RR-13 RR-13-03-01 — Interline Settlement and Division of Revenue
The process for interline settlement and division of revenue involves the calculation, reconciliation, and distribution of revenue among different railroads based on the movement of freight cars across their networks.
🗺 BPMN Process Flow
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📋 Process Attributes
| Process ID | RR-13-03-01 |
|---|---|
| Domain Family | COMMERCIAL |
| L1 Domain | Finance, Revenue Accounting & Procurement |
| L2 Process Group | Interline Settlement and Division of Revenue |
| Trigger | Completion of a train's journey through multiple railroad systems |
| Outcome | Accurate revenue allocation and payment to participating railroads |
| Systems | NetControl Interline Settlement System (ISS) Fuel surcharge program |
| Regulatory Hooks | 49 CFR Part 232 GCOR |
📋 L4 Process Steps
| Step | Name | Role | System | Input | Output | KPI | Pain Point / Risk | Decision? | Exception? |
|---|---|---|---|---|---|---|---|---|---|
| 1.1 | Train Arrival Notification | Control Operator | NetControl | Train arrival data from the Harriman Dispatching Center | Updated train schedule in NetControl | Train notification accuracy rate > 98% | Delayed notifications affecting revenue calculations | N | Y |
| 1.2 | Revenue Calculation | Revenue Accountant | Interline Settlement System (ISS) | Train schedule and car data from NetControl | Initial revenue calculation report | Revenue calculation accuracy > 95% | Inaccurate revenue data leading to disputes | Y | N |
| 1.3 | Fuel Surcharge Application | Cost Analyst (regulatory costing) | Fuel surcharge program | Train schedule and distance data from NetControl | Adjusted revenue report with fuel surcharges | Fuel surcharge application rate > 90% | Incorrect fuel surcharge calculations affecting profitability | Y | N |
| 1.4 | Revenue Review and Adjustment | Revenue Accountant | ISS | Adjusted revenue report from Fuel Surcharge Application | Finalized revenue report with adjustments | Revenue review cycle time < 24 hours | Delays in revenue review impacting cash flow | Y | N |
| 1.5 | Payment Preparation | Revenue Accountant | ISS | Finalized revenue report from Revenue Review and Adjustment | Payment instructions to participating railroads | Payment preparation accuracy > 98% | Incorrect payment details causing financial disputes | N | Y |
| 1.6 | Payment Execution | Revenue Accountant | ISS | Payment instructions from Payment Preparation | Completed payments to railroads | Payment execution time < 48 hours | Delays in payment processing affecting cash flow | N | Y |
| 1.7 | Revenue Reporting | Revenue Accountant | ISS | Completed payments from Payment Execution | Monthly revenue report to stakeholders | Revenue reporting accuracy > 95% | Inaccurate reporting leading to financial mismanagement | N | Y |
| 1.8 | Audit and Compliance Check | Cost Analyst (regulatory costing) | ISS | Monthly revenue report from Revenue Reporting | Compliance audit report | Compliance check accuracy > 98% | Non-compliance issues leading to regulatory penalties | Y | N |
| 1.9 | Dispute Resolution | Revenue Accountant | ISS | Compliance audit report from Audit and Compliance Check | Resolved disputes report | Dispute resolution time < 7 days | Prolonged dispute resolution affecting revenue flow | Y | N |
| 1.10 | Continuous Improvement Review | VP Network Planning & Operations | ISS | Resolved disputes report from Dispute Resolution | Process improvement recommendations | Improvement recommendation implementation rate > 80% | Lack of process improvements leading to recurring issues | Y | N |
📊 KPIs & Risk Register
KPIs
Train notification accuracy rate > 98% Revenue calculation accuracy > 95% Fuel surcharge application rate > 90% Revenue review cycle time < 24 hours Payment preparation accuracy > 98% Payment execution time < 48 hours Revenue reporting accuracy > 95% Compliance check accuracy > 98% Dispute resolution time < 7 days Improvement recommendation implementation rate > 80%
Key Risks
Incorrect revenue data leading to disputes Incorrect fuel surcharge calculations affecting profitability Delays in payment processing affecting cash flow Inaccurate reporting leading to financial mismanagement Non-compliance issues leading to regulatory penalties
Swim Lanes
Control Operator · 1.1 Revenue Accountant · 1.2, 1.4, 1.5, 1.7 Cost Analyst (regulatory costing) · 1.3, 1.8, 1.10 VP Network Planning & Operations · 1.10