From paper to e-Invoicing

From paper to e-Invoicing

Kuala Lumpur ICH UG 2010 - Breakout Session

Bruno Roussel

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

October 20103

Paper Invoicing in ICH world today

Print PaperInvoice

Mail Invoice

Finance • Receives Paper

Invoice• Supporting

documents are compare to the invoice

Accountant

Invoice DataEntry

AP Clerk

Airline Financial System

Typical paper

process

EngineeringAccountant


Supportingdocument

Photocopy

Scan

•The invoice

enters the validation workflow for approbation

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

Paper versus Electronic Invoice processing

The Internet

XML01110001101010010011101

Supplier

0111000110101001001110101011

TransmitInvoice

Electronically

TransmitInvoice

Electronically

E-invoicing process

Print PaperInvoice

Mail Invoice

Supplier• Receives Paper

Invoice• Approves

Invoice on Paper

Airline Manager

Invoice DataEntry

AP ClerkAirline System

Typical paper

process

Airline System

October 2010SIS – From Paper to e-Invoicing 5

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 20107

SIS is not just an IT projectYou 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?


October 20108

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 is not just an IT project

October 20109

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


October 201010

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


October 201011

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

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


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


Please refer to the plenary presentation for more details about legal compliance

SIS e-Invoicing process without DS

BilledAirline

Integrated Settlement

BillingEntity

Ove

rall

Proc

esse

sBilling & Invoicing ProcessesCentralRepository

Ove

rall

Proc

esse

s

Settlement Processes

ICH ACH

Processes at time of SalesNFPengine

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

12 Create invoice

4

3


BilledAirline

Integrated Settlement

BillingEntity

Ove

rall

Proc

esse

sBilling & Invoicing ProcessesCentralRepository

“DigitalSignature”Company

Ove

rall

Proc

esse

s

Settlement Processes

ICH ACH

Processes at time of SalesNFPengine

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

6

Create the invoice

Sign the invoice

4

“ValidationDS”Company

Validate the DS

5 3


SIS e-Invoicing with DS

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


File dispatch

October 201017

Charge Category Invoices are standardized and structured

12 Charge Categories


Airport Mail

ATC Miscellaneous

Cargo Partner Alliance

Engineering Property

Flight Ops Service Provider

Ground Handling

IT Services

One charge category only allowed per invoice

October 201018

Charge Code 84 different possibilities to classify an invoice


Example charge category Engineering

charge code: Handling LM

Lease

Loans

Misc

MRO - Maintenance

MRO - Repairs & Overhaul

PoolSeveral charge codes allowed per invoice

October 201019

Invoice StructureComposed 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

October 201020

Ground Handling / Catering Invoice sample

October 201021

Supporting document

October 201022SIS – From Paper to e-Invoicing

LocationCodeInvoice or Line Item

LevelAN 5 M

IATA airport code or UN/LOCODE or city code if non-airport.

AircraftTypeCode

LineItemDetail AN 3 M IATA aircraft types

Dictionary defined (IATA aircraft type codes)'0' (Numeric Zero) will also be allowed as substitution value

FlightNo LineItemDetail AN 8 M

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

October 201023SIS – From Paper to e-Invoicing

ProductID LineItemDetail AN 25 RSupplier code for the

product or service.

ContractNo LineItemDetail AN 25 R

CabinClass LineItemDetail A 1 R Values: C,Y,F

FlightDateTime LineItemDetail DT RDate&Time allowing to

identify the flight the service is related to

YYYY-MM-DDThh:mm:ssTime is optional

AddOnChargeName LineItemDetail AN 30 RA Name of the AddOnChargePossible Values: Discount; Fees

etc

AddOnChargeAmount LineItemDetail N 18,3 RAAmount of the

AddOnCharge.This can have a negative value

for discount

SIS e-Invoicing fields Recommended: Ground Handling / Catering

October 201024

Original invoice is missing: Mandatory fields:

Charge Category: Ground HandlingAircraftTypeCode: Substitution “0” FlightNo: CHARTER

Recommended fields

CabinClassContractNo

October 201025

SIS invoice view

October 201026

SIS supporting document

October 201029

IS-XML, IS-IDEC, IS-Web

Interoperability between IATA SIS and IATA e-InvoicingInvoices from SIS can be routed to IATA e-Invoicing for additional services, such as workflow, and printing/distribution services

CH Airline

CH Associate

Airline andnon-airline

PAX, Cargo, MISC

MISC

Digital signing

Premium Functionality

Invoice receiving

Airline

Paper

Printingand

distributionservices

IS-XML, IS-IDEC, IS-Web

(IS)XML, Web

(IS)XML, Web

Archiving

Configurable Routing

(airline specific)

MISC

IS-XML, IS-Web

October 201030

Fiscal dematerialization(digital signature + storage)

Premium functionality:• Invoice validation• PO & receipt match• Routing & approval• Dispute resolution• Payment status• Reporting

Invoice SendersERP

PaperScanningand datacaptureservices

File Transfer

XMLCSV

Web entry

ERP

Web receipt

Web

PO, Status, Codes ,…

Invoice Receivers

XML

XML

Invoice +supportingdocuments

Printingand

distributionservices

Paper

Invoice +supportingdocuments

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


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 P3 – ICH User Group – From Paper to e-Invoicing 33

Question & Answer

e-Invoicing contact in IATA: [email protected] for any request to add information in the IS XML

such as charge category charge code or new business requirement [email protected] for any question related to InvoiceWorks

Thank you.

Email:

[email protected]

SIS Website:

www.iata.org/sis


Documents

From paper to e-Invoicing