Case 1 Instructions:
The dealer orders and invoices seed for the grower. Payment for the customer's seed Invoice is made to the seed company directly. The product is delivered and invoiced to the dealer. A credit statement for the dollar amount of the seed the grower ordered is issued to the dealer.
At the end of the year, the seed company will send the dealer a check for their total commission.
Note: It is recommended to set up a Special Seed Program general ledger account to properly track posting.
- When the seed is delivered, enter a Purchase Invoice.
- Enter a credit AP Bill for the credit from the seed company for the growers seed purchase. Use the Special Seed Program account for the expense account.
- Invoice the grower for the seed after delivery.
- Take a payment for the seed Invoice, discounting to the Special Seed Program account.
Case 2 Instructions:
The dealer orders seed for the grower. The grower is invoiced from the seed company and the grower pays the seed company directly. The product is delivered to the dealer but never invoiced to them (they never own it). At the end of the year, the seed company will send the dealer a check for their total commission.
Note: It is recommended to set up a separate seed department to track these seed products.
- Enter a product specific Booking for the grower. Note on the Booking comments that the customer will be invoiced by seed company and should pay them directly.
- When the seed is delivered, the dealer will enter a Purchase Receipt.
- As product is delivered to the customer, a Delivery Ticket is entered.
- When the season is over, use return Purchase Receipts for any return product. The quantity for these seed products should be zero at this point.
- To clear out the Delivery Tickets, use Combine and Split Out to merge them all to the seed company. Invoice the seed company for the total amount of product at a $0.00 unit price.
- Enter a Purchase Invoice for the entire product received at a $0.00 unit price.
When the commission check comes from the seed company, take a payment for the seed company customer with the difference in the discount amount. Change the discount account to the seed commission account.
