SIS Webinar
#02-2020
Miscellaneous Billings
Best Practices
Presenters:
Bruno Roussel; Senior Manager, Airline Partner Payment Services Community; IATA
Azadeh Kordestani; Manager Operations and Onboarding, Industry E-Invoicing; IATA
Featured Presenters:
Rob Huijsman ; Director KLM Accounting Services & SIS SG Chair; KLM
Monika Kolos-Lembas; Senior Process Architect; Lufthansa
16 Jun 2020
Miscellaneous Billings Best Practices
Robert Huijsman
Director KLM Accounting Services
SIS Steering Group Chairman
Welcome
Agenda
Benefit of ‘Location ID’ for routing the invoices to a selected destination
Recommended way to declare TAX and VAT in SIS Miscellaneous invoices
Benefit of ‘Payment status update’ For both Billing and Billed members
Dispute Management in SIS
Importance of data quality for receiving party
Q&A
16 Jun 2020
Miscellaneous Billings Best Practices
16 Jun 2020
Miscellaneous Billings Best Practices
Benefit of ‘Location ID’ for routing the
invoices to a selected destination
Main usage of Location ID
Miscellaneous Billings Best Practices
16 Jun 2020
Some members have decentralized their operations.
Facilitate Process of Segregated Operations
Facilitate Process of Centralized Systems
Some members have different geographically locations in different
countries or cities.
Facilitate Process of Geographically separated locations
Some members have their different invoice nature
processed by different systems.
Location Specific Output Files – Member Profile Setup
Miscellaneous Billings Best Practices
16 Jun 2020
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Miscellaneous Billings Best Practices
16 Jun 2020
Default Location for MISC Payables Original Invoices/Credit Note
(billed party overriding)
Billed Member’s
Location ID
Billed Member’s
Location ID set up
Current System Behavior
Not Provided
Country defaulted
•
SIS assumes Billed Member’s Location ID as “the local one”
•
SIS populates the Reference Data of the Location “Local one”
Not Provided
Supplier defaulted
•
SIS assumes Billed Member’s Location ID as defined in the
member profile
•
SIS populates the reference data from the chosen location ID
defaulted
Billed Members can direct the received MISC Original Invoice/Credit Note to a default ‘Location ID’
New !
Default Location for MISC Payables Original Invoices/Credit Note
Miscellaneous Billings Best Practices
16 Jun 2020
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16 Jun 2020
Miscellaneous Billings Best Practices
Monika Kolos- Lembas
Senior Process Architect, Lufthansa
An Airline view
❖ This do not require the supplier to provide location ID
❖ Require super user to do the set up in SIS
❖ Mitigate the risk of duplicate invoice processing to
central and local company Code
❖ Automatic invoice process allocation
❖ Prerequisite for next automation possibilities for
posting process
Poll Question # 1
Miscellaneous Billings Best Practices
16 Jun 2020
How can you route an invoice to the specific Location ID?
By creating a Location ID and ask the supplier to
provide it in the invoice
By creating and assigning it as a country default
Location ID in the ‘Member Profile’
By creating and assigning it a specific supplier default
location ID in the ‘Member Profile’
All of the above options
16 Jun 2020
Miscellaneous Billings Best Practices
Recommended way to declare TAX and
VAT in SIS Miscellaneous invoices
Report on invoice TAX and VAT at header or line item only
Miscellaneous Billings Best Practices
16 Jun 2020
Information should be provided at the header level as the full invoice follow the same tax treatment
VAT or TAX applicable to the full invoice
VAT or TAX differ per invoice line
VAT or TAX should be reported to the level applicable
Information should be provided to the line item corresponding
Follow this process this reduce rounding issues, and this is also applicable for discount !
Poll Question # 2
Miscellaneous Billings Best Practices
16 Jun 2020
What is the recommended level to report TAX and VAT
in an invoice?
Invoice Header Level
Invoice Header or Line Item Level
Line Item or Line Item Detail Level
Only Line Item Detail Level
16 Jun 2020
Miscellaneous Billings Best Practices
Benefit of ‘Payment status update’ For
both Billing and Billed members
‘Payment status update’ targeted issues
Miscellaneous Billings Best Practices
16 Jun 2020
Lack of visibility of where an invoice is in the billed member’s workflow and its
current status (e.g. was the invoice approved by the finance department, was
the invoice amount disputed, etc.)
It is not always clear which invoice(s) are being paid with a received transfer.
Tracking of invoice payments is not simple and this complexity increases
with the a larger number of customers and invoices.
Payment received was less than the invoice amount as bank fees are
deducted at the time of the bank transfer. This results in a partial payment
being applied.
Problems
Unknown Invoice
Processing Status
Unclear Payment Amount
Payments Reconciliation
Complexity
Bank Transfer Fee
Difference
‘Payment status update’ benefits
Miscellaneous Billings Best Practices
16 Jun 2020
It reduces or avoids interactions between billing
and billed parties (query on invoice reception,
status, payment reconciliation)
Reduce Interactions
Reconciliation of payment is facilitated,
speeds up the processes and increase
efficiency.
Facilitate Payments Reconciliation
It provides a huge benefit for suppliers to get
visibility in one place of all invoice processing
(validation and payment) during airlines review
Increase Transparency
If a supplier updates the status, an airline
can see whether the invoice is already paid
or overdue, Airline and supplier collaborate
in sharing this information systematically
Update Invoice Status
‘Payment status update’ Feature
Miscellaneous Billings Best Practices
16 Jun 2020
Who can
update
payment
statuses?
How to update
payment
statuses?
Are there any
Alerts?
Are there any
Outputs?
Payment status update - Member Profile Setup
Miscellaneous Billings Best Practices
16 Jun 2020
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Payment Overdue Auto Reminders
Miscellaneous Billings Best Practices
16 Jun 2020
The Billing Member can setup auto
reminders to be sent by the system to
the Billed Member for overdue invoices.
The email alert is sent daily to the email address assigned
as the new ‘MISC - Bilateral Payment Overdue’ contact in
the Member Profile of the Billed Member.
If a contact is not defined, then SIS sends
the email alert to all active Super Users of
the Billed Member.
MISC Bilateral Payment Overdue contact – Member Profile Setup
Miscellaneous Billings Best Practices
16 Jun 2020
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Payment Overdue Auto Reminders – Member Profile Setup
Miscellaneous Billings Best Practices
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List of Payment Status as per Billing and Billed Member
Miscellaneous Billings Best Practices
16 Jun 2020
Billing Member
Payment
Status
➢ Under Review
➢ Under Review
➢ Approved
➢ Sent for Payment
➢ Partially Paid as per Terms
➢ Partially Paid
Billed Member
Payment
Status
➢ Paid in Full
➢ Disputed
➢ Paid as per Dispute
➢ Credit Applied
➢ Erroneous Invoice Do not Pay
➢ Partial Payment Accepted
➢ Full Payment Received
➢ Overdue Payment
➢ Status Correction Payment Not Received
➢ Dispute Under Review
➢ Dispute Accepted
➢ Dispute Rejected
➢ Partial Payment Accepted as per Dispute
➢ Partial Payment Disputed
➢ Partial Payment Outstanding
16 Jun 2020
Miscellaneous Billings Best Practices
An Airline view
❖ Reduce queries from suppliers with payment reminder
❖ Transparency and cooperation over invoice lifecycle
❖ Design for system integration
Monika Kolos- Lembas
Senior Process Architect, Lufthansa
Poll Question # 3
Miscellaneous Billings Best Practices
16 Jun 2020
‘MISC - Bilateral Payment Overdue’ contact of the
Billed Member
‘MISC - Bilateral Payment Overdue’ contact of the
Billing Member
‘MISC – Payables Payment Status Updates’ contact
‘MISC – Receivable Payment Status Updates’ contact
SIS will sent a past due notice email for a MISC Bilateral
invoice to … ?
16 Jun 2020
Miscellaneous Billings Best Practices
Dispute Management in SIS
Main usage of SIS Dispute Management for MISC Bilateral Invoices
Miscellaneous Billings Best Practices
16 Jun 2020
It simplifies and speeds up the process of
resolving a dispute between billing and billed
parties.
Facilitate Dispute Resolution
Reconciliation of disputed amount after
reaching to an agreement on dispute is done
faster and more efficient.
Facilitate Reconciliation of Disputed Amount
It gets visibility to both billing and billed parties
about disputed items and the dispute reasons
and evidences.
Increase Transparency
It increase the capability to trace an Item
across the dispute process from an Original
Invoice to Dispute to the Credit Note.
Increase Traceability
High-Level Process Map of SIS Dispute Management – Part1
Miscellaneous Billings Best Practices
16 Jun 2020
Initiate/Reply a dispute
Attach Supporting Doc (Optional)
via IS-WEB (stage = >1)
via file (only stage =1)
Mark for Review Send for Review
Add Remarks with Reviewer
Mark Review Completed
Send the Dispute
Select status of disputed item(s)
Attach Supporting Doc (Optional)
OR
Mark for Review Send for Review
Add Remarks with Reviewer
Mark Review Completed
Reply to Dispute
OR
From Member of Dispute To Member of Dispute
Go to
Part 2
High-Level Process Map of SIS Dispute Management – Part 2
Miscellaneous Billings Best Practices
16 Jun 2020
From Member of Dispute To Member of Dispute
Response
within time
limit?
Send the Dispute
Issue the Credit Note
Reply to Dispute
Settled
End
Expired
End
Part 1
All disputed Item ‘Accepted’
At least one disputed item is 'Partially Accepted’
All disputed items are ‘Rejected’
Or
At least one disputed item is
‘Rejected’ or ‘Partially Accepted’
Accepted by Billed Member
No Response within time limit
Go to
Part 1
Reject &
Go to the next stage of Dispute
Yes
No
Expired
End
Issue the Credit Note
Settled
End
Original Invoice
submitted
Dispute Stage 1 .. N
1 day
Deadline
MISC Bilateral Original
Invoice is ‘Daily Delivered’
6 months
Dispute TimeLine
Credit Note
SIS Dispute Time Line
Miscellaneous Billings Best Practices
16 Jun 2020
Poll Question # 4
Miscellaneous Billings Best Practices
16 Jun 2020
How does a member can raise a dispute in SIS ?
Upload a dispute input file including disputes items
Dispute an invoice via login to IS-WEB and attach necessary
supporting document
Upload a dispute input file or dispute via login to IS-WEB
Raise a request via Customer portal in Dispute category
16 Jun 2020
Miscellaneous Billings Best Practices
Importance of data quality for receiving
party
Data Quality Issues
Miscellaneous Billings Best Practices
16 Jun 2020
Invoice with only one Line
Item.
Inadequate data
Bad scanned or Long and not
informative supporting
documents
Quality of Supporting
Document
Capturing an Invoice instead
of a Rejection Invoice.
Wrong Invoice Type
Mismatch of number of Line
Items or Line Item Details
between SIS invoice and
attached Supporting Doc.
Non-Alignment of items
Selecting incorrect Charge
Category, Charge Code or
Charge Code Type.
Incorrect data
Mismatch of Line Item or Line Item
Detail data (e.g. Quantity, Unit
Price, etc.) between SIS invoice
and attached Supporting Doc.
Non-Alignment of data
Unclear or incomplete
description at Line Item or
Line Item Detail level.
Substitution value
Unclear data
Using dummy or
substitution value for
Invoice Mandatory fields
SIS Data Quality Process
Miscellaneous Billings Best Practices
16 Jun 2020
Identify the data quality issue
Root-Cause analysis
Propose the possible solution to the data owner
Monitor the corrective action
16 Jun 2020
Miscellaneous Billings Best Practices
An Airline view
❖ Incorrect charge code
❖ Incorrect airlines invoiced
❖ Attachment are provided outside of SIS
❖ Description of service aren’t precise enough
❖ ICH invoice aren’t as good as bilateral one
❖ Place of service differs from invoice and supporting
information
Monika Kolos- Lembas
Senior Process Architect, Lufthansa
Poll Question # 5
Miscellaneous Billings Best Practices
16 Jun 2020
What are the common data quality issues in SIS?
Inadequate, incorrect or unclear data
All of the above options
Quality of Supporting Document or Using dummy or substitution value
for Invoice Mandatory fields
Non-Alignment of items or data
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Questions
Comments
Feedback
Thank you!
