RR-13 RR-13-01-02 — Revenue Accounting and Recognition
This process involves the revenue accounting and recognition for freight trains, including calculating fuel surcharges and average revenue per car (ARC). It ensures accurate financial reporting and compliance with regulatory requirements.
🗺 BPMN Process Flow
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📋 Process Attributes
| Process ID | RR-13-01-02 |
|---|---|
| Domain Family | COMMERCIAL |
| L1 Domain | Finance, Revenue Accounting & Procurement |
| L2 Process Group | Revenue Accounting and Recognition |
| Trigger | Completion of a train's journey and delivery of goods to the destination |
| Outcome | Accurate revenue records and payment to shippers, along with adherence to regulatory standards for fuel surcharges and ARC calculations. |
| Systems | NetControl I-ETMS Fuel surcharge program Umler TRAIN II Interline Settlement System (ISS) |
| Regulatory Hooks | 49 CFR Part 232 GCOR 6.28 |
📋 L4 Process Steps
| Step | Name | Role | System | Input | Output | KPI | Pain Point / Risk | Decision? | Exception? |
|---|---|---|---|---|---|---|---|---|---|
| 1.1 | Train Arrival Notification | Train Dispatcher | NetControl | Train arrival report from Harriman Dispatching Center | Updated train schedule in NetControl | Train arrival accuracy within 5 minutes of scheduled time | Late train arrivals affecting revenue calculations | N | N |
| 1.2 | Fuel Consumption Data Collection | Control Operator | Wabtrax | Train fuel consumption data from locomotive sensors | Fuel consumption report | Data collection accuracy rate above 95% | Inaccurate or missing fuel data | N | Y |
| 1.3 | Fuel Surcharge Calculation | Revenue Accountant | Fuel surcharge program | Fuel consumption report, market rates, and regulatory guidelines | Fuel surcharge invoice | Surcharge calculation accuracy rate above 98% | Incorrect fuel surcharge calculations leading to disputes | Y | Y |
| 1.4 | Revenue Recognition Review | Cost Analyst (regulatory costing) | TRAIN II | Train revenue data from TRAIN II system | Revenue recognition report | Revenue recognition accuracy rate above 90% | Inaccurate revenue recognition affecting financial statements | Y | N |
| 1.5 | ARC Calculation | Revenue Accountant | Umler | Train revenue data, car hire rates from CHARM | Average Revenue per Car report | ARC calculation accuracy rate above 95% | Inaccurate ARC calculations impacting pricing strategies | Y | N |
| 1.6 | Revenue Accounting Review | VP Network Planning & Operations | TRAIN II | Revenue recognition report, ARC report | Approved revenue accounting document | Review completion time within 24 hours of data availability | Delayed review process affecting financial reporting | Y | N |
| 1.7 | Payment to Shippers | Revenue Accountant | Interline Settlement System (ISS) | Approved revenue accounting document, payment terms | Payment confirmation | Payment processing time within 3 business days of approval | Delays in payments affecting cash flow | N | Y |
| 1.8 | Regulatory Compliance Check | Cost Analyst (regulatory costing) | GCOR | Revenue accounting document, regulatory guidelines from 49 CFR Part 232 | Compliance report | Compliance rate above 100% | Non-compliance with regulations leading to fines | Y | N |
| 1.9 | Audit Preparation | Revenue Accountant | TRAIN II | All revenue accounting documents, compliance report | Audit-ready financial records | Audit preparation time within 7 days of month-end | Inadequate audit preparation affecting financial audits | N | Y |
| 1.10 | Post-Audit Review | Chairman, President and CEO | TRAIN II | Audit findings, financial records | Corrective action plan | Audit pass rate above 95% | Failed audits leading to regulatory scrutiny | Y | N |
| 1.11 | Implementation of Corrective Actions | VP Network Planning & Operations | NetControl, I-ETMS | Corrective action plan | Updated operational procedures | Action implementation rate above 90% | Non-implementation of corrective actions affecting ongoing operations | Y | N |
| 1.12 | Continuous Improvement Review | Service Design / Network Planning Analyst | NetControl, I-ETMS | Operational data, performance metrics | Improvement recommendations | Recommendation implementation rate above 80% | Ineffective continuous improvement leading to operational inefficiencies | Y | N |
📊 KPIs & Risk Register
KPIs
Train arrival accuracy within 5 minutes of scheduled time Data collection accuracy rate above 95% Surcharge calculation accuracy rate above 98% Revenue recognition accuracy rate above 90% ARC calculation accuracy rate above 95% Review completion time within 24 hours of data availability Payment processing time within 3 business days of approval Compliance rate above 100% Audit pass rate above 95% Action implementation rate above 90% Recommendation implementation rate above 80%
Key Risks
Late train arrivals affecting revenue calculations Inaccurate or missing fuel data Incorrect fuel surcharge calculations leading to disputes Non-compliance with regulations leading to fines Failed audits leading to regulatory scrutiny
Swim Lanes
Train Dispatcher · 1.1 Control Operator · 1.2 Revenue Accountant · 1.3, 1.5, 1.7, 1.9 Cost Analyst (regulatory costing) · 1.4, 1.8, 1.10 VP Network Planning & Operations · 1.6, 1.11 Chairman, President and CEO · 1.10 Service Design / Network Planning Analyst · 1.12