout Interfaces & Validation30 Thank you. Email: sis@iata.org SIS Website:  www.iata.org/whatwedo/finance/clearing/sis/index.htm www.iata.org/whatwedo/finance/clearing/sis/index.htm