Expense Transfer Process

Cultura|AeLive Business Rules for Expense Transfers

1. Expenses captured in the expense transfer process will utilize two dates:
   1. Source Flock transaction date - the date the expense occurred.  This date drives capitalization.
   2. Destination Flock transaction date - the adjusted date the expense hits the destination flock.  This date is adjusted as expenses move through the expense transfer process.
2. When an expense is transferred from one flock to another (or more than one other), AeLive will allocate the expense by number of head placed in each receiving flock, with consideration around accounting close dates.
   1. Determine the greater of the two accounting close dates for the source and destination flocks
   2. If the source expense Transaction date is less than or equal to the greatest accounting close date, then the transferred expense date is moved to the day after
3. All receiving flocks receive a portion of an expense, regardless of the date, unless an expense is logged directly against a flock's transfer out record to make it specific to the receiving flock.
   1. Feed deliveries -  If the transfer occurs before a consumption start date on a feed delivery expense, then the receiving flock will not receive that consumption expense.
   2. When a transfer out record is behind an accounting close date, no further expenses will change or transfer to that destination flock.
      1. AeLive will consider if a portion of an expense has already been applied to a destination flock behind an accounting close date and ensure the proper amount is transferred (minus the amount already transferred), making source and destination flocks balance.
4. Feed Consumption - Feed consumption dollar amounts are transferred out by day.  This will resolve an existing issue where feed consumption amounts don't always match depreciation report feed consumption amounts.
5. During the capitalization process, AeLive refers to the source flock's original expense transaction date, compares it to the destination flock placement's capitalization date, and capitalizes any expense that falls up to and including the capitalization date.
6. Finalize transfers out - All expenses transferred out are kept in 2 pools:  transferred out and not transferred out.  At the time the Finalize button is hit on the source flock, all of the expenses not transferred out are allocated to all the destination flocks by number of head placed, regardless of the expense date, and following all of the rules for managing accounting close dates.
   1. This ensures that any changes in bird population do not result in an imbalance of expenses incurred and transferred out.
   2. To clarify further, any changes or additions in mortalities or culls will result in adjustments being made to the expenses transferred.
   3. Live Inventory Transferred Out without a transfer configuration, destination flock or sales will have all expenses belonging to them allocated to valid transfers. 
7. Transferring Cap from one layer flock to another via relocation will result in both birds and dollars remaining from capitalization to transfer out of the source flock.
   1. The animals will enter the group on the Live Inventory Transfer-In tab.
   2. The dollars associated with those animals must then be manually added using the capitalization code for the expense code to the Transfer-In.  
   3. With the manual entry the depreciation schedule and reports will include the dollars associated with the new animals.
8. Expense Transfer Reconciliation - Every expense incurred is listed on this form and each receiving flock is displayed and shows the dollar amount of each expense allocated to each destination flock.  This is a read-only form and the very right hand column will show the remaining birds and the difference.  Balancing of individual expenses is as simple as sorting by the difference column.
   1. Unlike other Live Inventory forms, multiple instances of this Expense Transfer Reconciliation form can be opened and viewed at one time.  This form processes a lot of information and sometimes may take some time to load, so a user can launch the form and continue working on other forms.
   2. There is a second tab on this form with a list of messages.  These messages explain any changes made to expense dates to help the user understand how expenses have moved through the system.

Proposed procedure for expense transfers:

1. Import expenses to the source flock through AAI
2. Transfer out expenses with each flock move
3. Finalize all transfers out once complete
4. Review the reconcile form
5. Place accounting close date

Important to note: 

The Expense Transfer process is a dynamic calculation.  When a link has been placed from a destination to a recipient flock (by clicking the checkbox for Expense Transfers on the Live Inventory Transactions Transfer out form), any change that affects the expense transfer will re-trigger this calculation.

Other places that re-trigger the calculation:

• Source flock’s Expense form, Transferred Out tab, Calculate Button
• Reconciliation form, upon opening, will trigger the calculation

At the time the Finalize button is hit on the source flock Transfer Out tab (on the Live Inventory Transactions form), AeLive will reconcile any remaining dollars by allocating each expense by head to the destination flocks, zeroing out the balance on the source flock.  If a user sees a value on the Reconciliation form in the difference column or the remaining amount line, the finalize button needs to be executed.

The main point is that the birds transfer out of the source flock and the depreciation schedule recognizes the dollars associated with that transfer but only the birds show up on the destination flock. The user then manually enters a transaction expense on the destination flock using the dollars recognized on the source flock’s depreciation schedule

Here it is reworded:

1.     Transferring Cap from one live inventory group to another via relocation will result in animals transferring to the destination group but no automatic entry of dollars will be transferred to the destination group.

1.     The Live Inventory Transfer-In tab of the destination group will recognize the animals relocated.

2.     The dollars associated with those animals leaving the source group will be recognized on the depreciation schedule of the source group with a Comment of “Depop/T-Out”.

3.     The user must then manually add the “Depop/T-Out” to the destination group’s Transfer-In as a transaction expense using the capitalization code for the expense code.  

4.     With the manual entry, the depreciation schedule and reports will include the dollars associated with the new animals.