Net Energy Metering Billing Examples
This section contains billing examples for net energy metering. The examples assume the following:
• The customer is billed quarterly using the following tariff:
◦ Customer charge of $3/day (billed on master service agreement)
◦ $0.10 per kWh (billed on sub service agreement and trued up after 12 month period)
• The GL Accounting distribution codes used in the following tables, such as A/R-NEM and NEM-Liability, are for example only. Your implementation will specify its own distribution codes.
• A True Up Task Type that references the base product NEM business objects with the following configuration:
◦ Minimum Days In True Up Period: 365
◦ Sync Current Adjustment Type: NEM SYNC
This is the adjustment type used to synchronize (make equal) the sub service agreement’s current amount with the payoff amount at true up time.
◦ Transfer Adjustment Type: NEM XFER
This is the adjustment type used to transfer debt from the sub service agreement to the master service agreement at true up time.
◦ Write Down Adjustment Type: NEM WDWN
This is the adjustment type used to write down any remaining amount on the sub service agreement after we attempt to transfer debt to the master service agreement at true up time.
Example 1: Customer Consumes More Than They Generate
The following table outlines the customer’s master service agreement financial transactions in 2010. Adjustments created in the true up period are in bold. In this example the customer’s net energy results in an outstanding balance of $330 which is transferred from the sub service agreement to the master service agreement, leaving the sub service agreement for that true up period with a zero balance.
Event
GL Accounting
Effect On Payoff Amount
Effect On Current Amount
Payoff Balance
Current Balance
Bill Segment (1/1–3/31)
(90 days * $3/day = $270)
A/R-NEM 270
NEM-Liability <270>
270
270
270
270
Payment
Cash 270
NEM-A/R <270>
-270
-270
0
0
Bill Segment (4/1–6/30)
(91 days * $3/day = $273)
A/R-NEM 273
NEM-Liability <273>
273
273
273
273
Bill Segment (7/1–9/30)
(92 days * $3/day = $276)
A/R-NEM 276
NEM-Liability <276>
276
276
549
549
Payment
Cash 549
A/R-NEM <549>
-549
-549
0
0
Bill Segment (10/1–12/31)
(92 days * $3/day = $276)
A/R-NEM 276
NEM-Liability <276>
276
276
276
276
NEM XFER true up adjustment (transfer from sub service agreement)
A/R-NEM 330
XFER <330>
330
330
606
606
The following table outlines the customer’s sub service agreement financial transactions (FTs). Note that bill segment financial transactions affect the customer’s pay off balance only. Adjustments created in the true up period are in bold below and reflect the following:
• First, the current balance to the payoff balance is set using the sync adjustment type (NEM SYNC) on the service task type.
• Second, any debt from the sub is transferred to the master service agreement using sync adjustment type on the service task type (NEM XFER).
Event
GL Accounting
Effect On Payoff Amount
Effect On Current Amount
Payoff Balance
Current Balance
Bill Segment (1/1–3/31)
(1200kWh * $0.10 = $120)
A/R-NEM 120
NEM-Liability <120>
120
0
120
0
Bill Segment (4/1–6/30)
(500kWh * $0.10 = $50)
A/R-NEM 50
NEM-Liability <50>
50
0
170
0
Bill Segment (7/1–9/30)
(600kWh * $0.10 = $60)
A/R-NEM 60
NEM-Liability <60>
60
0
230
0
Bill Segment (10/1–12/31)
(1000kWh * $0.10 = $100)
A/R-NEM 100
NEM-Liability <100>
100
0
330
0
NEM SYNC adjustment (sync current to payoff)
n/a
0
330
330
330
NEM XFER adjustment (transfer to master service agreement)
XFER 330
A/R-NEM <330>
-330
-330
0
0
Example 2: Customer Generates More Than They Consume
The following table outlines the customer’s master service agreement financial transactions (bill and payment segments are exactly the same as in example 1 above). In this example the customer’s net energy results in a credit balance on the NEM sub service agreement which is written off, leaving the sub service agreement for that true up period with a zero balance (credits are not transferred to the master service agreement).
Event
GL Accounting
Effect On Payoff Amount
Effect On Current Amount
Payoff Balance
Current Balance
Bill Segment (1/1–3/31)
(90 days * $3/day = $270)
A/R-NEM 270
NEM-Liability <270>
270
270
270
270
Payment
Cash 270
A/R-NEM <270>
-270
-270
0
0
Bill Segment (4/1–6/30)
(91 days * $3/day = $273)
A/R-NEM 273
NEM-Liability <273>
273
273
273
273
Bill Segment (7/1–9/30)
(92 days * $3/day = $276)
A/R-NEM 276
NEM-Liability <276>
276
276
549
549
Payment
Cash 549
A/R-NEM <549>
-549
-549
0
0
Bill Segment (10/1–12/31)
(92 days * $3/day = $276)
A/R-NEM 276
NEM-Liability <276>
276
276
276
276
The following table outlines the customer’s sub service agreement financial transactions (FTs). Note that bill segment financial transactions affect the customer’s pay off balance only. Adjustments created in the true up period are in bold below and reflect the following:
• First, the current balance is set to the payoff balance using the sync adjustment type (NEM SYNC) on the service task type.
• Because a credit remains on the sub service agreement, this amount will be written off using the write down adjustment type on the service task type (NEM WDWN).
Event
GL Accounting
Effect On Payoff Amount
Effect On Current Amount
Payoff Balance
Current Balance
Bill Segment (1/1–3/31)
(80kWh * $0.10 = $8)
A/R-NEM 8
NEM-Liability <8>
8
0
8
0
Bill Segment (4/1–6/30)
(-120kWh * $0.10 = $-12)
A/R-NEM <12>
NEM-Liability 12
-12
0
-4
0
Bill Segment (7/1–9/30)
(-80kWh * $0.10 = $-8)
A/R-NEM <8>
NEM-Liability 8
-8
0
-12
0
Bill Segment (10/1–12/31)
(100kWh * $0.10 = $10)
A/R-NEM 10
NEM-Liability <10>
10
0
-2
0
NEM SYNC true up adjustment (sync current to payoff)
n/a
0
-2
-2
-2
NEM WDWN true up adjustment (write down credit)
NEM A/R 2
E - W/O <2>
2
2
0
0
For more information about current and payoff amounts, refer to Billing - Current Balance versus Payoff Balance.
Parent topic 
Net Energy Metering