Trading Account Setup

Trading Account Setup

Trading Account Setup

Cashbook Platinum

Advanced Trading Accounts provide a powerful tool to track trading activity and inventory for:
  1. Livestock
  2. Fibre Production
  3. Cropping
  4. Cropping by-products
The system provides the flexibility to track livestock down to an individual class level eg. calves, bulls, heifers, cows, etc. or just at the enterprise level eg. Trading Cattle, Breeding Cattle, etc. There is similar flexibility to track cropping activity at an enterprise or individual crop level.


Trading accounts work on a 12 monthly spreadsheet within the currently selected financial year.

Purchases and sales details will be automatically updated to the trading accounts, which then automatically produce the resulting closing inventory quantities and values.

Adjustments such as natural increase, losses, transfers, etc. can be entered directly into the appropriate section on the grid.


Before setting up Trading Accounts be sure to:
  1. Set up the Chart of Accounts correctly
  2. Set up the Enterprises correctly

 

Step 1: Set up Chart of Accounts


Make sure that the Chart of Accounts have been correctly set up with all required trading account related income (sales) and expense (purchases) accounts. These will enable automatic updating of the trading account as purchases and sales transactions are entered into Cashbook.

If the business intends to track livestock and or/crops down to individual class level, for example: for Cattle enterprise, the livestock classes could be - bulls, calves, cows, heifers, etc. ensure that all purchase and sale accounts have the Requires enterprise entry and Requires enterprise class entry checkboxes ticked.
Note that only 1 sales account and 1 purchase account can be assigned to an enterprise, so if tracking down to enterprise classes, each account to be used for a class must be a sub-account of the primary (control) account to be assigned at the enterprise level.
  • Click the Chart icon on the toolbar
  • Click the Income tab



iii. Click on the Income account to highlight or create a new one via the Add button
iv. Click Edit
v. Fill in all account setup information


For example, for account 040 Cattle Sales, set up sub-accounts for each of the classes:



Similarly, for Expenses



Note: only purchases and sales accounts are set up in the Chart of Account. All other trading account categories eg. opening & closing stock, losses, etc. are handled directly in the trading account section and do not require accounts in the chart.

Step 2: Set up Enterprises

Depending on the Company Template selected eg. Cattle, Sheep, Grazing, Farming etc. when setting up the company in Cashbook, default Enterprises are already setup in the Trading Accounts. These can be Added to, Deleted or Edited. They can be made as simple or as complicated as required.

  • Click Setup
  • Enterprises
  • Name menu option



iv. Click Add to add a new enterprise, or click to highlight an Enterprise
v. Click Edit or simply double-click on the enterprise
vi. Add all the relevant information
vii. Tick the Trading Account Required checkbox to indicate that trading account details are to be maintained for this enterprise. Then set the relevant purchase and sale account for livestock sales & purchases
Note: Purchase and sale accounts can be set as a single account or a control account can be used to automatically pick up all sub-accounts under that account
vii. Tick the Also contains a fibre component checkbox to associate fibre sales with a livestock type eg. wool from sheep, if relevant or
Tick the Also contains a by-product component checkbox to associate a by-product sales with a crop type. eg. cotton seed from cotton, if relevant
viii. Tick the Use Class names in Transactions checkbox if wishing to record livestock trading at individual livestock class level e.g. bulls, calves, cows, heifers, steers(recommended). Add the required livestock classes with their related DSE and Value per head
ix. Tick the Use Crop ID's in Transactions checkbox if wishing to record crop trading down to individual crop ID level e.g. 2001 Oat Crop, 2009 Oat Crop. Enter the required crop ID's and the related Area in hectares and Value per tonne
x. Click OK to save

 

For example:



Step 3: Setting up Advanced Trading Accounts

  • Click Setup
  • Advanced Trading Accounts menu option



iii. Click Yes to the Confirm message: 'Do you want to recalculate all of the sales and purchases now?'. The systems will build a trading account for each current enterprise that has been marked as 'Trading Account Required'
 


 

Note: If changes are made to any of the options ie. As at date, Accounting Method or Stock valuation basis. Click the Recalculate button to refresh the underlying trading account information

iv. Click on the [+] next to the trading account section (<Livestock> or <Crop>) to display the enterprises in that section
v. Click on the enterprise name, e.g. Cattle

 

For Taxation/Accounting Reporting Section:

  • If Use Average Cost is selected as the the valuation method:
    • Enter Opening stock value total as at the beginning of the financial year. This should be extracted from financial statements prepared by your accountant
    • Enter Opening total dollar value and Closing total dollar value per unit for any by-product/fibre accounts if used 
      Note: this may already have been set up via the Setup Wizard when opening balances were entered, or automatically carried forward from the previous year
    • Enter Natural Increase value. See ATO Valuing livestock - Natural Increase
    • Ration account - Select from drop-down list e.g. 550 personal drawings. See. ATO Valuing livestock - Stock killed for rations

  • If Use Market Values is selected as the stock valuation method:



  • Click on the Opening Stock button to enter management opening balances
  • Enter opening stock numbers (Quantity), Unit Value ($ per unit)
    Note: this may already have been set up via the Setup Wizard when opening balances were entered, or automatically carried forward from the previous year
  • If not using livestock classes, enter the opening values against the <UNCLASSIFIED> class Note: this will also include any linked fibre or by-product accounts
  • Click OK to save



  • To see the immediate effect of entering the Opening Stock numbers and values, click on the Recalculate button


v. Click Close
vi. Click Yes to Confirm message 'Save changes to the trading accounts?'

 

  • Use Reorder Livestock Classes or Reorder Crop Id's button to change the listing order of the livestock classes (crop id's).
  • Click on the [+] on the side of the enterprise (e.g. Cattle) to display the related classes. As a class is highlighted, the trading account worksheet will display as follows.

For example:



Article ID CBP1408