SOUTH DAKOTA SUCCESS STORY, CHAPTER I

What happens when farming operations across the country adopt full managerial accounting? In this issue, we'll begin answering that question through the first in a series of case studies of producers who have converted to FBS's e.CLIPSE management information system. Our first study–Jorgensen Land & Cattle, Ideal, South Dakota–typifies the professional operation of the 21st Century and shares demographics with a wide cross-section of our readers: • It encompasses five entities representing beef, crops and pork production • It's a three-generation family business committed to continuous improvement and innovation • It's been a beta test site for the pork, beef and crop versions of e.CLIPSE At Advanced Training IX, Jorgensen Land & Cattle controller Daryl Ellis referred to a Harvard Business Review article that describes the dilemma of meeting these three objectives through managerial accounting: • Inventory valuation (external financial reporting) • Operational control of responsibility centers • Product cost measurement (total unit cost or TUC) "Even if cost system designers recognize how important and how different the demands of these three functions are, their efforts are blocked by senior executives' insistence on a single "official" system. And when compromises have to be made, the demands of the financial reporting function (inventory valuations) invariably triumph.  The more relevant functions of operational control and product costing (TUC) usually suffer." – "One Cost System Isn't Enough" Robert Kaplan, Harvard Business Review, 1988 "After working with e.CLIPSE for 18 months, I think all three of these demands can be met – given the person implementing the system understands management needs and is willing to make year-end adjustments to GAAP," says Ellis. "There is a steep learning curve in adopting managerial accounting concepts. Greater demands are placed on data collection, and a full commitment by management is required. It's also an evolutionary process. You're not going to get it right the first time."

Primary information users: the Jorgensen family

Primary information provider: Daryl Ellis, Controller

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UNVEILING e.CLIPSE FOR CROPS – THE ONLY INTEGRATED SOFTWARE FOR CROP MANAGEMENT DESIGNED TO MEET FFSC STANDARDS

FBS releases the first management information system that gives crop producers production-financial data linkage and managerial accounting in one package. The crops version joins e.CLIPSE for livestock (announced June, 2000) as the only integrated systems with managerial accounting capabilities designed to meet the Farm Financial Standards Council guidelines.
   The Windows-based inventory valuation and job-costing system uses activity-based costing (ABC) logic to determine how resources, such as equipment, vehicles and indirect labor, should be allocated to each crop stage and field in an operation. By linking directly with production data, e.CLIPSE automatically maintains critical details relating to production activities. This enables the activation of predetermined "cost drivers" plus an accurate assignment of indirect costs through the life of each crop.
    Direct costs—custom-applied fertilizer and chemicals—are even easier since they can be posted directly to fields through TransAction Plus accounting. Work-in-process (WIP) is automatically posted to the balance sheet at the end of each accounting period. Cost of goods is computed at harvest and at each sale.
    The value of the FFSC standards lies in the industry-wide consistency they bring to the recording and analysis of ag financial data. The recommendations also move farm and ranch accounting closer to compliance with GAAP (Generally Accepted Accounting Principles).
    Another e.CLIPSE feature is the optional MaCH 1.0 interface which links accounting capabilities to SSToolbox, farming's premier mapping system. For more information, call us at 800-437-7638 ext. 101 or 103 or e-mail doug@fbssystems.com or norm@fbssystems.com.

IT'S THAT 'SPECIALS' TIME OF YEAR, FOLKS. AND WITH SAVINGS THIS BIG ON MULTIPLE-MODULE BUYS, THE WORD ISN'T INTEGRATE – IT'S INTEGREAT!

For a limited time—choose from two outstanding offers to dispel notions that price is a barrier to investing in ag's leading integrated management information system.

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 below 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!

• TransAction Plus
• Accounts Payable
• Accounts Receivable
• Report Generator
• Depreciation Plus
• Payroll
• AFRA

• Ferguson System
• Crop Audit Plus
• CA Inventory. Valuation
• Smart Breeder
• Smart Feeder
• SF Group Monitor
• SF Group Tracking

SPECIAL NO. 2: Buy the complete e.CLIPSE management information system. Save $1,390. Get a FREE Compaq iPAQ Pocket PC. Two days of on-site training are included in the package. (Free SST Stratus software also included with crops version.) This is our first special on e.CLIPSE and one that hands you a turnkey integrated MIS at unprecedented savings. For full particulars on both specials, including details on individual programs, features and benefits, call 800.437.3423. Since these are time-limited offers, don't wait until it is too late!

Have you checked your Client Appreciation Program (CAP) credit lately? If you've been on the Timesaver Service Agreement for three years, paid each invoice by June 30 and haven't redeemed any of your CAP credit, you've accumulated the maximum 40% discount toward the purchase of any FBS program. Amount of credit is determined by the number of years spent on TiMEsavr and accordingly would currently be 10, 20, 30 or 40%. If you don't know your actual TiMEsavr credit/discount, contact your FBS sales representative at 800.437.7638 or sales@fbssystems.com. By combining this opportunity with Special Offer No.1 (above), you could add another module for extra savings up to $798! So set your CAP for maximum savings. But here again, time is vital! Contact us today.

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. Theresa Abel, Timber View Farms, Altona, Ill., sends this month's query.

Q.

In Crop Audit 7.3, I'm having problems with entries being reversed when using the Harvest/Buy/Sell/Move by Load input option.

a.

At this time of year, a lot of clients use Crop Audit to record their harvest records. Several problems, including this one, have already been corrected and other enhancements have been added since you received your original version 7.3 CD.     It is important that you keep current on the updates from our Web site. There are two choices of the version update: 1) cumulative update (from the original version update through the current week); 2) the current month's update. If you haven't kept up with the updates on a monthly basis, you will need to download the cumulative update. However, if your code is current, either through updates or a recent CD (within the last month), you can choose the current month's update. The Web site is updated every Monday morning.     If the update doesn't solve your problem, call us at (800.437.7638) or e-mail support@fbssystems.com. If the problem indicates a code change, you will be e-mailed an updated program file as soon as it is available, usually within 24 hours. – Cheryl Brown, Support Technician Call in your questions (800.437.7638) or e-mail them to support@fbssystems.com.