Objective

Our goal in this document is to take you through the above processes using all the functionality that can be used in the AGRIS™ system.
Your business may not be using all the options in AGRIS today. Why?

• Your business may require a less detailed solution.

• You could have been just starting on AGRIS as a new user and learned just enough to do your job.

• You were new to the whole AGRIS software and were shown all the options, but they have been forgotten or bypassed in an effort to just "get the job done" for now.

• You are the fourth person in this job position and, just like the game of "telephone," each person training the next person has lost bits and pieces of what can be done or why things are done.

• You're the office manager who needs to be able to do every other person's job in the office, and this is where you're going to learn it before they call in sick.

This document will go over a general day in the life of an A/P clerk. We will be covering Stock Additions, Expense Vouchers, & Disbursement Processing.

Inventory Purchasing Process

Open

Step One: Inventory Order

An order is placed for Inventory. Your salesman or a manager makes a call to order a semi-load of 32% fertilizer or 500-gallons of Roundup. At this point this information is either written in a notebook or on a sticky note or just stored in their memory.

Step Two: Purchase Order

A purchase order is keyed into AGRIS. Why use this?This places an electronic copy of the order into the accounting system.

• Vendor product is purchased from.

• Quantity ordered is recorded.

• Price quoted is recorded.

• Expected arrival time is recorded.

• Inventory Status of Quantity on Order is updated.

Overall, this gets the order into the system instead of written down somewhere where it can get lost. It also provides a more accurate view of inventory status.

Step Three: Delivery

The shipping company delivers the product to your place of business. The paper work left is a Bill of Lading stating:

• Product delivered.

• Quantity delivered.

Warehouse staff verifies that product left matches Bill of Lading. At this point the product is in the warehouse or tank and is available for shipment.
NOTE: The AGRIS accounting system does not know that the product has arrived.

Step Four: Bill of Lading Delivered

The Bill of Lading is brought to the person in charge of entering the stock addition, the purchasing clerk.
In order for AGRIS to provide accurate average cost, the bill of lading should be entered into the AGRIS system at the point that it's also available for resale.

Step Five: Stock Addition Voucher

The purchasing clerk keys the bill of lading into AGRIS as a stock addition voucher using the quantities from the Bill of Lading and the cost from the purchase order. The voucher is marked with a status of Estimate in order to keep it from being paid.
The goal of entering the stock addition from the Bill of Lading is to get the most accurate cost possible associated with the product BEFORE Sales Invoices or Transfers of product can be keyed into the AGRIS system. If Sales Invoices or Transfers are keyed first, the cost associated with those transactions will be prior to the shipment was keyed and, therefore, will not be accurate at the document level. The overall picture will come out in the end, but any ability to track by document or customer level is lost.

Step Six: Stock Addition Voucher marked as Actual

The invoice from the inventory vendor arrives with the final costing and any additional service items, such as trucking or taxing.
The purchasing clerk tweaks the cost of the inventory already keyed on the stock addition and adds the service items to increase the overall cost of the product.
Once all item invoices have arrived and service items are added, the stock addition is marked with a status of Actual so that it can be paid.

Step Seven: See Disbursement Processing

The stock addition voucher is paid.

Bill of Lading Entry

When choosing to enter stock additions, the user has the following menu choices:

• Stock Additions – where new Stock Additions are entered. Step Five - This will automatically create an Accounts Payable voucher.

• Adjust Stock Additions – where existing Stock Additions are edited or changed.Step Six - This will automatically adjust the existing Accounts Payable.

• Reverse Stock Additions – where existing Stock Additions are voided or deleted. This will automatically remove the Accounts Payable voucher.

• Split/Transfer Stock Additions - This feature allows users to do the following:1) Change the Remit To 2) Setup multiple due dates based on selecting products that need to be paid on a separate date.

• Inventory Activity Reports – reports about what has happened. These are reports about the line items quantities and costs that are keyed on the stock additions.

• Inventory Position Reports – reports about what will happen.These are reports that take into account what is to be received and shipped, based on purchase and sales orders. It lets you track what is going to come in and go out so you can better manage the inventory quantities.

Add New Stock Addition Using Purchase Order

Screen 1 – Starting Stock Addition Voucher

Open

• Enter the location code of where the inventory is being received or where the voucher is going to be accrued. The line items on the voucher can go to different location codes.

• Ship From – the name ID of where the product came from. For example, I may be paying ABC Supply for fertilizer but the fertilizer could come from the East Kansas plant or the Missouri plant. Ship From allows me to track what location the product came from, which would aid in explaining different freight costs.

• Remit To – the name ID that I will use to look up the voucher in A/P Balance inquiry and who I will issue the disbursement check to.

• Voucher Status – Actual or Estimate. This does not stop the stock addition from affecting on the ledger.By marking a voucher estimate, you are keeping a disbursement check from being issued for it, thus protecting the voucher until you can add/edit all costs. Once everything is keyed or approved, then the stock addition voucher can be made Actual and a disbursement check can be written for it.

• Ledger Date – will be the date that the inventory hits the inventory balances and affects the average cost. It will also be the date on the voucher in A/P.

• Other Reference – misc field that will attach to each line item for additional info tracking. In this case, I've keyed in a general description of what the voucher is purchasing.

Click on OK and the System will default in the next Voucher Number. Write this number down on the Bill of Lading or shipping document.

Screen 2 – Adding Line Items

• Item Number – key in the Item number or use the search option icon or asterisk <*> search option to find the inventory item that is being added to the stock addition. Note that you can also use the plus <+> key option to open up for a UPC code to be keyed to find the item.

• Item Number Location Code – this option allows you to control what location is receiving the inventory. It will default from the location code that was used to start the voucher. However, you can edit this to choose another location.

• Order Number – key in the Purchase Order number and line number or search option icon or asterisk <*> to search for an open Purchase Order. If the field for "Order Number" is not available for input, there is no open purchase order for the Ship From vendor name ID. If your purchasing manager has keyed a PO, you would have the quantity ordered and the cost quoted populating in the product without you having to key anything.

Screen 3 – Selecting Purchase Order

• Loc Order# - As the system displays all available purchase orders for your selection, you will notice that each order has one "header" line in addition to the detail lines. The user can pick the header line if he/she wishes to add all line items on the order. For example, by selecting V17-00005 all 6-lines of PO#V17-00005 would be pulled onto the stock addition.Or the user can choose each line separately, allowing him/her to only choose V17-000005-01, which would then only pull on 10-tons to the stock addition, leaving the other purchase order lines available to use later.

Screen 4 – Defaulting Order Info onto Voucher

• If a single line item is chosen, the system will default the order quantity into the stock addition quantity field. The user can then overtype that value with the actual delivered quantity.

Screen 5 – Completing Line of Order

• If the quantity is less than the order quantity, the system will ask if the user wishes to "Complete This Item of This Order?" If this is the 1^st delivery of several, the user would answer the question "N." An example would be a PO that was for 100 tons of fertilizer but you just received the first semi-load. If this is simply shipment shortage and no more inventory will be shipped on the order line, the question should be answered "Y."

Screen 6 – Summary of Inventory Entered on Voucher

Screen 7 - Additional Voucher Information

The additional voucher information screen appears after all items have been added to the stock addition. The information on this screen has more to do with the appearance of the Accounts Payable voucher than it does with the inventory activity of the stock addition.

• Voucher Date – defaults from the ledger date that was used on the first screen to being stock addition entry. These dates should match or there can be difficulties in balancing ledger.

• Voucher Status – defaults from the first screen. This gives the user another chance to control the Actual/Estimate status.

• Voucher Terms - the code is used to default the discount dates and due dates.

• Voucher Type – is used for report running and for controlling how the ledger account codes are affected during SJI as it acts as a source code in the SJI System Code setup.Because it is a source code and can affect the ledger, depending on SJI setup, it can only be edited if adjusting the stock addition on the original voucher date.

• Name ID Type - can be edited and further used to "point" transactions to a different G/L account number using the AGRIS System Journal Interface module. Because it is a source code and can affect the ledger, depending on SJI setup, it can only be edited if adjusting the stock addition on the original voucher date.

• Due Date – controls the due date placed on the voucher for the A/P side.

• Discount Date – if the voucher is paid on or before this date, then any discount keyed in the discount amount will default at time of voucher payment.

• Voucher Amount – how much the voucher totals up to.

• Amount Applied – how much has been paid on the voucher.

• Discount Amount – the amount available to be taken as a discount.Note that the discount, if taken, does not change the dollar amount of the inventory value. The discount amount will post to a ledger account for Discount Taken, but it does NOT affect the average cost of inventory.

• Discount Percent – you can key in an amount and AGRIS will calculate the discount amount, or if you key the discount amount, the discount percent will be calculated by the AGRIS system.

• Net Amount – the voucher amount less the discount amount. This field will also back calculate. For example, if you key in $10,000 for a voucher that is $15,000, then a $5,000 discount is filled in for discount amount and 33.33% is filled into the discount percentage.

• Their Order Number – for keying in the vendor's sales order or bill of lading number. This field is made required per each name ID by flagging THEIR ORDER NO. FIELD to "yes" on the name/address accounting information setup.

• Their Invoice Number – this should be the vendor's invoice number that you receive when you get the final bill. This will print on the disbursement check for referencing what is being paid.

• Voucher Description – will print a general description of the voucher that prints on the disbursement check and will display in Account Balance Inquiry.

• Voucher Remark – allows the user to key in an additional 50-character remark that can be printed on reports and used for referencing.

Screen 8 – Inventory and AP Updated

Service Items on Stock Additions

Many times when purchases of inventories are made, there is a separate freight charge involved. In addition, this freight is often payable to someone other than the inventory vendor. The AGRIS system has the ability to add 9 additional service items at the time of stock addition for such items. If the "Remit To" name ID is different on the service items than for the original inventory, additional vouchers are created. In addition, the value of the service items added to the stock addition is added to the cost of the inventory items themselves (increases their Average Cost).
Let's look at an example where the business is receiving 2 different products from the same vendor on the same stock addition. Freight is involved and will be payable to another vendor. We will need to make a determination of how to divide the total freight cost between the 2 separate inventory items.
INV > Stock Additions > Adjust Stock Additions > Select Voucher > Insert Lines

Screen 1 – Allocating Service Item Cost

• Note that as the Freight service item is added, and the Ship From and Remit To name IDs are changed, the system has created a new Voucher Number.

• The user is now prompted about how to divide the cost of the freight. This stock addition has the following inventory items on it:

The user can prorate the cost of the freight based on the following choices:

• Equally To Each Item – since there are 2 items, each would receive ½ of the freight cost.

• By Purchase Quantity – Purchase Quantities are added up and then divided by the gross total to calculate a percentage. 9.59 tons + 15.00 tons = 24.59 tons or 38.99% - 61.01% split. $122.95 x 38.99% = $47.94 $122.95 x 61.01% = $75.01 This gives the item with the most purchase quantity the most cost. But realize that the UOMs may not be the same, so you could be comparing 1 500 gal tank of Roundup to 30 spark plugs. The spark plugs would get more of the freight cost.

• By Common Quantity – The system will take the total of the lowest common denominator UOM codes, add them together, and divide the total freight cost by that number. Then it would take that per unit cost multiplied by the total quantity per item of each item's smallest UOM quantity.tons goes down to LBS for common UOM based on the UOM setup in AGRIS19180 lbs + 30,000 lb = 49,180 lbs or 38.99%-61.01% $122.95 x 38.99% = $47.94 $122.95 x 61.01% = $75.01 This gives the item with the most quantity the most cost. But again, realize you could be comparing the 1 500 gal tank of Roundup Chemical to 30 spark plugs.

• By Direct Cost – The system in this case would add the $2637.25 for the 0-0-50 Fertilizer the $142.50 for the Manganese. It would then divide the $122.95 by that total and multiply it back against each item's direct cost. This works as a percentage or applies freight by each item's value.$2637.25