Egg Grade-Out Valuation
- Amanda Thomas
Summary:
This article documents the usage of Egg Grade-out Valuation which can be found through the System menu.
Prerequisites
Egg Grade-Out Valuation process
Configurations
Egg Size Types
System --> Settings (Ribbon Bar) --> System Types tab --> Egg Size Types drop down
Under System Types under System Settings select the Egg Size Types drop down. These egg sizes need to be set up to set the Egg Size Configuration and utilize the Grade Out Batch.
Make sure that you have included the egg size type sort order. This order will be reflected in the Valuation configuration where you will set the egg size prices. If you want to enter them in in a specific order this is where it will be specified.
Users will also want to include on their egg sizes the Grade Type and whether the egg size type is considered a Grade A, large and above grouping. Egg Grade Types can be specified as "Graded", "Undergrade", "Loss" or "Not Graded". These are system-level types and cannot be edited. These choices will be reflected in reports and how the reports group different sizes.
Revenue Codes
System --> Expense Codes --> Revenue Codes
Revenue codes can be set up here which include grade-out credits and deductions. If a revenue code is a deduction, you can specify that it is a deduction and which egg size types should be excluded from the calculations. Entering any egg sizes into this list will omit totals of this egg size from deduction calculations performed by the egg grade batch.
Revenue types can be added/modified in system settings --> system types
Valuation Configuration
The configuration form will allow us to create prices for many effective dates, and set up deductions and credits for those dates as well. For each Egg Type and division set the prices by Egg Size.
The price unit of measure is determined by the setting on the egg grader configuration in egg processing equipment.
Effective dates and the Allocation Method will also need to be set
You can also set effective dates if your egg prices change each week. The valuation will use the appropriate effective dates based on the grade-out batch.
When there are only slight changes between two effective dates, it is recommended to copy an effective date, when creating a new one. The copy function will create a newly defined effective date with the selected dates values. Any changes can be made while leaving the remaining configurations untouched!
Valuation Process
Egg Grage-Out Batch
Enter in your Grade-Out information by Egg Type
On the Farms tab, include the flocks whose eggs are included in the batch. You can have one flock or multiples. You can choose the Load inline button to include all flocks that are inline for this plant.
Allocation Methods
There are currently two pricing allocation methods for this process that is set on the valuation configuration form. For this process to distribute to the correct flocks, a user will need to include which flocks are included in the batch on the farm tab of the grade-out batch. If only one flock is included in the batch, that flock will receive 100% of the egg valuation. If multiple flocks are included in the batch it will utilize the selected allocation method.
Distribute value by eggs produced
For this allocation method, the batch will look at the included flocks' eggs produced to determine how much of the value each flock will receive. The egg type included on the egg production form must be the same as the egg type on the grade-out batch for it to get a cut. The batch date on the grade-out batch will also have to match the egg production date that it will pull eggs produced for.
Distribute egg value by hen days
For this allocation method, the batch will be distributed by the hen days for each flock included in the grade-out batch. Their percentage of the total hen days will be used to determine how much of each egg they receive. An expense record is created for each one, with the total amount equaling their share of that egg size * price per dozen.
Deductions and Credits
Once the flock's percentage of the total eggs graded is determined, deductions and credits are calculated. These calculations are performed using the price per case from the configuration, with any specified egg sizes being excluded.
Valuation
When you open up your grade-out batch, there is a tab on the top of the form for valuation, valuation will list what the pricing configuration, effective date, and the allocation type in the header. If you are ready to price you will select the price button.
Once you select price, you will see for each flock and egg size the eggs will be valued.
You can check the messages tab to review any issues or notes. If all looks well then you can save your valuation batch.
New Batch
To create the next new gradeout batch you can select the New button at the bottom of the screen.
Reprice Batch
At any time if you need to change your pricing, you can go back to the valuation configuration form and change your pricing. You can then go into the grade-out batch valuation form and select the reprice batch option.
Reprice Multiple Batch's
At any time if you need to change your pricing, you can go back to the valuation configuration form and change your pricing. If multiple batch's need to get the new pricing you can then go to the view an existing grade-out batch form, and highlight (Ctrl+Select) the batch's you would like to reprice and right click. Select the reprice option and it will reprice and distribute the prices based on the updated information in the valuation configuration form
Revenue
Once the grade-out has been priced, the amounts will be included in the flocks revenue form located on the ribbon bar.
Revenue records that have a lock on them can only be modified by re-pricing the grade-out valuation batch. Additional revenue records may be added to this form just like the expense form.
Accounting Close Dates
Once an accounting close date is set on the flock, batches that are prior to this close date can no longer be repriced, changed or modified in any way unless you re-open the flock.
Configuration to Modify calculated Valuation Price in Batch
In System Settings, there is now a configuration that will allow a user to modify calculated valuation prices in a batch.
Checking this box, means you are enabling this functionality.
When you go into the valuation tab and hit Price OR Re-Price, the system will calculate the grade-out, distribute the eggs and allocate costs. Before you hit the save button to commit the batch, with the above config, users are allowed to modify the Amount column. All other columns are still locked down. Once the user clicks the save button, the records will be committed and the form is then locked down. You can select re-price, to open the form back up or to re-calculate with the prices in the valuation configuration.