• Milk Production in the Cashflow screen

    When creating a new budget, the Dairy Forecaster allows you to predict quantities of milk solids and the payments that will be received for these. Be aware that payments are received the following month and this impacts the start and end of your financial year.

    You can view milk production income within the Dairy Forecaster or on the Cashflow screen as part of your wider budget. You can also use the Cashflow screen to see how your budgeted milk production income compares with your actual transactions.

    Let’s work with Patrick to see how his Milk Production payments appear in his budget. First some background information:

    • Patrick is a dairy farmer supplying to Fonterra.
    • Patrick’s financial year runs June-May.
    • Patrick uses Period End accounting.

    Patrick completes his Dairy Forecaster - Budget Worksheet and ends his production year with a quantity of 7000kg/MS in May. The Dairy Forecaster predicts this will generate a monthly production payment of $25,620 (excl get).

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    Although the income is generated by the farm in May, it is not received until June - the start of Patrick’s new financial year. It therefore appears on his Cashflow screen in the Period End column.

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    If Patrick was viewing Actual transactions, this Period End data would automatically flow into the Cashflow screen for his next financial year under the Last Year section. When creating a stand-alone budget, he needs to manually enter payments that relate to the previous financial year’s milk production.

    1. Retro payments should be entered against the extended code LS, or Last Season’s Defer Figures need to be calculated within the budget worksheet.
    2. The Milk Production payment for May’s milk in his previous financial year was $29,479 (GST excl.). He enters this into his budget under Last Year - Income - Milk Production.

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    Patrick wants to see how his completed budget compares with his actual transactions. He can do this by viewing his budget on Line One and his actual transactions on Line Two.

    To do this he:

    • Clicks on Change View
    • Selects Advanced View
    • Selects his Actual data to appear on Line Two (and chooses the same financial year as his budget).

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    Patrick can still click on the This Seasons row (in any of the blue cells) to bring up the Dairy Forecaster and amend his budget if he wants to bring it more in line with his actual data.

    Tip: You can also use <F2> as a keyboard shortcut to bring up the Dairy Forecaster (as long as one of the blue cells in the This Seasons row is currently selected).

    How does the Dairy Forecaster differ from a Milk Income transaction?

    The Dairy Forecaster is a budgeting tool that can be used when editing budgets in the Cashflow screen. It is not used to record actual Milk Income transactions.

    When you are viewing your Transactions (Actual Cashflow) in the Cashflow screen the Dairy Forecaster is not available. Clicking on the Dairy Forecaster button will bring up an error message and clicking on This Seasons will bring up a summary of your actual Milk Income transactions.

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    Tip: It is your Milk Income actual transactions that flow through to the Dairy Production graph on the Dashboard and are used in Transaction reports.


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