The following examples cover common farm business transactions. We start with simple single category transactions and move to more complex multiple category income and expense transactions. You will learn how to enter, edit, void and memorize transactions.
The following transactions are explained in this chapter:
Example 1. Making an Entry
Example 2. Correcting an Entry
Example 3. Voiding an Entry
Example 4. Using a Split Screen
Example 5. Entering a Rebate
Example 6. Sale of Different Classes of Livestock
Example 7. Split Transactions using the Calculator
Example 8. Memorizing a Transaction as Percentages
Example 9. Recalling a Memorized Transaction - Percentages
Example 10. Memorizing a Transaction as Amounts
Example 11. Recalling a Memorized Transaction - Amounts
Example 12. Create Liability (Borrow Money for Operating Loan)
Example 13. Making a Loan Payment
Example 14. Create Liability - CCC LOAN
Example 15. Cash Purchase
You write a check to Anywhere Feed Mill for $3524.36 for hog feed.
| Num: | Click on Num field, Click Next Check Num. If this is your first check or if your checks are out of sequence you will need to type the check number. |
| Date: | Click the calendar in the Date field. Click << to move to previous month or >> to advance to next month. Once you are in the proper month Click on the correct day. |
| Payee: | Click on the Payee field, Type Anywhere Feed Mill. |
| Payment: | Click on the Payment field. Now you can manually enter the amount of the check or, Click on the number pad located in the right side of this field and Click the appropriate numbers. |
| Category/Class: | Click on the down arrow in the Category field. Click Feed Purchased (feed purchased will now appear in the category field). To add a class, Type /hogs. |
| Memo: | 17 tons of hog feed. **Note** Memos are optional to get more detailed info, e.g., tons of feed, pounds of milk sold, bushels of grain, etc. |
| Record: | Review your entries. If everything appears correct Click Enter. This will record your transaction. Notice that your checking account balance has been updated. |
If after recording an entry, you notice an error, making a correction is easy, e.g., Anywhere Feed Mill was misspelled.
| Payee: | Double Click on the incorrect spelling and make necessary changes |
| Record: | Review your entries. If everything appears correct Click Enter. This will record your correction. You must Click Enter to update your changes. |
You can void an entry. Click on any field in the transaction to be voided. Click Edit in the bottom right hand corner of the transaction. Click Void Transaction. You will notice **VOID** in front of the payee name.
Record: Review your entries. If everything appears correct Click Enter. This will record your transaction. You must Click Enter to update your changes.
You write a check to Farm Supply of Anywhere for $2274.58 for soybean chemicals and soybean seed.
| Num: | Click the down arrow in the Num field, Click Next Check Num. If this is your first check or if your checks are out of sequence, you will need to type the check number. |
| Date: | Click the Date field. Use the "+" key to advance the date one day at a time or the "-" key to backup one day at a time. |
| Payee: | Click on the Payee field, Type Farm Supply of Anywhere. |
| Payment: | Click on the Payment field, Type 2512.00. |
| Category/Class: |
Click Split in the lower right hand corner of the transaction. The SPLIT TRANSACTION WINDOW will appear.
Click the down arrow in the Category field on line 1, Click
Chemicals, Type /s. After typing /s you will notice the rest of the word soybean is highlighted.
Click in the Memo field and Type 50 gal. Roundup, Click in the
Amount field and Type 2000.00. Click Next, **Note** The remaining amount of the payment will now appear in line 2 of the Amount field. Click the down arrow in the Category field on line 2, Click Seed & Plants, Type /s (for Soybeans class). Click in the Memo field and Type 25 bags FSoA 397RR, Click Next, **Note** Look at the Amount field. If this is the last entry for this transaction a number should not appear in the Amount field on line 3. If there is a number in this field, you have either made a mistake or have another entry to make. Click OK. |
| Record: | Click Enter. |
You receive a rebate check from Monsanto for $8.00 per gallon for each gallon of Roundup herbicide you purchased this year.
| Num: | Click on Num field, Click Deposit. |
| Date: | Click the Date field. Use the "+" key to advance the date one day at a time or the "-" key to backup one day at a time. |
| Payee: | Click on the Payee field, Type Monsanto. |
| Payment: | Click on the Deposit field, Type 400.00. |
| Category/Class: | Click the down arrow in the Category field, Click Chemicals, Type /s. Click in the Memo field and Type Rebate $8/gal, 50 gal. Roundup, |
| Record: | Click Enter. |
**Note** What happens to your Soybean Chemical Expenses when this rebate is applied? An income amount (deposit) with an expense category reduces the over-all total in that expense category. Below is a transaction report for soybean chemicals (for more information on reports see the
Reports chapter). As you can see, the $400.00 rebate reduced soybean chemical expenses from $2,000.00 to $1,600.00.
|
Transaction Report by Class |
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| Date | Num | Description | Memo | Category | Amount |
| Soybeans | |||||
| 3/31/XX | 1010 S | Farm Supply of Anywhere 50 Gal. Roundup | Chemicals/Soybeans | -2,000.00 | |
| 7/25/XX | DEP | Monsanto | Rebate $8/Gal,50 Gal... | Chemicals/Soybeans | 400.00 |
| TOTAL Soybeans | -1,600.00 | ||||
You sell two cull dairy cows and two bull calves at the Livestock Sale of Anywhere. The two cows sold for $987.50 with
deductions of $28.90 and the two calves sold for $224.25 with deductions of $14.90. The net check is for $1167.95.
| Num: | Click the down arrow in the Num field, Click Deposit. |
| Date: | Click the Date field. Use the "+" key to advance the date one day at a time or the "-" key to backup one day at a time. |
| Payee: | Click on the Payee field, Type Livestock Sale of Anywhere. |
| Payment: | Click on the Deposit field, Type 1167.95. |
| Category/Class: | Click Split in the lower right hand corner of the transaction. The SPLIT TRANSACTION WINDOW will appear. Click the down arrow in the Category field on line 1, Click LS Sold:RBreedLT, Type /d (for dairy class). Click in the Memo field and Type 2 cows, 2935 lbs., Click in the Amount field and Type 987.50. Click Next, Click the down arrow in the Category field on line 2, Click Marketing:Brdg&Cap, Type /d. Click in the Memo field and Type cow marketing deductions, Click in the Amount field and Type -28.90. |
| **Note** On a deposit that is a check that has amounts deducted from the sales amount, enter the gross sales amount under the appropriate income category with the deductions entered as MINUS amounts under the appropriate expense category(ies). | |
|
Click Next, Click the down arrow in the Category field on line 3,
Click LS Sold:RMarket, Type /d. Click in the Memo field and
Type 2 calves, 225 lbs., Click in the Amount field and
Type 224.25. Click Next, Click the down arrow in the
Category field on line 4, Click Marketing:Mkt LS, Type /d. Click in the
Memo field and Type calf marketing deductions, Click in the
Amount field and Type -14.90. **Note** Look at the Amount field. If this is the last entry for this transaction a number should not appear in the Amount field on line 5. If there is a number in this field, you have either made a mistake or have another entry to make. Click OK. |
|
| Record: | Click
Enter.
**Note** The cow sales and deductions need to be reported separately from the calf sales and deductions since the two sales are reported on different tax forms. |
Example 7: Split Transactions using the Calculator
You write a check to Farm Supply of Anywhere for $3498.76 for the following corn inputs:
| Bicep | 15 gallons | $589.54 |
| 18-46-0 | 5 tons | $984.50 |
| 28% | 500 gal. | $670.31 |
| Spirit | 40 oz. | $471.16 |
| K20 | 5 tons | $783.25 |
| Total Due | $3,498.76 | |
| 3 items are Fertilizer/Corn | ||
| 2 items are Chemicals/Corn | ||
| Num: | Click on Num field, Click Next Check Num. |
| Date: | Click the Date field. Use the calendar or +/- keys to set proper date. |
| Payee: | Click on the Payee field. Click Farm Supply of Anywhere. |
| Payment: | Click on the Payment field. Type 3498.76 |
| Category/Class: | Click Split in the lower right hand corner of the transaction. The SPLIT TRANSACTION WINDOW will appear. Click the down arrow in the Category field on line 1, Click Fert & Lime, Type /c (for corn class), Click in the Memo field and Type 18-46-0 5T., 28% 500 Gal., K2O 5T., Click the calculator button in the Amount field, Click 984.5 + 670.31 + 783.25, Click Enter on the calculator, Click Next, Click the down arrow in the Category field on line 2, Click Chemicals, Type /c (for corn class), Click in the Memo field and Type Bicep 15 Gal., Spirit 40 Oz., Click the calculator button in the Amount field, Click 589.54 + 471.16 Click Enter on the calculator, Click Next, Click OK. |
| Record: | Click Enter. |
A memorized transaction is a transaction that is saved so you can reuse the steps on later transactions without keying them all in again. This is useful for payments that you make on a repeated basis, e.g., utilities. If you memorize the transaction as a percentage, the next time you use this transaction, Quicken will automatically split the amount of the transaction based on the percentage of the first transaction you memorized.
You write a check to American Electric Power for an electric bill. You have one meter on the farm. Home use and farm use are on the same bill. You have determined that 75% of every bill is for farm use and 25% is for home use.
| Num: | Click on Num field, Click Next Check Num. |
| Date: | Click the Date field. Use the calendar or +/- keys to set proper date. |
| Payee: | Click on the Payee field. Type American Electric Power. |
| Payment: | Click on the Payment field. Type 125.00. |
| Category/Class: | Click Split in the lower right hand corner of the transaction. Click the down arrow in the Category field on line 1, Click Utilities:Electric, Type /g (for Gen Farm class), Click in the Memo field and Type 1500 Kilowatt hours,Click the calculator button in the Amount field, Click 125 X .75 Click Enter on the calculator, Click Next, Click the down arrow in the Category field on line 2, Click Utilities:Hutilities, Type /h (for Home class), Click in the Memo field and Type 500 Kilowatt hours, Click Next, Click OK. |
| Memorize: | Click Edit (in lower right hand corner of transaction), Click Memorize Transaction, Quicken will ask you if you want to memorize this transaction as percentages. Click Yes, Click OK. |
| Record: | Click Enter. |
You write a check for $100.00 to American Electric Power for an electric bill. You previously memorized this transaction.
| Num: | Click on Num field, Click Next Check Num. |
| Date: | Click the Date field. Use the calendar or +/- keys to set proper date. |
| Payee: | Click on the Payee field. Click on the down arrow in the Payee field. Click American Electric Power. The PERCENTAGE SPLIT window appears, Type 100.00, Click OK. |
|
**Note** To check if the transaction has been recorded correctly, Click on any field in this transaction,
Click Split, you will see that this transaction has been split in the following manner: Utilities: Electric/Gen Farm $75.00 Utilities: Hutilities/Home $25.00 The Kilowatt hours in the Memo fields will need to be adjusted with each bill. Click in the Memo field on line 1 and Type 1200 Kilowatt hours, Click in the Memo field on line 2 and Type 400 Kilowatt hours. Click OK. |
|
| Record: | Click Enter. |
In Example 8 you memorized this transaction with a split of 75% farm use and 25% home use. Therefore, when you recall a memorized transaction memorized as a percentage, Quicken will automatically split future transactions with the same percentages.
You sell 155,758 pounds of milk. The deposit is entered as follows:
| Num: | Click on Num field, Click Deposit. | ||||||||||||||||||||||||||||
| Date: | Click the Date field. Use the calendar or +/- keys to set proper date. | ||||||||||||||||||||||||||||
| Payee: | Click on the Payee field. Type AW Dairy. | ||||||||||||||||||||||||||||
| Payment: | Click on the Deposit field. Type 10340.15. | ||||||||||||||||||||||||||||
| Category/Class: | Click Split in the lower right hand corner of the transaction. Enter the following information: |
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| Click OK. | |||||||||||||||||||||||||||||
| Memorize: | Click Edit in lower left hand corner of transaction, Click Memorize Transaction. Quicken will ask you if you want to memorize this transaction as percentages. Click No, Click OK. | ||||||||||||||||||||||||||||
| **Note** By clicking no this transaction will be memorized using the exact amounts as they appear above. When you recall this transaction at a later date, you will need to edit the amount figures for each category. | |||||||||||||||||||||||||||||
| Record: | Click Enter. | ||||||||||||||||||||||||||||
A month later, you sell 163,514 pounds of milk. The deposit is entered as follows:
| Num: | Click on Num field, Click Deposit. | ||||||||||||||||||||||||||||
| Date: | Click the Date field. Use the calendar or +/- keys to set proper date. | ||||||||||||||||||||||||||||
| Payee: | Click on the Payee field. Click the down arrow in the Payee field, Click AW Dairy. | ||||||||||||||||||||||||||||
| Payment: | Click on the Deposit field. Type 10057.19. | ||||||||||||||||||||||||||||
| Category/Class: | Click Split in the lower right hand corner of the transaction. Enter the following information: |
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| **Note** In the previous example you memorized this transaction as amounts. Therefore, when you use this transaction again the categories and classes are correct and do not need to be changed. But you will need to change the pounds of milk sold in the Memo field on line 1 and enter the correct figures in the Amount field for each category. After making all necessary changes Click OK. | |||||||||||||||||||||||||||||
| Record: | Click Enter. | ||||||||||||||||||||||||||||
You obtain a loan from the Bank of Anywhere and place money in your checking account to buy inputs. The loan
increases the balance in your checking account. It also increases your loan balance or liabilities. The loan is recorded in aliability account, BOALoan, which was created ahead of time. See the ACCOUNTS chapter for details on creating accounts.
| Num: | Click on Num field, Click Deposit. |
| Date: | Click the Date field. Use the calendar or +/- keys to set proper date. |
| Payee: | Click on the Payee field. Type Bank of Anywhere. |
| Payment: | Click on the Deposit field. Type 55000.00. |
| Category/Class: | Click on the down arrow in the Category field. Click [BOALoan]. Type /g (for Gen Farm class). |
| Memo: | Operating loan. |
| Record: | Click Enter. |
**Note** Placing [BOALoan] in the category field designates this transaction as a 'transfer.' A transfer is neither an income nor expense transaction. It is a transfer of money from one account to another. In this transaction, money was transferred from the loan account to the checking account. The transfer increases the loan balance in the liability account, [BOALoan] and the balance in the checking account.
You write a check to Bank of Anywhere for $56,345.00 for payment on a loan.
| Num: | Click on Num field, Click Next Check Num. |
| Date: | Click the Date field. Use the calendar or +/- keys to set proper date. |
| Payee: | Click on the down arrow in the Payee field. Click Bank of Anywhere. |
| Payment: | Click on the Payment field. Type 56345.00. |
| Category/Class: | Click Split in the lower right hand corner of the transaction. Click the down arrow in the Category field on line 1, Click Interest Exp, Type /g (for Gen Farm class). Click the Amount Column, Type 1345.00, Click Next, Click the down arrow in the Category field on line 2, Click [BOALoan]. Type /g (for Gen Farm Class). Click the Amount field, Type 55000.00 Click OK. |
| Memo: | December loan payment. |
| Record: | Click Enter. |
**Note** To see how this payment affected the balance in your liability account [BOALoan], Click the Accounts tab located under My Finances in the Quick Tabs list. Next, Double Click BOALoan. This takes you to the register in this liability account. You can see after making this payment your balance is now $0.00.
You take out a CCC loan on soybeans for $53,500. You treat CCC loans as loans for tax purposes. You have already created a liability account named CCCLoan.
| Num: | Click on Num field, Click Deposit |
| Date: | Click the date field. Use the calendar or +/- keys to set proper date. |
| Payee: | Click on the Payee field, Type FSA. |
| Payment: | Click on the Deposit field, Type 53500.00 |
| Category/Class: | Click on the down arrow in the Category field. Click [CCCLoan], Type /g (for Gen Farm class). |
| Memo: | 10,000 bushels soybeans. |
| Record: | Click Enter. |
You pay cash for oil filters at Farm Supply of Anywhere.
Click the Accounts tab located under My Finances in the Quick Tabs list. Next,
Double Click CASH. This takes you to the register in this account.
| Date: | Click the Date field. Use the calendar or +/- keys to set proper date. |
| Payee: | Click down arrow on the Payee field. Click Farm Supply of Anywhere. |
| Payment: | Click on the Spend field, Type 28.43. |
| Category/Class: | Click on the down arrow in the Category field. Click Repairs: Mchy, Type /g (for Gen Farm class). |
| Memo: | Filters for truck. |
| Record: | Click Enter. |