Process Spotlight: Entering Grower Production Costs Against Fields
One of the most common questions that we’re asked is how to link payments to a Grower back to the field costs. There are a few sections to set up before getting started with this process.
Sections to Set Up
Vendors
Under each Vendor that will be linked to a production field, you need to check the Grower checkbox. This will allow that vendor to display as a Grower or Landlord on a production field.
Product List
Create products in your product list for production items.
Naming Items
- Production Bushels will need to be named “Production Bushels.”
- Premium Payments will need to be named “Premium.”
- With any other items, carry through naming the item name to match what the product is for.
- Another example may be “Check-Off.”
Use the “class” or “sub-class” field to differentiate the costs for separate classes that you may pay production costs on.
Uncheck the “Receive to Inventory” checkbox as these will all be non inventory.
Production Fields
- Assign the year that the production field is for.
- Assign the Grower.
- Link all of the Landlords who will receive payment on the field and their percentage.
- Assign your Production in Progress Account.
- You may need to set up a new account (likely Other current Asset).
Create Bills to Pay the Grower
We recommend one (1) bill per item being paid so that it’s easier to track back to what is being paid at that time. Multiple bills can be assigned to one (1) check.
- Go to the Lines Tab and add a new line.
- Enter the quantity of bushels to pay and the price per bushel.
- In the Field ID, select the Field that the payment is linked to.
- This will only search for Fields that match the Vendor ID assigned as a Grower/Landlord on the field and the year.
- Save the line.
When you’re ready to pay these units, you will use a check to mark the bill paid. These bill lines will now display on the costs tab of the Field.
Accounting Flow
Bill with Non-Inventory line added linked to a field.
- Debit – Purchase/Expense Account.
- Debit – Any account entered on the account tab.
- Credit – AP Account selected.
At the same time the bill transaction is created, a 2nd transaction is created for the Production Field.
- Debit – Production in Progress Account on the Field
- Credit – Purchase/Expense Account of item
Important Notes
For all costs to flow the cleanest and to the final inventory, all bills linked to the field need to be entered PRIOR to any bins being added to a Production Bagging Request before completion.
Past procedures moved this process through a Purchase order first. If you are still using this method, you would set the products to a Purchase Order using the steps above. This way, you will add to a bill, receive the PO line, then from the bill use the “Add/Modify from Receivers” button to set the line to the bill as opposed to using the + to create a new line.
Production Bagging Request
When the bin from a field with production costs is added to a Production Bagging Request, it will check the field for costs and factor those plus any refuge costs into the cost per bushel. You will see the bin cost at the top of the Bagging Request. Before completing the request, you will be asked if you want to refactor the cost on the line to include those bin costs.
Accounting Flow
- Debit – Inventory Accounts of a Product.
- Debit – Inventory Variance account on a Product (rounding variances).
- Credit – Work IP for a field.
Note: Any costs associated with Fields AFTER Production has been completed will remain in the Production in Progress account and will need to be moved via a Journal Entry.
Reports
Menu – Reports – Bulk.
- The Grower Report will show the bushels priced and paid that are linked to a production report.
- The Bins Report will show what is still in bins.
Upcoming!
A new report that is on the way is the Grower PO/Bill report.
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