USMM - License classification via reference user

Hello all,
I am trying to group users for licensing by using a reference user rather than User Group for authorizations.
I am following the instructions in the Help section, however, I do not have the option for "Extended List" and the Reference User is not appearing in the "Ref. User" field I added when I choose "User Classification".
http://help.sap.com/saphelp_nw70ehp1/helpdata/en/48/b2b8d0ca643d88e10000000a421937/frameset.htm
We do not have CUA implemented. Is that what is causing this error? 
I would like to figure out a way to group users by their work area, because unfortunately this USMM report will not group users by "User Group", only "User Group for Authorizations" which does not meet our requirements.
Any help would be greatly appreciated.

The documentation states that you cannot classify users by reference users?!
Reference users are actually comparable to composite roles and composite profiles in one entity, which you can assign to the user which can logon. They the user has both their own authorizations and those of the reference user.
Cheers,
Julius

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