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SFI 41. Taxes Details

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Created by Marian S (IBERIA) on 2011-02-15 06:28:40 Back to Topics

SFI 41. Taxes Details

Hello, we are facing how to complete the SFI 41 for a coupon in a Rejection Memo and our problem is that we do not have the value billed and accepted for each tax code, we only the total.
We are thinking about send a SFI 41 record with only one tax acumulating the totals of all the taxes, we think this solution will go throught the IS-IDEC validation.
Is there any other company with this problem?
Colud this be a solution?
Thank you and regards.
Marian
Replied by Ashley H on 2011-02-23 13:27:34
Hi Marian,
 

Here is how to provide Tax breakdown details:

 

There can be 3 scenarios here:

1)   Migration phase: Prime Billing was billed outside of SIS and needs to be rejected back via SIS

In this case, the breakdown information will not be explicitly shared in the old IDEC file. In such cases, when raising a Rejection Memo via SIS, the carrier will derive the applicable tax amounts at a tax code level, distribute the billed tax amounts proportionately and raise the RM.

 

For e.g.

Prime Billing in Old IDEC: Tax Amount = GBP 40.00

Derived Taxes within the RA system of the billed entity: Tax Amount = GBP 25.00  (GB 15.00, UB 10.00)

 

Tax Amount to be reported in the Rejection Cpn Tax break down records (SFI 41) as follows:

 

Option 1

Tax Code: GB

Tax Amount billed = 20.00  (here we have divided the Total Tax amount by 2 and reported it against the two taxes)

Tax Amount accepted = 15.00

Tax Amount difference = 5.00

 

Tax Code: UB

Tax Amount billed = 20.00

Tax Amount accepted = 10.00

Tax Amount difference = 10.00

 

 

Option 2

Tax Code: GB

Tax Amount billed = 15.00  (here we have assumed that GB tax was billed correctly and there was only a problem with the UB value)

Tax Amount accepted = 15.00

Tax Amount difference = 0.00

 

Tax Code: UB

Tax Amount billed = 25.00

Tax Amount accepted = 10.00

Tax Amount difference = 15.00

 

 

2)   Migration phase: Rejection was done outside of SIS and needs to be rejected back via SIS

In this case normally the tax break up and the difference at a tax code level is provided in the Remarks section of the Paper Rejection Memo. The expectation is that the carriers will take this information from the Paper Rejection Memo and specify the same at the tax code level in SFI 41 when rejecting it further. If there were no tax breakdowns provided on the paper RM, the carrier can follow the process as  described in Scenario 1.

 

3)   Post Migration: Prime Billing or Rejection done in SIS and needs to be rejected back via SIS

In this case tax break up provided in the original billing will be used to populate the SFI 41 fields and reject it further.               

 

Tax amounts clubbed together and reported as a single value under a valid Tax code will go through the Is-Validation process. However as noted earlier, this practice should not be followed by carriers and this will lead to unnecessary rejections due to lack of clarity.


From:
Posted: Tuesday, February 15, 2011 6:28 AM
Subject: SFI 41. Taxes Details

Hello, we are facing how to complete the SFI 41 for a coupon in a Rejection Memo and our problem is that we do not have the value billed and accepted for each tax code, we only the total.
We are thinking about send a SFI 41 record with only one tax acumulating the totals of all the taxes, we think this solution will go throught the IS-IDEC validation.
Is there any other company with this problem?
Colud this be a solution?
Thank you and regards.
Marian
Replied by Lori L (Delta Air Lines) on 2011-03-01 10:16:17



From:
Posted: Wednesday, February 23, 2011 1:28 PM
Subject: SFI 41. Taxes Details

Hi Marian,
 

Here is how to provide Tax breakdown details:

 

There can be 3 scenarios here:

1)   Migration phase: Prime Billing was billed outside of SIS and needs to be rejected back via SIS

In this case, the breakdown information will not be explicitly shared in the old IDEC file. In such cases, when raising a Rejection Memo via SIS, the carrier will derive the applicable tax amounts at a tax code level, distribute the billed tax amounts proportionately and raise the RM.

 

For e.g.

Prime Billing in Old IDEC: Tax Amount = GBP 40.00

Derived Taxes within the RA system of the billed entity: Tax Amount = GBP 25.00  (GB 15.00, UB 10.00)

 

Tax Amount to be reported in the Rejection Cpn Tax break down records (SFI 41) as follows:

 

Option 1

Tax Code: GB

Tax Amount billed = 20.00  (here we have divided the Total Tax amount by 2 and reported it against the two taxes)

Tax Amount accepted = 15.00

Tax Amount difference = 5.00

 

Tax Code: UB

Tax Amount billed = 20.00

Tax Amount accepted = 10.00

Tax Amount difference = 10.00

 

 

Option 2

Tax Code: GB

Tax Amount billed = 15.00  (here we have assumed that GB tax was billed correctly and there was only a problem with the UB value)

Tax Amount accepted = 15.00

Tax Amount difference = 0.00

 

Tax Code: UB

Tax Amount billed = 25.00

Tax Amount accepted = 10.00

Tax Amount difference = 15.00

 

 

2)   Migration phase: Rejection was done outside of SIS and needs to be rejected back via SIS

In this case normally the tax break up and the difference at a tax code level is provided in the Remarks section of the Paper Rejection Memo. The expectation is that the carriers will take this information from the Paper Rejection Memo and specify the same at the tax code level in SFI 41 when rejecting it further. If there were no tax breakdowns provided on the paper RM, the carrier can follow the process as  described in Scenario 1.

 

3)   Post Migration: Prime Billing or Rejection done in SIS and needs to be rejected back via SIS

In this case tax break up provided in the original billing will be used to populate the SFI 41 fields and reject it further.               

 

Tax amounts clubbed together and reported as a single value under a valid Tax code will go through the Is-Validation process. However as noted earlier, this practice should not be followed by carriers and this will lead to unnecessary rejections due to lack of clarity.


From:
Posted: Tuesday, February 15, 2011 6:28 AM
Subject: SFI 41. Taxes Details

Hello, we are facing how to complete the SFI 41 for a coupon in a Rejection Memo and our problem is that we do not have the value billed and accepted for each tax code, we only the total.
We are thinking about send a SFI 41 record with only one tax acumulating the totals of all the taxes, we think this solution will go throught the IS-IDEC validation.
Is there any other company with this problem?
Colud this be a solution?
Thank you and regards.
Marian
Replied by Lori L (Delta Air Lines) on 2011-03-01 10:16:34



From:
Posted: Wednesday, February 23, 2011 1:28 PM
Subject: SFI 41. Taxes Details

Hi Marian,
 

Here is how to provide Tax breakdown details:

 

There can be 3 scenarios here:

1)   Migration phase: Prime Billing was billed outside of SIS and needs to be rejected back via SIS

In this case, the breakdown information will not be explicitly shared in the old IDEC file. In such cases, when raising a Rejection Memo via SIS, the carrier will derive the applicable tax amounts at a tax code level, distribute the billed tax amounts proportionately and raise the RM.

 

For e.g.

Prime Billing in Old IDEC: Tax Amount = GBP 40.00

Derived Taxes within the RA system of the billed entity: Tax Amount = GBP 25.00  (GB 15.00, UB 10.00)

 

Tax Amount to be reported in the Rejection Cpn Tax break down records (SFI 41) as follows:

 

Option 1

Tax Code: GB

Tax Amount billed = 20.00  (here we have divided the Total Tax amount by 2 and reported it against the two taxes)

Tax Amount accepted = 15.00

Tax Amount difference = 5.00

 

Tax Code: UB

Tax Amount billed = 20.00

Tax Amount accepted = 10.00

Tax Amount difference = 10.00

 

 

Option 2

Tax Code: GB

Tax Amount billed = 15.00  (here we have assumed that GB tax was billed correctly and there was only a problem with the UB value)

Tax Amount accepted = 15.00

Tax Amount difference = 0.00

 

Tax Code: UB

Tax Amount billed = 25.00

Tax Amount accepted = 10.00

Tax Amount difference = 15.00

 

 

2)   Migration phase: Rejection was done outside of SIS and needs to be rejected back via SIS

In this case normally the tax break up and the difference at a tax code level is provided in the Remarks section of the Paper Rejection Memo. The expectation is that the carriers will take this information from the Paper Rejection Memo and specify the same at the tax code level in SFI 41 when rejecting it further. If there were no tax breakdowns provided on the paper RM, the carrier can follow the process as  described in Scenario 1.

 

3)   Post Migration: Prime Billing or Rejection done in SIS and needs to be rejected back via SIS

In this case tax break up provided in the original billing will be used to populate the SFI 41 fields and reject it further.               

 

Tax amounts clubbed together and reported as a single value under a valid Tax code will go through the Is-Validation process. However as noted earlier, this practice should not be followed by carriers and this will lead to unnecessary rejections due to lack of clarity.


From:
Posted: Tuesday, February 15, 2011 6:28 AM
Subject: SFI 41. Taxes Details

Hello, we are facing how to complete the SFI 41 for a coupon in a Rejection Memo and our problem is that we do not have the value billed and accepted for each tax code, we only the total.
We are thinking about send a SFI 41 record with only one tax acumulating the totals of all the taxes, we think this solution will go throught the IS-IDEC validation.
Is there any other company with this problem?
Colud this be a solution?
Thank you and regards.
Marian
Replied by Lori L (Delta Air Lines) on 2011-03-01 10:17:00
If we use option 1 and our internal system does not give us a tax applicable, is there a default tax code that we can use in these (hopefully rare) cases?  I'm asking this because our system has an auto reject process. 
Thx,
Lori



From:
Posted: Wednesday, February 23, 2011 1:28 PM
Subject: SFI 41. Taxes Details

Hi Marian,
 

Here is how to provide Tax breakdown details:

 

There can be 3 scenarios here:

1)   Migration phase: Prime Billing was billed outside of SIS and needs to be rejected back via SIS

In this case, the breakdown information will not be explicitly shared in the old IDEC file. In such cases, when raising a Rejection Memo via SIS, the carrier will derive the applicable tax amounts at a tax code level, distribute the billed tax amounts proportionately and raise the RM.

 

For e.g.

Prime Billing in Old IDEC: Tax Amount = GBP 40.00

Derived Taxes within the RA system of the billed entity: Tax Amount = GBP 25.00  (GB 15.00, UB 10.00)

 

Tax Amount to be reported in the Rejection Cpn Tax break down records (SFI 41) as follows:

 

Option 1

Tax Code: GB

Tax Amount billed = 20.00  (here we have divided the Total Tax amount by 2 and reported it against the two taxes)

Tax Amount accepted = 15.00

Tax Amount difference = 5.00

 

Tax Code: UB

Tax Amount billed = 20.00

Tax Amount accepted = 10.00

Tax Amount difference = 10.00

 

 

Option 2

Tax Code: GB

Tax Amount billed = 15.00  (here we have assumed that GB tax was billed correctly and there was only a problem with the UB value)

Tax Amount accepted = 15.00

Tax Amount difference = 0.00

 

Tax Code: UB

Tax Amount billed = 25.00

Tax Amount accepted = 10.00

Tax Amount difference = 15.00

 

 

2)   Migration phase: Rejection was done outside of SIS and needs to be rejected back via SIS

In this case normally the tax break up and the difference at a tax code level is provided in the Remarks section of the Paper Rejection Memo. The expectation is that the carriers will take this information from the Paper Rejection Memo and specify the same at the tax code level in SFI 41 when rejecting it further. If there were no tax breakdowns provided on the paper RM, the carrier can follow the process as  described in Scenario 1.

 

3)   Post Migration: Prime Billing or Rejection done in SIS and needs to be rejected back via SIS

In this case tax break up provided in the original billing will be used to populate the SFI 41 fields and reject it further.               

 

Tax amounts clubbed together and reported as a single value under a valid Tax code will go through the Is-Validation process. However as noted earlier, this practice should not be followed by carriers and this will lead to unnecessary rejections due to lack of clarity.


From:
Posted: Tuesday, February 15, 2011 6:28 AM
Subject: SFI 41. Taxes Details

Hello, we are facing how to complete the SFI 41 for a coupon in a Rejection Memo and our problem is that we do not have the value billed and accepted for each tax code, we only the total.
We are thinking about send a SFI 41 record with only one tax acumulating the totals of all the taxes, we think this solution will go throught the IS-IDEC validation.
Is there any other company with this problem?
Colud this be a solution?
Thank you and regards.
Marian
Replied by Michael C on 2011-08-16 07:34:09
Hi Ashley,
Can you please advise if there is a default tax code that should be used during the migration phase (where a prime billing was billed outside of SIS but needs to be rejected back via SIS)?
For example, if a coupon is billed with X amount of tax but rejected with tax as zero, what tax code should be used to show this scenario? I know from previous posts that IATA are suggesting using any valid tax code, and we are aware of some suggestions that the code 'YR' will be used, but is there a standard that is recommended?
 
Prime billing in Old IDEC: Tax Amount = USD 20.00
Accepted Tax Amount = 0
 
Tax Amount to be reported in SFI 41:
 
Tax Code = ???
Tax Amount Billed = 20.00
Tax Amount Accepted = 0.00
Tax Amount Difference = 20.00
 
Many thanks,
Michael (ASI)
Replied by Michael C on 2011-08-22 05:08:18
Hi Ashley,
 
Can you shed any further light on this please?
 
Thanks
Michael (ASI)


From:
Posted: Tuesday, August 16, 2011 10:03 AM
Subject: SFI 41. Taxes Details

Hi Ashley,
Can you please advise if there is a default tax code that should be used during the migration phase (where a prime billing was billed outside of SIS but needs to be rejected back via SIS)?
For example, if a coupon is billed with X amount of tax but rejected with tax as zero, what tax code should be used to show this scenario? I know from previous posts that IATA are suggesting using any valid tax code, and we are aware of some suggestions that the code 'YR' will be used, but is there a standard that is recommended?
 
Prime billing in Old IDEC: Tax Amount = USD 20.00
Accepted Tax Amount = 0
 
Tax Amount to be reported in SFI 41:
 
Tax Code = ???
Tax Amount Billed = 20.00
Tax Amount Accepted = 0.00
Tax Amount Difference = 20.00
 
Many thanks,
Michael (ASI)
 
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