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Re: Supplies vs expenses

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March 14, 1997 12:00AM
A brief explanation of how accounts are used in Farm Fund$.

The General Ledger is a record of every purchase, sale, transfer, and any other transaction.
Every line in the General Ledger is assigned an account. These accounts help to categorize how you spend and make money, as well as summarizing your assets and liabilities. Accounts are represented by a '$' in the Chart of Accounts.

Accounts can be as detailed or as broad as you need, but too many accounts will make financial reports very long and complicate recording of even simple transactions.

Accounts that group the equipment owned could be 1) Farm Equipment, 2) Office Equipment, and 3) Personal Vehicles. When you create an equipment account, Farm Fund$ automatically creates an Accumulated Depreciation account. Individual pieces of equipment are tracked within each account, and are listed on the Depreciation Report.

Accounts that group specific supplies could be 1) Seed, 2) Fertilizer and Lime, 3) Chemicals, 4) Fuel and Oil, and 5) Feed. When you create a supply account, Farm Fund$ automatically creates an expense account and a Beg. vs. Ending account that is tied to the supply account. For example when you add 'Seed' to the list of Supply accounts a 'Seed Expense' and a 'Beg. vs. Ending Seed' account is automatically created.

Do NOT create expense accounts for supply accounts. The tie between the Supply and the Expense account is made when the Supply account is created, and any account added by hand will not be tied to a Supply account.

When you purchase a supply item the Expense account will be added to. On the accrual books the Supply account and the Beg. vs. Ending account will be added to.

A listing of the individual item quantity and amounts in each account can be printed from the Supplies Inventory Report.

Accounts that group crops could be 1) Corn, 2) Soybeans, 3) Wheat. It is usually not necessary to have a separate account for each variety of a particular commodity. However if you market special varieties separately, you should have an account for each of them. When you create a crop account, Farm Fund$ creates three other accounts, a Harvested crop account, a Beg. vs. Ending account, and a Sales account.

Farm Works Software

Supplies vs expenses

Lyle VonSpreckelsen March 13, 1997 12:00AM

Re: Supplies vs expenses

Tony March 14, 1997 12:00AM

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