This chapter contains the following topics:
Agribusiness companies that create and maintain contracts with growers, monitor the compliance of terms and conditions of the contract, and pay growers for their products in accordance with the contract terms, use the JD Edwards EnterpriseOne Grower Pricing and Payments system from Oracle. Grower contracts include details such as contract terms and renewal extensions, payment terms, contract clauses, action dates for reminders of required signatures, responses, reviews, and amendments.
Throughout the growing cycle, you can review information online and in report format that shows payments that are due, payments that are coming due, and payments that have been issued thus far for a given contract or grower.
The JD Edwards EnterpriseOne Grower Pricing and Payments system provides a flexible payment schedule that enables you to pay multiple payees with multiple payment dates throughout the growing cycle. Payment terms and due date rules for payees can be set up for advance payments, interim payments, proceed payments, and final payments.
When you review the harvest receipts, you can waive penalties or bonuses or add adjustments to the final price. During the final settlement, the JD Edwards EnterpriseOne Grower Pricing and Payments system generates final vouchers and issues payments to pay the remaining amount owed to payees, and amounts owed for assessments and deductions.
After the remaining amount owed on a contract is zero and you have created final payments, you submit a final settlement statement to the grower. Because the final settlement statement provides a "snapshot" in time, you can submit it with advance and interim payments as an interim statement.
This process flow illustrates the JD Edwards EnterpriseOne Grower Pricing and Payments business processes:
This table lists several features of the JD Edwards EnterpriseOne Grower Pricing and Payments system:
|Contract Creation.||Contract entry enables you to record information about your agreement with your grower. After you create a contract, you can attach one or more blocks that contain details about the plots of land. You can then attach harvests, which are associated with date ranges, to the contract blocks.
The blocks and harvests are created in the JD Edwards EnterpriseOne Grower Management system and attached to contracts in the Grower Pricing and Payments system.
|Contract maintenance.||After you create a contract, you can create a copy of the contract and modify certain information to streamline the data entry process. You can change or update specific information, such as the effective dates, price type, and payment schedule. You can also add a contract block to the existing blocks on a contract or add an amendment to the contract to provide an audit trail for a change made to the contract.
The system enables you to renew, extend, or terminate contracts and blocks.
|Contract reporting.||You can review your contract terms and conditions using the contract summary and detail reports. You can track action items using the action date listing report.|
|Payment terms.||You can set up payment terms to define the due date rules for contract payments.|
|Assessments and donations.||You can set up standard assessments and donations for commonly used cost adjustments.|
|Clauses.||You can standardize messages that describe the conditions and provisions of contracts.|
|Advance payments.||You might have an agreement with a grower specifying that you issue advance payments before any interim and final payments. The system tracks all advance payments and subtract them during the final settlement process.|
|Price reviews.||The settlement review process often involves multiple steps. You might have one person conduct an internal review of the harvest receipts, potentially waiving penalties, or adding or subtracting adjustments. Another person may conduct the final settlement review and review transactions against the contract, such as receipts, penalties, assessments, and deductions.|
|Interim payments.||Your contract with your grower may include payments for receipt of the product throughout the harvest cycle. Interim payments enable you to review receipts and apply adjustments before you generate a voucher for partial contract payments.|
|Proceed payments.||Your contract with your grower may include proceed payments because of fluctuating market prices. Pay on proceeds is a process which enables you to pay growers based on the price that you sell the crop. You can match the crop receipt to an associated sales order.|
|Final settlements.||You can review the transactions, such as receipts, penalties, assessments, and deductions, that were applied to the contract and make final changes to the contract. The final step is to generate your voucher for the final harvest payment.|
|Settlement reports.||Throughout the harvest cycle, you can produce reports that show payments that are due, payments that are coming due, and payments issued thus far to a specific contract or grower.|
JD Edwards EnterpriseOne Grower Pricing and Payments integrates with these JD Edwards EnterpriseOne systems:
The JD Edwards EnterpriseOne Grower Pricing and Payments system works with other JD Edwards EnterpriseOne systems to ensure that all information is fully integrated. We discuss integration considerations in the implementation chapters in this implementation guide.
You use the JD Edwards EnterpriseOne Advanced Pricing system to create pricing adjustment schedules. When you review harvest receipts, you review and adjust the pricing schedule based on the quality test results for the receipts.
The JD Edwards EnterpriseOne Inventory Management system stores current item information along with item costs. The harvest records use item records to retrieve item descriptions and costs.
You use the JD Edwards EnterpriseOne Procurement system to create purchase orders when you close weigh tags in the JD Edwards EnterpriseOne Grower Management system. In the JD Edwards EnterpriseOne Grower Pricing and Payments system, you close out the purchase orders during the final settlement process.
You use the JD Edwards EnterpriseOne Grower Management system to track crops from cultivation to harvest.
JD Edwards EnterpriseOne Grower Management enables you to set up and maintain farms, blocks, and harvest records. A farm consists of one or more blocks that grow the crop harvest that is then supplied to the processing entity. Adding farms in the system is optional. The system uses some attributes that are assigned to a farm as defaults for a block that is associated with the farm.
The JD Edwards EnterpriseOne Accounts Payable system is used to set up payment terms, due date rules, and generate vouchers and payments.
This section provides an overview of the steps that are required to implement the JD Edwards EnterpriseOne Grower Pricing and Payments system. In the planning phase of your implementation, take advantage of all JD Edwards EnterpriseOne sources of information, including the installation guides and troubleshooting information.
When determining which electronic software updates (ESUs) to install for JD Edwards EnterpriseOne Grower Pricing and Payments, use the EnterpriseOne and World Change Assistant. EnterpriseOne and World Change Assistant, a Java-based tool, reduces the time that is required to search and download ESUs by 75 percent or more and enables you to install multiple ESUs simultaneously. See JD Edwards EnterpriseOne Tools Software Updates Guide
The suggested implementation steps for the JD Edwards EnterpriseOne Grower Pricing and Payment system:
Set up branch/plant constants.
Set up item master and item branch.
Set up grower harvest patterns.
Set up price adjustment schedule and pricing matrix.
See "Working with Schedules and Adjustments" in the JD Edwards EnterpriseOne Applications Advanced Pricing Implementation Guide and "Working with the Price Matrix" in the JD Edwards EnterpriseOne Applications Advanced Pricing Implementation Guide.
This table lists the suggested application-specific implementation steps for JD Edwards EnterpriseOne Grower Pricing and Payments:
Set up UDCs for Grower Pricing and Payments.
Set up due date rules.
Set up payment terms for installments.
Set up assessments and donations.
Set up clauses.
See Setting Up Clauses.