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CT3, Inc.
6900 SW 105th Avenue
Beaverton, OR 97008
503.646.1903 phone
503.646.2891 fax
mail: logsystem at

Negotiating creative contract and financial arrangements can impact your ability to acquire valuable Stumpage or Timberlands.  Unfortunately with many older systems, the contract flexibility you need to sign the deal, cripples your system's ability to correctly report your true results.  This makes it difficult to know later whether you made a good business decision or not.  In LMS you individually define and set up plan volumes, Appraisals, and Stumpage Contracts that adapt to the requirements of each acquisition.  With LMS, you can proceed with added confidence, knowing that the payments, accounting, and information will precisely execute your arrangements and accurately document the volume and margin results of your purchases.  

In addition to extensive management reporting, LMS fully supports two primary aspects of Timber Accounting:

comparisons of plan versus actual results, and
either issuing Stumpage Payments or expensing your purchase cost.

For each successful Stumpage Purchase, you can set up plan volumes for later comparisons with "cut out" volumes.  Or enter information from your financial Appraisal for later evaluation against actual realizations, costs, and margins.  You can even include allocated or non-contract type cost data, such as timber taxes, road amortization, reforestation, etc. in your comparisons.

Stumpage Purchases are usually either made on a "Pay-as-cut" or prepaid basis.  To authorize payments, Contracts are established to pay for Stumpage.  Rates can be established for each type of log that is removed, using general or very detailed characteristics.  Contracts can also be used to amortize either your initial lump sum investment or installment payments as stumpage volumes are harvested.    

Adjustments to correct payments can be made at any time.  Or  you can amortize any remaining balances for a Stumpage sale  within LMS to neatly close out your final Timber Accounting.

Stumpage cut out activity is recorded based on load information.  As load data is captured, preliminary stumpage payments and amortization can be edited as many times as desired before finalizing.  Edits identify loads with missing contract information or measurement tickets, so errors can be resolved quickly.  A fully automated payment and amortization process is completed by electronically sending finalized transactions to your Accounts Payable and General Ledger  systems.  

Stumpage Payment Features:

Plan vs. Actual Comparisons
Types of comparisons:
Plan volumes versus cut-out volumes (with actual load, length, diameter, etc. statistics)
Block Margin Reports - volume and dollar appraisals versus actual volumes, realizations, costs, and margins for each Stumpage Unit

Stumpage Contracts 
Types of Stumpage Contracts
Lump Sum
Depletion Rates may be established to calculate Fee Depletion amounts
Set Contract flag to:
make payments
amortize or deplete purchase amounts
Multiple Stumpage owners may be paid for each timber tract 
Dollar or Volume Caps 
Effective Date range
Rates may be based on Product, Log Sort, Species, Grade, Length, and/or Diameter Class. 

Payments, Amortization

Payment frequency and scope determined by user
Payments automatically withheld for specific vendors, or contracts.
Adjustments issued
Processing frequency determined by user
Settlement backup is comprehensive and well organized

System Interfaces
Issue Check Requests to Accounts Payable System
Advance Payment requests
Purchase Stumpage Payments
Create Journal Entries for General Ledger System
Account Distribution Reports
Custom interfaces to your Accounts Payable and /or General Ledger system

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