AGENDA FOR PORKSHOP.2004
(JUNE 9TH)–THE ONLY SEMINAR AT WPE TIME THAT CATERS TO TOP PRODUCERS' BOTTOM
LINES-IS SHAPING UP AS THE BEST EVER!
When you set out to continually improve on the previous years seminar it can be a tough task. Not so with FBS's PorkShop that's because each year sees new and great improvement in our software. Briefly, our seminar is based on three objectives:
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Practical
experiences from innovative producers; proven guidelines that
will increase your efficiency. |
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Complete
integration of all management processess. |
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A key feature
will be a presentation by a large-scale producer and his experiences
with our software over the past year. |
Be
sure not to miss this year because we also have a few special surprises.
June 10th - 12th belongs to World Pork Expo. The
day before belongs to you and PORKSHOP.2004.
To be held at the HOLIDAY INN DOWNTOWN, Des Moines, Iowa. Don't
miss this opportunity. For registration information call the
FBS sales line 800.437.7638 or email Norm
Brown.
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OLD WORLD-NEW WORLD IV: "R0LLING UP" MANAGERIAL ACCOUNTING INTO FINANCIAL STATEMENTS
Over the past three issues we've contrasted the ways farmers produce financial statements and the conflicting goals of maintaining simultaneous cash and accrual records.
Managers have traditionally viewed cost accounting and financial reporting as two separate activities used to accomplish two distinct goals:
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Internal enterprise analysis and benchmarking using a "do-it-yourself" approach |
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External financial statements for lenders and investors, either using double-entry accounting (often following GAAP) or adjusted accrual financial statements (AFRA, Finpack, etc.) |
Most agricultural firms considering managerial accounting are primarily interested in the first of these goals, i.e., determining their "cost of production" for various products and locations. However, once production costs are calculated, they can also be used as the basis for inventories on financial statements.
Most accounting programs and financial statement generators have no trouble tracking liabilities and fixed assets, but maintaining inventories of raw materials, work in process and finished goods is much more problematic. As a result, various schemes have been devised to augment this process, from elaborate spreadsheets for estimating growing animal costs to relying only on market values.
The outcome is that even the most sophisticated firms are using standardized, "plugged" inventory values on their financial statements which provide no feedback regarding internal cost variations. Results are even worse for smaller firms using market-value financial statements which have no tie-out whatsoever with their enterprise records.
Therefore, the perceived "state-of-the-art" for agricultural MIS requires three redundant information systems: financial, managerial (cost accounting) and production records. (See Figure 1.) Costs are developed at the "lowest common denominator" level (entity financial statement), then are either allocated back to cost accounting management segments or are never reconciled with internal cost accounting. Production records are treated as an unrelated activity.
 |
| Figure
1. Financial, cost accounting and production records
treated as separate processes. |
Through e.CLIPSE
managerial accounting, this process is reversed. Production records automatically
"drive" raw material and overhead allocations to cost and profit centers
and maintain inventory values. At the end of every accounting period,
segment costs can be "rolled up" into entity financial statements. (See
Figure 2.)
 |
| Figure
2. Cost roll-up from management segments into entity financial statements. |
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MARCH MADNESS TO APRIL SADNESS?
DON'T RISK THE REGRET OF MISSING SAVINGS UP TO 33% ON AG'S LEADING INTEGRATED SOFTWARE. YOU HAVE TIL APRIL 15TH, 2004.
From now til April 15th, you can invest in the top-seeded team of software and savings that runs the tables on all competition in providing you with financial management benefits.
SPECIAL
NO. 1: Buy
one program, get a second at HALF PRICE; buy two, get a third program
FREE! Save up to $1,200. Earn 60 days of free
support.
Buy any FBS program listed on our offer
page and you can get a second one of equal or lesser value at 50%
OFF. Or, buy two programs and you'll get a third one of equal
or lesser value absolutely FREE. A great opportunity to get
started with your integrated MIS!
SPECIAL
NO. 2: Buy
the complete e.CLIPSE
management information system. Save $1,390. Get a FREE HP
iPAQ Pocket PC. Two
days of on-site training are included in the package. (Free SST Stratus
software is also included with crops version.) This exceptional offer hands you a turnkey integrated MIS at unprecedented savings.
For full particulars on both specials, including
details on individual programs, features and benefits, call 800.437.7638 ext 101 or 103. Don't wait for that final buzzer on April 15th. Make your call today!
Free
iPAQ PC and big dollar savings too!
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TRADE SHOW SEASON
ENDS WITH A WINNER
 |
| While Kentucky
grower Tripp Furches didn't win the iPAQ, he still looks happy
at the 2004 Commodity Classic in Las Vegas as Norm Brown demonstrates
e.CLIPSE. |
Our
hearty thanks go out to all who stopped by the FBS booth to say, "Hi,"
and sign up for the hp
iPAQ drawing (as well as those who visited our website). We hope we
both answered your questions as well as planted profitable ideas. This
year's iPAQ was won by Colorado grower Don Rutledge. Congratulations,
Don and Judy! We'll see the rest of you next year!
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SOFTWARE Q&A
– WITH Q'S FROM YOU, OUR CLIENTS!
Send us
your questions/problems–be they short, long, simple or downright
frustratin'!–about SeRVware
and we'll handle them right "on the air" for the benefit of all.
|
Q.
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My trial balance is in balance, but my balance sheet is out of balance. What's wrong?
|
| a.
|
This is a variation of a question posed last month. Because your trial balance is in balance, there is likely nothing wrong with your data. The problem is either in your chart of accounts or balance sheet definitions.
| 1. |
Go
to Setup, Accounting, Ledger Accounts. Make
sure that the Income Statement / Balance Sheet is
set to "Y" for all accounts. Also, you must have
an Owner Equity account set up as a "Net Income"
Type. |
| 2. |
If
you are using a Balance Sheet "template," try using
the "Print from Ledger Accounts" option. If
the Balance Sheet is in balance, then you need to
modify your template. Go to Setup,
Accounting, Balance Sheet, select the definition,
and press the "View by Acct." button to find the
missing account(s). |
Call in your questions (800.437.7638) or e-mail them
to support@fbssystems.com.
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CLIENT'S CORNER
Welcome!
New client, Cochon Ltd., Columbus, Ohio.
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sales@fbssystems.com
800.437.7638
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