Fish Meal and Oil

Companies who sell fishmeal and fish oil often make business deals that dictate that the price of the sale can change based on criteria that are most often measured during quality inspections e.g. a percentage of protein or water in the products. These discounts can go both ways, i.e. the seller can give a discount of the sale if the results of the quality check is not favorable but the buyer can also pay a higher price if the results of the quality check are better than was expected when the deal was made. The Wisefish system can calculate and keep track of these discount through a Fishmeal and oil discount feature in the Delivery Agreements.

Setup

For the discount feature to work there must be an item charge selected in the field Meal and Oil Discount (Item Ch.) under the agreements tab in the Wisefish setup that will be used for the posting and cost distribution of the discount.

Discount Calculations

The discount is calculated from the field Line Amont Excl. VAT in the Lines tab in a Delivery Agreement, regardless of whether there are one or more lines.

Filling in the Fish Meal and Oil tab

In the Fish Meal and Oil tab, first select a Meal and Oil Discount Group Code. If one does not exist then it must be created.

In the Meal and Oil Discount Groups there are two field (beside code and description) that must be filled in and they are Type and Premises of Price change.

Type - The options are Meal or Oil which do not have any effect on calculations and are just used to separate the discount groups.
Premises of Price Change - The options determine if and by what criteria a discount is given. The options are: Higher gives discount, lower gives discount and Difference gives price change.

The meaning of the premises of price change are that if „Higher gives discount“ is selected then a deviation from the % agreed upon gives a discount if the actual percentage is higher than agreed and the same applies to „Lower gives discount“ except that in that case if the discount is given if the deviation from the agreed upon % is lower. Ef „Difference gives price change“ is selected then the discount falls on either the buyer or seller based on whether the deviation is higher or lower than the agreed upon %. If the deviation is higher than the agreed upon % then the buyer pays a higher price but if the deviation is lower than the agreen upon % then the seller gives a discount.

When the discount group has been selected in the Fishmeal and Oil tab then the criteria for the discount calculation must be entered in the remaining fields which are:

Agreement % - Here the agreed upon % of the agreement is entered.
Actual % -Here the actual % of the agreement is entered.
Difference - Here the calculated % difference of the agreement and actual percentages is displayed.
Calculation type -The options are Percent and Prorate. If Percentage is selected then the difference in the amount is calculated as the Difference % the line amount/-s in the Lines tab.
If Prorate is selected then difference in amount is calculated as the Difference % divided by the Agreement % and the result is multiplied by the line amount/-s in the Lines tab.
Amount difference - Here the calculated amount difference is displayed based on what calculation type was chosen.

Invoicing

After the discount has been setup and calculated the delivery agreement is released and a posting document is created as with a normal delivery agreement. The sales invoice that is created will include the item lines from the agreement as well as an item charge, which contains the calculated discount from the Fish Meal and Oil tab. If the user is satisfied with the invoice it can now be posted.

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