Recalculate Settlement for a Grower Agreement

Background and purpose

The set of charges that make up a settlement changes before or after the first settlement is processed. When this occurs, the settlement is recalculated based on the changes received. The difference, whether positive or negative, in charges between the current and previous self-bill invoice is charged or credited to the customer. This difference is printed on the final settlement document. The basic data for the settlement can also be incorrect. This condition requires a full credit and a reversal of the process before you recalculate the charges with a new goods receipt.

In this document, you can learn how the settlement is recalculated iteratively under a Grower Agreement after changes to the associated costing elements and attributes.

Outcome

If all required pre-requisites have been met, and there is no settlement block in place, the settlement process is called when a change is registered against one of its' base constituents.

Main programs

'Supplier Invoice Proposal. Generate for SB' (PPS116)

'Costing Element. Open' (PPS280)

'Recalculation selection' (PPS283)

'PO Line. Display Received to Self-Bill' (PPS118)

Restrictions

The functionality to trigger recalculation for multiple settlements is only allowed on goods receipts with an agreement type marked for settlement.

Before you start

A valid self-billing agreement for the supplier of status 20 must exist in 'Purchase Agreement. Open For Self-Billing' (PPS112). A Settlement Block, as defined in the Block Settlement document does not exist.

Recalculating settlement following changes to costing elements or attributes

An invoice of any status, with type self-bill, and associated with a Grower Agreement, can be subject to recalculation, if changes are received against any of its base elements, as described below:

  1. Change of attribute values:

    Attributes can be attached to quality inspection (QI) tests and if required, the tests can be specified as mandatory in the Quality Management System (QMS) in 'Test Template. Open' (QMS100).

    Attribute values can either be changed at attribute level or through QMS. When changed, a recalculation of settlement is triggered, regardless of settlement status, and the invoice amounts of the current settlement are compared with the amounts of the previous, so that any difference can be identified.

    1. Change at attribute level:

      An attribute can be changed at attribute level using related option 28 (attributes) in 'Lot/Serial Number. Open/Connect to Item' (MMS235).

    2. Change through QMS:

      A test in QMS could be connected to an attribute. When entering a test value in 'QI Test Results. Open' (QMS400), the value is automatically updated on the attribute.

      Once changed, a settlement recalculation is triggered based on the new test results.

  2. Change to costing element:

Where the final price is not known at the time of initial goods receipt and is dependent on future market and government conditions, the Grower Agreement will be set up to reflect this, and allow the price on the associated cost element/s and formulas to be amended where required.

Prices on a cost element can be changed manually in (PPS280) or through an API. If changing the element manually, Related option 12- 'Costing values' brings you to 'Costing Element. Enter Values' (PPS282), where you can change the markup.

Related option 13- 'Recalculate selection' in (PPS280) can be used to manually call for a recalculation of this cost element, returning the E panel of (PPS283), where the selection parameters for what should be recalculated is set. Selection can be done on these details:

  • Delivery date
  • Purchase costing model
  • Agreement type
  • Facility
  • Supplier
  • Item
  • Purchase order number
  • Purchase order type

Recalculation is started with F14- 'Interactive' or F16- 'Launched'.

After recalculation

If the result of the recalculation differs from the previous amount, the difference is added in internal accounting (CINACC) against the existing accounting number for this receipt.

If the receipt was already invoiced a new invoice can be made with the differences.

The status after recalculation is either 15 (qualified, required information missing) or 20 (ready for settlement). If the recalculation does not result in a difference, the status will not change.

Perform credit self-billing

If the basic data for the settlement is incorrect, recalculating the existing receipt isn’t sufficient. You can manage this situation by using the self-billing credit process. For example, the basic data can be incorrect because the item number is incorrect or an incorrect costing model is used.

After the status of 'PO Line. Display Received to Self-Bill' (PPS118) is set to 90 - 'Invoice updated', you must create a credit self-billing invoice to enable the reversal of the goods receipt. You can select 14- 'Credit self-billing' in Related Options, to initiate a credit invoice for a particular PO goods receipt through 'Credit Self-Billing. Create' (APS485). The credit invoice contains reversed amounts of all invoice lines that are connected to the goods receipt record.

When the credit self-billing is created in the 'Supplier Invoice Batch. Open' (APS450), the status of the record in (PPS118) is 81- 'Transferred'. After the credit invoice is processed in Accounts Payable, the status is 95 – ‘Credited’ and the parameter 'Block self-bill' is set to 2– 'Blocked – credit invoice'. You can then reverse the goods receipt transaction in 'Purchase Order. Display Line Trans' (PPS330), which sets status in (PPS118) to 99- 'Reversed'.

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