Hi all.
I'll simplify my use case into that of a cabbage farmer who wants to track
his produce until and including sales.
I see the harvested produce as income of some commodity (cabbage), want to
store it somewhere, move it somewhere else, then process it (into salad),
move the salad to yet another location, then sell it.
So here's my assumption: harvested produce is income, no? (Otherwise, where
else would it come from?)
So the harvest looks like:
2018/03/21 farm
income -5 cabbage
inventory:farm 5 cabbage
>From the farm they go to the processing plant, where they will be
transformed into 2 salads:
2018/03/21 farm
inventory:farm -5 cabbage
inventory:plant 2 salad
Note that the cabbages have not received any financial value, because there
was no attempt to sell them.
Now I move the salad to the store and sell them there the same day:
2018/03/21 farm
inventory:plant -2 salad
inventory:store 2 salad
2018/03/21 buyer
income -2 salad {= $ 2}
cash
My problem is that the *assets:store* account still contains a positive
balance of the *salad* commodity, while there is none.
So according to ledger (not its fault, purely mine, hence this question)
there is still an inventory of *salad*.
Can anybody help me with this? I'd like the inventory (*assets:store*) to
be cleaned up after we've got rid of all those cabbages.
Clearly I need an entry with *assets:store -2 salad* to do this, but I
can't imagine what to use as the balancing account.
Another problem is that I'm noting a double income here.
Well, I see that I'm still developing the question, so please hang on and
bear with me:
Would a better way maybe be to see the 5 cabbages used in the plant as an
expense against the previous income at harvest time? As in:
2018/03/21 farm
; harvest
income -5 cabbage
inventory:farm 5 cabbage
2018/03/21 farm
; moved to production plant
inventory:farm -5 cabbage
inventory:plant 5 cabbage
2018/03/21 farm
; consumed in plant
expenses 5 cabbage
inventory:plant -5 cabbage
; great, this got rid of the inventory of cabbages which are being
transformed into salads right now!
2018/03/21 farm
; entry of salads produced
income -2 salad
inventory:store 2 salad
2018/03/21 farm
; Now the salads are produced and in store and need to be sold. Can I
write this as follows?
inventory:store -2 salad {= 2 $}
cash 2 salad {= 2 $}
The only problem I have with this is that the income from salad is recorded
before selling it, but then, they were derived from the income during
harvest anyway, so maybe that's not a big deal?
To mitigate this we could probably split the sale into an accounts
receivable in which the income is accounted as an aggregate asset, and a
payment part, like
2018/03/21
assets:store -2 salad {= 2 $}
assets:accounts receivable 2 salad {= 2 $}
; the sale
assets:accounts receivable -2 salad {= 2 $}
assets:cash 2 salad {= 2 $}
; the payment
Any ideas?
Suggestions as to how to do it better? (According to official accounting
rules?)
Thanks in advance.
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