You have to put the cost of getting that revenue along with the cash position.
As such it would be: Revenue $2 Expenses:cost:salad 2 salad Inventory: plant -2 salad Cash The way it is being done revenue is getting confused with cost > On 20 Mar 2018, at 04:01, Ella Lobatina <[email protected]> wrote: > > 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. > > -- > > --- > You received this message because you are subscribed to the Google Groups > "Ledger" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. -- --- You received this message because you are subscribed to the Google Groups "Ledger" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
