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How To: Pay for Cull
1. BackgroundOften times, mills will make deductions for loads with inferior quality logs, usually referred to a culls. This process may be performed at the weigh scale (by the scale attendant) or later when the load is unloaded in the yard. In either case, the new weight of the load is usually reduced by the estimated weight of the culled logs. For example, a load might have a net weight of 50,000 lbs, and have culled logs of 1,500 lbs, yielding an adjusted net weight of 48,500 lbs.
Mills treat the culled weight in several ways.
(1) A mill might simply exclude the cull weight from payment and pay on the adjusted net weight of 48,500.
(2) A mill might pay based on the net weight (before cull has been deducted), and then make a pay deduction based on the cull weight multiplied by a 'deduction' pay rate.
(3) A mill might pay (in full) based on the adjusted net weight (net weight after cull has been deducted) and then pay for the cull weight at a reduced pay rate.
Each of these scenarios can now be handled in the The Logger's Edge. In prior versions of The Logger's Edge prior to (prior to ver. 4.5.5), you could pay loads based on the pre-cull weight or the adjusted net weight (after cull deduction), but there was no way to pay for the cull at a reduced rate or make a pay deduction for the cull weight. See How to Manage Cull for the directions on how to pay on the adjusted net weight (instead of the pre-cull weight). This document explains how to set up a distinct pay rate for the weight, where the pay rate can be a positive rate or a negative rate (used for a deduction).
2. Steps
You first need to check the enable cull support in Basic Setup:
Next, you need to enable the CULL_RATE field on the Pay Contract Rates table (for pay) and/or the CULL_RATE field on the Revenue Contract Rates table for revenue. The cull rates can be applied on either the pay side or the revenue side of the equation, or both.
Pay Contract Rates:
Revenue Contract Rates:
Finally, you need to go under Setup | Pay Basis (logged on as administrator) and activate the basis called "CULL." The Pay Basis CULL is added by an (automatic) upgrade (with version 4.4.5) and is Type 15.
Load Ticket
With the 'Cull Support' flag turned on, the load ticket has two more entries: One for 'Cull Deduction' and one for 'Adj weight'. See Below.
The Adj (adjusted) Weight of the load is the Net Weight less the Cull Deduction.
Setting up a Pay Contract Rate
When the 'Cull Rate' has been added to the pay contract rates table, there will be an additional column in the pay contract rates grid:
In the rates grid above, the first row for Trucking can be interpreted as: pay loads at a rate of $18.00/Ton for the net weight (before cull deduction) and then deduct $2.00/Ton for cull weight. Thus, for a load of 25 tons and 1.5 tons of cull, the pay would be $450 ($18 x 24 tons) less $3.00 ($2 x 1.5), for net pay of $447.00.
The pay basis for the
cull is the same as the pay basis for the regular rate.
The second row for Cutting can be interpreted as: pay loads at a rate of $82.00/MBF for the load after deduction for the cull, and then pay the cull portion of the load at a rate of $25.00/MBF. For example, suppose we have a load of 50,000 lbs, with a cull amount of 2,000 lbs. In order to pay by MBF, you need to have a conversion rate set up to convert pounds into MBF. Let us assume that this rate is 12,000 lbs per MBF. In this case the adjusted net weight is 48,000 lbs, which converts into 4.000 MBF. The cull weight of 2,000 lbs converts into 0.167 MBF. So, the pay for the load would be $328.00 (=$82 x 4.000 MBF) plus $4.18 (=$25 x .167) for a total pay amount of $332.18.
In the pay calculator,
two records are created for each part of the load pay: the regular pay
record and the cull pay record. The cull pay record inherits all the
attributes of the regular pay record, except that the pay basis is set to
'CULL'. The pay calculator recognizes a cull payment and does not create a
'multi-pay' error.
The cull rate on the revenue side works the same way.
Pay Statements
Pay is calculated during the normal running of the pay calculators (vendor, employee or invoice)
The following grid shows the results from running the vendor calculator:
Note that for each load that has a non-zero cull amount, two records appear. In the example above, ticket #22313 (row 16) has a regular revenue record and a second cull record. The cull record is noted by a "-C" suffix. For this ticket, the regular pay rate is $14.50 per ton and the culled logs get paid at a rate of $6.00 per ton. Ticket #22310 shows the case where the regular rate of $12.50 is applied to the full weight of the load (including the cull) and a deduction of $2.50/ton is made for the culled weight (the deduction is indicated by the negative sign).
The following grid show the results for the Revenue Calculator:
Note that for each load that has a non-zero cull amount, two records appear. In the example above, ticket #70666 (row 8) has a regular revenue record and a second cull record. The cull record is noted by a "-C" suffix. This example shows a case where the load is paid based on the adjusted net and the cull is paid at a reduced rate. The load counts should reflect the number of distinct loads paid, thereby excluding the extra cull records.