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The Agricultural - Gross Margin Summary: Crops template is a working paper in the Farm Working Papers package that calculates the gross margin for each type of crop the farm grows, straight from the trial balance. The whole template is read-only: there is nothing to enter, label or override on it directly, and every figure, including the two "spare" crop columns, is driven entirely by what has been posted to the underlying trial balance accounts. There is no reconciliation to perform.
Table of contents
- When should I use this template?
- Before you start
- Background
- Steps
- What flows through to the rest of the accounts/workflow?
- What rolls forward next year?
- Where the data comes from
- Frequently asked questions
When should I use this template?
It is included automatically in the Farm Working Papers package for farming clients. Use it to review the gross margin, and gross margin %, generated by each crop the client grows: barley, wheat, oats, potatoes, oilseed rape, forage, peas, and up to two further "spare" crop types merged into an Other crops column, based on what has already been posted to the trial balance.
Before you start
Make sure the client's income and cost postings for each crop are mapped to the correct crop-specific accounts (see Where the data comes from below). This template does not let you re-map or correct account postings. It only presents what is already there.
Background
This is a bookkeeping-driven summary, not an accounting-standard disclosure, so there is no accounting treatment to verify against. It exists to give you and the client a quick view of margin by crop type, drawn entirely from posted trial balance figures.
Steps
For each crop with activity in the current year, or in the prior year where the comparative is shown, the template shows columns for:
- Barley, Wheat, Oats, Potatoes, Oilseed rape, Forage and Peas: the seven standard crop types.
- Two spare columns: for any crop not on the standard list, fed from two spare crop accounts in the chart of accounts. There is nothing to type on this template itself, and the two spare crop types always share a single Other crops column here, whatever those accounts are named.
- Overall: the total across every crop column.
Within each column, the rows are:
| Section | Rows |
| Income | Sales, Subsidies |
| Costs | Opening stock, Closing stock, Purchases |
| Other crop income | Arable aid subsidy, Set aside subsidy, Grazing, Rent of land, Other |
| Direct costs | Fertiliser, Lime, Seeds, Contracting, Casual labour, Crop spray, Rent of land, Other crop expenses |
Rows with a nil value in every column are hidden automatically. Other crop income and Direct costs each list a fixed set of mapped trial balance accounts (see Where the data comes from below); these appear as an Overall figure only, not split by crop. There is no way to add an extra row from within this template itself, so anything that does not fit those accounts needs to be posted to the trial balance instead.
At the bottom, the template calculates:
- Gross margin per crop and overall: income (Sales, Subsidies, and Other crop income) less costs (the stock movement, Purchases, and Direct costs).
- Gross margin %: gross margin as a percentage of income, per crop and overall.
What flows through to the rest of the accounts/workflow?
Where the client's accounts also include a Gross Margin note for crops in the annual accounts, this working paper links directly to it, since both draw on the same trial balance figures. For unincorporated farms with Agriculture selected as the industry type in General Settings, the crop gross margin and other income figures display on the face of the profit and loss account.
What rolls forward next year?
Nothing carries forward. Every row is recalculated fresh from the trial balance each period.
Where the data comes from
Every figure is mapped from specific trial balance income (4-xxxxx) and cost (5-xxxxx) accounts for each crop. For example, each crop has its own Sales, Subsidies, Opening stock, Closing stock and Purchases account.
Nothing here is drawn from the Agricultural - Stock Valuation: Crops and Other account template directly. The Opening stock and Closing stock cost lines are separate profit and loss accounts that need to be posted to reflect the stock movement for the year, typically informed by the closing valuation on that account template, rather than a figure pulled through automatically.
Frequently asked questions
Why isn't there anything for me to fill in?
By design. This is a bookkeeping-driven summary, not a data-entry template. If a figure looks wrong, check the underlying trial balance postings for that crop's accounts.
Why has a crop column disappeared even though it had a balance last year?
This working paper only shows a column where the current year has activity. A crop with only a prior-year balance and nothing this year will not display here, although it may still show in the accounts' Gross Margin note, which considers both years.
How do I add a crop that isn't on the standard list?
Post to one of the two spare crop accounts in the chart of accounts. There is no way to give it its own column or name from within this template, and it will show up merged into the Other crops column alongside the other spare account.
Why does this figure not match the Stock Valuation account template?
They are independent. The Opening stock and Closing stock lines here are separate profit and loss postings, not a live link to the stock valuation working paper. If they should match, check that the year-end journal for the stock movement has been posted.
Where do I find the same summary for livestock?
Use the Agricultural - Gross Margin Summary: Livestock template, which works the same way for each type of livestock the farm keeps.