Emydex CAPS off the year with a new Livestock Settlements System
For most Meat processors, the procurement of raw materials, especially Livestock, is by far the largest variable cost for the business to manage. Therefore, being able to ensure the Accurate andTimely payment for this stock is a key requirement. Many Meatprocessors choose to differentiate themselves from their competitors based on the speed and accuracy of payment to their suppliers. Emydex’s recently redeveloped Central Animal Payment System (CAPS) is designed to meet this requirement specifically, as well as to provide functionality that provides parameter-driven flexibility to meet all current and future requirements.
Calculating Animal Settlements
The key to the success of the system is the ability to design animal payment ‘methods’ that can be added to the system as a component to suit individual customer needs without modifying the existing system. This means that if there is a requirement for a new way of paying a supplier, whether it be based on a contract, supply volumes, average market process, or a complex grid-based system, these can be developed and ‘locked in’ to the existing system as a snapshot for later retrieval.
As standard, the Animal Payment System caters to multiple payment grids where any data from the kill floor or kill ‘lot’ (delivery) can be incorporated into multiple axes of a grid to generate a payment.
This might be a weight range and fat score or a meat marbling score and dentition range i.e. virtually any combination of data elements that can be measured as part of livestock processing.
Multiple grids can be used to accumulate values such as a supplementary ‘bonus’ value or to allow a record to pass to a second grid if the criteria for the first grid e.g. a carcass that is too heavy or old for the first payment grid. This ‘fall through’ process can be repeated until a grid that matches is finally found.
Cattle Payment Invoicing and Adjustments
The system is capable of producing recipient-created tax invoices (RCTI) for suppliers (farmers), third-party agents, commissioned livestock buyers, transport companies and service or contract kills (an accounts receivable transaction rather than the usual accounts payable).
User-defined adjustments, again using virtually any of the data in the system, can apply adjustments to this invoice to either deduct money for items such as carcass faults, levies, transport costs etc. or apply a rebate such as a ‘skin’ or hide credit. These can be applied automatically using pre-defined ‘settlement schemes’ (groups of adjustments) or added manually on a case-by-case basis.
As a carcass is produced, the system can calculate the cost for the carcass per kg (or lb) by running each carcass record through the various livestock settlement processes to generate the total cost, so not only is the cost of the purchase from the supplier included but also the cost of freight, commissions etc.
Costs that do not appear on any invoice such as a kill fee can also be included if required. This allows for carcasses to be costed before the payment is finalised so if the carcass is disposed of via a sale or boning process, the cost can be reported as part of the input to the process for accurate costings. Alternatively, carcass costs can be updated once the payment is finalised.
Animal Payment Reporting
Invoice and costing data can be updated to an in-house or 3rd party provider ERP or Financial system for payment with full audit trails and costing audits available in the CAPS system. Standard reports are available and data from the payment system can be surfaced using the in-built Emydex Business Intelligence (BI) tool.
Kill data can be from Emydex kill floor systems or up-uploaded from multiple sources and sites to allow for a centralized system for consolidated processing and reporting.
Centralised Payments catering for large Enterprises
Given the flexibility and extensibility of the system, current and future needs can easily be met with an ‘out of the box’ system. Once configured the system can generate payments, email all parties involved and update costs and financial systems at the push of a button. Payment processes that would traditionally take hours can be streamlined and the labour requirements significantly reduced.
Accurate costings allow for true profitability costing as the input costs to sales and further processing are readily available.
With the ability to run as a centralised process taking data from many sources, both large enterprises to single site operations can all gain tremendous advantages from the new system.
If you want to learn more – contact Ireland, Australia, New Zealand, South Africa, or North America offices.