When you get your payment from Fonterra on the 15th of the month, this payment will have your total milk production payment,
LESS deductions and/or levies,
LESS your Farm Source monthly statement.
To be able to match the invoice with the transaction, follow these steps below:
Create a Money In Invoice for the Fonterra milk production income. Include the quantity of milk solids produced for the month as per your Fonterra statement and code under Milk Production: This Season. Attach the pdf of the statement for your records via the paper clip in the top right-hand corner.
If you have retro payments, enter these on a separate line but do not enter a milk solids quantity as it will distort your total production figures. See the note below about which dates are entered on the invoice.
Create a Money Out Invoice for your levies and deductions. Add lines to separate your Dairy NZ levies from any of your other deductions (if applicable). Ensure you use the same dates as your Money In (milk income) invoice above.
Code your Farm Source statement in full. If any items have been purchased in-store and are included on the Farm Source statement you will need to delete these item lines from your invoice and overtype the total amount to the correct value being charged.
Farm Focus has a direct feed with Farm Source which can be activated under Settings > Connectors > Connect Farm Source (see link to help centre resource below). If you have this connection set up, your monthly Farm Source statement will automatically appear as an invoice in the Needs Action screen with the item lines ready to be coded.
There is also the option to import your Farm Source statement as a CSV file via the upload icon in the top right-hand corner of your Needs Action screen (see below). The most efficient option is to use Connectors.
Once the bank transaction direct credit has occurred, you can use the Matching function by selecting the Matching tab on the header of your Needs Action screen.
Once inside the Matching screen, click the boxes for all three invoices, and the corresponding transaction. Then click the Match button (see link to help centre resource below).
OR
You can click on the Bank Transaction on the Needs Action screen and match it to all three invoices: Farm Source, Fonterra income, and Fonterra levies.
* Choose the expense invoices before the income invoice when you match.
What invoice date should you use for your Fonterra Money In and Money Out invoices?
Please talk to your accountant about which option is better for you.
You have two options:
Use the invoice date from your statement. This is usually the 7th of the same month that your Fonterra income was paid. For the invoice below this would be 07/11/2021.
Use the last day in the month when the milk was produced. For the invoice below this would be 31/10/2021. If you select this option, your EFS (Economic Farm Surplus) report will be comparable to your dairy forecaster.
Whatever options you choose, it is important to talk to your accountant and be consistent. Your Money In (milk income) and Money Out (levies) invoices should have the same invoice date.
More information