SIS @ LH - Project Setup

www.lufthansa.com

SIS @ LH - Project Setup

ICH UG KUL, 22.10.2010

Michael UebberDirector Global Financial Clearing,Closings & Group Functions

2SIS @ LH - Project Setup

ICH UG KUL, 22.10.2010

SIS @ LH – focus of this presentation

How did we set up our project to cover all involved business areas?

What were the essential questions that needed an answer?

How many process design needs to be done before we can start developing?

What is still unclear from our perspective?


ICH UG KUL, 22.10.2010

SIS project is part of several e-Invoicing initiatives

eInvoicingOverall initiative

eInvoicingExternal suppliers

eBilling LH-internal e-Invoicing

LIBEROtechnical basis

eInv/eBill AirlSIS

One overall initiative to coordinate and streamline all e-Invoicing activities, exchange of experiences

SIS @ LH

eInv/eBill AirlM, U

ICH SettlementClearing, AP, AR

SIS Rev. Acc.P

SIS project @ LH coordinates all SIS activities for relevant Group Companies and all Billing Categories


ICH UG KUL, 22.10.2010

LH‘s approach, 1st step - how do the processes work today?

ICH

ATPCO

(incl F&F pre IDECValidation)

BilledEntity

BillingEntityCargo IDEC File (monthly)

Pax IDEC File (monthly)

F12 – (weekly)F1 – net amounts of inv

F2 - summary

Cargo IDEC File (monthly)


F3– (weekly)

Paper invoices, with coupon listing, coupons, rejects, supporting documents(monthly)

AIA F&F F&F: receives NFP value

ARC-Compass(NFP storage)

Previously released sales record

prorateengine prorate

engine

GDSsBSPs

ACHRecap sheets - weeklySettlement sheets –

(weekly)

AccountsPayable AccountsReceivableLH- LH-

First we got an overview of all today’s processes that are part of the „airline accounting“, divided into Accounts Payable and Accounts Receivable…


ICH UG KUL, 22.10.2010

ICH

ATPCO

(incl F&F pre IDECValidation)

BilledEntity

BillingEntityCargo IDEC File (monthly)



F2 - summary



F3– (weekly)

Paper invoices, with coupon listing, coupons, rejects, supporting documents(monthly)

AIA F&F F&F: receives NFP value

ARC-Compass(NFP storage)

Previously released sales record

prorateengine prorate

engine

GDSsBSPs

ACHRecap sheets - weeklySettlement sheets –

(weekly)

AccountsPayable AccountsReceivableLH- LH-

…and then got a close look at both processes, including posting on GL accounts, posting on AP and AR accounts, transmission to ICH, preparation of invoices etc.

70

HS

70

HS

ICH

ATPCO

BillingEntity

LHCargo IDEC File (monthly)


F3 – (weekly)

Papierrechnungen, Coupons, Anlagen, etc. (monatlich)

Technik, Cargo-MISC, LFT, Systems, etc.

100011110101110111000010111110

100011110101110111000010111110

100011110101110111000010111110

U-Konten

150150

HS

150150

HS

P-Konten

7070

HS

7070

HS

C-Konten

3030

HS

3030

HS

30 M10 C50 T

90

HS

30 M10 C50 T

90

HS

M-Konten

30M10C50T

HS

30M10C50T

HS

7/6er-Konten

340

HS

340

HS

EFO-Konto

6er-Konten HAM DP

30

HS

30

HS

150

HS

150

HS

LCAG/VERB

RA/R-O

ICH

ATPCO

BilledEntity

LH




F2 - summary

Papierrechnungen, Coupons, Anlagen, etc. (monatlich)


100011110101110111000010111110

Cargo File-Input

Passage File-Input

UATP File-Input

100011110101110111000010111110

100011110101110111000010111110

U-Konten

15010050

HS

15010050

HS

P-Konten

7070

HS

7070

HS

C-Konten

3030

HS

3030

HS

9030 M10 C50 T

HS

9030 M10 C50 T

HS

M-Konten

10 C50 T

10 C50 T

HS

10 C50 T

10 C50 T

HS

6er-Konten

150 P 70 C30 U90 M

HS

150 P 70 C30 U90 M

HS

AFO-Konto

U12

Accounts Receivable

Accounts Payable

LH‘s approach, 1st step - how do the processes work today?


ICH UG KUL, 22.10.2010

LH‘s approach, 2nd step – what do we need to change for SIS?

We tried to paint the „big picture“ for each AP and AR of what the future process could look like, assigned the processes to the sub-project teams and each team worked on the following questions to define the new process:

BilledEntity

LH

Cargo IDEC File

Pax IDEC File


MISC

100011110101110111000010111110

Cargo File-Input

Passage File-Input

UATP File-Input

100011110101110111000010111110

100011110101110111000010111110

U-Konten

15010050

HS

15010050

HSP-Konten

7070

HS

7070

HS

C-Konten

3030

HS

3030

HS

9030 M10 C50 T

HS

9030 M10 C50 T

HS

M-Konten

10 C50 T

10 C50 T

HS

10 C50 T

10 C50 T

HS

6er-Konten

150 P 70 C30 U90 M

HS

150 P 70 C30 U90 M

HS

AFO-Konto

SIS&

ICH

100011110101110111000010111110

100011110101110111000010111110

IS-XML

IS-XML

IDECsund XMLs

Bestätigung

Settlement e-InvoicingCombination

Rev. Acc.


ICH UG KUL, 22.10.2010

LH’s approach – Questions Accounts Receivable I

Who will be authorized to send data to SIS and who enters the postings on the accounts? Different solutions for different billing categories possible?

All decentralized processes seemed to be a problem (access rights, posting on accounts, archiving of legal documents)

When do we enter the postings on our accounts? Before or after the invoice was generated within SIS?

How do we cope with dual processes during migration phase?


ICH UG KUL, 22.10.2010

LH’s approach – Questions Accounts Receivable II

How can we produce the xml-files? Is the system capable and can the system manage supporting documents?

What needs to be changed within data flow (e.g. no F12 anymore)?

How can we guarantee for unique invoice numbers considering all involved LH group companies?

How can we organize the obligation to send paper copies for 3 months after implementation (need to print all invoices that are produced by SIS)?


ICH UG KUL, 22.10.2010

LH’s approach – Questions Accounts Payable

How do we distribute incoming invoices to the respective departments / group companies? – there is no reliable criterion for us

How can we transfer maximum information from the IS-xml automatically into our internal approval and posting system?

How do we cope with dual processes during migration phase?

How can we archive all documents (legally compliant)?

Are all invoices compliant with German legislation, especially German Tax Law?


ICH UG KUL, 22.10.2010

LH’s approach – General Questions

How can group companies participate?

Who needs which instruments (Dashboard, User Administration, Member Profile) along the process, who owns the „master rights“?

Error handling during the whole process

What internal controls do we need on the SIS system (e.g. do we receive all outgoing invoices or do we miss some?)

How can we manage to use the „IATA IS XML Invoice Standard“ for all eInvoices from/to LH?


ICH UG KUL, 22.10.2010

LH’s approach – Conclusion

1st step: analyze the WHOLE process as it is today

2nd step: develop a new SIS process

3rd step: determine the necessary process changes

4th step: develop, change or purchase system

Throughout the whole process: get familiar with the eInvoicing regulations in your country

Most important: Design the internal process before start thinking about IT-system design!

Documents

SIS @ LH - Project Setup