Airline Revenue Accounting
KGD's Revenue Accounting System is a “sales based” system that utilizes automated auditor and TCN data to accelerate the processing of sales and revenue information through the system components which are structured so that they can easily be enhanced to accommodate an airline's unique processing requirements.
The system has extensive data import capabilities which allow for the maximum utilization of electronic data from external sources such as the client airline's reservation system, other airlines, ARC, BSP, ATPCO, etc. All data files of ticket sales and coupon usage are captured and maintained indefinitely, depending on the client airline's unique data retention requirements.
The system has extensive report and export capabilities. Additionally, KGD Systems will provide adhoc reports and export files as required by the client airline. The system is available to the client airline 24 hours a day, 7 days a week.
TCN Processing captures and maintains TCN data from the client airline's reservation system as well as from the various Global Distribution Systems. Each TCN record represents a passenger ticket sale. The itinerary of a ticket consists of flight coupons, one coupon for each flight O&D, to be flown by the passenger. A portion of the ticket's fare value is allocated to each flight coupon based on the appropriate proration method. As each coupon is used by the passenger, the fare value previously assigned to the TCN coupon is used to recognize revenue.
TCN information is used to forecast future passengers, revenue, taxes, cash flow, receivables, etc. Additionally, TCN information is used to supplement data for each of the system components listed below.
Airline Direct Sales Audit ensures that ticket sales, refunds and exchanges issued by the client airline's ticket agents at airport locations, call centers and web sites are prepared correctly. Fare values, taxes and change fees are verified for accuracy. Audited sales items are posted to sales statistics, the ticket data base and the general ledger. Discrepancy notices are issued as required.
Travel Agency Sales Audit ensures that ticket sales, refunds and exchanges issued by travel agencies on behalf of the client airline are prepared correctly. Fare values, taxes, change fees and commissions are verified for accuracy. Audited sales items are posted to sales statistics, the ticket data base and the general ledger. Automated debit memorandums are issued as required. Agency commission incentive agreements as well as promotional fares and override commissions are maintained by the system.
Sales Statistics provides summary and detail reports and export files which can be used for general ledger account reconciliations: net remit, cash, credit cards, direct forms of payment, exchanges, refunds and memo adjustments. Taxes and fees associated with Airline Direct, ARC and BSP sales, exchanges and refunds are combined at month-end and can be reported/exported as required.
Flight Usage Processing/Revenue Recognition captures passenger and revenue information for flight coupons used for air travel. Flown electronic tickets are imported from the client airline's reservation system. They are valued using the corresponding TCN coupon prices. This data is then posted to passenger statistics, the ticket data base, the General Ledger and the DOT O&D Survey.
Passenger Statistics summarizes flown ticket data and maintains statistical files of revenue, passengers, average fares, asm's, rpm's, fare classes, fare basis codes, etc. Passenger statistics maintained by the system include: flight O&D statistics, flight leg statistics, passenger O&D statistics and passenger feed statistics. Extensive report/export capabilities are available to assist the client airline with evaluating specific markets and making decisions regarding yield management.
Source of Revenue Statistics collects and provides passenger and revenue data by source of sale. Flown tickets are imported and summarized based on monthly, year-to-date and the latest 12 months activity by IATA number. Source of revenue information can be used to pay backend commissions as well as measure the effectiveness of marketing and sales promotions.
Interline Receivable Billing consists of those activities required to invoice tickets that were issued by other airlines/codeshare partners. Interline coupons that were flown, exchanged or refunded by the client airline are priced according to ACH/IATA specifications. A Settlement file of the invoices by carrier is created and transmitted to the Airline Clearing House. An IDEC file of the billing detail by carrier is created and transmitted to ATPCO for dissemination to the invoiced airlines.
Interline Payable Audit consists of those activities associated with the audit of invoices from other airlines/codeshare partners. The industry IDEC file is received from ATPCO which contains detail billing information from carriers that have invoiced the client airline. This data is then imported and audited for overbilled tickets. Automated rejection memorandums are created and interfaced to the Interline Billing process. Payable coupons are posted to the ticket data base.
Ticket Use/Match Processing consists of those activities which are performed in conjunction with the verification of Air Traffic Liability (ATL) by analyzing the open items in the ticket data base. Aged ATL as well as future ATL are reported and summarized by month. This information is also available by form of payment, which can be utilized for credit card holdback analysis and verification.
General Ledger Distribution of the Revenue Accounting Journal supports multiple currencies and can be interfaced with the client airline's accounting system.