Tender Resale

Owned by Former user (Deleted)
Last updated: Jul 03, 2018 by Emma Greenwood

Overview

Tender Resale transactions are only available to users with a license for the Seafood Procurement feature.

The Tender Resale transaction is used to record transactions that have occurred between a tender and a fisherman. In some cases, tenders are “transferring” balances between themselves and fishermen, and in other cases they are facilitating a “sales” transaction from the company to a fisherman. Rather than requiring users to record these events using one Fisherman Sale transaction and one Balance Transfer transaction, the Tender Resale transaction allows both types of records to be entered within the same transaction.

Software Version

This guide is applicable for NorthScope version 2.8.8 and newer.

Prerequisites

Required Prerequisites

Before entering a Tender Resale transaction, users must complete the following:

  • Vendor Setup
  • Financial Account Setup

Optional Prerequisites

  • Set the Purchasing Preference for “Default Account – Settlement Accrual”. This will ensure that transactions will still post if the settlement account has not been manually configured for each fisherman or tender.
  • Turn on the integration for journal entries.
  • Attributes Setup for Fisherman - Tender Resale

Understanding the data flow

A Tender Resale transaction can be used to create sales transactions and balance transfer transactions between tenders and fishermen. When the transaction status is changed to “Ready to Post,” each line item creates one or two settlement transactions in NorthScope. If the line item is a Sale, then a single sale transaction is added. If the line item is a Transfer, then each line item will create two corresponding settlement transactions in NorthScope: one to record the 'Tender' and one to record the 'Fisherman' sides of the transfer.  A Tender Resale transaction can be deleted when the transaction status is set to 'New'.

In addition, a NorthScope journal entry is created and sent to the host system as a Transaction Entry in the Financial module for each Sale line item (no accruals are made for Transfers) with the debit account(s) defaulting from the Vendor's "Settlement Accrual" accounts and the credit coming from the “Purchase Account” assigned to the transaction line.

To view the data flow of Tender Resale transactions, click here. 

Step 1: Entering the Transaction in NorthScope

Entering a new transaction

From NorthScope, expand the Purchasing Module on the navigation menu and select “Fisherman Sales”. This will open the Fisherman Sales List View which displays all Fisherman Sales and Tender Resales with a status of New or Approved.

Click the “New” icon in the header toolbar and select “Tender Resale” to open a blank record view.

For more information regarding the Tender Resale transaction fields, refer to the online help here. 

Completing the header fields

  • Date: Enter the transaction date. This date will also be used as the general ledger date. The date defaults to the current date but can be edited. If edited, the date entered must reside within an eligible GL period. This field is required.
  • Doc No: Enter a number to identify the transaction. This field is required and must be unique by transaction type, meaning no two Tender Resales may have the same Doc No.
  • Fisherman: Select the fisherman to which a sale is being made, from which a return is being made, to which a balance is being transferred, and/or from which a balance is being transferred. 
  • Price List: displays a dropdown menu containing all of the available price lists to assign to the transaction.  This field is editable, the price list assigned to a fisherman will be displayed if a price list has been assigned to the fisherman selected in the transaction.  For more information on price lists, refer to the user guide here.
  • Status: This field is to select the status from the following options:
    • New - This is the default.
    • Approved - Used when there is a two-step process for finalizing transactions. Setting the status to “Approved” disables all editable fields except Status.
    • Ready to Post - Used when the user is ready to post the transaction. Setting the status to “Ready to Post” disables all editable fields including status.
  • Tax Class: This field is to select the Tax Class to apply to the taxable items on the transaction. This field is enabled only if the Company preference for 'Enable Sales Tax on Tender Resales' is set to 'Yes'. 
  • Tender: Select the tender who is conducting the sale and/or balance transfer. 

Adding line items

By default, new Tender Resales open with 5 blank rows for data entry. Complete the data entry by adding one line for each transaction.

Required line item fields

  • Description: Enter the description for the transfer (e.g. Skiff, Supplies, etc.) or sale item. This field defaults to blank but is required in order to save the line item. Once a sale item is selected, this field defaults accordingly. 
  • Item: Select the item being sold or select "Transfer" if the line item is to represent a balance transfer.
  • Price: Enter the price for the line item. Prices must be greater than or equal to 0 for sale line items and must be greater than 0 for transfer line items.
  • Purchase Account: Defaults to the item's sale account.
  • Extended: This field is read-only and displays the product of the price and the quantity. 
  • Quantity: This field defaults to 1 and must be greater than or less than 0. This field is required. 
  • Note: If the user wishes to record a Return, then the user must use the Quantity field to record the negative quantity being returned. For example, a return worth $500 would be entered by placing a -1 in the Quantity field and a positive 500 in the price field.

Assigning Attributes (Optional)

  • The Attributes tab on the transaction will include all user-defined Attributes assigned to the Fisherman - Tender Resale Transaction.
  • To setup Attributes for the Fisherman - Tender Resale Transaction, navigate to Company → Attributes → Fisherman → Transactions → Tender Resale.

Step 2: Finalizing the Transaction in NorthScope

Changes can be made to a transaction until it is finalized. To finalize a transaction, the user will need to change the status to “Ready to Post”.  In some companies, posting is a two-step process where transaction(s) are “Approved” by one person and posted by another.  

Approving the transaction

This step is optional and is used for companies that require a two-step process where there the person who approves the transaction cannot be the same person that posts the transaction.

To approve a transaction open it from the list view, change the status to “Approved”, and click the “Save” icon on the header toolbar. In addition to the validations performed each time the “Save” icon is clicked, there are additional validations that are performed:

  • Ensures there is at least one valid line item on the transaction.
  • Ensures that all default GL Accounts can be assigned.
    • The “Settlement Accrual” account for each fisherman or fisherman/tender selected.
  • Ensures the Doc Date resides within a valid fiscal period as determined by the host system. 

  • Ensures the required Attribute values have been entered.

Once the status has been successfully updated to “Approved”, all the editable fields, with the exception of Status, will be disabled.

Finalizing the transaction

When the transaction is ready to be finalized, the user must open it and change the status to “Ready to Post” and save the transaction. Setting the invoice to “Ready to Post” does the following:

  • Validates the same conditions as the approval status and locks down all editable fields including status.
  • Updates the transaction status to "Posted" and removes it from the list view
  • Creates the NorthScope journal entry and sends it to the Host System.
  • Creates the NorthScope Settlement transactions.

Note: The transaction cannot be Approved or Posted with the same Tender and Fisherman if there is a Transfer line item included on the transaction.

Step 3: Posting the accrual journal entry in the host system

For every Tender Resale that contains one or more line items with a line type of “Sale”, an accrual journal entry will be made in the host system if the integration setup for Journal is set to immediate or timed. These journal entries will appear in the host system's Financial module as a Transaction Entry in the batch titled NS followed by the year, month, and day with the following format: NS: YY_MM_DD. For example, if the Tender Resale was integrated on July 14, 2015, the Batch ID for the transaction entry would be NS: 15_07_14.  The line items with a type of “Transfer” do not create a journal entry.

Each Tender Resale journal entry description will be the NorthScope journal entry number followed by the NorthScope transaction ID followed by the NorthScope transaction name (i.e. 12345: TEN1000 Tender Resale).

Journal entries for positive sales lines

  • One debit line showing the summarized amounts for each unique fisherman or fisherman/tender “Settlement Accrual” account. The GL Account comes from the vendor’s “Settlement Accrual” account or, if missing, defaults from the Purchasing Preference for “Default Account – Settlement Accrual” account. 
  • One credit line showing the summarized amounts for each unique “Purchase Account” on the transaction. 

Journal entries for negative sales lines (Returns)

  • One debit line showing the summarized amounts for each unique “Purchase Account” on the transaction.
  • One credit line showing the summarized total for each unique fisherman or fisherman/tender “Settlement Accrual” account. The GL Account comes from the vendor’s “Settlement Accrual” account or, if missing, defaults to the Purchasing Preference for “Default Account – Settlement Accrual” account. 

Once the user is satisfied that all the GL Distributions are correct, the user can post the batch in the host system.

Note: Although this step is required, it does not need to be done for each transaction. Posting can be done nightly or as needed.

Step 4: Reviewing in NorthScope

Whether or not Step 3 is complete, the following occurs in NorthScope:

  • The Tender Resales that were posted will have their status automatically updated from “Ready to Post” to “Posted” and will no longer be visible in the Purchasing Transaction List View.
  • Settlement transactions will be added for each line item with a type of “Sales”.
    • Creates a "Due From" settlement record for the amount of the sale, due from the fisherman. 
    • Creates an "Owed To" settlement record for the amount of the return, owed to the fisherman.
  • Settlement transactions will be added for each line item with a type of “Transfer”.
    • Creates a “Due From” settlement record for the amount of the transaction line item, due from the fisherman.
    • Creates an “Owed To” settlement record for the amount of the transaction line item, owed to the tender. 

Once Step 3 is complete, the following occurs in NorthScope:

  • The NorthScope journal entry will update from "Ready to Post" to "Posted" and will no longer be visible in the Financial Journal Entries List View.