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Billing File/Settlement File

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Created by Michael C on 2011-06-01 04:13:33 Back to Topics

Billing File/Settlement File

Hi, is there a difference between the IS IDEC billing file and the settlement file that is billed to the clearing house?  If an error is made, or the billing file is delayed or some items are missed on the settlement file, how is it managed?  Where does the reconciliation take place?  Do the billing and billed airlines have a proper audit trail?  How does the settlement file impact on the liability between the airlines - is this covered contractually?
 
Thanks
Replied by Ashley H on 2011-06-01 16:05:18

Dear Michael,

 

The IS-IDEC file and the settlement file will be the same thing, as long as the IS-IDEC file does not contain any invoices for bilateral settlement. In the case that it does, the sum of invoices in the IS-IDEC will not equal the amount passed to the ICH. However, you will be able to identify which of the invoices submitted were with SMI=I, and all these will be reflected in your ICH Form 1 report, which will still be available. If the balance for both is not the same, the difference should be invoices for bilateral settlement. There is a cross-check between ICH and SIS to make sure that all invoices scheduled for submission to ICH actually make it into the settlement. All invoices will be viewable in the Processing Dashboard, so if an invoice is marked as Settlement File Sent it should also be in the ICH Form 1 report.

 

We would like to think it will be impossible for the systems not to match 100%, but if you believe there is an error,  your first step after validating that the missing invoices did not get stopped by the system due to errors or have SMI=B would be to get in touch with SIS Operations. They will check to see if there has been a transmission problem. If there is, they will identify an appropriate solution with ICH Operations and liaise with the airline involved. Settlement between airlines is subject to CH rules but should not be impacted unless any problem resolution entails settlement adjustments by the CH (which would anyway be a normal part of the existing protest and adjustment process).

 

Hope this clarifies.
Best regards


From:
Posted: Wednesday, June 01, 2011 4:13 AM
Subject: Billing File/Settlement File

Hi, is there a difference between the IS IDEC billing file and the settlement file that is billed to the clearing house?  If an error is made, or the billing file is delayed or some items are missed on the settlement file, how is it managed?  Where does the reconciliation take place?  Do the billing and billed airlines have a proper audit trail?  How does the settlement file impact on the liability between the airlines - is this covered contractually?
 
Thanks
Replied by Ashley H on 2011-06-03 09:56:04

Dear Michael,

 

In addition to my response above, please also note that billing carriers have a SIS output file called ''processed invoices", which faciliates reconciliation. Please refer to the ISPG v3.2, Section 7.3/Processing Dashboard, where you can find the following information and further details:

 

"The Member Profile of SIS can be configured to provide a list of fully processed invoices per Billing Category for each Billing Period to the Billing Entity. This will be provided in a CSV format and the structure of the file is provided in Section 12.17. The Billing Entity can use this file to make any adjustments to its internal Accounting Systems."

 

I hope this information helps.

Best regards

Replied by Michael C on 2011-06-08 04:13:15
Hi Ashley, thanks for that, it all sounds very reasonable.

Regards,
Michael.
 
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