A Farm Management Enterprise is an enterprise that takes some part in the Farm Enterprise Reporting. Some Farm Management Enterprises can be reported in their own right, while some are used to collect data for more than one enterprise. The Farm Management Enterprise Type is used to identify a farm management enterprise. It specifies the type of enterprise to be recorded, and hence specifies:
•what specific farm management data (if any) is to be collected.
•whether a report is available for the enterprise and the format of that reports.
If the enterprise is not to report in its own right, how the data collected for the enterprise is to be apportioned over other enterprises.
See Setting Up Enterprises. To create a farm management enterprise, however, you must allocate a Farm Management Enterprise Type to the enterprise.
You can have both farm management enterprises and ordinary non-farm management enterprises. It is not necessary to allocate a Farm Management Enterprise Type to all of the enterprises, only to those involved in the generation of Farm Enterprise Reports.
Examples of Crop and Livestock enterprises would be:
Enterprise
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Enterprise Type
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Canola
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Summer Crop
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Wheat
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Winter Crop
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Dryland Cotton
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Summer Crop
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Fat Lambs
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Sheep Breeding
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Merino Breeding & Wool
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Sheep Breeding
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Special purpose enterprises may be created to assist with the allocation of enterprise costs. These enterprises are not used for reporting.
You identify an enterprise as a special purpose enterprise by allocating a Farm Management Enterprise Type, just as you do for normal farm management enterprises.
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These enterprises exist for resources or inputs that are purchased and stored on the property before use. The inputs may be allocated to one of the resource enterprises if, at the time of purchase, the enterprise for which these inputs are to be used is unknown. The quantity of the input on hand is recorded in a commodity account, for later allocation to the enterprise in which it is used.
Resources stored on farm are a cost of production that is often forgotten when looking at enterprise profitability. Resource enterprises are often used for fuel, fertiliser and Stock feed.
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Use of this special purpose enterprise is optional. You may use it to allocate all farm overhead costs, and to allocate use of resources for overhead activities. Costs allocated to this enterprise must only be farming costs that do not belong to one of the farm management or resource enterprises.
The Overhead enterprise is not used in the farm management reports. It can be used for financial reports to view only the farm overhead costs. Additionally, it allows selection of overall farm financial reports since you can exclude any non-farm costs or incomes by only choosing the enterprises for the farm.
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Unallocated enterprises are used to distribute costs that relate to specified groups of enterprises. Unallocated enterprises are useful when dissections can be allocated to a common group of enterprises- sheep, cattle, winter crops and summer crops. An example would be food for a sheep dog. The dog may work on a number of sheep enterprises but it is not possible to directly attribute these costs to a particular sheep enterprise. By allocating such costs to the Sheep Unallocated enterprise, dog food costs will be distributed across all sheep enterprises. Dissections are distributed proportionally to the feed demand of the sheep enterprises involved.
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Dissections allocated to this enterprise are distributed to all enterprises of Summer Crop type, and which are used in the same management season. Dissections are distributed proportionally to the area (hectares) of each crop grown. Therefore a crop that constitutes 25% of summer crops grown will be allocated 25% of Crop Summer Unallocated transactions.
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The Winter Crop Unallocated enterprise works exactly as for Summer Crop Unallocated, but for winter season crops.
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Dissections allocated to this enterprise are distributed between all sheep enterprises, for a particular management season. Dissections are distributed proportionally to the feed requirement of each sheep enterprise as a percentage of total feed requirement of all sheep enterprises. Thus if a sheep enterprise consumes 35% of the feed consumed by all sheep enterprises on the farm, 35% of the sheep unallocated dissections will be allocated to this enterprise.
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Cattle Unallocated works exactly as for Sheep Unallocated, but for Cattle enterprises.
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