Block Settlement

Background

A settlement is based on a number of quality tests. Some of these will be required and some will be optional for the settlement. Settlement will be blocked until all required tests have passed. A required test is a test that is marked as required in the QMS module.

Purpose

This document explains how the Settlement Process for a Grower Agreement is blocked when required quality test results or other important information have not been received at time of goods receipt.

Outcome

Where mandatory quality test results or other important information has not been received prior to goods receipt a systematic block will be placed on the Settlement process.

Main programs

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

Before you start

The conditions required to support the registering of quality test results received at the farm must be satisfied. In summary, these are:

  • A finalized agreement with a supplier containing at least one agreement line must exist.
  • Required quality test results are tied to the item.
  • All required tests and conditions have been specified in QMS.
  • A self-billing agreement must exist for the supplier.

Workflow

  • When goods are received against a Purchase Order associated with a Grower Agreement, the Self Billing process will be triggered and Settlement will take place if all required conditions have been met.
  • The final settlement with the grower is a self-billing process where the receiver calculates what to pay the supplier. A settlement document is produced listing the details of what have been delivered and what additions and/or deductions have been made to the base price. Both the base price and the bases for additions/deductions are often changed after an initial settlement and payment, and this requires the settlement to be re-calculated a number of times and the difference to be paid or claimed.
  • Where quality test results, or other pre-requisites, specified as mandatory in QMS for the Grower Agreement, have not been received, the Self Billing status will be set to 15 (qualified, required information missing) and the Settlement process will be blocked.
  • On receipt of all required results and information from ‘MO Operation. Report' (PMS070) or through the Quality Management System (QMS), the self-billing status will be set to 20 (ready for settlement) and the downstream settlement process and activities will begin.
  • The Self Billing status for a purchase order is displayed within the B1 panel of 'PO Line. Display Received to Self-Bill' (PPS118).
  • In addition to the systematic update of the Self Billing status described above, it is also possible to manually apply a self-billing settlement block in 'PO Line. Display Received to Self-Bill' (PPS118) using related option 13 (block / unblock) against the Purchase Order record displayed on the B1 panel of PPS118. Once blocked using this method, the ‘block self-bill’ flag will be set on both the B and the E panel of PPS118. This can be manually unblocked using the same action.
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