Produce Intake To Farmer Payout

This guide explains how an agriculture business can test the full produce flow: configure produce, receive a delivery from a farmer, grade it, sell or dispatch accepted produce, prepare settlement, and pay the farmer.

Use this example for coffee, maize, beans, milk, fresh produce, cotton, tea, or any produce where intake quality affects stock, sale value, and producer settlement.

Agriculture provides the produce-specific source workflows. Inventory, Inspections, Payments, Reporting, and GL remain the owner modules for stock truth, inspection truth, payout execution, report execution, and accounting impact.

Workspace Reference

Workspace	How Users Reach It	What Users Usually Do There
Parties	Parties -> Organizations or Parties -> Individual Clients	Create or confirm farmers, producer groups, buyers, transporters, and payout contacts.
Agriculture Setup	Agriculture -> Setup	Read produce-flow guidance and confirm which shared setup owners are required.
Inventory Setup	Inventory -> Setup	Prepare produce items, UOM, lots, warehouses, and stock behavior.
Inspections	Inspections -> Setup or Inspections -> Operations	Prepare grading standards and record the inspection/QC truth for delivered produce.
Producer Contracts	Agriculture -> Operations -> Producer Contracts	Capture producer supply terms, expected produce, quality basis, and settlement expectations.
Produce Deliveries	Agriculture -> Operations -> Produce Deliveries	Record intake quantity, source producer, destination location, and receipt reference.
Buyer Sales And Dispatch	Agriculture -> Operations	Sell accepted produce to buyers and dispatch it from the correct stock location.
Settlement Statements	Agriculture -> Operations -> Settlement Statements	Prepare settlement statements from approved produce evidence and commercial terms.
Payments And Accounting	Payments -> Operations -> Payment Batches, Reporting, Accounting	Verify instruments, execute farmer payouts, reconcile results, and review finance impact.

Scenario

Kato Coffee Farmers Group delivers parchment coffee to the collection center.

The agriculture business must:

• confirm the farmer-group party record
• confirm the produce item and intake UOM
• capture the delivery quantity
• grade the coffee
• accept part of the delivery and downgrade or reject any poor-quality portion
• hold accepted coffee in stock
• sell or dispatch accepted coffee to a buyer
• prepare the producer settlement statement
• pay the farmer group through an approved payment instrument
• review reports and accounting outcomes

End-To-End Flow

Step	Workspace	Business Meaning
1	Parties	Farmer group, buyer, transporter, and payout destination are confirmed.
2	Shared Setup Readiness	Inventory, UOM, warehouse, inspection, and payment prerequisites are prepared.
3	Producer Contracts	Commercial or operational supply terms are captured.
4	Produce Deliveries	Physical intake is recorded at collection or warehouse level.
5	Inspection / Quality Review	Produce is graded, accepted, downgraded, rejected, or sent for follow-up.
6	Stock Handoff	Accepted produce becomes available or controlled stock where inventory is used.
7	Buyer Sales	Accepted produce is sold to a buyer where applicable.
8	Dispatch	Produce is released to a buyer, processor, warehouse, or downstream location.
9	Settlement Statements	Accepted quantity, grade, price, deductions, and net payable are reviewed.
10	Payment Batches	Approved payables are paid through the shared payment batch process.
11	Reporting And Accounting	Finance and managers review stock, settlement, payment, inspection, and GL outcomes together.

How To Follow This In The System

Stage	Open From	Main Action
Farmer and buyer setup	Parties	Create or confirm producer and buyer records.
Produce catalog	Inventory -> Setup	Create or confirm the produce item, UOM, location, and stock policy.
Quality setup	Inspections -> Setup	Confirm grading, defect, measurement, or sampling standards.
Producer contract	Agriculture -> Operations -> Producer Contracts	Click New Producer Contract.
Produce intake	Agriculture -> Operations -> Produce Deliveries	Click New Produce Delivery.
Grading	Inspections -> Operations -> Inspection Records	Record the inspection/QC result against the delivery.
Buyer sale	Agriculture -> Operations -> Buyer Sales	Click New Buyer Sale.
Dispatch	Agriculture -> Operations -> Dispatch	Click New Dispatch.
Settlement	Agriculture -> Operations -> Settlement Statements	Click New Settlement Statement.
Payout	Payments -> Operations -> Payment Batches	Create or add to the producer payout batch.
Reconciliation	Payments, Reporting, and Accounting	Review execution, failures, retries, settlement, stock, and posting status.

The producer contract, produce delivery, buyer sale, dispatch, and settlement statement screens use the shared document form. Start with Document Header, then add Transaction Lines for produce items, charges, deductions, text notes, resources, or operations.

1. Confirm The Farmer Group And Buyer

Open Parties and create or confirm:

• Kato Coffee Farmers Group as the producer or supplier
• the buyer or processor that will receive accepted coffee
• transporter or agent records where they are tracked
• phone, bank, wallet, or cash payout details for the producer

Do not create a farmer-only record inside Agriculture when the party already exists. Agriculture should reuse the shared party record so contracts, deliveries, settlement statements, payment instruments, statements, and reporting point to the same identity.

Important party checks:

Field Or Detail	Why It Matters
Party name	User-facing identity shown on contracts, deliveries, settlements, and payouts.
Party role	Helps users distinguish producers, buyers, transporters, agents, and suppliers.
Phone or bank account	Source for verified payment instruments.
Active and approval status	Inactive or unapproved parties may be hidden or blocked from workflows.
Duplicate review	Prevents splitting one producer's deliveries and payouts across multiple records.

2. Prepare Produce Setup

Open Agriculture -> Setup for the produce flow guidance, then use the shared setup owners below.

Before intake, confirm:

• the shared stock category exists, such as coffee
• the shared stock item exists, such as parchment coffee
• UOM is clear, such as kg or bag
• receiving warehouse or collection point is active
• inspection and grading standards exist
• payment instruments can be created from party data
• accounting and settlement responsibilities are understood

Important produce setup fields:

Field	Meaning For The Test Flow
Produce Category	Shared stock grouping used for reporting, quality, stock, and settlement review.
Produce Item	Shared stock-managed produce selected on delivery, buyer sale, dispatch, and settlement lines.
Unit Of Measure	Quantity basis used during intake, sale, stock, and settlement.
Stock Behavior	Determines whether accepted produce becomes inventory stock.
Quality Standards	Shared grading and inspection evidence used before acceptance or settlement.
Active Status	Controls whether users can select the produce item for new activity.

3. Create The Producer Contract

Open Agriculture -> Operations -> Producer Contracts.

Click New Producer Contract.

The contract defines what the producer is expected to supply and the commercial basis for settlement.

Important contract fields:

Field	Meaning For The Test Flow
Counterparty	Kato Coffee Farmers Group.
Expected Date	Delivery period, commitment date, or contract review date.
External Reference	Producer contract number, cooperative agreement, or internal reference.
Stock Item	Parchment coffee or the contracted produce item.
Quantity and Unit Of Measure	Expected supply quantity.
Unit Price or Line Amount	Price basis if the contract captures commercial values.
Notes	Grade basis, deduction rules, transport terms, advance terms, or settlement instructions.

Submit and approve the contract when the agreement is ready to guide intake.

4. Record Produce Delivery

Open Agriculture -> Operations -> Produce Deliveries.

Click New Produce Delivery.

This records the physical intake at the collection point or warehouse.

Important delivery fields:

Field	Meaning For The Test Flow
Counterparty	Producer or farmer group delivering produce.
Document Date	Date produce was received.
External Reference	Weighbridge ticket, receipt number, collection note, or transporter reference.
Stock Item	Produce item delivered.
Quantity and Unit Of Measure	Delivered quantity before final quality decision.
Destination Warehouse	Collection point, store, warehouse, or processing location receiving the produce.
Lot Number or Batch Number	Traceability reference where required.
Notes	Contract reference, visible quality issue, packaging count, or intake exception.

Submit and approve the delivery when intake details are correct. Do not settle the delivery yet if quality is still pending.

5. Grade Or Inspect The Produce

Open Inspections -> Operations -> Inspection Records.

Click Record QC Inspection.

Quality Control decides whether the delivery can be accepted, downgraded, rejected, held, or sent for additional processing.

Important QC fields:

Field	Meaning For The Test Flow
Inspection Checklist Template	Approved grading or quality checklist.
Inspection Date	Date the produce was graded or checked.
Inspected Entity Type	Usually the document or record type being inspected. Service screens may preselect this.
Linked Record	The produce delivery being graded.
Overall Result	Pending, pass, fail, conditional pass, rework, or rejected.
Defect Count	Number of quality issues found.
Sample Size	Quantity sampled.
Quantity Passed and Quantity Failed	Accepted and rejected quantity.
Notes	Grade, downgrade reason, rejection reason, moisture condition, or settlement instruction.

Expected test result:

• passed quantity is eligible for stock, sale, dispatch, and settlement
• failed or rejected quantity is not treated as accepted stock
• downgraded or conditional produce has a documented reason before settlement

6. Confirm Stock Handoff

If accepted produce is stock-managed, review stock through Inventory -> Operations.

Check:

• accepted quantity is visible in the correct location
• rejected or downgraded portions are not mixed with accepted stock
• batch, lot, grade, or tracking references are visible where required
• stock movement or balance agrees with the accepted QC result

If stock is wrong, review the delivery line, destination warehouse, UOM, quality outcome, and stock movement status before creating buyer sales or settlement statements.

7. Create Buyer Sale

Open Agriculture -> Operations -> Buyer Sales.

Click New Buyer Sale.

Use buyer sales when accepted produce is sold commercially.

Important buyer-sale fields:

Field	Meaning For The Test Flow
Counterparty	Buyer purchasing the accepted produce.
Expected Date	Planned fulfillment date.
External Reference	Buyer purchase order, contract, or sale reference.
Stock Item	Accepted produce being sold.
Quantity and Unit Of Measure	Sale quantity.
Unit Price, Discount, Tax, Line Amount	Commercial sale value.
Source Warehouse	Location where accepted produce will be released from.
Notes	Grade, buyer instruction, delivery terms, or billing instruction.

Approved buyer sales can be followed by dispatch and billing where the process requires receivables.

8. Dispatch Accepted Produce

Open Agriculture -> Operations -> Dispatch.

Click New Dispatch.

Dispatch proves produce left the source location for the buyer, processor, warehouse, or downstream destination.

Important dispatch fields:

Field	Meaning For The Test Flow
Counterparty	Buyer, processor, warehouse, or destination receiving produce.
Expected Date	Planned delivery date.
External Reference	Delivery note, transporter reference, or buyer order reference.
Stock Item	Produce item being dispatched.
Quantity and Unit Of Measure	Quantity leaving stock.
Source Warehouse	Location the accepted produce leaves from.
Lot Number or Batch Number	Traceability reference where required.
Notes	Grade, packaging, transporter, delivery contact, or exception detail.

Do not dispatch rejected or unresolved produce unless a documented exception is approved.

9. Prepare Settlement Statement

Open Agriculture -> Operations -> Settlement Statements.

Click New Settlement Statement.

Settlement should be based on approved operational evidence: delivery, quality result, accepted quantity, grade, price, deductions, advances, and adjustments.

Important settlement fields:

Field	Meaning For The Test Flow
Counterparty	Producer or farmer group being settled.
Document Date	Settlement statement date.
External Reference	Contract, delivery, grading, or period reference.
Stock Item	Produce item being settled.
Quantity and Unit Of Measure	Accepted or adjusted settlement quantity.
Unit Price, Discount, Tax, Line Amount	Settlement value, deduction, or adjustment value.
Notes	Grade, deductions, advances, transport charges, quality adjustment, or approval explanation.

Submit and approve the settlement only after unresolved QC and quantity issues are cleared.

10. Pay The Farmer Group

Open the shared Payments -> Operations -> Payment Batches workspace.

Before payout:

• confirm settlement statement is approved
• confirm the producer has an approved payment instrument
• confirm the batch type and payment channel are correct
• validate the batch
• submit or approve according to workflow
• execute only when funding and destination checks pass
• review successful, pending, failed, cancelled, or reversed line outcomes

Important payout fields:

Field	Meaning For The Test Flow
Beneficiary Party	Kato Coffee Farmers Group or the approved payee.
Payment Instrument	Verified destination for the selected channel.
Amount	Approved net settlement amount.
Payment Channel	Cash, bank, mobile money, wallet, cheque, or other configured rail.
Narration or Reference	Settlement statement, delivery period, or payout explanation.
Validation Message	Explains whether the line can proceed.

11. Review Accounting And Reports

After payout and dispatch, review:

Area	Question It Answers
Produce delivery report	Which producers delivered what quantity?
Quality report	What quantity passed, failed, downgraded, or needs follow-up?
Stock report	Does accepted stock match delivery and QC evidence?
Settlement report	Which producers are prepared, approved, paid, or disputed?
Payment batch detail	Which payout lines succeeded, failed, or remain pending?
Accounting reports	Did stock, settlement, sale, and payout postings land as expected?

Pass Criteria For The Test Flow

The flow is complete when:

• the producer, buyer, and payout destination are clear
• the delivery uses the correct produce item, UOM, and warehouse
• QC is linked to the delivery and shows a clear result
• accepted quantity is separated from rejected or failed quantity
• buyer sale and dispatch only use accepted produce
• settlement statement reflects accepted quantity, grade, price, deductions, and adjustments
• farmer payout uses an approved payment instrument
• payment batch execution status is reviewed
• reports and accounting can trace the flow from delivery to payout

Common Problems

Problem	What To Check
Producer cannot be selected	Party role, active status, approval status, and service context.
Produce item is missing	Produce catalog, stock item active status, UOM, and category setup.
QC cannot link to delivery	Delivery approval status, inspection context, and inspected record type.
Settlement amount is wrong	Accepted quantity, grade, price, deductions, advances, and adjustment notes.
Payout line fails validation	Payment instrument, channel, currency, active status, approval, and verification.
Reports do not reconcile	Delivery, QC, stock handoff, dispatch, settlement, payout, and posting status.

Related Guides

• Agriculture Overview
• Agriculture Setup
• Agriculture Operations
• Document Transaction Operations
• Inspection Operations
• Payment Batches