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Asset classifications for Agriculture

Farmer_FrankFarmer_Frank Member Posts: 13

How do I categorize cattle that are bought to be resold later for a profit as opposed to cattle purchased to keep to reproduce? Also how do I categorize grain that has been harvested but not sold? I would assume stock on hand but with what price would I associate to it since the price is dependent on the current market price when sold?

in Accounting Technical Support

Comments

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hi @Farmer_Frank . You would have to create two different types of assets for your cattle. One representing resale cattle, and the other representing reproduction cattle. It is important that you differentiate between them.

    The second part of this is tricky especially since Wave doesn't really deal ion inventory tracking or management. I would reach out to an accountant or CPA to get their take on how to price this and how it should be represented.

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