Transcript SIS – Simplified Interline Settlement

SIS – Simplified Interline Settlement
E-Invoicing & Legal Aspects
RA42 Presentation
Michael Uebber, LH
Overview of this Presentation
 Introduction
 Introduction to E-Invoicing
 E-Invoicing with Integrated Settlement
 Legal Aspects of E-Invoicing
 Legal Obligations of E-Invoicing
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Introduction to
E-Invoicing
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The typical paper process is fragmented and
discontinuous
Typical
paper
process
Airline AP
System
Supplier
Print Paper
Invoice
Mail
Invoice
Airline Manager
AP Clerk
• Receives Paper
Invoice
• Checks Invoice
on Paper
Invoice Data
Entry
The Internet
e-invoicing platform
0111000110101001001110101011
01110001101010010011101
e-invoicing
process
XML
email
Supplier
Transmit
Invoice
Electronically
SIS – Materials – E-Invoicing
Airline AP
System
Airline AP
Manager
• Receives Email
• Can view Invoice
On-Line
4
Transmit
Invoice
Electronically
September 2008
E-Invoicing in the aviation industry
Carriers are already using an e-invoicing platform:
 Over 270 participating airlines
 Over 5,500 participating suppliers (fuel, ground handling,
etc)
 Plus various bilateral relationships
 But carriers don’t currently use e-invoicing for
settlements between themselves – just to pay suppliers
 But similar relationship (supplier – customer)
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E-Invoicing with
Integrated Settlement
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SIS follows a 2 pillar strategy to address the
challenges of e-invoicing implementations
 Address the content of e-invoicing
(What information is part of the invoices):

Development and maintenance of Invoice Standards together with
industry experts
 E-Invoicing WG modifies the “IATA Aviation Invoice
Standard”
 Address the communication part of e-invoicing
(How are invoices exchanged and processed):

A web service to support and promote the exchange of e-invoices
 SIS selects supplier with e-invoicing tool
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E-Invoicing with IS
 Create invoice file (where
Integrated Settlement
Settlement Processes
Billed
Airline
IS-IDEC
Enabling Processes
IS-XML
ICH
ACH
“Digital
Signature”
Company
Billing & Invoicing Processes
Central
Repository
Processes at time of Sales
Billing File / Data
ARC
COMPASS™
NFP
engine
(similar to today)
SIS – Materials – E-Invoicing
Enabling Processes
IS-WEB
applicable)
 Optionally create and verify
digital signature
IS-WEB
 Optionally store e-invoice in
a legal archive
IS-XML
 Settle claims via ICH / ACH
Billing
 Make invoice (incl.
optional
Airline
IS-IDEC
digital signature and
Prorate
verification) available
for
Engine
Other
download
Billing File / Data
(similar to today)
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Legal Aspects of
E-Invoicing
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What makes an e-invoice a legal
document?
 Legal document with all required information (based on
jurisdiction), e.g.:



Specific fields (e.g. Billing Company Address or VAT Registration
Number)
Digital signature (if required)
“Stamp” (if required)
 Depending on legal requirements, the same submission
file could be a legal invoice or just simple billing data
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Required Data & IS
 Some jurisdictions require 14 elements on a legal invoice (e.g. VAT
Registration #, VAT Amount, Billing Carrier’s Address, Billed Carrier’s Address, etc)
 Some jurisdictions require the proper naming conventions (e.g. “IVA” instead
of “VAT”)
 Some jurisdictions require digital signature, which is string of text that is
computed and sent with the signed document in order to prove:
1. Identification of invoicing party (“Authenticity of origin”)
2. File content is unchanged (“Integrity of content”)
 With Integrated Settlement, the data can be provided in two ways:
 Billing carrier leaves blank, IS supplies data from airline profile
 Billing carrier submits (IS will check against airline profile and, if they don’t
match, will send a notification)
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Different Jurisdictional Requirements
 Requirements discussed are not consistent across
countries
 Legal requirements depend on the most restrictive
country



European Union – Most Restrictive
United States – Less Restrictive
Other Countries - ???
 IS will be configured by each airline
But new Activities
Digital Signature Required?
Billed Carrier
U.S. E.U.
 The transaction depends on
the configuration of the most
restrictive airline
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Billing U.S.
Carrier E.U.



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Legal Obligations of
E-Invoicing
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Legal Obligations for E-Invoicing
 Billing Party:
 Create and attach digital signature where necessary
 Prove conformity with e-invoicing laws
 Apply VAT where applicable
 Archive and prevent modification (e.g. on a CD-ROM)
 Billed Party:
 Verify digital signature before processing the invoice
 Archive and prevent modification (e.g. on a CD-ROM)
 Logging of the digital signature and key, receipt of billing, and the
type of archive and any conversion for 10 years
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Role of Integrated Settlement
 IS legally mandated by billing carriers to “create” or
“transport” the invoice

Where necessary, submitted billing data is “transformed” to an
invoice by creating the digital signature and/or adding the
reference data
 IS legally mandated by billed carriers to verify the
signature, archive the invoice, and log the receipt
 IS also archives keys and signatures
 IATA will use a “trusted company” to help to comply with
local laws and to create and verify the digital signatures
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Carriers’ Obligations with IS
 Investigate and configure the IS airline profile and
submitted files with your country’s requirements for einvoices




Digital Signature option
E-archiving
Reference data
Etc
 Ensure that your carrier complies with your local
regulations
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September 2008
Thank you.
Email:
[email protected]
SIS Website:
www.iata.org/whatwedo/finance/clearing/sis/index.htm
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September 2008