Efficient cost accounting plays a crucial role in managing primary production businesses, for example when wineries come to purchase fruit from other growers. Harvest management is a crucial aspect of fruit processing, and having a comprehensive system in place ensures smooth operations and traceability. This article explores how growers can incorporate the cost of fruit into the final product price and implement a streamlined pricing system using Vinsight to simplify the process.
Now the harvest has been gathered, let’s have a look at how we can incorporate the cost of fruit into the final product price by linking the fruit delivery, purchase order and the final product to each other.
To begin with, a comprehensive harvest management system starts with the Harvest Entry, which serves as the documentation to record vital details such as quantity, date, and the source of the fruit received. This paperwork is vital for maintaining traceability and enables wine companies to track the progress of their operations effectively. Vinsight allows for easy tracking and linking of purchase transactions with harvest entries; wineries can ensure that the costs associated with these purchases are accurately reflected in the overall fruit costs.
To streamline the pricing process, wineries can create stock items representing each variety of grape they are planning to purchase and link them to the corresponding varieties in their management system. By doing so, it becomes easier to maintain and manage prices effectively with a clearer overview of the pricing structure.
In addition to standard pricing, Vinsight provides the flexibility to accommodate specific pricing arrangements with individual suppliers. By updating the ‘Contact’ option in the price lists area, wineries can establish unique prices for a supplier, differentiating them from the standard prices. This feature allows for more flexibility and accurate cost accounting when purchasing fruit from different growers. While Vinsight does not have an explicit grower contract feature, tools to manage expected prices are a big part of this.
As a part of the price control process, the prices can be set to expire at specified time. This feature proves valuable when wineries only set prices relevant for the current season. By automating price expirations, wineries can avoid potential discrepancies and confusion in their pricing structure, maintaining clarity and efficiency in their operations.
Furthermore, it is essential to consider additional factors such as additives and overhead costs when determining the final cost per liter.
Vinsight’s integrated harvest process simplifies the process of recording, tracking, and managing fruit deliveries, ensuring efficiency, traceability, and accurate cost tracking throughout the production cycle. By correctly incorporating the cost of fruit into the final product price, winemakers can ensure accurate cost tracking and streamlined pricing.
Read more about how Vinsight can help: Vinsight Documentation | Managing Harvest Costs – Vinsight Documentation