On Tue, Mar 20, 2018 at 7:01 AM, Ismael Bouya <
[email protected]> wrote:
> Hi Ella,
> I think you’re missing something important in your workflow.
>
> Your income should be the net gain: At some point, you bought something
> to start with (or farmed/found them, which should(?) be seen as the same
> as buying them for $0):
>
> It might be even easier if you think of this as a discrete number of steps.
1. grow cabbage
(expenses . . . seed,tools, supplies, labor, depreciation, profit and
likely some more!.)
(value of inventory (cost accounting here) change is what is noted
(same for following)
2. harvest cabbage
(expenses . . . equipment, labor, depreciation, profit etc)
(value of inventory (again cost accounting)
3. process cabbage
(expenses . . . equipment, labor, depreciation, profit etc)
(value of inventory)
4. storage
(expenses . . . refrigeration, profit, depreciation, labor etc)
(value of inventory)
5. market salad packages
(expenses . . . ALL selling costs, profit)
(income)
What I haven't included is losses present (in EACH step) like waste, unfit,
destroyed,
the deer ate, DH drove over w pick-up (you should even include here what
you give away
but that is going to depend upon how strict you're working your books) etc.
This business stuff is really simple not tracking it and making it work - -
- on the other hand
- - - - isn't so simple! (grin!)
Dee
> 2018/03/21 farm
> inventory:farm 5 cabbage @ $0
> cash
>
> Those cabbage grow into a salad:
>
> 2018/03/21 farm
> inventory:plant 2 salad @ $0
> inventory:farm -5 cabbage {$0} @ $0
>
> And you sell that salad:
>
> 2018/03/21 farm
> cash $4
> inventory:plant -2 salad {$0} @ $0
> income:farm
>
> ------------------
> Now let’s be a little more complete (you’ll adapt it to your need)
>
> You buy 6 cabbage at $1 each
> 2018/03/21 farm
> inventory:farm 6 cabbage @ $1
> cash
>
> Each of your cabbage is priced $1, and you spend $6.
>
> You farm them, you need 2 cabbages to make one salad (I’m not a farmer
> maybe it doesn’t exist :p ), but a pair of them is lost:
>
> 2018/03/21 farm
> inventory:plant 2 salad
> inventory:farm -6 cabbage
> expenses:farm loss 2 cabbage
>
> Then you sell those two salad (each costed 2 cabbages, i.e. $2), at $5
> each:
>
> 2018/03/21 farm
> cash $10
> inventory:plant -2 salad @ $2
> income:farming
>
> You end up with a $6 net income ($10 - $4 cost), and $4 in your pocket
>
> $ ledger bal:
> $4 cash
> $-6 income:farming
> 2 cabbage expenses:farm loss
>
> if you want to track the losses in terms of cash, just add costs ("@")
> in the middle one:
> 2018/03/21 farm
> inventory:plant 2 salad @ $2
> inventory:farm -6 cabbage @ $1
> expenses:farm loss
>
> $ ledger bal:
> $4 cash
> $-6 income:farming
> $2 expenses:farm loss
>
> Hope it helps/answer your questions
> --
> Ismael
>
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