|
eastern sd | I'm looking for advice on how to set up accounts in QBO to track the purchase and resale of cow calf pairs. I understand that I need an income account (Sales of Livestock) a COGS sold account (Cost of Livestock Sold) and an inventory account (Livestock for Resale). I plan to sell the cows and the calves all before the end of the year, therefore the cows are not depreciable assets and need not be tracked for depreciation. I need to figure out how to split out the calves from the cows, or rather if it is actually necessary to do so. These pairs were purchased over a period of about 3 months this spring, all at varying prices. In the past I would assign and arbitrary value to the calf at purchase (always the same in a given year), and the remaining cost would be considered the cost of the cow (this was when the cow was being kept as a depreciable asset) Example: 5 pairs bought at $1500/pair Calf=$250, Cow=$1250. 5 more pairs bought at $2000/pair Calf=$250, Cow=$1750. In this manner when I sold calves they all had the same purchase price so to speak. I suppose I could continue to do something similar even though they are no longer depreciable assets, but it seems like it is unnecessarily difficult to do so (the volume of pairs bought and the timeframe over which they were bought is much greater than it was in the past). To clarify I have been using QBO for about 3 years and am fairly proficient with it, its more of a general accounting question I suppose.
Edited by forget 9/11/2024 15:09
| |
|
Tracking Cow/Calf Purchases In QBO
