Reconcile a Grain Settlement Before Coding the Bank Deposit

Match the settlement to the deliveries

Start with the contract and settlement identifiers, then connect the relevant delivery tickets, dates, quantities and quality information. Where one settlement covers several loads, use a short reconciliation schedule so the total can be followed without reopening every email.

Each deduction should retain the label and explanation from the source record. Handling charges, other fees and contractual adjustments may require different bookkeeping treatment. Do not invent a category from the net amount; obtain clarification where the statement is ambiguous. The accountant also needs to know which amounts relate to earlier deliveries or a different reporting period.

Worked example: explain every dollar of the receipt

Illustrative example: a grain farm in the Regina region has gross settlement proceeds of $64,800. The statement identifies $1,620 of handling, $540 of drying and $210 of another documented deduction. Total deductions are $2,370, leaving an expected payment of $62,430.

The bank shows $61,930, a $500 shortfall against the statement. That difference should remain an identified exception until a revised settlement, additional deduction or payment correction explains it. Entering another $500 of miscellaneous expense merely to make the account balance would lose the question and could misstate both costs and tax treatment.

Separate a quantity question from a payment question

If delivered quantities disagree, investigate the delivery record first. If quantities and prices agree but the deposit differs, focus on settlement adjustments and payment references. These are different tasks and may involve different contacts. A clear reconciliation reduces the chance of repeatedly asking the buyer a general question that nobody can answer.

For management purposes, the farm may compare deductions per delivered unit or by contract. Use consistent units and preserve any conversion basis. The comparison is meaningful only when the underlying amounts are classified consistently; a change in crop quality should not be mistaken for a bookkeeping error.

Close the exception with evidence

Keep the response, correction and final bank match with the settlement package. The cash forecast should use the revised receipt date when a disputed amount remains outstanding. Income-tax reporting and GST treatment are assessed separately from this payment reconciliation.

• Match contract, delivery and settlement references.
• Recalculate gross proceeds less itemized deductions.
• Compare the expected payment with the actual bank receipt.
• Assign every remaining difference a next action and keep the resolution.

Put this into practice

• Reconcile operating accounts →
• Prepare the farm record package →
• Use realistic settlement dates →