AR Inter Airline Settlement - IATA Accounts

A member airline's outward transactions are generated by a front-end invoicing/ticketing system and supporting documentation is sent direct to them. The transactions can be in the Zone Currency of the Customer Airline, but could be in any currency if within the Miscellaneous Business Category. The documentation can also show the transaction value in the base currency of the local airline.

There are 4 processing periods a month when the IATA claims are produced, comprising separate Passenger, Cargo, UATP and Miscellaneous Form 1s. Each UATP claim is subject to a predefined commission (discount) which must be shown on the Form 1. All claims are summarised on a Form 2 and Summary Form 2. The Clearing House sends payment details on a Form 3 and copies of the other airlines' Form 1s. Inward charges are bills incurred by the member airline during the clearing month. The Form 3 shows the inward charges less the total outward claim with a resulting net balance. The total value on the Form 3 will represent a payment either from IATA to the member airline or from the member airline to IATA.

The official invoices from other airlines are checked by the member airline against the Form 1 to ensure that all claims made on itself are received. Any invoices which are not supported by an entry on a Form 1 are investigated. Official invoices may be in sterling, dollars, or the sender's own currency.

NOTE The menu path shown is the default for the system. Your company may have customised menu options, so the path shown may not be accurate. Please contact your system administrator for details.