## Performing Final Settlements

This section provides an overview of final settlements and discusses how to:

- Review harvest receipts.

- Review final settlements.

- Revise assessments and donations.

- Change voucher due dates and amounts.

- Generate vouchers for final payments.

- Create final payments.

- Print final settlement statements.

- Release and close out prepayment vouchers.

### Understanding Final Settlements

The last step in the harvest cycle is processing the final settlement for the harvest. The settlement process is oftentimes a multistep process that is performed by multiple people and consists of these steps:

Final settlements process

In preparation of the final settlement, you perform a final settlement review, which includes reviewing all assessments and donations, as well as all vouchers that are ready for final payment.

As a result of your final review, you will typically revise or add assessments or donations and generate vouchers for the payee amounts that have not yet been paid on the contract.

Ensure that the harvest is at a complete status so that when your final review is complete, you can generate final vouchers for your payees and issue final payments. After you generate final vouchers for payees and the remaining amount is zero, the system adds a voucher line item for the assessments and donations so that they can be paid.

When the remaining amount is zero, print a final settlement statement to send to the grower. The Final Settlement Statement (R40G400) shows all transactions that were applied throughout the harvest cycle, including advance and interim payments, adjustments, bonuses, and penalties, as well as the final settlement amount, which shows the assessments and donations and the final payments that are due.

The settlement process is oftentimes a multistep process that is performed by multiple people. The process consists of these steps:

1. Review harvest receipts.

2. Review the final settlement.

3. Revise or add assessments and donations, if applicable.

4. Change payment due dates or amounts, if applicable.

5. Generate vouchers for payees.

6. Create final payments.

7. If applicable, generate vouchers and create payments for any partially paid vouchers.

8. Print a final settlement statement.

You use the Final Settlement program (P40G300) to review transactions that have been paid and transactions that have not yet been paid for a harvest. You can review and settle only one harvest at a time; you cannot settle the entire contract. The final settlement is your last opportunity to revise or add assessments and donations and change payment due dates or amounts.

### Reviewing Harvest Receipts

This section discusses how to review a harvest receipt.

#### Form used to Review Harvest Receipts

Form Name | FormID | Navigation | Usage
Receipt Price Review | W40G200C | Periodic Settlement Processing menu (G40G221), Receipt Review/Interim Payments | Review harvest receipts.

#### Reviewing a Harvest Receipt

Access the Receipt Price Review form.

This form is described in another task.

See Reviewing Harvest Receipts.

### Reviewing Final Settlements

This section discusses how to:

- Set processing options for Final Settlement (P40G300).

- Review a final settlement.

#### Form Used to Review Final Settlements

Form Name | FormID | Navigation | Usage
Settlement By Harvest Block | W40G300A | Periodic Settlement Processing (G40G221), Final Settlement | Review a receipt.

#### Setting Processing Options for Final Settlement (P40G300)

Processing options control the default settings for programs.

Processing

1. Harvest Period | Enter the current harvest period in which to review final settlements and generate vouchers. The harvest period number that you specify appears on the Settlement By Harvest Block form.
2. Update Harvest Status | Specify whether to update the harvest to a close status. Values are: Blank: Update. 1: Do not update. If the system does not close the harvest record, you must do so manually using the Add/Edit Grower Harvest form from the Harvest Workbench program (P40G032).
3. Voucher Generation Mode | Use this processing option to specify whether the user is allowed to generate vouchers during final settlement. Values are: Blank: Allow. 1: Do not allow.

Versions

1. AP MBF Version (P0400047) and 2. GL MBF Version (P0900049) | Enter the version of the master business functions for Voucher Entry (P0400047) and Journal Entry (P0900049).
3. P0411 Version | Enter the version of the Prepayment Voucher Entry program to use.
4. Voucher Match Version (P4314) | Enter a specific version number for the Voucher Match program. If you leave this processing option blank, the system uses ZJDE0001.

#### Reviewing a Final Settlement

Access the Settlement By Harvest Block form.

Receipt Summary Averages

The fields in this area of the Settlement By Harvest Block form show the base and final prices for a harvest, penalty and bonus amounts, quantity received and quantity to pay, manual adjustments, and the gross amount.

Penalties and Bonuses | Displays amounts for penalties and bonuses, which are often affected by quality test results.
Manual Adjustments | Displays the total amount for manual adjustments that are not associated with the contract price. This amount reflects the adjustments that you entered on the Price History form when you conducted the receipt review.
Gross Amount | Displays the total receipt amount. Formula: Gross Amount + or − Assessments and Donations = Net Payment

Assessments

The fields in this area of the Settlement By Harvest Block form show amounts due for individual assessments and donations.

Unlabeled Fields

The fields in this area of the Settlement By Harvest Block form show the currency code of the contract, total amount of assessments, net payment, amount paid-to-date, and the remaining amount.

Total Assessments | Displays the total amount due for the assessments and donations that appear in the Assessments area of the form.
Net Payment | Displays the payment amount that has been issued to growers and other payees. This amount includes assessments and donations.
Amount Paid to Date | Displays the total amount paid to date. This amount is the cumulative total of the amounts that appear in the Amount Paid to Date field in the voucher detail area of the form.
Remaining Amount | Displays the remaining amount owed on the contract. Formula: Net Payment − Total Amount Paid to Date = Remaining Amount If the remaining amount is zero, the system creates voucher matches for all receipts and adds a line item for assessments and donations.

Vouchers and Payments

The fields in this area of the Settlement By Harvest Block form show all payments that have been issued to date, as well as voucher amounts that are still owed to payees. The system calculates the amount due for all payees based on harvest amount received and amount paid-to-date to the payee.

See Changing Voucher Due Dates and Amounts.

### Revising Assessments or Donations

This section discusses how to revise an assessment or a donation.

#### Form Used to Revise Assessments or Donations

Form Name | FormID | Navigation | Usage
Settlement By Harvest Block | W40G300A | Periodic Settlement Processing (G40G221), Final Settlement | Review a final settlement.
Edit Contract Harvest | W43C11A | On the Settlement By Harvest Block form, click Add Assessments. Click the Assessments/Donations tab. | Revise an assessment or donation for the final settlement. You can also add an assessment or donation on this form.

#### Revising an Assessment or a Donation

Access the Add Contract Harvest form.

After you revise the amount for an assessment or donation, or add a new one, the system automatically refreshes the Settlement By Harvest Block form and displays it for your review.

See Adding an Assessment or a Donation to a Contract.

### Changing Voucher Due Dates and Amounts

This section provides an overview of voucher changes and discusses how to change a voucher due date and amount.

#### Understanding Voucher Changes

During the final settlement, you can:

- Change the amount due or the due date on a voucher.

- Deselect a voucher.

If you change the amount due on a voucher and create a partial payment, the remaining amount of the voucher will continue to appear on the Settlement By Harvest Block form until it is fully paid. Similarly, if you change the due date or deselect a voucher to prevent it from being paid, the voucher will continue to appear on the form until it is fully paid.

#### Form Used to Change Voucher Due Dates and Amounts

Form Name | FormID | Navigation | Usage
Settlement By Harvest Block | W40G300A | Periodic Settlement Processing (G40G221), Final Settlement | Change a voucher due date and amount.

#### Changing a Voucher Due Date and Amount

Access the Settlement By Harvest Block form.

Voucher records that are fully paid are disabled on this form.

Select | To deselect a voucher and prevent it from being paid now, clear this check box.
Amount Due | Enter a new amount. For example, assume that a voucher amount is 500.00 USD and you decide to partially pay half of the amount due. You would change the value in this field to 250.00. The remainder that is owed for the voucher will continue to appear on the Settlement By Harvest Block form until it is fully paid.
Due Date | Enter a new date. The voucher will continue to appear on the Settlement By Harvest Block form until it is fully paid.

### Generating Vouchers for Final Payments

This section provides an overview of vouchers for final payments and discusses how to generate a voucher for a final payment.

#### Understanding Vouchers for Final Payments

To generate vouchers for final payments, these conditions must exist:

- The harvest status must be complete.

- A GL distribution account must be assigned to the prepayment processing option in Standard Voucher Entry (P0411).

- A currency code must be assigned to the payee record if multicurrency processing is set up.

- The due date rule, which is assigned to the payment term on the payee payment schedule, must be based on total receipts (TR).

When you click the Generate Voucher button on the Settlement by Harvest Block form, the system:

- Creates prepayment vouchers for final payments that are due.

  You can put these vouchers on hold, if necessary.

- Creates prepayment vouchers for partial payments if you pay only part of the amount due to a payee.

- Marks the payee record as paid if the full amount for the payee on the contract is paid.

- If the remaining amount due on the contract is zero, the system:

  - Processes three-way voucher match for all receipts.

    This closes out the purchase orders.

  - Adds a voucher line item for assessments and donations.

    You must create payments for these assessments and donations.

- Updates the harvest status to close if a processing option is set accordingly.

- Marks the contract harvest as paid.

Note. If the remaining amount due on the contract is not zero, the remaining amounts that are owed to growers and payees continue to appear on the Settlement By Harvest Block form until they are paid. The final settlement is not complete until the remaining amount due is zero and all transactions have been processed.

#### Form Used to Generate Vouchers for Final Payments

Form Name | FormID | Navigation | Usage
Settlement By Harvest Block | W40G300A | Periodic Settlement Processing (G40G221), Final Settlement | Change a voucher due date and amount.

#### Generating a Voucher for a Final Payment

Access the Settlement By Harvest Block form.

Generate Voucher | Click the Generate Voucher button. When you click this button, the system creates prepayment vouchers for final payments due. If the remaining amount on the settlement is zero, the system also creates voucher matches for assessments and donations.

### Creating Final Payments

This section provides an overview of final payments and discusses how to create a final payment.

#### Understanding Final Payments

After you generate vouchers for final payments, the next step in the final settlement process is to create the payments using either the manual payment program (P0413M) or the automatic payment program (R04570). These are the same programs that you use to create other types of payments. No special processing is required to create the final payments.

#### Form Used to Create Final Payments

Form Name | FormID | Navigation | Usage
Work with Payments | W0413MB | Periodic Settlement Processing (G40G221), Work with Payments | Create a final payment manually.

#### Creating a Final Payment

Access one of the following:

- Work with Payments form (for manual payments).

  See Processing Manual Payments.

- Create Payment Control Groups (for automatic payments).

  Select Automatic Payment Processing menu (G0413), Create Payment Control Groups.

  See Processing Automatic Payments.

These programs include these fields, which are specifically used for contracts: Contract Code, Block Code, Harvest Period, Harvest Suffix, Contract ID, and Harvest ID.

### Printing Final Settlement Statements

This section provides an overview of final settlement statements and discusses how to:

- Print the Final Settlement Statement.

- Set data selection for the Final Settlement Statement.

#### Understanding Final Settlement Statements

When the final settlement is complete and the harvest is closed, you should print the Final Settlement Statement and send it to the grower. The Final Settlement Statement shows all of the transactions for the harvest period, including the final payments.

The information that appears on the Final Settlement Statement is the same information that appears on the Settlement By Harvest Block form, with these exceptions:

- The Final Settlement Statement report shows the payment schedule from the harvest record.

  This includes the distribution date, delivery percent, days add, months add, fixed days, and percent of split, from the payment schedule and the based on code from the advanced payment term.

- The Final Settlement Statement does not show the account number that appears on the Settlement By Harvest Block form, because that is needed for internal purposes only.

Many of the fields that appear on the Final Settlement Statement are described in another task.

See Reviewing Final Settlements.

Note. You can print the Final Settlement Statement report throughout the harvest cycle to review a “snapshot” of the harvest transactions at a certain point in time. For example, you might print the Final Settlement Statement and send it with an advance or interim payment to a grower.

#### Printing the Final Settlement Statement

Select Periodic Settlement Processing, Report (G40G2211), Final Settlement Statement.

#### Setting Data Selection for Final Settlement Statement

No processing options exist for the Final Settlement Statement report. Use the data selection to identify the contract code, block code, and harvest period that you want to include on the Final Settlement Statement.

### Releasing and Closing Out Prepayment Vouchers

This section provides an overview of prepayment vouchers and lists the forms that are used to release and close out prepayment vouchers.

#### Understanding Prepayment Vouchers

When the remaining settlement amount equals zero and you generate vouchers for final payments, the system automatically generates a voucher that equals the total of the advance, interim, and final payments on the contract. This voucher is used to close out the purchase order by matching the voucher pay items to the purchase order and purchase order receipt lines. This is considered a three-way matched voucher.

Previously, when you created vouchers for advance and interim payments, the system generated prepayment vouchers (in a negative amount) and placed them on hold. It also generated prepayment vouchers when you created vouchers for final payments and placed them on hold as well. To close out your negative prepayment vouchers you must release these prepayment vouchers from hold. Then you must create a payment that includes your negative prepayment vouchers and your three-way matched voucher. The difference between these vouchers will net to zero.

To create zero amount payments automatically to close out prepayment, you use the Create Payment Control Groups program (R04570) on the Automatic Payment Processing menu (G0413).

#### Forms Used to Release and Close Out Prepayment Vouchers

Form Name | FormID | Navigation | Usage
Supplier Ledger Inquiry | W0411G | Periodic Settlement Processing (G40G221), Release Held Vouchers | Release prepayment vouchers that are on hold.
Work with Payments | W0413MB | Periodic Settlement Processing (G40G221), Work with Payments | Create zero amount payments manually to close out prepayment vouchers.