Levridge Ag Sales: Streamlining Sales Agreements, Prepays, and Order Splits

The Levridge Ag Sales solution provides a unified solution to simplify operations, reduce manual effort, and enhance reporting.

Sales Agreements: The Foundation of Ag Sales

Sales agreements, often referred to as contracts or bookings in the ag industry, are the starting point for most transactions. In Microsoft’s system, these agreements are created under “sales agreements,” which is also accessible via accounts receivable.

Microsoft’s sales agreements are based around the idea of commitment types. The main one used, and the one with Levridge custom functionality built around it, is “product quantity commitment,” which specifies the amount and price of a product a customer agrees to purchase.

Once a sales agreement is created and marked as effective, it can be automatically applied to sales orders. This auto-application feature is a major time-saver, ensuring that the correct pricing and terms are applied without manual intervention.

If multiple agreements exist for the same item, the system prioritizes the oldest applicable agreement, consuming its quantity before moving on to newer ones. The out of the box Microsoft solution only allows one sales agreement to be used per order. With the help of Levridge, you can now apply multiple to each order by having it linked at the line level.

Prepayments: Flexibility and Control

Prepayments in Ag Sales are handled through a dedicated interface that allows for more nuanced application than standard customer payment journals. These payments can be linked to specific items, sales categories, or even directly to sales agreements. This flexibility is particularly useful for managing down payments or end-of-year purchases.

The system supports auto-application of prepayments, which means that when a sales order is created, any relevant prepayment is automatically applied to the order line. . Users can also manually adjust or remove prepayments if needed.

One of the standout features discussed was the ability to split prepayments across multiple lines or agreements.This allows for precise allocation of funds and ensures that financial records remain accurate and transparent.

Split Orders: Managing Shared Purchases

Split orders are another powerful feature, especially useful when multiple parties are involved in a single purchase. When a sales order is invoiced, the system can automatically split it into separate child orders based on predefined split groups. Each child order is treated independently, with its own invoicing and payment tracking.

This functionality mirrors what’s available in commodity sales and is particularly beneficial for managing joint purchases between farms or departments. The parent order is marked as canceled post-split, and all relevant activity is tracked through the child orders.

Pricing Hierarchies and Reporting

The order of application is: sales agreements first, followed by prepayments, and then trade agreements. This ensures that the most specific and intentional pricing is applied first. However, if a sales agreement lacks a price, the system will defer to the prepayment or standard pricing.

The Levridge Ag Sales solution offers robust tools for managing sales agreements, prepayments, and split orders. With features like auto-application and flexible allocation, it reduces manual effort and improves accuracy. As adoption grows, continued feedback and iteration will help refine these tools even further, making them indispensable assets in the ag sales toolkit.