1. In-depth Integrated Settlement RA43 Breakout Session RAWG Member Name, Airline James Shannon, IATA

2. September 2009SIS P3 – Materials – RA43 IS In-depth Overview2 In-depth Integrated Settlement  Integrated Settlement Overview  Member Administration  Inputting Your Receivables  Validation  Closure  Receiving Your Payables

3. September 2009SIS P3 – Materials – RA43 IS In-depth Overview3 Integrated Settlement 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 Inputting ReceivablesValidation & ClosureReceiving PayablesMember Administration

4. September 2009SIS P3 – Materials – RA43 IS In-depth Overview4 IS Overview – One Level Down IS-XML IS-IDEC Billing Record DB Supp. Doc. Usage File ATPCO Invoice PDF Billing Outward IS-WEB IS-XML IS-IDEC Supp. Doc. Supp. Doc. Digital Signature Validation & Correction (IS-WEB) Billing Carrier Billing Value Confirmation ATPCOATOS Interface ACH Interface ICH IS-WEB Validation Supp. Doc. Value Determination & Auto-Billing Digital Signature

5. September 2009SIS P3 – Materials – RA43 IS In-depth Overview5 Member Administration

6. September 2009SIS P3 – Materials – RA43 IS In-depth Overview6 Member Administration  Users & Roles  Contacts  Member Profile Options selected via Member Administration affect every part of your experience with Integrated Settlement

7. September 2009SIS P3 – Materials – RA43 IS In-depth Overview7 Users & Roles  Every participant is set up with a master account, which has permissions to do everything on Integrated Settlement and create other user accounts  There will be a handful of default roles that users can be assigned to, e.g.:  Passenger Officer can do X, Y, and Z  Passenger Manager can do X, Y, Z, plus A, B, and C  Users with appropriate permissions can also create new roles with customized permissions, e.g.:  “Custom Role #1” can do X, Z, and A  “Custom Role #2” can do only Y  All IS users will be in one or more roles

8. September 2009SIS P3 – Materials – RA43 IS In-depth Overview8 Contacts  Revenue accounting and clearing houses involve a number of contacts, e.g.:  Financial Contact, Passenger Interline Contact, etc  Integrated Settlement adds more contacts, e.g.:  Validation Failure Contact  Users and contact information are shared, a single person can be assigned to any number of contact positions  Alternatively, a generic contact can be set up (such as “RA Passenger Inquiries”)  Contacts can be searched for on Integrated Settlement and displayed, or downloaded

9. September 2009SIS P3 – Materials – RA43 IS In-depth Overview9 Member Profile  Each Integrated Settlement participant has a group of configurable elements which make up a profile  The profile includes settings such as:  Contact Roles  Legal invoice information, such as address, VAT registration number, etc (see E- Invoicing breakout session)  Integrated Settlement preferences, such as how validation errors are handled  Third party preferences, such as settings applicable to ACH, ICH, or AIA  Users at the participant can update profile elements where applicable

10. September 2009SIS P3 – Materials – RA43 IS In-depth Overview10 Inputting Receivables

11. September 2009SIS P3 – Materials – RA43 IS In-depth Overview11 Inputting Your Receivables  IS-IDEC, IS-XML  IS-WEB  Autobilling  Special Considerations  Invoice Numbers  Source Codes and Reason Codes Billing Entity Prorate Engine IS-WEB IS-XML IS-IDEC Usage File

12. September 2009SIS P3 – Materials – RA43 IS In-depth Overview12 IS-IDEC, IS-XML, and IS-WEB  File formats: IS-IDEC and IS-XML  Generated by your Revenue Accounting or Financial systems  Uploaded via secure FTP  IS-IDEC is similar to today’s IDEC format, and is available for Pax and Cargo billings*  IS-XML is an XML standard, available for Pax, Cargo, Misc, and UATP billings*  Web Interface: IS-WEB  Online entry via Integrated Settlement’s website  Available for Pax, Cargo, Misc, and UATP billings*  Your RA or Financial system doesn’t need file creation and upload ability; you don’t even need a system  IS-WEB is also used for other things (e.g. Correspondence, Audit Trail, Reporting) * With some exceptions – see the Airline Business Case

13. September 2009SIS P3 – Materials – RA43 IS In-depth Overview13 Autobilling  Autobilling is the automatic creation of passenger prime billings based on an uplift file  The prorate values come from any combination of: NFP final, NFP non-final, or Stored Own-Prorate  The uplift file is uploaded by the billing carrier, Integrated Settlement looks for available prorates, and adds the prorated coupon details to an invoice  Daily revenue recognition files are sent to the billing carrier  Just before the end of the period, the invoice is closed and the carrier can modify the values  At the end of the period, the invoice goes through just as any other invoice uploaded by the carrier – completely transparent to the billed carrier  A final posting file is sent to the billing carrier

14. September 2009SIS P3 – Materials – RA43 IS In-depth Overview14 Invoice Numbers  Today, invoice numbers on IDEC are 6 mandatory digits, and 8 optional alphanumeric characters, for a total of 14 characters  Integrated Settlement will support 10 alphanumeric characters  The effect on billing entities is small – they must ensure that the 10 characters submitted are unique each year  The effect may be more significant on billed entities  When referencing an incoming invoice (e.g. for Rejection Memos), the full invoice number must be provided; only providing some of the characters will cause a validation error  The billed entity must ensure that all characters are recorded

15. September 2009SIS P3 – Materials – RA43 IS In-depth Overview15 Source Codes & Reason Codes  Source Codes will be mandatory  Rejection Reason Codes are part of the RM record structure  They are mandatory and will affect which fields are required (affecting validation)

16. September 2009SIS P3 – Materials – RA43 IS In-depth Overview16 Validation

17. September 2009SIS P3 – Materials – RA43 IS In-depth Overview17 Validation  Importance Of Validation  Effect Of Validation  Online Correction Overall Processes

18. September 2009SIS P3 – Materials – RA43 IS In-depth Overview18 Importance of Validation  One of the primary problems with IDEC today is the almost absolute lack of validation of the submitted file  Carriers upload all manner of incorrect files and values  It becomes the responsibility of the billed carrier to reconcile these values, or to create an application to fix the incoming values from airline XX, and another application to fix the incoming values from airline YY, etc  Validation will be a key principle of Integrated Settlement – It will be the billing party’s responsibility to upload valid data –

19. September 2009SIS P3 – Materials – RA43 IS In-depth Overview19 Effect of validation  Validation is one of the first steps that occur when a file is submitted  When entering via IS-WEB, validation will occur whenever data is saved  Validation will occur on a number of levels, including:  Mandatory Fields  Reference Data (e.g. airport code is correct)  Conditional Fields (e.g. “if field A is ‘Y’ then field B must have a value”)  Total rows equal the sum of child rows  Failed validation will cause the invoice or entire file to be rejected (depending on the participant’s preference)

20. September 2009SIS P3 – Materials – RA43 IS In-depth Overview20 Online Correction  If a file or invoice fails validation, an email is sent to the billing entity  The errors can be corrected online (depending on participant preference)  Only fields not containing values can be corrected  Unless the error is in a value field, in which case the invoice or file must be re- uploaded  If the errors haven’t been corrected by period closure, the invoice or file will not be submitted for clearance (but can be corrected and submitted in the following period)

21. September 2009SIS P3 – Materials – RA43 IS In-depth Overview21 Closure

22. September 2009SIS P3 – Materials – RA43 IS In-depth Overview22 Closure  After closure Integrated Settlement will (where applicable):  Create invoices  Submit invoices to a third party for digital signature  Submit invoice amounts to the ICH or ACH  Settlement will occur as today, including deadlines and calendars, protests, fees, etc  Prepare files for billed participant Billing & Invoicing Processes Central Repository “Digital Signature” Company Settlement Processes ICHACH

23. September 2009SIS P3 – Materials – RA43 IS In-depth Overview23 Receiving Payables

24. September 2009SIS P3 – Materials – RA43 IS In-depth Overview24 Receiving Your Payables  IS-IDEC and IS-XML files will be made available via secure FTP for download  The billing entity’s upload choice will not affect the billed entity  Alternatively, you can view the billing data on IS- WEB Billed Entity IS-WEB IS-XML IS-IDEC

25. September 2009SIS P3 – Materials – RA43 IS In-depth Overview25 Questions? Email: sis@iata.org SIS Website:  www.iata.org/sis www.iata.org/sis