US Class I Rail Process Wiki Finance, Revenue Accounting & Procurement › Revenue Accounting and Recognition
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RR-13 RR-13-01-01 — Revenue Accounting and Recognition

This process involves the revenue accounting and recognition for freight trains operated by a US Class I railroad. It includes calculating fuel surcharges, tracking average revenue per car (ARC), and ensuring compliance with regulatory requirements.

🗺 BPMN Process Flow
RR-13-01-01 BPMN Diagram

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📋 Process Attributes
Process IDRR-13-01-01
Domain FamilyCOMMERCIAL
L1 DomainFinance, Revenue Accounting & Procurement
L2 Process GroupRevenue Accounting and Recognition
TriggerThe initiation of this process is triggered by the completion of a train's journey and the generation of relevant operational data from various systems such as NetControl, I-ETMS, and Umler.
OutcomeSuccessful completion produces accurate revenue records, fuel surcharge calculations, and compliance with regulatory requirements, ensuring proper financial accounting for the railroad.
SystemsNetControl I-ETMS Umler PS Technology TRAIN II CHARM
Regulatory Hooks49 CFR Part 232 GCOR
📋 L4 Process Steps
StepNameRoleSystem InputOutputKPIPain Point / Risk Decision?Exception?
1.1 Data Collection from NetControl Service Design / Network Planning Analyst NetControl Operational data from completed train journeys Collected operational data Data collection accuracy rate above 98% Inaccurate or incomplete data entries N Y
1.2 Fuel Surcharge Calculation Revenue Accountant Fuel surcharge program Collected operational data Calculated fuel surcharge report Fuel surcharge calculation accuracy rate above 95% Complexity in applying STB fuel surcharge calculation decision Y N
1.3 ARC Calculation Cost Analyst (regulatory costing) Umler Collected operational data Average Revenue per Car report ARC calculation accuracy rate above 90% Handling of variable revenue sources Y N
1.4 Regulatory Compliance Check Revenue Accountant I-ETMS, Umler, PS Technology Calculated fuel surcharge report and ARC report Compliance check report Regulatory compliance rate above 99% Ensuring adherence to multiple regulations Y Y
1.5 Revenue Recognition Revenue Accountant TRAIN II, CHARM Compliance check report Recognized revenue records Revenue recognition accuracy rate above 98% Handling of interline and switching settlements N Y
1.6 Reporting to Finance Department Revenue Accountant NetControl, I-ETMS Recognized revenue records Financial report Timeliness of financial reporting above 95% Delays in generating comprehensive reports N Y
1.7 Review and Approval by Finance Department Chairman, President and CEO NetControl, I-ETMS Financial report Approved financial records Approval rate above 98% Handling of unexpected discrepancies Y N
1.8 Update Revenue Accounting System Revenue Accountant TRAIN II, CHARM Approved financial records Updated revenue accounting system System update accuracy rate above 95% Integration issues with legacy systems N Y
1.9 Audit and Review by Internal Audit Team Revenue Accountant, Cost Analyst (regulatory costing) NetControl, I-ETMS Updated revenue accounting system Audit report Internal audit compliance rate above 98% Ensuring thoroughness in audits Y N
1.10 Dispute Resolution with Customers Revenue Accountant, Service Design / Network Planning Analyst up.com customer portal, AskRail Audit report and customer inquiries Resolved disputes Customer dispute resolution rate above 95% Handling complex customer complaints Y Y
1.11 Continuous Improvement Review VP Network Planning & Operations, Revenue Accountant NetControl, I-ETMS Audit report and continuous improvement feedback Improvement plan Implementation of improvement actions above 90% Identifying areas for process optimization Y N
1.12 Final Review and Closeout Chairman, President and CEO NetControl, I-ETMS Improvement plan Closed revenue accounting cycle Cycle closure accuracy rate above 98% Ensuring all records are finalized N Y
📊 KPIs & Risk Register

KPIs

Data collection accuracy rate above 98% Fuel surcharge calculation accuracy rate above 95% ARC calculation accuracy rate above 90% Regulatory compliance rate above 99% Revenue recognition accuracy rate above 98% Timeliness of financial reporting above 95% Approval rate above 98% System update accuracy rate above 95% Internal audit compliance rate above 98% Customer dispute resolution rate above 95% Implementation of improvement actions above 90% Cycle closure accuracy rate above 98%

Key Risks

Inaccurate fuel surcharge calculations leading to financial discrepancies Non-compliance with regulatory requirements resulting in fines or penalties Handling of variable revenue sources affecting ARC calculation accuracy Delays in generating comprehensive reports impacting financial decision-making Integration issues with legacy systems causing data inconsistencies

Swim Lanes

Revenue Accountant · 1.2, 1.5, 1.6, 1.8, 1.9, 1.10 Cost Analyst (regulatory costing) · 1.3, 1.7, 1.11 Service Design / Network Planning Analyst · 1.1, 1.10 Chairman, President and CEO · 1.7, 1.12
Independently compiled from public sources. Not affiliated with, sponsored by, or endorsed by Union Pacific or any other railroad. Illustrative of US Class I practice; every system, regulation, role and metric named here traces to a sourced entry in registries/.