Scope
  • 17 Jun 2020
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Scope

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Settlement with Orders, as its name suggests, is the processes of paying back money that has been agreed – in an Order – to be owed, and according to the chosen settlement method. Therefore, it can be inferred from the definition that the basic functionalities of the Settlement with Orders process and messaging standard are:

  • Request for clearance of funds as per the agreement between the parties.
  • Summary of the funds to be received and the funds to be paid.
  • Performing the clearance of funds by the Settlement Manager

In Order world, the Order has all the data necessary to execute and record the customer journey. Therefore, the order manifests the commitment for delivery of products and services on one hand, and for remuneration on the other hand. The process of collecting said remuneration, taking into account payable commission, and linking it to the underlining Order is the Settlement with Orders process.

In its pure form Settlement with Order is about asking for funds to be paid as previously agreed. Therefore, the request for settlement is simply a message that asks for the clearance of funds as per an existing commitment – the agreed Order.

It is important to note here that the Settlement with Order is not about invoicing but only about the flow of money from payer to payee. Therefore, none of the messages, related to the Settlement with Order process, should under any circumstances be used, treated or considered as legal invoice. Thus, any reporting related to invoicing data is not part of the Settlement with Order process or standard. Naturally, such reporting can only be performed by the parties pertinent to the Order since those are the parties that have the necessary data.

This first release of the Settlement with Orders Standard deals with clearance between carriers and agents within the established governance of the Billing and Settlement Plan as managed by IATA.


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