Livestock and Commodity Recording
The Livestock and Commodity recording in Phoenix is a perfect example of what Phoenix does differently to other financial software programs. Where any financial program can record sales and purchases of livestock and commodities and include the quantities, Phoenix takes it a step further.
Physical accounts are a special type of account in Phoenix to which Livestock and Commodities belong. Using Livestock as an example, animal accounts can be created which have multiple sub-accounts, depending on the type of business. For instance, if it were a cattle breeding enterprise the sub-accounts may be Bulls, Cows, Calves, Heifers and Steers. Each of these sub-accounts can be set up with an opening number of head and value. That value can be market value or taxation values. Market value means reports will reflect the true worth of these assets to the business. When sales and purchases are recorded in the bank accounts they are linked to the appropriate Account and Sub-accounts, updating the numbers and values.
The Phoenix difference is that into these Accounts and Sub-accounts can also be recorded non-financial transactions for births, deaths, rations and transfers between sub-accounts. E.g. calves can be transferred to heifers or steers, or heifers to cows. The sub-accounts can also be re-valued to reflect the current value.
The Livestock report will then have all the information needed at the end of the financial year to calculate the trading profit. This trading profit can be calculated using real values, or it can be calculated using taxation values. Taxation values means it will calculate the trading profit the way it would be calculated for income tax purposes using the chosen Nominal value for natural increases.
Commodity accounts in Phoenix can be used in a similar way to the Livestock accounts but with production, use, loss and wastage as well as transfers, valuations, sales and purchases. Due to the similarities between Physical accounts and shares some clients use the Commodity accounts to keep track of shares and their values.
The Profit & Loss report in Phoenix can include the profit from the Livestock and Commodity accounts or just the income and expenses. The Net Worth report includes the balances of the Livestock and Commodity accounts along with all other asset and liability accounts in much the same way as a balance sheet. However if market values are used it may better reflect the actual worth of the business which can be of more use than a balance sheet which has been created solely for income tax purposes.