How to manage Fonterra and Farm Source statements if you are not using the Fonterra connector

Managing Fonterra Payments and Farm Source Statements

NOTE: Farm Focus has a direct feed with Fonterra, which can be activated under: Settings > Connectors > Connect Fonterra. Best practice is to use the Fonterra connector as it saves time and ensures accuracy - Learn more here.

This resource is for Fonterra suppliers that do not use the Fonterra connector.

When you receive your Fonterra payment on the 15th of each month, it will include:

• Your total milk production payment.

• Less deductions and/or levies.

• Less your Farm Source monthly statement.

To correctly match your invoices with transactions, follow these steps:

1. Record Your Fonterra Milk Production Income

• Create a Money In Invoice for your Fonterra milk production income.

• Include the quantity of milk solids produced for the month as per your Fonterra statement.

• Code this under Milk Production: This Season.

• Attach a PDF of the statement using the paperclip icon in the top right-hand corner.

• If you receive retro payments, enter these on a separate line without a milk solids quantity to avoid distorting production figures.

2. Record Levies and Deductions

• Create a Money Out Invoice for levies and deductions.

• Add separate lines for Dairy NZ levies and any other deductions.

• Use the same invoice date as your Money In invoice.

3. Code Your Farm Source Statement

• Code your Farm Source statement in full.

• If you have in-store purchases listed, delete these item lines and adjust the total amount.

4. Automate Farm Source Statements (Recommended)

Farm Focus has a direct feed with Farm Source, which can be activated under: Settings > Connectors > Connect Farm Source.

• Once connected, your monthly Farm Source statement will automatically appear in the Needs Action screen as a pre-coded invoice.

• Alternatively, you can import your Farm Source statement as a CSV file using the upload icon in the top right-hand corner of your Needs Action screen.

5. Match Transactions

Once your bank transaction appears, use the Matching function:

1. Go to the Matching tab in the Needs Action screen.

2. Select all three invoices (Fonterra income, Fonterra levies, and Farm Source).

3. Click Match.

OR

• Click the bank transaction in the Needs Action screen.

• Match it to all three invoices.

• TIP: Select the expense invoices before the income invoice when matching.

Choosing the Invoice Date for Your Fonterra Invoices

Consult your accountant to determine the best option for your records. You can choose to:

1. Use the invoice date from your Fonterra statement (usually the 7th of the month the payment is received).

2. Use the last day of the production month (ensuring comparability with your Economic Farm Surplus (EFS) report and dairy forecaster).

Whichever option you choose, be consistent. Your Money In (income) and Money Out (levies) invoices must have the same date.