How do I set up the Trading Accounts?

Trading Accounts - provide a unique way of maintaining full trading accounts in your accounting systems without the need for complex journal entries and stock adjustments.

There are 3 types of trading accounts:

1. Livestock Trading Accounts.
2. Crop/Commodity Trading Accounts.
3. Other Trading Accounts.

Note: Trading Accounts are not available in level 1 of the program.

Step 1 - Create your Enterprise/s.

• Click on the Setup > Enterprises > Names menu option.

Step 2

• Click on the Add button.

Step 3

• Enterprise Code - enter an alpha numeric code of up to 7 characters. e.g CATTLE.
• Description - enter description of up to 30 characters. e.g. Cattle Enterprise.
• Accountants Division Code -  optional.
• Classification Group - optional.
• Click on the OK button.

Step 4 - Adding a new Trading Account.

• Click on the Setup > Trading Accounts menu option.

Step 5

• Select a Trading Account type, by clicking on the appropriate tab. e.g. Livestock.
• Click on the Add button (located down the bottom).

Step 6 - Fill in the information for each of the following areas:

• Livestock Type - enter the name of the Trading Account, e.g. Cattle.
• Stock Valuation Method
  • Average Cost - and/or unit cost, is equal to the total cost divided by the number of goods (quantity).
  • Market Value - the amount for which something can be sold on a given market.
• Natural Increase Value - Only applicable if you chose Average Cost for the Stock Valuation Method. It is the value for any natural increase to the numbers in the trading account (e.g. calves born). You may need to talk to your accountant about these values or use the on-screen help to see standard values. (See ATO link Valuing Livestock.)
• Rations Account - if required, select the rations account from the drop down list. e.g. 185 Drawings - Owners.
• Attach this trading acct. to enterprise: Select the Enterprise to use for this trading account (e.g. the Cattle Enterprise set up earlier).
• Click on the OK button.

• Click on the Edit Accounts button to add the appropriate Purchase and Sales Accounts.
• Click on Purchase Accounts, so it is highlighted blue.
• Hold down Ctrl key and select the Purchase accounts for the enterprise selected. (Accounts selected will be highlighted blue.)

• Click on Sales Accounts, so it is highlighted blue.
• Hold down Ctrl key and select the Sales accounts for the enterprise selected. (Accounts selected will be highlighted blue.)

• Click on the OK button to save.
• For each of the purchase and sales account codes, there is the option to include a DSE value (per head) , but it is not required.

Step 7

• Once you have finished entering all the account codes, click on the OK  button.
• Click on the Trading Activity Details tab to set the opening values.
• To enter the Opening Stock at Market Value amounts:
  • Either type in the DSE, Number of opening stock, Average dollar per head amount and/or the Total (dollar value) Amount. OR
  • Click on the drop-down arrow in the Number text box to to bring up the Worksheet entry screen.
    You can add dissection lines to enter the opening balance values for each livestock type, e.g. Bulls, Calves, Cows,....as well as the average rate.

Step 8

Other details to enter:

• Reconcile to date (or just accept default date). Note: Any linked purchase and sale transactions dated after the nominated date will not be included in the trading account.
• Opening balance number and per head value (see above).
• Natural increase - number. (calves born)
• Losses - number. (animals that have died.)
• Rations - number and amount. (animals used for personal consumption.)
• Transfers in/out - number and amount per head. Note that transfers between livestock trading accounts must balance in both numbers and amount -
  be careful to record the other side of the transfer in the appropriate trading account.
• Closing stock - number and, in the case of market stock valuation method, amount per head.
• Optional DSE values (per head) for each category.

Step 9

The figures for purchase and sales are automatically calculated by the entries you put into Cashbook. When entering a transaction for the purchase or sale, after selecting the account code, you will also need to select the relevant enterprise (if using enterprises) and put in the number sold or purchased in the quantities field. 

Note that livestock trading accounts are "self-balancing". That means if you change any number field (natural increase, losses, etc.) the closing number will change accordingly. If you change the closing number, the difference will be adjusted to losses. Note that numbers can be entered as fractional quantities if required.