Relevant to: Site Operators
Navigation tree: Storage > Inventory
What to do when a grower warehouses and out-turns their own grain?
When a grower enters into a Contract with, or delivers their produce to a buyer/storage operator that uses AgriDigital, they are automatically registered with a Grower Account to view details of their Contracts and Deliveries and transfers, when needed.
If a Grower, decides to purchase a commodity (i.e. not their own produce, but somebody else's) for their own personal use e.g. feeding their stock, then they are classified as a Buyer. So AgriDigital automatically registers this Grower with a Buyer Account.
In a situation where the Grower delivers and warehouses their own grain and then decides to out-turn it for their own personal use, they have become both the Grower and the Buyer.
As they have delivered (as a Grower) and out-turned (as a Buyer), therefore a Grower Account and Buyer Account are required.
As a Storage Handler, the following steps will need to be completed to allow you to out-turn this warehoused grain to the Grower/Buyer and ensure the inventory position has been reconciled:
1. Create a new Organisation (with the Grower details), so in-turn this creates a Buyer Account
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Note Check you are not already connected to the Grower's Buyer Account, as they may have purchased grain in the past and this will reduce duplicates, search in your Connections table, before adding a new one.
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2. Navigate to Storage > Inventory > Ownership > New Transfer and transfer the stock to the Buyer account using the Transfer Type 'Contract'. Note: shrink will be applied in this step, so the amount that enters the buyer will be less then the original amount.
To avoid negative inventory, you may wish to transfer extra to allow for this (4.).
OR
ask the Grower to make this transfer from their account. Steps for the Grower can be found in our Knowledge Base article here.
3. Navigate to Storage > Deliveries > New Delivery and complete a Buyer Out-turn (Inventory) Delivery with the Supplier being the newly created Buyer account (as the buyer now 'owns' the grain, not the Grower)
4. You have now out-turned the inventory successfully.
You will now be able to see in Storage > Inventory > Ownership that the Grower account is reconciled, but The Buyer account is now in a small negative quantity. This is due to shrink.
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Note shrink is always applied to first Buyer, the shrink rule has been applied here, even though the Grower and Buyer are the same person.
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So, to clean these small negative amounts up we would suggest the following steps:
1. Additional transfer from Grower account if the Grower has inventory of the same grade, you can repeat the transfer process (Step 2.) to transfer the difference into the Buyer account to square off the negative, ensuring you account for the shrink component.
(shrink rates will depend on individual site/commodity, example Wheat 0.00700 / .993), using the above negative of -12mt you would need to transfer 12.08mt from the Grower to the Buyer account to bring this balance back to 0.00mt. Which is 12 divided by .993 = 12.0845, round up 2 decimal places).
OR
2. Navigate to Storage > Orders, Create a New Order (Bin to Bin) and enter the negative quantity amount in the 'Order Quantity'.
Select the most appropriate bins to move between, you may have specific segregations called 'shrink bins'.
The Order will now be in an 'Awaiting Deliveries' state.
2. You now want to deliver against this Order, Select 'Create Delivery' directly from the Order and deliver against it.
This will then 'credit' your inventory position in your Transaction Account by the chosen quantity.
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Note A little 'hack' for you when it comes to Tare and Gross weight; if for example, you need to total 0.12mt; Enter 1 in Tare and 120 in Gross, this will net at your desired 0.12mt
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3. To transfer this grain, you will need to create a contract with the buyer for $0 with a FIS price basis. Navigate to Transactions > Contracts, select 'Create new Contract', and enter in all necessary details in the form.
4. Navigate to Transactions > Inventory and locate the corresponding season and grade, select 'New Transfer' and simply transfer the desired amount to the Buyer account.
Now both Grower and Buyer accounts are reconciled, as is your inventory.