Settlement Wizard

Create a Settlement Batch

System – Settlements – Create a Settlement Batch

Step 1: Select the Type of Procedure to Process.  (Settlements With Averages –or- Averages Only)

Step 2: Select “Settlement Configurations” that will be included in the batch.

Step 3: Select the Flocks that you want to include in the batch.

Create Pullet Settlements. 

System – Settlements – Create Pullet Settlements

Step 1: Select “Pullet Settlement Configurations” that will be included in the batch.  Only settlement configurations with industry types EBP, EGP and BRP will be displayed.

Step 2: Select the Flocks that you want to include in the batch.

Notes:

When “Transfer Out” or “Sales/Live Haul” is finalized then a “settlement eligibility date” will be created for the flock.  This date is determined by the “based on movement date” for the division.  If the “based on movement date” is “first date” then the first movement date will be placed in the “settlement eligibility date”.  If the “based on movement date” is “last date” then the last movement date will be placed in the “settlement eligibility date”. 

When settlements are being processed, the “settlement eligibility date” is compared to the movement date range for the settlement configuration.  If the “settlement eligibility date” falls within the movement date range or prior to the date range then the flock will be considered eligible for settlement; these flocks will be displayed on the “last step” for selection.

When settlement is committed, the status will be changed to “Closed (Settled)”.  To make any adjustments to a flock, the status will need to be changed back to settlement, and when adjustment is committed, the status will go back to “Closed (Settled)”.  No “lock down” will be placed on the flock since a “Closed (Settled)” status doesn’t allow any data entry.  If a flock has status of “Closed (Settled)” and the settlement date is greater than 30 days ago then status cannot be changed.

Settlement Batch

The settlement payment information will be calculated for each selected settlement configuration.  The calculations will be explained in #3 below.

Note: screens shown contain test data only.

Settlements Tab

Below are examples of the information which will be displayed for a settlement.

Averages Tab

This tab is NOT displayed for “pullet settlements”.

The header information on the averages tab are the values calculated based on the detail information listed below it.  The detail information grid contains the flocks used to calculate the averages needed for settlement. The detail information is similar to the settlements detail.

Messages Tab

This tab will display any messages related to the calculations for the settlement configurations.

Here are the current settlement messages which can occur.  A severity level of “Business” will stop the payment calculations for the associated flock/group.

• Pay Based on Net Pounds
  • Message: No Lbs. Moved or Transferred Available.  Settlement cannot be completed.  Severity Level: Business.   Industry Type: TGR.
  • Message: No Head Moved or Transferred Available.  Settlement cannot be completed.  Severity Level: Business.  Industry Type: TGR.
• Pay Based on Square Feet
  • Message: Square Feet not available for all placement houses. Settlement cannot be completed.  Severity Level: Warning.  Industry Type: TBR, TGR.
• Deductions
  • Message: Not all available deductions have been taken.  Severity Level: Warning.  Industry Type: ALL.
  • Message: Producer Deductions on HOLD.  Please verify.  Severity: Informational.  Industry Type: ALL.
• Other Messages
  • Message: No Effective Date record found for Settlement Configuration Pay Categories.  Effective Date is based on first placement date.  Settlement cannot be completed.  Severity Level: Business.  Industry Type: ALL
  • No Feed Returned After Last Movement Date.  Severity: Warning. Industry Type: TGR.
  • No Brooder Gas.  Severity: Warning.  Industry Type: TBR
  • Birds Over or (Short) is greater than margin allowed.  Severity: Warning.  Industry Type: TGR
  • Standard Cost could not be calculated for necessary expense codes.  This is an issue with the component units on the expenses.  Severity: Business.  Industry Type: ALL.  (This will occur if any expense log component units do not equal the component form’s miscellaneous tabs default unit type)

Flock/Group Detail Information

If you double click on a specific flock/group, details for the calculations can be viewed.

Below are examples, which are based on test data only.

Print Button

This will allow a user to print predefined reports for the settlement configuration.  Button will be disabled if batch has not been saved or committed.

When the “print” button is pressed, a list of preliminary reports that were set up for the settlement configuration will be displayed.  All reports will be selected; you can deselect any report(s) that you do not want to print at this time.  It will automatically process all the selected reports which can be viewed or printed.

Only batches which have been saved or committed can be printed.  Each flock in the batch will be printed.

Save Button

When the “save” button is pressed the settlement batch displayed will be saved.  This batch can be viewed and committed at a later time.

Note:  No calculations will be performed on a saved batch. This will save the payment as calculated.

Commit Button

When the “commit” button is pressed a “finalize settlement” screen will be displayed.

If this is the last flock to be committed for this settlement configuration and movement date range then “check” the box by “All flocks have been finalized”; this will update the movement date range to the next week.

A list of final reports that were set up for the settlement configuration will be displayed.  All reports will be selected; you can deselect any report(s) that you do not want to print at this time.  It will automatically process all the selected reports which can be viewed or printed.  If a report is not printed at this time it can be printed at a later time through “Reporting”.

If you do not want to commit this batch click “cancel”.  To commit the batch click “commit”. The commit will generate the necessary payment information needed for the client’s ERP system.

The following will also be done when the commit button is pressed:

• The status of the flocks "accepted" will be updated to "Closed (Settled)” and the Settlement ID will be updated with the batch ID created for this settlement.
• Any expense codes on the settlement configuration standards tab with the “payment cost” checked will post an expense record to the flock.  These are company standard cost which only post when a flock settlement has been finalized.
  • If “standard amount” <> 0;  standard amount * standard units
    • Units
      • Birds = head placed
      • Lbs. =  pay units
      • Expense log = total “component units” from the expense table
      • Tons = feed consumed weight converted to tons
  • If “standard amount = 0; No expense record is posted
• For each payment record for the flock, an expense records will be created. Payment record refers to each producer for the flock that is being settled; these could be split flocks where a producer group exists for the farm.
  • ((Total gross pay for flock – surcharge) * allocation%) - deductions
• Deductions will be updated for each producer receiving a payment.

Settlement Calculations

Average Information:  Based on the average configuration for each settlement configuration.

• The “number used for averages” and “average basis” (weeks or flocks) are used to select the flocks to be included in the averages.
  • If the average basis is weeks; take the “number used for averages” times 7 and go backwards from the “from movement date” for the settlement configuration.  Example: Number used for averages=3, from movement date= 11/05/2012, flocks settled between 10/15/2012 and 11/04/2012 will be considered for averages.
  • If the average basis is flocks; go backwards from the “last” settlement for this settlement configuration.  Number of flocks selected will be based on the “number used for averages”.  Example: Number used for averages=12; will select the last 12 flocks settled with the same settlement configuration. 
• If a “payment type” has been selected to be “excluded” then when determining the flocks to be used the “payment type” is checked.  If the flock received the “payment type” then it is excluded from the list of flocks to be used. 
• Calculate the necessary average information
  • Examples:  Average Weight, Feed Conversion, Net Weight, Total Expense Cost, Total Expense Cost/Unit, Expense Cost Units

Expense Cost Information:

For each expense code on the settlement configuration “standard” with the “average cost” checked, do the following:  (these are the expense codes used for expense cost average and group information)

• If a standard $amount and units are entered then calculate the cost for the expense code.
  • Cost = Standard $amount * Unit value
    • Units
      • Birds = head placed.
      • Pounds = net weight.
      • Tons = feed consumed tons.
      • Expense log = total component units for the expense code.
• If no standard $amount and units are entered then the actual cost will be used.
• Summarize the expense code cost for the flocks included in the average.
• Summarize the expense code cost for each flock being settled.
• Calculate the total expense cost/unit for the flocks and the average flocks.
  • Summarized expense cost/”denominator to be used” units (this is from the settlement configuration average tab).
    • Denominator Units
      • Head moved
      • Gross Weight Moved
      • Net Weight

Surcharge Information:

• If “apply feed haul surcharge to this farm” has been checked then calculate surcharge amount.
• For the default feed mill plant, calculate the one way and round trip miles
  • One way miles = distance from the default feed mill plant
  • Round Trip = distance from the default feed mill plant * 2
• Take the “one way” miles for the feed mill and type of miles = one way and find the feed mill surcharge table information.  If no surcharge information is found then take the “round trip” miles for the feed mill and type of miles = round trip.
• If surcharge information found for “one way” or “round trip” calculate the surcharge amount.
• Determine the units to be used based on the surcharge table information.
  • If units is tons; take the feed consumed pounds for the flock and convert to tons.
  • If units are pounds; use the feed consumed pounds.
• Feed Haul Surcharge Cost = Units * amount

Miscellaneous values:

• Total Lbs. Feed Consumed = Feed delivered + Transferred feed – Ending feed inventory (after last movement)
• Feed Conversion = Total Lbs. Feed Consumed / Total Lbs. Moved
• Average Weight = Total Lbs. Moved/Total Head Moved
• Condemn Head = Total “head condemned post mortem” for all condemnation certificates.
• DOA Head = Total “DOA ante mortem” for all condemnation certificates.
• DOA Weight = Total “total weight ante mortem” for all condemnation certificates.

Payments and Bonuses Information:

Calculate payment amount for each pay category on the settlement configuration.

Units for pay category:

• Net Weight. This is determined by the “net weight configuration” on the settlement configuration.
  • Starting Pounds Moved.  (net lbs. or plant net lbs.)  Note: If transfer out information is being used then net lbs. is the only available value.
  • Condemned Part Pounds.  Summary of all condemnation certificate records condemned parts lbs. times the % entered.
  • Carcass Pounds.  Summary of all condemnation certificate records carcass pounds times the % entered.
  • Condemned Pounds.  For each condemnation code with a % entered into the configuration, take the total head for that condemnation code and multiple by the % to get the condemned head for the certificate.  For each certificate; take the ((Ante-Mortem Weight/Ante-Mortem DOA) * condemned head) to get condemned pounds for the certificate.  Summarize the condemned pounds for all the certificates.
  • Birds.  This is the number of birds moved.
  • Birds/Age.  This is the number of birds moved and the age of the flock at the time of movement.
  • Square Feet. This is the total “square feet” for all houses with placements for the flock.
  • Square Feet/Age. This is the total “square feet” for all houses with placements for the flock and the age of the flock at the time of movement.

Payment Calculations: Based on the pay category tab for each settlement configuration.

Calculations are based on the payment type for the pay category.

Only pay categories “included” in the total payment amount will have a payment amount value.

• Base, Flat, Minimum and Maximum payment type.

o   Payment amount = $amount/unit * unit value

• Bonus (Body Weight).

o   For the flock compare the “average weight” to the “limit”, if it is below the limit then the payment amount will be zero; otherwise continue with calculation.  If no limit continue with calculation

o   Compare average weights.

§  If “value” field, compare flock’s average weight to the “value” field.  If the comparison meets the “operator” field; calculate payment amount.

§  If no “value” field and “average calculation information” was selected; compare the flock’s average weight to the average flock’s average weight.  If the comparison meets the “operator” field; calculate payment amount.

§  If no “value” field and no “average calculation information”; continue with calculation.

o   Payment amount = $amount/unit * unit value   

• Bonus (Livability)

o   For the flock compare the “livability%” to the “limit”, if it is below the limit then the pay amount will be zero; otherwise continue with calculation.  If no limit continue with calculation

o   Compare livability%.

§  If “value” field, compare flock’s livability% to the “value” field.  If the comparison meets the “operator” field; calculate payment amount.

§  If no “value” field and “average calculation information” was selected; compare the flock’s livability% to the average flock’s livability%. If the comparison meets the “operator” field: calculate payment amount.

§  If no “value” field and no “average calculation information” continue with calculation.

o   Payment amount = $amount/unit * unit value   

• Bonus (Uniformity)

o   For the flock compare the “uniformity%” to the “limit”, if it is below the limit then the pay amount will be zero; otherwise continue with calculation.  If no limit continue with calculation

o   Compare uniformity%.

§  If “value” field, compare flock’s uniformity% to the “value” field.  If the comparison meets the “operator” field; calculate payment amount.

§  If no “value” field and “average calculation information” was selected; compare the flock’s uniformity% to the average flock’s uniformity%. If the comparison meets the “operator” field: calculate payment amount.

§  If no “value” field and no “average calculation information” continue with calculation.

o   Payment amount = $amount/unit * unit value   

• Bonus (Feed Conversion)

o   For the flock compare the “feed conversion” to the “limit”, if it is below the limit then the pay amount will be zero; otherwise continue with calculation.  If no limit continue with calculation

o   Compare feed conversion.

§  If “value” field, compare flock’s feed conversion to the “value” field.  If the comparison meets the “operator” field; calculate payment amount.

§  If no “value” field and “average calculation information” was selected; compare the flock’s feed conversion to the average flock’s feed conversion. If the comparison meets the “operator” field: calculate payment amount.

§  If no “value” field and no “average calculation information” continue with calculation.

o   Payment amount = $amount/unit * unit value   

Bonus (From Expense Code)

o   For the flock compare “total expense cost/unit” (previously defined) to the “limit”, if it is below the limit then the pay amount will be zero; otherwise continue with calculation.  If no limit continue with calculation

o   Compare expense cost.

§  If “value” field, compare flock’s total expense cost/unit to the “value” field.  If the comparison meets the “operator” field; calculate payment amount.

§  If no “value” field and “average calculation information” was selected; compare the flock’s total expense cost/unit to the average flock’s total expense cost/unit. If the comparison meets the “operator” field: calculate payment amount.

§  If no “value” field and no “average calculation information” continue with calculation.

o   Payment amount = $amount/unit * unit value   

Bonus (Farm Type).

o   Only calculate if the farm type is “TV”; tunnel ventilated.

o   Payment amount = $amount/unit * unit value

NOTE: If units is “birds/age” or “square feet/age; payment amount = ($amount/unit * unit value) * age in weeks

Adjustment Information:   Based on the adjustment tab for each settlement configuration.

• Feed Conversion
  • If Based on “Average Weight”
    • Average Weight Difference = Flock average weight – Average flocks average weight
    • Adjusted Feed Conversion = (Average Weight Difference * Adjustment Unit Amount) + Flock Feed Conversion
    • If NO feed conversion rule then adjusted feed conversion = flock feed conversion
    • Base Adjustment
      • (Feed difference + Cost difference) * Adjustment%
        • Feed difference = (Average flocks feed conversion * Adjustment% for feed conversion adjustment) – (Flock’s Adjusted Feed Conversion * Adjustment% for feed conversion adjustment)
        • Cost difference = (Average flocks total expense cost/”denominator to be used” units for average flocks) – (Flock’s total expense cost/”denominator to be used” units for flock)
          • Denominator Units
            • Head moved
            • Gross Weight Moved
            • Net Weight
            • Total expense cost is determined by the settlement configuration standards marked as “average cost”
            • If calculated “base adjustment” is a negative value
              • Surcharges are not applied to flocks with a negative base pay adjustment.  Remove any calculated surcharges.

Settlement Adjustment

System – Settlements – Adjust a Settlement

Recalculate a settlement payment for a specific flock.

The flock status needs to be changed from “Closed(Settled)” to “Settlement” so that the data can be corrected for the flock to be adjusted.

After the information which caused the settlement to be incorrect has been corrected, the adjustment procedure can be performed.

Only flocks settled in the last 30 days are eligible for adjustments.

Step 1: Select “Settlement Configuration” to which an adjustment needs to be performed.

Step 2: Select the Flock that you want to adjust.

The average information used on the original settlement will be used when recalculating the settlement.

The expense records created when the original settlement was done will be reversed and new expense records will be created for the adjustment.  The same reports that are available for regular settlement procedures will be available for the adjustment procedure.

Adjustment Batch Information.

The adjusted settlement payment information will be calculated the same as the original settlement payment information.  Only difference is the actual data for the specific flock being used.

The original settlement information will be displayed.  The adjusted settlement information will display under the original.

All the tabs available on the original settlement batch will be available on the adjustment procedure.

Note: screen shown contain test data only.

If the adjusted information looks correct; click the “Adjust” button to complete the adjustment.

The adjustment will be placed in the batch that the original was in.

View Settlements

System – Settlements – View Existing Batches

Select Batch to be viewed.

The screens to view a batch are the same as when creating a batch.

If a flock was adjusted, it will have a check in the “adjusted?” column.

Any flock “committed” will be grayed out.  Also, the commit date and who committed the flock will be displayed.