Setting Up Grower Pricing and Payments

This chapter lists a prerequisite and discusses how to:

• Set up user-defined codes (UDCs) for JD Edwards EnterpriseOne Grower Pricing and Payments.

• Set up contract payment rules.

• Set up standard assessments and donations.

• Set up clauses.

Prerequisite

Set up next numbers for system 43C (Contracts).

See Setting Up Next Numbers by System.

Setting Up UDCs for Grower Pricing and Payments

The following table lists the UDCs for system 43C that are used by programs in the JD Edwards EnterpriseOne Grower Pricing and Payments system. The table lists predefined codes that are shipped with the software. You can change or delete a predefined code if it is not hard-coded, or you can add a code to suit your business needs. This table specifies whether the UDCs are hard-coded:

Special Handling Code Field

The following UDC tables have program logic built into the Special Handling Code field:

Setting Up Contract Payment Rules

This section provides overviews of contract payment rules and (AUS) contract payment rules for Australia and discusses how to:

• Set processing options for Due Date Rules (P00146).

• Set up a due date rule for contracts.

• Set up a payment term for installments.

• (AUS) Set up a payment term for installments.

Understanding Contract Payment Rules

When a harvest is completed, growers are paid for their products based on the terms of the contract. Each contract includes payment schedules with the payment terms that affect the final amount paid to contract payees or a contracting entity.

To simplify and easily maintain the different types of payment terms for contracts, you set up due date rules. With due date rules, you can set up multiple types of payment terms for advance, interim, and final payments. You can issue advance payments before you receive any product, as well as after you receive a percentage of the product and before you issue interim payments. Oftentimes, you will set up interim payments, for example, to pay a percentage of receipts at the end of each fiscal period. You set up due date rules using the Due Date Rules program (P00146) and assign the rules to payment terms.

To issue multiple payments to a payee at different times throughout the harvest cycle, you must set up advanced payment terms for installments and assign the payment term to each payee schedule record on the grower contract. If you issue one lump sum payment only to a payee, set up and assign a regular payment term instead.

The due date rules and advanced payment terms provide flexibility so that you can, for example:

• Pay a fixed amount on a specific date.

• Pay 45 days after a specific date.

• Pay 20 percent of the contract after 30 percent of the product is received.

• Pay 50 percent of the contract 45 days from when the product was received and the balance by a specific date.

• Pay a certain percent multiple times.

  For example, pay 25 percent of the total for each payment and spread the payments over four installments.

• Pay 33 percent of the estimate harvest at the end of the first month that the product was received and the remaining amount (67 percent) on a specific date.

You set up due date rules for payment terms using the Due Date Rules Revision program (P00146). You specify whether the payment for a due date rule is based on the quantity received or an estimated quantity. Due date rules are stored in the Due Date Rules table (F00142).

If a grower is eligible for advance payment, the due date rule can further specify that payment is based on, for example:

• A percent of the estimated harvest yield that must be received.

  For example, a payee is eligible for an advance payment of 25 percent of the contract after total receipts reach 10 percent of the estimated harvest.

• A flat or fixed amount and a specific date.

  For example, a payee is eligible for an advance payment of 25,000 USD on June 12, 2007.

After you set up due date rules, you set up advanced payment terms codes for installments using the Advanced Payment Terms program (P00145). Installment records are stored in the Installment Payment Terms table (F00144).

(AUS) Understanding Contract Payment Rules for Australia

In Australia, companies are required to pay growers in three equal payments. To accommodate this requirement, Australian companies use the same programs and functionality in the JD Edwards EnterpriseOne Grower Pricing and Payments system that other companies use. The programs and functionality are described throughout this book.

In Australia, you must set up advanced payment terms with installments so that you can pay your growers in these three installments:

1. Thirty-three percent of the actual receipts.

2. Thirty-three percent of the actual receipts to date.

   The payment amount to date must equal 66 percent. If the payment amounts for the first installment equal less than 33 percent, you must adjust the payment amounts for the second installment accordingly. So, if the payments for the first installment equaled 31 percent of the receipts, you must increase your payment amounts for the second installment by 2 percent, so that total payments equal 66 of the total receipts to date.

3. Thirty-four percent of the actual receipts for a period.

   The payment amount must equal 100% of the total harvest receipts.

Forms Used to Set Up Contract Payment Rules

Setting Processing Options for Due Date Rules Revisions (P00146)

Processing options enable you to specify the default processing for programs.

Display

Setting Up a Due Date Rule for Contracts

Access the Due Date Rules Revision form.

Many of the fields on the Due Date Rules Revision form are described in another task.

See Setting Up Due Date Rules.

The fields that are specifically used for contract payments are described in this task. You must set a processing option for the following fields to appear on the Due Date Rules Revision form:

Setting Up a Payment Term for Installments

Access the Installment Revision form.

The fields on this form are described in another task.

See Setting Up Installments for Payment Term Codes.

(AUS) Setting Up A Payment Term for Installments

Access the Installment Revision form.

Typically, Australian companies will set up a payment term for installments as follows:

Setting Up Standard Assessments and Donations

This section provides an overview of assessments and donations and discusses how to set up standard assessments and donations.

Understanding Assessments and Donations

Assessments and donations are additional costs or deductions that affect the final payment amount and are added or subtracted from contract amounts during settlement. These costs and deductions affect the payment amount of a contract, but do not affect the item price. Some companies may choose to track these costs and deductions separately for reporting purposes by using both assessment and donation adjustment types, while other companies may choose to track all costs and deductions by using one adjustment type only.

If you commonly use an assessment or donation, you can set up a standard assessment or donation and assign it to multiple contracts. For example, assume that your company pays an annual state fee that is assessed to all growers in the state. You set up a standard assessment that contains default information such as the amount (as a percentage or a flat amount), the effective and expiration dates, and the account. Then you assign the assessment name to the contract. For seldom-used or one-time only assessments or donations, you can enter the information when you attach a contract block to a contract. All assessments and donations are stored in the Assessment Donations table (F43C30).

When you enter an assessment or donation, you enter either a positive or a negative amount to specify whether the amount should be added or subtracted during settlement.

Assessments and donations apply to the harvest record, but can be assigned to the block record to serve as a default for the harvest record.

This table shows the differences between standard assessments and donations and those that are not standard:

Forms Used to Set Up Standard Assessments and Donations

Setting Up a Standard Assessment or Donation

Access the Standard Assessment and Donation form.

If you change the name or the default value for an assessment or donation on this form, the system updates existing contracts that are assigned the same assessment or donation.

Setting Up Clauses

This section provides an overview of clauses and discusses how to set up a clause.

Understanding Clauses

Clauses are used to describe any special conditions or provisions that relate to the fulfillment of a contract. Some clauses specify the terms under which a product is not acceptable. For example, your company might abide by a quality clause that states that a product must meet federal and state requirements, or it will be returned to the contracting entity for full credit. Other clauses might relate to the timeliness in which you receive a product. For example, your company might have a penalty clause whereby the contracting entity is penalized a certain amount for failing to deliver the product by the agreed upon delivery date.

Each clause must have a unique name. You set up the name and enter the text for the clause using the Print Message program (P40162). Then when you enter a contract, you assign the contract clause or, if applicable, multiple contract clauses to the contract.

Note. The Print Message program (P40162) is used by other JD Edwards EnterpriseOne systems including Procurement and Sales Order Management. For those systems, you must select the programs that you want to print messages. For JD Edwards EnterpriseOne Contract Pricing and Payments, you simply assign the print message name when you enter clauses for the contract.

Forms Used to Set Up Clauses

Setting Up a Clause

Access the Print Message Revisions form.

After you set up general information for a clause on the Print Message Revisions form, select Attachments from the Form menu to enter the text for the clause.