RR-13 RR-13-03-02 — Interline Settlement and Division of Revenue
This process involves the calculation and settlement of revenue for interline shipments between different railroads. It ensures accurate division of revenue based on the distance traveled by each railroad's section of the journey.
🗺 BPMN Process Flow
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📋 Process Attributes
| Process ID | RR-13-03-02 |
|---|---|
| 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 across multiple railroads, with data from the Interline Settlement System (ISS) and Switching Settlement Data Exchange (SSDX). |
| Outcome | Successful completion produces an accurate interline settlement report that divides revenue among participating railroads based on their respective distances traveled. |
| Systems | Interline Settlement System (ISS) Switching Settlement Data Exchange (SSDX) NetControl I-ETMS Umler PS Technology |
| Regulatory Hooks | 49 CFR Part 1180 49 CFR Part 232 AAR Interchange Rules (Rule 88 and related) 49 U.S.C. § 21103 |
📋 L4 Process Steps
| Step | Name | Role | System | Input | Output | KPI | Pain Point / Risk | Decision? | Exception? |
|---|---|---|---|---|---|---|---|---|---|
| 1.1 | Data Collection | Revenue Accountant | Interline Settlement System (ISS) | Train journey data, including distance covered by each railroad | Collected data for interline settlement | Accuracy of collected data above 99% | Inaccurate or missing train journey data | N | Y |
| 1.2 | Revenue Calculation | Cost Analyst (regulatory costing) | Interline Settlement System (ISS) | Collected data for interline settlement | Preliminary revenue calculation report | Revenue calculation accuracy above 98% | Complex revenue calculation due to varying rates and distances | Y | N |
| 1.3 | Review and Adjustment | Revenue Accountant | Interline Settlement System (ISS) | Preliminary revenue calculation report | Adjusted revenue calculation report | Number of adjustments below 5% | Manual review for compliance with regulatory requirements | Y | N |
| 1.4 | Approval by Stakeholders | Chairman, President and CEO (plan sponsor level) | Interline Settlement System (ISS) | Adjusted revenue calculation report | Approved interline settlement report | Time to approval within 2 business days | Stakeholder disagreement on revenue division | Y | N |
| 1.5 | Payment Processing | Revenue Accountant | Interline Settlement System (ISS) | Approved interline settlement report | Processed payments to participating railroads | Payment processing time below 3 business days | Delays in payment due to financial discrepancies | N | Y |
| 1.6 | Reporting and Documentation | Revenue Accountant | Interline Settlement System (ISS) | Processed payments to participating railroads | Final interline settlement report and documentation | Documentation accuracy above 95% | Inaccurate or incomplete documentation | N | Y |
| 1.7 | Audit Review | Cost Analyst (regulatory costing) | Interline Settlement System (ISS) | Final interline settlement report and documentation | Audit review report | Number of audit findings below 2% | Complexity in auditing due to multiple railroad involvement | Y | N |
| 1.8 | Dispute Resolution | Revenue Accountant | Interline Settlement System (ISS) | Audit review report | Resolved disputes and updated settlement report | Time to dispute resolution within 1 week | Protracted dispute resolution due to differing interpretations | Y | N |
| 1.9 | Final Payment and Reporting | Revenue Accountant | Interline Settlement System (ISS) | Resolved disputes and updated settlement report | Final payment to participating railroads and final reporting | Payment accuracy above 99% | Errors in final payment processing | N | Y |
| 1.10 | Continuous Improvement | Service Design / Network Planning Analyst | Interline Settlement System (ISS) | Final interline settlement report and documentation | Updated revenue calculation models and procedures | Number of process improvements implemented annually | Resistance to change in established processes | Y | N |
| 1.11 | Regulatory Compliance Review | Cost Analyst (regulatory costing) | Interline Settlement System (ISS) | Final interline settlement report and documentation | Compliance review report | Number of regulatory compliance issues below 1% | Complexity in interpreting regulatory requirements | Y | N |
| 1.12 | Final Documentation and Reporting | Revenue Accountant | Interline Settlement System (ISS) | Compliance review report | Complete final documentation and reporting | Documentation completeness above 98% | Omissions in final documentation | N | Y |
📊 KPIs & Risk Register
KPIs
Accuracy of collected data above 99% Revenue calculation accuracy above 98% Number of adjustments below 5% Time to approval within 2 business days Payment processing time below 3 business days Documentation accuracy above 95% Number of audit findings below 2% Time to dispute resolution within 1 week Payment accuracy above 99% Number of process improvements implemented annually Number of regulatory compliance issues below 1% Documentation completeness above 98%
Key Risks
Inaccurate or missing train journey data Complex revenue calculation due to varying rates and distances Manual review for compliance with regulatory requirements Stakeholder disagreement on revenue division Delays in payment due to financial discrepancies Inaccurate or incomplete documentation Complexity in auditing due to multiple railroad involvement Protracted dispute resolution due to differing interpretations Errors in final payment processing Resistance to change in established processes Complexity in interpreting regulatory requirements Omissions in final documentation
Swim Lanes
Revenue Accountant · 1.1, 1.3, 1.5, 1.6, 1.9, 1.12 Cost Analyst (regulatory costing) · 1.2, 1.7, 1.11 Chairman, President and CEO (plan sponsor level) · 1.4 Service Design / Network Planning Analyst · 1.10