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) 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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>> send an
>> 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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