IS Participation Guide 2009 ICH User Group – Breakout Session Aloke Mukherjee, IATA

ATH – 28/29 Oct ICH UG Meeting22 Overview of this Presentation 1.Introduction & Scope of Presentation 2.The “IS Participation Guide” Overview Key Sections 3.The Document Review Process The IT Working Group Review Roles and Process Key Members 4.Progress till date 5.Next Steps

ATH – 28/29 Oct ICH UG Meeting3 Overview Billed Entity 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™ Prorate Engine IS-WEB IS-XML IS-IDEC Usage File IS-WEB IS-XML IS-IDEC IS Participation Guide IS Participation Guide 3

ATH – 28/29 Oct ICH UG Meeting44 Overview contd. What is the IS Participation Guide? It is a document for the carriers (Business and IT), system providers, and other participants to understand the changes in their processes and systems to participate in SIS, the Simplified Interline Settlement Solution. Following are the key sections of the document:  Glimpse into SIS – Current and Future processes  Cargo and Passenger Billings - Impact on Revenue accounting  Miscellaneous Billings – Impact of SIS on Financial Accounting  UATP Billings * *UATP is conducting an in-depth review of the legal and operational aspects surrounding SIS as they apply specifically to UATP, in order to determine what level of SIS integration may be required

ATH – 28/29 Oct ICH UG Meeting55 Overview contd.  Financial processes  Migration processes  E-Invoicing processes  Handling of Supporting Documentations  IS Member Profile  Record Structures and Interfacing processes

ATH – 28/29 Oct ICH UG Meeting66 Overview contd. Who are the key consumers of this document?  Billing and billed entities  Financial accounting managers  Revenue accounting managers  IT departments of  Carriers – Passenger, Cargo and Miscellaneous  Non Carriers ( SITA, GDS’s, UATP)  RA System Providers  Financial System Providers

ATH – 28/29 Oct ICH UG Meeting77 Key Sections - Passenger Billing “ There are significant changes to the existing Passenger Interline billing processes and interfaces due to SIS. The document provides an overview of process and systemic changes specific to Passenger Billing. It also includes processes related to prime, rejection, billing/credit memos, correspondence plus FIRST & FINAL™ and Sampling”

ATH – 28/29 Oct ICH UG Meeting88 Key Sections - Passenger Billing contd. The highlights are:  Billing Data Input and Output Record Structures - The record structures have been presented in a user friendly format with proper description of each field, examples and validation rules.  IS-IDEC – Enhanced version of the old IDEC file with many new Record types  IS-XML – An advanced file format for billing data having all the elements defined in the IS- IDEC file  IS-WEB – An online interface to manually capture billing information into Integrated Settlement  Value Determination and Auto-billing processes  Sampling Billing processes  Rejection Memos, Billing Memos and Credit Memos  Source Codes and Reason Codes  IS-Web Analysis and Operational Reports

ATH – 28/29 Oct ICH UG Meeting99 Key Sections - Cargo Billing “ The document provides an overview of process and systemic changes specific to Cargo Billings. The cargo billing section also includes processes related to prime, rejection, billing/credit memos and correspondence”

ATH – 28/29 Oct ICH UG Meeting10 Key Sections - Cargo Billing contd. The highlights are:  Billing Data Input and Output Record Structures - The record structures have been presented in a user friendly format with proper description of each field, examples and validation rules.  IS-IDEC – Enhanced version of the old IDEC file with many new Record types  IS-XML – An advanced file format for billing data having all the elements defined in the IS- IDEC file  IS-WEB – An online interface to manually capture billing information into Integrated Settlement  Rejection Memos, Billing Memos and Credit Memos  Reason Codes  IS-Web Analysis and Operational Reports

ATH – 28/29 Oct ICH UG Meeting11 Key Sections - Miscellaneous Billing*  Today, miscellaneous invoices are paper based  With SIS, miscellaneous invoices including supporting documents, must go through IS for settlement  New electronic input processes for Miscellaneous Billings  IS-XML – An advanced file format for billing Miscellaneous data  IS-WEB – An online interface to manually capture billing information into Integrated Settlement  77 different types of most commonly used Miscellaneous Invoices  These have received a unique key (Charge Category and Charge Code). The highlights are:  The various Invoice Types overview  Input and Output record structures  IS-Web analysis reports * Additional Miscellaneous Invoices Charge Category/Charge Codes are being reviewed and will be added in future

ATH – 28/29 Oct ICH UG Meeting12 Key Sections - Financial Processes This section will help managers of Financial Accounting, Revenue Accounting Passenger and Revenue Accounting Cargo to understand the following:  IATA Clearing House (ICH) and Airline Clearing House (ACH) settlement processes for the future  Changes in operations for ICH and ACH due to SIS  The processing dashboard function of SIS  Late Submission processes in the SIS environment  Suspended Members processes in the SIS environment 2009 ICH UG Meeting

ATH – 28/29 Oct ICH UG Meeting13 Key Sections - Migration to SIS “The Migration period will typically be around a two to three year time frame during which carriers will join SIS in a phased approach. One of the key challenges in this migration is the current IDEC file( which is switched from billing to billed carriers by ATPCO). At the time of SIS implementation, all carriers will need to move the submission of their Current (old) IDEC files to IS.”

ATH – 28/29 Oct ICH UG Meeting14 Key Sections - Migration to SIS contd. The Participation guide will highlight the following in terms of the overall migration strategy:  The various options for Carriers to migrate  The constraints associated with each option  Detailed procedures to be followed during migration

ATH – 28/29 Oct ICH UG Meeting15 Key Sections – E-Invoicing Process “One of the key goals of SIS is to go paperless. To comply with the various legal invoice regulations, the option to have invoices digitally signed and verified is a required feature of SIS” This section will elaborate the various aspects of e-invoicing, process and system impacts around:  Explanation of Invoice Reference fields  Digital signature  e-Archiving  Sample PDF invoice formats

ATH – 28/29 Oct ICH UG Meeting16 Key Sections – Handling of Supporting Documents “The vision of the SIS world will be to have no paper supporting documents. The supporting documents will have to be either scanned images or any other type of electronic files (e.g. PDF document, text file… etc) and will need to be uploaded into SIS. “ This section of the participation guide will define the following:  The file types and file naming convention supported by SIS  The Uploading process – various options  The linking of supporting attachments to billing records – various options  Technical recommendations

ATH – 28/29 Oct ICH UG Meeting17 Key Sections – IS Member Profile SIS will include a centralized functionality for member profiles. This profile will contain settings and preferences (elements) that control optional SIS functionality. These elements may include:  “Static” reference information, such as member name and VAT number  IS configuration, such as if Auto-Billing takes place on the upload of uplifts  User access controls detailing which user accounts have access to which functionality

ATH – 28/29 Oct ICH UG Meeting18 Key Sections – Record Structures and Interfacing Processes This section describes in detail the interfacing processes and explanation of the various record structures including the validation checks that would be carried out on them. It includes :  Passenger Record Structures  IS-IDEC  IS-XML  ATPCo ISR Changes  Daily Revenue Recognition File for Auto-billing  Passenger- Invoice Posting File for Auto-billing  Sampling Form G (PAR) File  Cargo Record Structures  IS-IDEC  IS-XML

ATH – 28/29 Oct ICH UG Meeting19 Key Sections – Record Structures and Interfacing Processes contd.  Miscellaneous Record Structures  IS-XML  General  Airline Reference Data Update File  Supporting Document CSV and XML Index file  The Interfacing Processes

ATH – 28/29 Oct ICH UG Meeting20 The Document Review Process

ATH – 28/29 Oct ICH UG Meeting21 The IT WG “The IT WG has been set up to ensure that the “IS Participation Guide“ delivered by the SIS supplier is complete, accurate, and of high quality”

ATH – 28/29 Oct ICH UG Meeting22 SIS – IT WG  AA, BA, DL, IB, KL, LH, NW, NZ, TP  ACCA, Accelya, LRS, LSY, NIIT-Softec, SITA, Mercator, Ceicom, Kale  Review “IS Participation Guide” before it is released to the whole industry

ATH – 28/29 Oct ICH UG Meeting23 SIS IT WG – Roles and Process  IT WG members:  Review document from their companies and industry point of view  Feedback on time  Attend Feedback confcalls  IT WG chair: Aloke Mukherjee  Coordinating feedback  Liaison between SIS supplier and IT WG  IATA – SIS Project Team:  Review feedback from IT WG members  Perform first round of filtering, review with WG member if needed  Kale:  Creates IS Participation Guide

ATH – 28/29 Oct ICH UG Meeting24 Progress till date  Overall response for the ISPG document has been very positive  Over 200 pages of the document have been written and reviewed  Over 35 team members across 20 organizations part of the IT WG - reviewed and provided feedback  No. of periodic conference calls were organized to address issues and discuss feedback  Hundreds of feedback comments logged and incorporated into the document  This approach has helped us immensely in getting an end user perspective. So that for you…  Its easier reading  More relevant  And a document complete and of good quality

ATH – 28/29 Oct ICH UG Meeting25 Next Steps..  Going forward some key dates…  IT WG final meeting and closure – 2 nd Nov  Document release to you ~ 6 th Nov  We urge you to…  Go through the document  Come back to us with any queries that you may have  Analyze and estimate your system and process changes  Initiate projects within your organization to plan and implement these changes  IATA will support you by…  Conducting periodic educational webinars, workshops on SIS to bring you up to speed  Clarifying all issues and doubts that you may come across in the ISPG …..so that together we can get you prepared for SIS!!

ATH – 28/29 Oct ICH UG Meeting26 Questions? SIS Website: 