In early December 2018, Fonterra announced the new Advance Rate Schedule that saw the December '18 base Advance Rate set at $4.00, down from the previous rate of $4.15.
Simply put, this means that farmers will be paid $4.00 for all milk solids supplied in the month of December 2018, less a deduction of 15 cents on all of their milk solids supplied between June-November inclusive that have been paid at the $4.15 level.
We've suggested a couple of options below on how you could display this correctly in your working or draft plans
Option 1 (recommended)
Using the extended code Last Season's (LS) open a worksheet with a payment date of January 2019 in your working or draft plan.
Enter the total kg/MS that was produced between Jun to Nov in January e.g. 52,000 x .15 = -$7,950.00
Once January has finished, remove the amount you calculated for January from your plan.
Option 2
In the Dairy Forecaster, change the Base Adv Rate for supply months September - November from $4.15 to $4.00.
Everything will come out in the wash when the milk solids provided for the season to date are retrospectively paid in February.
Option 3
Create a new extended code under Milk Production for the Balancing Retro.
Make sure you set the code type to Expense.
Using the new extended code, open a worksheet with a payment date of January 2019 in your working or draft plan.
Enter the total kg/MS that was produced between Jun to Nov in January e.g. 52,000 x .15 = -$7,950.00
Finally, using the same extended code, enter the same amount as a credit in February.
