© 2021 RSM US LLP. All rights reserved.
Microsoft Dynamics®365 for producer payroll
Producer financials management for complicated, highly regulated dairies and co-ops
Co-ops and dairies have a notoriously more complicated purchasing processes than other industries, and require a simplified method of milk receiving with a quality control and tracking system designed for complex producer payroll functions. RSM's automated solution is fully integrated with accounts payable, alleviating the overhead and cost of integrating a third-party application. RSM's Producer Payroll enables dairies to automatically track transactions to record both inventory and accruals to the general ledger based on class structure and a cost component structure that is completely user configurable. This solution is available as a single module or as part of the comprehensive solution suite for Dairy.
Features and Benefits
Automatic Tag Generation & Weight Validation
Generate a milk ticket for each milk truck that comes in and a unique ID for each load. Producer payroll records milk received by each producer. Information such as hauler, driver and license number, farm zone, route, weight, stick (weight) readings, temperature, potencies (BF, SNF) and lab tests are recorded. This solution also records whether the truck requires washing and generates tags automatically for receipt and washing through the optional process logical controller (PLC) integration. Actual weights received can be validated against the ticket weights to catch any possible errors.
Capitalize on automated quality control functionality that prevents milk from being received until lab tests are completed and recorded as pass or fail. If the load fails, the receiver will not be able to start pumping. If the load passes, the system will give the green light for unloading or automatically start the unloading process via an optional PLC integration.
Automatic Recording into the General Ledger
Generate a transaction when the milk is received to record both inventory and accruals in the general ledger (GL) for real-time reporting. Configurable class and cost component structure is based on quality specifications from each location.
Track who milk inventory was diverted to, how much was received, and what it is being used for. Qualifying facilities can also designate a load as a qualifying load and designate what load was traded for it.
Handle various types of expenses, including hauler fees, advertising costs, milk testing kits or loan payments that can be entered into the system. Expenses can be set to be paid on an advance, as a final settlement or both.
Set up deductions in the same manner as expenses to be deducted from a producer’s paycheck. The system can include information on which deductions will be completely taken out of the producer’s paycheck and which are subsidized by the dairy.
Monthly Quality Premium
Keep track of each load’s quality parameters with the native quality control system, which can be set up to calculate a bonus or a penalty based on the quality of the milk, as determined by lab testing.
Establish a yearly premium amount based on specific bonus criteria, such as the number of months a producer delivers high-quality milk or how many years of service they have with a co-op. Disqualification criteria can also be specified. Bonuses can be calculated for inclusion in programs like providing pasture-fed milk or high-protein milk.
Create a vendor invoice journal to credit the producer accounts based on a specified advance rate, taking into account any deductions that will be applied.
Flag disputed milk loads between supplier and receivers. The system can be set to read in settlement files to help expedite the invoicing process. A flag can be set to identify the particular producer responsible for the load failure, ensuring that quality producers continue to be paid properly. It also assists in tracking producer performance.
Allow producers to report directly to the Milk Authority (MA) for Federal Milk Order (FMO) reporting. Detailed backup reports are available for producer payment, daily and total weights, producer expenses and deductions and producer quality. Reports are also available for product accountability and load variances.