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Annex 2

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Created by Vera R (Jat Airways) on 2011-11-09 09:45:01 Back to Topics

Annex 2

Dear Ashley,
Sorry, but I have to open new session on existing topic, due to better understanding and tracking.
I read carefully all your explanation relating to "Annex2 form" issues, but we are still confused.
1. Pls note our current business: We have bilateral settlement with some non-CH carriers, with some non-CH and non-IDEC carriers, and with some CH carriers but with special agreement with our company to do settlement directly. This settlement is mostly done from/to our existing ICH-account, or, before settlemet, if other carrier have to pay us, we send note to that carrier on which account they have to settle money, or, if we have to pay, we just select some of our accounts and transfer money to such carrier.
Query:
a) As far as I understand (regarding our described business) we have to fill out Annex2 and send you. If it is so, which data exactly do we have to fill-out in Annex2? What if we say that it is existing ICH account and later, for some settlement with some company we want to change account just for that one settlement?
b) As these settlements are not CH settlements, why is it important for SIS to have this our bilateral account information? In other words, it seems that we do not understand something deeper: do we have (as SIS participant) to send/receive bilateral invoices to carriers (migrated and not migrated) via SIS?
2. If there is some deeper misunderstanding (on our side) of SIS philosophy, our next query is: Should all ATA/IATA carriers migrate to SIS (ICH, ACH, non-CH-with only bilateral setlements, IDEC, non-IDEC), and send electronic invoices in SIS format through SIS platform? 
Please to insert your response below each of our three queries. Thanks in adv. Brgds, Vera
Replied by Ashley H on 2011-11-09 12:56:27

Hi Vera,

 

As requested, please find the answers (in green) below each of your queries.

 

Regards,

Ashley

 

From: RADETA Vera
Posted At: November-09-11 9:45 AM
Posted To: SIS Forums - Signing Up & Migration Steps
Conversation: Annex 2
Subject: Annex 2

 

Dear Ashley,

Sorry, but I have to open new session on existing topic, due to better understanding and tracking.

I read carefully all your explanation relating to "Annex2 form" issues, but we are still confused.

1. Pls note our current business: We have bilateral settlement with some non-CH carriers, with some non-CH and non-IDEC carriers, and with some CH carriers but with special agreement with our company to do settlement directly. This settlement is mostly done from/to our existing ICH-account, or, before settlemet, if other carrier have to pay us, we send note to that carrier on which account they have to settle money, or, if we have to pay, we just select some of our accounts and transfer money to such carrier.

 

If you already have an existing ICH account, and would like to nominate this one for bilateral settlements (with non-CH carriers, etc.), then you may simply state this on the Annex 2, and no authorised signatories is necessary. This instruction is also stated directly on Annex 2 – for your convenience I have quoted this below:

 

Annex 2 Member Bank Details Form for Bi-Lateral Use ONLY

This form is optional and applicable only for bilateral settlement invoices. If you would like to use your existing ICH account, simply specify which on this form and no authorized signatory is required.

 

Query:

a)      As far as I understand (regarding our described business) we have to fill out Annex2 and send you. If it is so, which data exactly do we have to fill-out in Annex2? What if we say that it is existing ICH account and later, for some settlement with some company we want to change account just for that one settlement?

 

If you would like to designate a new account for bilateral settlements at a later time, then you would need to fill out Annex 2 completely, with the authorised signatories, and return this form to SIS Operations (sisoperations@iata.org).

 

b)      As these settlements are not CH settlements, why is it important for SIS to have this our bilateral account information? In other words, it seems that we do not understand something deeper: do we have (as SIS participant) to send/receive bilateral invoices to carriers (migrated and not migrated) via SIS?

 

As an anti-fraud measure, a SIS member cannot add its own bank details to a Bilateral invoice. So if you haven’t notified any bank details for bilateral settlement (and some companies use different bank accounts for this, possibly in non-ICH currencies), then your SMI=B (bilateral settlement) invoices go out without any settlement instructions. You can let your billing partners know by email/phone/fax what you want them to do.

 

2. If there is some deeper misunderstanding (on our side) of SIS philosophy, our next query is: Should all ATA/IATA carriers migrate to SIS (ICH, ACH, non-CH-with only bilateral setlements, IDEC, non-IDEC), and send electronic invoices in SIS format through SIS platform?

 

Theoretically, you can choose not to send your bilateral settlement invoices through SIS. However, please keep in mind there is a rule that if you are billed in SIS, you will need dispute/respond to the invoices in SIS. In general, we encourage all SIS members to process all their interline transactions through SIS to avoid the duplicate internal processes and also to fully benefit from the service.

 

Please to insert your response below each of our three queries. Thanks in adv. Brgds, Vera

Replied by Vera R (Jat Airways) on 2011-11-10 06:49:15
Dear Ashley,
 
Thank you very much for this clear, detailed assistance. Now, our Finace Dept will consider this issue and we'll be back to SIS Operations with our decision. If necessary, I'll be free to ctc you again. Thanks and brgds, Vera 


From:
Posted: 11/9/2011 12:56 PM
Subject: Annex 2

Hi Vera,

 

As requested, please find the answers (in green) below each of your queries.

 

Regards,

Ashley

 

From: RADETA Vera
Posted At: November-09-11 9:45 AM
Posted To: SIS Forums - Signing Up & Migration Steps
Conversation: Annex 2
Subject: Annex 2

 

Dear Ashley,

Sorry, but I have to open new session on existing topic, due to better understanding and tracking.

I read carefully all your explanation relating to "Annex2 form" issues, but we are still confused.

1. Pls note our current business: We have bilateral settlement with some non-CH carriers, with some non-CH and non-IDEC carriers, and with some CH carriers but with special agreement with our company to do settlement directly. This settlement is mostly done from/to our existing ICH-account, or, before settlemet, if other carrier have to pay us, we send note to that carrier on which account they have to settle money, or, if we have to pay, we just select some of our accounts and transfer money to such carrier.

 

If you already have an existing ICH account, and would like to nominate this one for bilateral settlements (with non-CH carriers, etc.), then you may simply state this on the Annex 2, and no authorised signatories is necessary. This instruction is also stated directly on Annex 2 – for your convenience I have quoted this below:

 

Annex 2 Member Bank Details Form for Bi-Lateral Use ONLY

This form is optional and applicable only for bilateral settlement invoices. If you would like to use your existing ICH account, simply specify which on this form and no authorized signatory is required.

 

Query:

a)      As far as I understand (regarding our described business) we have to fill out Annex2 and send you. If it is so, which data exactly do we have to fill-out in Annex2? What if we say that it is existing ICH account and later, for some settlement with some company we want to change account just for that one settlement?

 

If you would like to designate a new account for bilateral settlements at a later time, then you would need to fill out Annex 2 completely, with the authorised signatories, and return this form to SIS Operations (sisoperations@iata.org).

 

b)      As these settlements are not CH settlements, why is it important for SIS to have this our bilateral account information? In other words, it seems that we do not understand something deeper: do we have (as SIS participant) to send/receive bilateral invoices to carriers (migrated and not migrated) via SIS?

 

As an anti-fraud measure, a SIS member cannot add its own bank details to a Bilateral invoice. So if you haven’t notified any bank details for bilateral settlement (and some companies use different bank accounts for this, possibly in non-ICH currencies), then your SMI=B (bilateral settlement) invoices go out without any settlement instructions. You can let your billing partners know by email/phone/fax what you want them to do.

 

2. If there is some deeper misunderstanding (on our side) of SIS philosophy, our next query is: Should all ATA/IATA carriers migrate to SIS (ICH, ACH, non-CH-with only bilateral setlements, IDEC, non-IDEC), and send electronic invoices in SIS format through SIS platform?

 

Theoretically, you can choose not to send your bilateral settlement invoices through SIS. However, please keep in mind there is a rule that if you are billed in SIS, you will need dispute/respond to the invoices in SIS. In general, we encourage all SIS members to process all their interline transactions through SIS to avoid the duplicate internal processes and also to fully benefit from the service.

 

Please to insert your response below each of our three queries. Thanks in adv. Brgds, Vera

 
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