Revenue Segmentation

Look at your rates and determine which rates can be used by each SA type. The following table shows the sample rates that can be used for each service:

Now, look at the rates' calculation rule GL Distribution window. You're looking for calculation rules whose GL distribution is affected by revenue class. If there are no revenue classes referenced on the calculation rules, this means that the revenue associated with the rate will be booked to a single GL account regardless of the type of customer. If you see revenue classes, this means that the revenue account associated with the calculation rule(s) differs depending on the SA type's revenue class. If revenue classes are used in the rates, you must create a different SA Type for every revenue class.

Let's assume the following:

• The gas rate (GALL-1) references the RESIDENTIAL, COMMERCIAL and INDUSTRIAL revenue classes in order to differentiate revenue based on the type of customer.
• None of the other rates differentiate revenue based on customer class.

Our SA types will now look as follows:

Notice that we created new SA types for gas in order to specify the respective revenue class. We didn't do this for the other services because it isn't necessary. However, you should feel free to do this if it feels right or if you need it for reporting purposes. For example, if you want to report on all residential service agreements, but you differentiate only gas by residential versus commercial, you'll be in trouble.