CIAC Segmentation
If your company bills and refunds Contribution In Aid of Construction (CIAC) contracts, you must create one or more SA types. CIAC contracts are typically used to levy charges associated with line extensions. These types of service agreements are different from other service agreements because the initial amount charged is refunded to the original payee when new properties (or extensions) are added to the extension (or when the new properties are subsequently billed for service).
Billable charges are used for the original CIAC service agreement. CIAC SA types are always Billable Charge SA types because an operator must specify the exact amount to charge the contractor using a billable charge. Refer to Billable Charge Segmentation for more information.
The following points describe how CIAC processing is implemented in the system:
- When a new line extension is build, you will create a new service agreement that references your CIAC SA type. This service agreement should be linked to a service point associated with the extension. The easiest way to create this service agreement and link it to the service point is by using the Start Account transaction. It's important to remember to define your CIAC SA type as a valid SA type for the SP type used to represent the line extension.
- When a new premise / service point is built that "hangs" off the original extension, the new service point should be linked to the original service point. This can be done by referencing the original service point as the "parent" service point of the new service point using a foreign key value characteristic.
- The system periodically monitors the original CIAC service agreement. The process that performs this monitoring is referenced on the original CIAC service agreement's SA type. The exact processing that takes place during this monitoring is up to your organization's specific business requirement. For example, if you refund 10% of every bill produced for the "downstream" service points to the original contractor, you would have logic in your CIAC monitoring process that looks for recent bill segments produced for the "downstream" service agreements and then creates an adjustment for the master service agreement.
CIAC refunds are idiosyncratic. Because CIAC refund processing is idiosyncratic, we do not supply any CIAC monitoring processes in the base package. This is because the likelihood that they could be used is extremely low because of your organization's unique requirements.
Therefore, if your organization performs CIAC processing, you should create a special SA type.
|
CIS Division/ SA Type |
Service Type |
Distrib. Code |
Debt Class |
CIAC Process |
Bill Seg Type |
|
CA/CIAC |
Other |
A/R - CIAC |
UNRE |
Refund based on percent of future bills |
Billable Charge |