CenterPoint® Accounting for Agriculture - Recording Milk Sales

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Receipt to Record Milk Sales Video - Duration: 9 min 48 sec

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There are normally two transactions recorded in CenterPoint for milk sales; the milk check advance and the milk settlement check. Because both checks are received each month, they will be setup as recurring transactions so they can easily be reused without having to reenter the data each time.

Milk Check Advance

First Time Check is Received

Record Subsequent Milk Check Advances

Milk Settlement Check

First Time Check is Received

Record Subsequent Milk Settlement Checks

Milk Check Advance

When a farm is sent an advance on their milk sales, it is referred to as a Milk Check Advance.

EXAMPLE: CenterPoint Farms received a $19,500 milk check advance. The account used in the transaction can be an income or liability account.

First Time Check is Received

  1. Select Processes > Sales > Receipts.

  1. Select the business the milk was sold to in the Received From field.
  2. Specify the Date, Amount, Payment Type and Check/Ref #. Messages will display when duplicate sequence numbers are found based on the Duplicates and the Check When fields in Setup > General > Numbering Sequence. The messages inform you if a duplicate sequence number was found and how the duplicate sequence number should be replaced with a new sequence number, automatically or manually.
  3. In the Account field, specify the Milk Advance account (this can either be a liability or revenue account).
  4. Select the Recurring button.
  5. In the Add/Edit Recurring Transaction screen, enter a Description.
  6. Verify that the Calculation Type is Percent and the Value is 100%.

  1. Because you will be receiving two different types of checks (milk check advance and milk check settlement) from this vendor, unselect the Set As Default and Set to automatically load default recurring transaction boxes.
  2. Click Save.
Note: From the original Receipts screen, if you want to attach a document to this transaction, see the Attach Documents to Transactions topic for detailed information.
  1. On the Receipts screen, click Save to record the first milk check advance.

Record Subsequent Milk Check Advances

  1. Select Processes > Sales > Receipts.
  2. Select the business the milk was sold to in the Received From field.
  3. Specify the Amount of the milk check advance, the Payment Type and Invoice/Ref #. If you want to repeat the previous line's Invoice/Ref# entry, right-click in the Invoice/Ref # column and select Repeat Previous Value. Messages will display when duplicate sequence numbers are found based on the Duplicates and the Check When fields in Setup > General > Numbering Sequence. The messages inform you if a duplicate sequence number was found and how the duplicate sequence number should be replaced with a new sequence number, automatically or manually.
  4. Select the Recurring button next to the Received From field. The Recurring button will display with a yellow background if a name has an applicable recurring transaction.

  1. Highlight Milk Check Advance and click Select.
  2. The remaining fields in the transaction will automatically be populated.
  1. Click Save.

Milk Settlement Check

First Time Check is Received

After the milk is sold, the creamery will normally send a 2nd check (milk settlement check). This check is the amount paid for the milk production, less the milk check advance amount and any expenses.

EXAMPLE: CenterPoint Farms received the milk sales settlement check for $17,365.57. Milk sales were $37,121.46. $19,500 was deducted from the sale for the milk advance, $325 for marketing, $248.51 for Dairy Promotion, and $58 for Dairy Association Fees. CenterPoint Farms also has their dairy cow loan payment automatically deducted from the milk check. $828.52 was paid towards the principal and $226.92 towards interest.

Note: The Milk Advance and the Dairy Cow Loan account amounts are entered as negative as we want those account balances to be decreased.
  1. Select Processes > Sales > Receipts.

  1. Select the business the milk was sold to in the Received From field.
  2. Specify the Date, Amount, Payment Type and Invoice/Ref #. If you want to repeat the previous line's Invoice/Ref# entry, right-click in the Invoice/Ref # column and select Repeat Previous Value. Messages will display when duplicate sequence numbers are found based on the Duplicates and the Check When fields in Setup > General > Numbering Sequence. The messages inform you if a duplicate sequence number was found and how the duplicate sequence number should be replaced with a new sequence number, automatically or manually.
  3. In the Account field, specify the Milk Sales account (this is a revenue account). In the Amount, specify the gross amount of milk sales for that period.
  4. In the next Account field, specify the Milk Advance account. In the Amount field for that row, specify the amount that was received on the prior milk advance check as a negative.
  5. In the subsequent rows, specify and expense or loan Accounts and Amounts that are automatically deducted from the milk check. Note: Loan accounts should be entered as negative amounts (to lower the loan balance).
  6. Select the Recurring button.
  7. In the Add/Edit Recurring Transaction screen specify a Description for this recurring transaction.
  8. Change all of the Calculation Types to Fixed Amount and the Values to 0.00. The amounts are set at zero because the amounts will differ each month. If one or more of the amounts are the same each month, the amount can be entered instead of 0 (zero).

  1. Again unselect the Set As Default and Set to automatically load default recurring transaction boxes.
Note: If you want to attach a document to this transaction, see the Attach Documents to Transactions topic for detailed information.
  1. Click Save.
  2. Back on the original Receipt screen, click Save to record the first milk settlement check.

Record Subsequent Milk Settlement Checks

  1. Select Processes > Sales > Receipts.
  2. Select the business the milk was sold to in the Received From field.
  3. Specify the Amount of the milk settlement check, the Payment Type and Invoice/Ref #. If you want to repeat the previous line's Invoice/Ref# entry, right-click in the Invoice/Ref # column and select Repeat Previous Value. Messages will display when duplicate sequence numbers are found based on the Duplicates and the Check When fields in Setup > General > Numbering Sequence. The messages inform you if a duplicate sequence number was found and how the duplicate sequence number should be replaced with a new sequence number, automatically or manually..
  4. Select the Recurring button next to the Received From field. The Recurring button will display with a yellow background if a name has an applicable recurring transaction.

  1. Highlight Milk Settlement Check and click Select.
  2. All accounts used in a milk settlement check will automatically be displayed in the grid. Specify the new amounts for each line. Remember that the milk advance and loan accounts should be entered as negatives to lower the balance.
  1. Click Save.

Document: 3113

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