ADMINISTER A BILLING AND
SETTLEMENT PLAN
D2.TTA.CL2.02
Slide 1
Subject elements
This unit comprises four Elements:
Identify a Billing and Settlement Plan (BSP)
Comply with IATA BSP reporting procedures
Comply with IATA BSP billings and statements
requirements
Comply with IATA BSP agents’ remittance procedures
Slide 2
Assessment methods
Assessments for this unit may include:

Oral Questions

Work Projects

Written Questions

Workplace Observation

Third party report from your Supervisor
Slide 3
Element 1: Identify a Billing and
Settlement Plan (BSP)
1.1
Define and explain the role and operation of the
IATA BSP
1.2
Describe the advantages of the IATA BSP
1.3
Identify participants and supplies in a BSP
1.4
Identify and explain how the IATA BSP works
1.5
Identify the role and function of IATA BSP
documents and manuals
Slide 4
Element 1: Identify a Billing and
Settlement Plan (BSP)
1.6
Expand and explain BSP acronyms and
abbreviations
1.7
Explain the Glossary of Terms for the IATA BSP
1.8
Describe the automation of interfaces between
agents, airlines and the BSP
1.9
Describe IATA management of the BSP
Slide 5
1.1 Define and explain the role and
operation of the IATA BSP
IATA – International Air Transport Association

The peak industry body for many of the world’s airlines

Ensures inter-airline cooperation in promoting safe,
reliable and secure airline services

IATA’s mission is to represent, lead and serve the airline
industry
Slide 6
1.1 Define and explain the role and
operation of the IATA BSP
IATA BSP

Developed in 1971

Designed to simplify the selling, reporting and
remitting procedures of IATA accredited agents on
behalf of BPS airlines

Shift from paper to electronic documentation

BSP now operates in 181 countries worldwide
Slide 7
1.2 Describe the advantages of the
IATA BSP
Advantages of BSP include:

Airline sales are automatically reported to BSP

One report is prepared for each agent for all airline
sales during a period

One report is prepared for each airline for all agent
sales during a period

Simple system for users to learn and use
Slide 8
1.3 Identify participants and
suppliers in a BSP
Participants

IATA BSP airlines

IATA accredited agents
Slide 9
1.3 Identify participants and
suppliers in a BSP
Suppliers

GDS – Global Distribution System
• Used by agents to book flights
• Performs the function of an automated
Ticket System Provider (TSP)

DPC – Data Processing Centre
• Captures ticketing data from the GDS
daily
• Prepared BSP reports for agents and
airlines
Slide 10
1.3 Identify participants and
suppliers in a BSP
Suppliers


Clearing Bank
•
Responsible for control of on-time agent
remittance
•
Responsible for payments to airlines
BSP Manager
•
IATA official designated to manage a BSP
region or country
•
Provides guidance and information for all local
BSP participants and suppliers
Slide 11
1.4 Identify and explain how the
IATA BSP works
Agent set up and selling processes

Access to a GDS and electronic tickets

Access to BSP link

Attain ticketing authority from airlines

Sell and issue airline tickets
Slide 12
1.4 Identify and explain how the
IATA BSP works
Reporting of air ticket transactions

GDS reports to DPC each evening

DPC prepares reports of all transactions

Agent Billing Statements are prepared for
each period

Agent can access statements in BSPlink
Slide 13
1.4 Identify and explain how the
IATA BSP works
Payments and transactions

Agents make one single payment to BSP for all
transactions within a reporting period

BSP make one single payment to each airline for all
transactions within a reporting period
Slide 14
1.5 Identify the role and function of the
IATA BSP documents and manuals
BSP Documents and Manuals

BSP Manual for Agents
• Written for IATA accredited agents
• Basic elements and rules of BSP
operations

Local Procedures / Information
• Chapter 14 of BSP Manuals
• Local information for a specific region
Slide 15
1.5 Identify the role and function of the
IATA BSP documents and manuals
BSP Documents and Manuals

BSPlink Manuals and Functionality Guides
• Written for agents and airlines
• Guides for using BSPlink functions

Travel Agents Handbook
• IATA regulations and procedures
Slide 16
1.5 Identify the role and function of the
IATA BSP documents and manuals
BSP Documents and Manuals


Standard Traffic Documents (STD)
•
Electronic tickets are issued in a GDS
•
Multi purpose documents (V-MPDs)
are used for payment to airlines for
non-air services. Issued in BSPlink
BSP calendar
•
Reporting and remittance dates for a
12 month period
•
Each BSP country/region has its own
calendar
Slide 17
1.6 Expand and explain BSP
acronyms and abbreviations
Acronyms and abbreviations

Widely used throughout the travel industry

Important to learn as many as possible, including:
• ADM and ACM
• IATA and BSP
• GDS and DPC
• STD and V-MPD
Slide 18
1.7 Explain the Glossary of Terms
for the IATA BSP
Glossary of terms

Widely used throughout the industry

Important to learn as many as possible, including:
• Accountable transactions
• Agent Billing
• Billing and Remittance dates
• Ticketing authority
Slide 19
1.8
Describe the automation of interfaces
between agents, airlines and the BSP
BSPlink

Global interface to access BSP online

Facilitates the flow of information

Used by agents and airlines

Have many functions and advantages
Slide 20
1.8
Describe the automation of interfaces
between agents, airlines and the BSP
BSPlink functions

Downloading reports and statistics

Agents can issue V-MPDs

Airlines can issue ADMs and ACMs

Refund applications and authorisation processes
Slide 21
1.9 Describe the IATA management
of the BSP


IATA Management
•
Appoint local BSP Managers
•
Intervene in urgent situations
Local BSP Manager
•
Provides agents with access and instructions to use
BSPlink
•
Advises agents and the DPC on BSP procedures
•
Can impose penalties for non-compliance
•
Publishes the local BSP calendar
Slide 22
Element 2: Comply with IATA BSP
reporting procedures
2.1
Identify required submission dates
2.2
Describe accountable transactions
2.3
Complete AST form
2.4
Complete Group Sales Summary Form (GSS)
2.5
Process airlines’ own accounting memoranda
2.6
Process Missing Traffic Document Report form
2.7
Process Refund Documents form
Slide 23
2.1 Identify required submission
dates
Annual BSP calendar

Reporting dates
• For accountable transactions

Agent Billing date
• Agency receives their bill

Agent Remittance date
• Agency makes payment
Slide 24
2.2 Describe accountable transactions
Accountable transactions

Agent issued transactions included in the reporting:
• Issuing tickets
• Refunding tickets
• Issuing Virtual MPDs
Slide 25
2.3 Complete AST form
Agency Sales Transmittal

Since the introduction of BSPlink, agents no longer
need to complete an AST as reporting is automated
Slide 26
2.4 Complete Group Sales
Summary Form (GSS)
Group Sales Summary form

Since the introduction of BSPlink, agent groups no
longer need to complete a GSS form as reporting is
automated

Agent Groups
• Agencies with multiple locations
Slide 27
2.5 Process airlines’ own accounting
memoranda
Airline accounting memorandum

ADM – Agent Debit Memo
• Agent owes airline money

ACM – Agent Credit Memo
• Airline owes agent money

Reported through BSPlink
Slide 28
2.6
2.7

Process Missing Traffic Document
Report form
Process Returned Documents form
Other documents no longer in use since introduction of
BSPlink and automated reporting
• Missing Traffic Document Report
• Returned Documents Form
Slide 29
Element 3: Comply with IATA BSP
billings and statements requirements
3.1
Process Agents’ Billings
3.2
Process refund documentation
Slide 30
3.1 Process Agents’ Billings
Agent Billing

Agent Billing Statement

Agent Billing Analysis
• Detailed view of the Statement

Billing Date appears on the BSP calendar
Slide 31
3.2 Process refund documentation
Refunding airline tickets

Agents can request refunds through the GDS

BSPlink used when seeking airline authority and advice
on refunds
Slide 32
Element 4: Comply with IATA BSP
agents’ remittance procedures
4.1
Implement agents’ remittance procedures
4.2
Handle irregularities and defaults
Slide 33
4.1 Implement agents’ remittance
procedures
Agent Remittance Procedures

Payment is preferred by direct debit from agent to
Clearing Bank

Post settlement errors – agent contacts airline to
request ADM or ACM to correct
Slide 34
4.2 Handle irregularities and
defaults
Irregularities

Notices of irregularity
• Maximum 4 per year or an agent is in default
• Overdue or dishonored remittance is an irregularity
Slide 35
4.2 Handle irregularities and
defaults
Agent in default

Airlines are notified and agents can no longer issue
tickets

Payment is demanded

Default is reversed if genuine error found
Slide 36