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TIP: Farm Funds

Switching From Expenses to Supplies

There are a variety of reasons why customers start Farm Funds at a basic level, then decide to move into a more complex method.

• Maybe you started with only cash accounting and now you'd like to keep field records.

• Maybe you were trying to get your books caught up and are now ready to keep more detailed records.

• Maybe you get the hang of what you are doing and are ready to utilize Funds to a greater extent.

• Maybe you want your fields enterprised. The whole purpose of using Trac and Funds together is to find out what your cost per acre is, right?

Whatever your reason, there are three ways to make the switch:

1. You can wait until the beginning of your fiscal year, and begin purchasing everything from that point on as a supply instead of an expense: Chemical Supply versus Chemical Expense.

2. If you are in the middle of the year, you can transfer all of your expense purchases into supply purchases from the beginning of the fiscal year, and from that point on purchase as a supply.

3. Or, you can start from the point you are at right now, and begin purchasing as a supply without adjusting your prior purchases.

METHOD #1: Waiting until the beginning of your fiscal year.

1. Go to Accounting-Payments & Purchases-Record Payments & Purchases.

2. Enter the vendor, date of transaction and a brief description.

3. Select the Supplies Inventory button to record the purchase of each supply. The Supplies Inventory Purchase screen will appear.

4. The name of a previously created supply will be available from the drop down list. For a new supply select New from the Item Purchased drop down.
   (You will enter a description, assign the appropriate account and select a purchased unit for the new supply). Enter the quantity purchased and the unit cost. Discounts can be entered on this screen as well. Click OK.

Note: If this is a new supply, you will now see the Supply Properties screen. On the General tab of this screen you will select the supply Type and enter the distributed unit along with the conversion between purchased and distributed units.

5. Repeat these steps for each additional supply purchased.

6. Once all supplies are purchased, you will be left with the total amount due.

7. In the How You Paid section of the Payments & Purchases screen, select the appropriate option to pay for the supplies - check, cash, credit card, payable, loan or equipment trade-in.

   

8. Record.

METHOD #2: Transfer expenses into supplies and purchase as supplies in the future.

1. Record the individual supply purchases as described in Method #1. Instead of paying for the supplies within the How You Paid area, the transaction will be completed within the Items Purchased section.

Once individual supply purchases have been entered, select the Other Expense & Payments button . The Expense and Other Payments screen will appear. Enter the total amount of the supplies purchased as a negative value.

Note: Be sure to only reduce expense accounts by the value that was directly posted to it previously.

4. Highlight the correct expense account (such as Chemical Expense, Fertilizer Expense or Seed Expense).

5. Leave the Enterprise Allocation set to None (unless the entries previously posted to the expense account were allocated to enterprises). Click OK.

Note: Be sure to reduce the correct expense accounts. For example, if you have $750 in chemical supplies and $500 in fertilizer supplies, post a -$750.00 to Chemical Expense and -$500.00 to Fertilizer and Lime Expense.

METHOD #3: Start now without making adjustments.

Select a date that you would like to start recording supply purchases. From that day forward, record supply purchases as described in Method #1.

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