Grower Financials for Contracts, Inventory, Payment Settlement and Commodity Cost/Variance Management
When it comes to grower accounting, nothing is cut and dried. Produce commodities are extreme when it comes to variables – no two are ever alike. Payments must take into account multiple factors, such as grade, multiple units of measurement and attribute information, just to name a few. To be successful, food and beverage organizations must find a streamlined and efficient way to manage grower settlements with improved visibility and accuracy into inventory, invoicing and accounts payable.
Junction Solutions’ grower accounting, fully integrated with accounts payable in JunctionFB, simplifies and automates the grower liquidation process by tracking the quantity and quality of the product to manage payments based on contract type and quality/quantity received. Grower accounting automatically tracks transactions to record both inventory and accruals to the general ledger and provides the flexibility necessary to accommodate complex liquidations. It also provides a starting point for the complete traceability of the product, from field to fork.
Features & Benefits
Contract Management & Pooling
Manage sophisticated definitions of rules for purchasing and paying for products based on unique attributes that fit specific business needs. Pooling can be defined by variables such as quality, season, variety of product, lot or date range. Full integration with the general ledger provides for accurate, real-time tracking and reporting by pool.
Delivery Planning & Authorization
Streamline the planning and management of deliveries with the grower accounting workbench. Maximize productivity and resource utilization by optimizing delivery schedules. Automation of the field representative’s authorization for harvest is also electronically available, allowing pending deliveries to be verified before acceptance.
Receipt & Quality Control Process
Define, control and validate the receipt of product based on contract and quality rules with grower accounting’s receipt and quality control process. The native quality control system keeps track of each load’s quality parameters, and can be set up to calculate a bonus or a penalty based on the quality of the products.
Pre-Payment & Settlement
Facilitate payments for products received based on the rules of the contract, including quality bonuses and deductions. End-users can set up a yearly premium amount based on specific bonus criteria, such as the number of months a grower delivers high-quality products and how many years of service they have with the co-op. Disqualification criteria can also be specified. Grower accounting can be set up in the same manner as expenses to be deducted from a grower’s paycheck. The system can include information on which deductions will be completely taken out of the grower’s paycheck and which are subsidized by the manufacturer.
Commodity Cost & Variance Management
Support the monitoring, tracking and adjusting of cost variances to finished goods, cost of goods sold (COGS) and profit.