Costs and incomes are normally allocated both to the cash-book and to enterprises during transaction entry. Correct allocation of costs and incomes to the enterprises is vital for accurate reporting and assessment of the performance of each enterprise. Phoenix provides a number of methods to assist you in allocating the costs and incomes. With Phoenix you may either:
1.directly allocate a cost or income to the enterprise, or,
2.allocate a cost to an appropriate Unallocated Enterprise and allow Phoenix to split up the cost for you. or,
3.allocate an input cost to a Resource Enterprise for later allocation of the resource as it is used.
Direct allocation is the normal method of allocation just as is done using the standard Phoenix Financial.
If you know where the entry item will be used, then allocate it directly to the enterprise that will use it. For example, if you purchased fertiliser and you know that all of the fertiliser will be used for your next wheat crop, then allocate the fertiliser to the wheat enterprise.
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Direct allocation is the normal method of allocation just as is done using the standard Phoenix Financial.
If you know where the entry item will be used, then allocate it directly to the enterprise that will use it. For example, if you purchased fertiliser and you know that all of the fertiliser will be used for your next wheat crop, then allocate the fertiliser to the wheat enterprise.
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Resource enterprises are used where you purchase a product and place it into storage for gradual use. For example, when you purchase fuel it is rare that you would have any idea where the fuel will be eventually used. In this case, allocate the fuel purchase to the Fuel resource enterprise, and link the information at the same time to the physical account for the resource.
Once the purchase is recorded in the physical account, you may record its use over time. For example, when you use fuel to plant your wheat crop, go to the physical account and record the amount used, and allocate the use to the wheat enterprise.
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Cropping enterprises are provided with a special Fuel Estimate data entry. This is provided for use only if you cannot directly allocate the fuel used for these enterprises using any of the methods described above.
Note: You must choose either to use the fuel estimate method, or allocation as described by the methods above. Do not use both methods.
If you use the fuel estimate, do not allocate any fuel costs to the cropping enterprise, either through the cash-book during transaction entry, or through a fuel trading account.
If you wish to allocate fuel costs through the cash-book or through a fuel resource trading account, leave the fuel estimate blank in the crop data entry.
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