That's why I posted the cabbages at a price of $2 each in the last entries.
For your inventory overview you post the balance listing all the
commodities, for the IRS (I don't have an IRS by the way, neither a
vegetable garden :) ) you run ledger with the *--market* flag (or was it
--value?) and get everything listed in your base currency.
Actually this is what happens if you sell goods at a price and use cash as
the balancing account as in
2018/03/21 farm
income:sales:revenue -2 salad {= 2 $}
cash
The *cash* account will then show *2 salad* in its balance.
Further I'm not a 'garden farmer' either, neither sophisticated, but I was
just using this simplified example to get a clear view.
On Tuesday, March 20, 2018 at 7:12:19 PM UTC, Ajoeibin wrote:
>
>
> On Tue, Mar 20, 2018 at 12:49 PM, Ella Lobatina <[email protected]
> <javascript:>> wrote:
>
>> Ok, I got what you mean, but I'm not buying cabbage, I'm *growing* them.
>> So they become assets without direct expenses.
>> Of course there are expenses, but they are still hidden behind plowing,
>> sowing etc. at the time of acquisition of the cabbages.
>> That's why I started posting them to the ledger as an income:
>>
>> 2018/03/21 farm
>> income -5 cabbage
>> inventory:farm 5 cabbage
>>
>> Now Ismael suggested to 'buy' them at a zero price.
>> That's ok with me, as long as I can track them as a commodity from
>> harvest to sales along the different locations ('warehouses') where they
>> may pass, and as long as I can clean up the inventories when they leave.
>>
>> Klauss suggested to put the sales revenue in an account separate from
>> income but although I perfectly understand why that may be good, I'm a bit
>> hesitant to do that because that would change the whole way I'm keeping
>> books until now, and I'm not saying I'm doing it wrong all the time. I just
>> want to track the items through the inventories. :)
>> My opinion is that I will be able to calculate the net revenue by just
>> subtracting total expenses from total income.
>>
>> Your explanation about expenses and assets is re-assuring to me in the
>> sense that I think I can 'get away' with my maybe unconventional style of
>> farm accounting, so I guess I'll just try to write it like this:
>>
>> 2018/03/21 plant
>> ; consumed in plant
>> ; balance of cabbages is zero
>> expenses 5 cabbage
>> inventory:plant -5 cabbage
>>
>> 2018/03/21 plant
>> ; entry of salads produced
>> income -2 salad
>> inventory:store 2 salad
>>
>> 2018/03/24 buyer
>> ; Now the salads are in store and being sold.
>> inventory:store -2 salad {= 2 $}
>>
>> >
>> > Hope it helps/answer your questions
>> > --
>> > Ismael
>> >
>> > --
>> >
>> > ---
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>> > "Ledger" group.
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>> cash 2 salad {= 2 $}
>>
>> Now the cabbages *and* salads are both gone,
>> the income is from the 2 salads sold,
>> at a price of $ 2,
>> the revenue is in cash,
>> and net revenue can be calculated as income-expenses.
>>
>
> One minor problem.
> $4 income - 2 cabbages (expenses) = an undefined value that the IRS will
> throw a hissy fit at.
>
> Don't know if it made it through but I gave a multi-step process for doing
> this. And yes I'm a farmer mostly have
> been in a bigger scale than a market garden but I DO understand the
> complexities required to describe what are simple process when one is using
> financial record keeping to do that.
>
> Regards
>
> Dee
>
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