DEBIT MEMO POLICY From Point of Sale Canada, USA & International Debit Note Time Limit SOURCE REASONS TIME LIMIT FARE, TAX, CASH REWARDS, COMPENSATION, 6 MONTHS FROM SALES AUDIT CHANGE FEE DATE OF SALE VIOLATIONS FARE, TAX, COMMISSION 6 MONTHS FROM REFUND/ COMPENSATION, DATE OF REFUND EXCHANGE AUDIT CHANGE OR EXCHANGE FEE VIOLATIONS REFUND CASH REWARDS, 6 MONTHS FROM PROCESSING COMMISSION DATE OF REFUND RECALLS UNREPORTED SALES AND DUPLICATE USAGE/TAX 9 MONTHS FROM SALES ISSUES/OVERDRAWN FINAL ACCOUNTING MCOS TRAVEL DATE PTA/CREDIT CARD CHARGE BACKS NON COMPLIANCE WITH AIR CANADA’S 6 MONTHS FROM GDS AUDIT CRS TICKETING AND DATE OF BOOKING BOOKING PROCEDURES With routine sales and refund audits, the 6 months time limit applies only to normal errors. If Air Canada suspect abuse or fraud, an in-depth audit of the agency in question would follow and would not be subject to any time limit. Credit card charge-backs may be debited beyond this time limit if the card processor invokes longer timeframes, allowing the cardholder extended time frame to dispute / reject the credit transaction. Under collection of taxes and missing information on tax exempt tickets will be treated as an exception. Air Canada is subject to audit assessment by tax authorities for a period of 7 years. Credit Memo requests for unclaimed commission: Permitted If within 1 year from the date of ticket issuance/Flight pass sale Denied If greater than 1 year from the date of ticket issuance/Flight pass sale Minimum Value : The minimum value of a debit memo varies according to the situation: $5 Commission audit; anything less than $5 will neither be CA debited, or credited $5 Refund/Exchange Audit; under collection of CA supplementary fee, such as a change fee $10 Non-compliance to Air Canada’s CRS booking and CA ticketing policy $15 Fare Audit CA Multiple items, below the minimum value, may be accumulated for debit memo issuance. Recall commission items have nil minimum value. For taxes, including the lack of proper documentation for tax exempt tickets, surcharges or fees, there is no minimum value. Debit Note Correspondence : Correspondence is responded on average, within 15 working days of receipt through BSPlink. For a valid dispute, if it is necessary to reverse or reduce a debit memo, after the BSPlink latency period, a $25CA late dispute fee will be deducted from the credit memo due to the agency. Disputes on debit memos that have already been paid will not be accepted, beyond two (2) years from the original debit memo issue date. The above standards apply to routine fares and Cash Rewards audit process. In the event of consistent abuse, suspected fraud, interline billings (OAL does not accept fare plated on 014), or any other extraordinary circumstance that may require an in-depth audit review, the above items would no longer be considered valid. The above information summarizes our policy for the key audit areas but should not be construed as complete and final.