From paper to e-Invoicing
Kuala Lumpur ICH UG 2010 - Breakout Session
Bruno Roussel
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
SIS – From Paper to e-Invoicing
Paper Invoicing in ICH world today
Airline
Financial
System
Typical
paper
process
Finance
Print Paper
Invoice
Mail
Invoice
Accountant
AP Clerk
• Receives Paper
Invoice
• Supporting
documents are
compare to the
invoice
Invoice Data
Entry
Photocopy
•The invoice
enters the
validation
workflow for
approbation
Engineering
Accountant
Supporting
document
SIS – From Paper to e-Invoicing
Scan
3
October 2010
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
Typical
paper
process
Supplier
Print Paper
Invoice
Mail
Invoice
Airline Manager
AP Clerk
• Receives Paper
Invoice
• Approves
Invoice on Paper
Invoice Data
Entry
Airline
System
The Internet
E-invoicing
process
0111000110101001001110101011
01110001101010010011101
XML
Airline
System
Supplier
Transmit
Invoice
Electronically
SIS – From Paper to e-Invoicing
Transmit
Invoice
Electronically
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October 2010
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
SIS – From Paper to e-Invoicing
6
October 2010
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
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October 2010
SIS is not just an IT project
 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
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October 2010
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
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October 2010
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
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October 2010
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
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October 2010
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 – From Paper to e-Invoicing
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October 2010
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 – From Paper to e-Invoicing
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October 2010
SIS e-Invoicing process without DS
Billing information file
2
Integrated Settlement
Create invoice
1
Settlement Processes
IS-WEB
ICH
IS-WEB
ACH
IS-IDEC
Legal PDF
4
Legal XML
Billing & Invoicing Processes
Central
Repository
Processes at time of Sales
ARC
COMPASS™
NFP
engine
Billing
Entity
IS-IDEC
Usage
File
Legal PDF
Legal XML
e-Invoice
SIS – From Paper to e-Invoicing
Overall Processes
Billed
Airline
IS-XML
Overall Processes
IS-XML
14
3
October 2010
SIS e-Invoicing with DS
Sign the invoice
Billing information file
Integrated Settlement
Validate the DS
Settlement Processes
ICH
5
Billed
Airline
IS-IDEC
Legal PDF
6
Legal XML
Overall Processes
IS-XML
IS-WEB
ACH
“Validation
DS”
Company
“Digital
Signature”
Company
3
Billing & Invoicing Processes
Central
Repository
2
Processes at time of Sales
ARC
COMPASS™
NFP
engine
1
IS-IDEC
Billing
Entity
Usage
File
Legal PDF
Create the invoice
e-Invoice
SIS – From Paper to e-Invoicing
IS-XML
Overall Processes
IS-WEB
15
4
Legal XML
October 2010
File dispatch
 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
SIS – From Paper to e-Invoicing
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October 2010
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
SIS – From Paper to e-Invoicing
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October 2010
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
 Pool
Several charge codes allowed per invoice
SIS – From Paper to e-Invoicing
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October 2010
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
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October 2010
Ground Handling / Catering Invoice sample
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October 2010
Supporting document
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October 2010
SIS e-Invoicing fields Mandatory: Ground Handling / Catering
LocationCode
AircraftTypeCode
FlightNo
Invoice or Line Item
Level
LineItemDetail
LineItemDetail
SIS – From Paper to e-Invoicing
AN
AN
AN
5
3
8
M
IATA airport code or
UN/LOCODE or city code if
non-airport.
M
IATA aircraft types
Dictionary defined (IATA aircraft
type codes)
'0' (Numeric Zero) will
also be allowed as
substitution value
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).
22
October 2010
SIS e-Invoicing fields
ProductID
LineItemDetail
AN
25
R
ContractNo
LineItemDetail
AN
25
R
CabinClass
LineItemDetail
A
1
R
FlightDateTime
LineItemDetail
DT
AddOnChargeName
LineItemDetail
AN
AddOnChargeAmount
LineItemDetail
N
SIS – From Paper to e-Invoicing
Recommended: Ground Handling / Catering
Supplier code for the
product or service.
Values: C,Y,F
R
Date&Time allowing to
identify the flight the
service is related to
YYYY-MM-DDThh:mm:ss
Time is optional
30
RA
Name of the AddOnCharge
Possible Values: Discount; Fees
etc
18,3
RA
Amount of the
AddOnCharge.
This can have a negative value
for discount
23
October 2010
Original invoice is missing:
 Mandatory fields:
 Charge Category: Ground Handling
 AircraftTypeCode: Substitution “0”
 FlightNo: CHARTER
 Recommended fields
 CabinClass
 ContractNo
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October 2010
SIS invoice view
25
October 2010
SIS supporting document
26
October 2010
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
IS-XML, IS-IDEC, IS-Web
Configurable
IS-XML, IS-IDEC, IS-Web
Routing
(airline specific)
PAX, Cargo, MISC
CH Associate
IS-XML, IS-Web
MISC
Digital
signing
Archiving
Invoice
receiving
Airline
(IS)XML, Web
Airline and
non-airline
(IS)XML, Web
MISC
Paper
Premium Functionality
29
Printing
and
distribution
services
October 2010
Invoice Senders
Invoice Receivers
PO, Status, Codes ,…
ERP
XML
ERP
XML
Fiscal dematerialization
File Transfer
XML
CSV
(digital signature + storage)
Invoice +
supporting
documents
Web entry
OCR
Paper
Scanning
and data
capture
services
Premium functionality:
• Invoice validation
• PO & receipt match
• Routing & approval
• Dispute resolution
• Payment status
• Reporting
30
Invoice +
supporting
documents
Web receipt
OCR
Web
Printing
and
distribution
services
Paper
October 2010
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
SIS – From Paper to e-Invoicing
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October 2010
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.
SIS – From Paper to e-Invoicing
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October 2010
Question & Answer
e-Invoicing contact in IATA:
 Invoicestandards@iata.org for any request to add information in the IS XML
such as charge category charge code or new business requirement
 e-invoicing@iata.org for any question related to InvoiceWorks
SIS P3 – ICH User Group – From Paper to e-Invoicing
33
October 2010
Thank you.
Email:
sis@iata.org
SIS Website:
www.iata.org/sis
SIS – From Paper to e-Invoicing
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October 2010