Cost Accounting

The purpose of the cost accounting system is to provide you with information to assist in making management decisions for your farm.  This includes information on yields, expenses, income, and profitability.  (Some accounting systems use the term “enterprise accounting” for this.)  The crop cost accounting system is updated through the one time entry of information on payroll checks, vendor checks, deposits and pesticide usage.  All of this takes place automatically when you enter a cost center and crop year for these transactions.  Crop reports can be printed at any time for an up-to-date status on your bottom line.

The Cost Accounting system features include:

  • Cost accounting reports automatically print income and expenses grouped by your crop year, instead of calendar or fiscal year.
  • Cost accounting reports provide you with both per acre and per yield analysis of income, expenses and profitability.
  • Crop Reports may be printed at any point for any crop year.  Information never needs to be “archived” or “purged”.  This makes it easy to print historical or comparison reports.
  • You don’t need to set up a new set of data files for each year or set up new cost centers for a new crop year.
  • Job/Activity/Phase/Operation codes allow you to create expense categories for crop reporting purposes.  These expense categories can be further organized into groups and categories.
  • The Acreage Split feature on vendor check, invoice and deposit entry windows easily divides expenses between cost centers based on acreage.
  • “Memo” crop costs allow you to record expenses for crop reports without having to affect general ledger account balances.
  • The system can track a different commodity for each crop year, which is useful for fields where you rotate crops.
  • The Crop Notes program allows you to maintain an electronic notebook by field for notes on soil conditions, planting dates, temperatures, chemicals applied, etc.

Overheads

  • Overhead Cost Centers allow you to group field cost centers together. Expenses applied to an overhead cost center will be automatically allocated to the individual field cost centers that are assigned to the overhead when cost accounting reports are run.
  • You can define up to four different types of overhead cost centers.  Multiple levels of overhead allocation are supported (e.g. a cost center for All Oranges can allocate to Valencia and Navel cost centers, which in turn allocate expenses to cost centers for each orchard with that variety).
  • Overhead allocations can also be done using a report that posts transactions to ‘zero-out’ expenses on one cost centers and transfer them to a set of cost centers according to the percentages you set.  This method is ideal when you need to allocate costs based on factors that vary over time.  This method can be used in situations where you need to allocate different percentages of overhead expenses each month to a set of cost centers based on production totals.
  • General/Administrative Overhead calculation will distribute a portion of non-crop related expenses on crop reports.

Reporting

  • Comparison Crop Report can be printed to compare income and expenses for two different crop years or to compare your actual income/expenses to budget amounts.
  • Consolidated Reports allow you to combine multiple cost centers on one report. This allows you to get reports that group all fields of the same variety or that are on the same ranch.
  • Set up a list of cost centers using the Consolidated Report Definitions ahead of time and then simply select the report that you want to run.  Additional options allow you to select a range of cost centers, all cost centers for a particular commodity, or an ad-hoc report where you can select any combination of cost centers.
  • Expense Report prints totals for all crops for an individual expense category, allowing you to see how each expense is distributed between cost centers.
  • Monthly Crop Report gives you a quick overview of income and expense activity for each of your cost centers.
  • Cost accounting data can be exported to Excel for further analysis and reporting (for instance, using PivotTables or PivotCharts).