On Tue, Mar 20, 2018 at 12:00 PM, o1bigtenor <[email protected]> wrote:
>
> On Tue, Mar 20, 2018 at 7:01 AM, Ismael Bouya <ismael.bouya.06@normalesup.
> org> 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, now (edit for mis-spelling) 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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>>
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>
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