If equipment usage constitutes a significant portion of your expenses, you may want to consider using the equipment costing features of The Farmer’s Office. The Equipment Costing system allows you to:
- Track costs for repairs, parts, and maintenance of individual pieces of equipment. This helps you answer questions like “Is this old tractor costing me more to keep up than it would to buy a new one?”
- Establish “charge-out rates” (per hour) for usage of equipment. Each piece of equipment you set up may have it’s own charge-out rate.
- During payroll check entry, usage of equipment may be recorded (up to two pieces of equipment per payroll check “line item”). An “memo” expense is recorded to the crop cost center for the use of the equipment.
- When a crop report is printed, expenses for use of equipment will then appear.
- Charge-out rates may be overridden on payroll check entry, or the default rate for each piece of equipment may be used.
- Equipment can be assigned to a specific employee and labor expense code.
- Two pieces of equipment can be linked, so that when one is used the other is automatically used as well.
The goal of equipment costing is to distribute the costs of your equipment cost centers among the crop cost centers that they service. This gives your cost accounting reports a finer level of detail.