CenterPoint^® Accounting for Agriculture - Distribute General Revenue by Units of Production

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Account Distribution - Distribute Expenses per Unit of Production Video - Duration: 9 min 05 sec

Account Distribution - Overhead Expenses by Percentage Video - Duration: 13 min 16 sec

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Account distributions allow you to distribute financial activity to your production details using the production information stored in the crop production details. This document explains how to distribute by acre.

General revenue and expense transactions can be distributed to your crop production details based on the number of acres in each crop production detail multiplied by the distribution factor of that profit center. The distribution factor allows you to weight the various crops you produce based on labor intensity, utility usage, equipment usage, or other overhead costs. A distribution can be set up for all the cominations you need on your different accounts. Distributions can be used on any account types.

Step A - Create an Account Distribution

Step B - Assign Accounts to the Distribution

Step C - Apply Distribution (only if distribution in Step A was setup with the apply later timing option)

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Step A - Create an Account Distribution

1. Select Setup > Accounts > Distributions. Click New.
2. Enter an Abbreviation (optional), Name and Description to easily identify this account distribution.
3. The Active check box will automatically be selected, clear the check box if this distribution is no longer active. If the check box is cleared, accounts cannot be assigned on the Assign Accounts tab and if accounts are assigned when the distribution is inactivated, a message displays reminding you that the accounts will be removed when the distribution is saved.
4. Select the Distribution Detail tab. The Distribution tab will be used to identify how the expenses should be distributed. A distribution can be dispersed to an unlimited number of profit centers or production center details.
5. Click New in the lower left corner.
6. Enter a Name for this portion of the distribution, such as Crops by Production.
7. Select Per Unit of Crop Production as the Type.
8. Select the LaterTiming option. This option will record the revenue or expense to the account but won't distribute it to profit centersor production center details until later when the Apply Distributions process is completed (defined in step C below).

9. Enter the Percentage of Total Amount for this portion of the distribution. In this example, 100% of general overhead expense is allocated to Crops by Production. Distributions can be combinations of more than one distribution detail. For example, you could assign a percentage of the total to livestock and the remainder to be distributed by acres to all the crops. Distributions can be made for any combination required in your operation.
10. In the By box, select the production center detail records to distribute by either Profit Centers or Production Centers.
11. All profit centers/production centers will be displayed on the left in the Available section. Use the right arrow to move profit centers/production centers to the right (Selected) for this allocation.
12. Repeat step 4-10 for each distribution needed.
13. Click Save.

Step B - Assign Accounts to the Distribution

1. Select Setup > Accounts > Distributions. Highlight the appropriate Distribution and click Edit.
2. Select the Assign Accounts tab.
3. The Assign Accounts to Distributions area will list all accounts not already assigned to other distributions on the left side of the screen. Each account that should use this distribution should be moved to the right side of the screen by double clicking on the account or using the green arrow buttons located between the account lists.

4. Once all appropriate accounts for this distribution have been selected, click Save. If you have additional distributions that need accounts assigned, you can also use the green left and right arrows to the left of the Close button to move to the next or previous distribution. The distribution name will be displayed directly below the tabs.
5. You can verify the distributions you have assigned to accounts by printing any of the Chart of Accounts reports found in Reports > Reports > Setup Lists > Chart of Accounts, Chart of Accounts with Levels, or Chart of Accounts by Distribution.

Step C - Apply Distribution (only if distribution in Step A was setup with the apply later timing option)

1. Select Processes > Periodic > Apply Distributions.

2. Click Create New.

3. In the Company box, enter the company name that the apply distribution transactions should be created for.

4. In the Transaction Date box, the next "calculated" date to create apply distribution transactions displays. The date is calculated by taking the last date transactions were created and incrementing the date one month. The day of the month will default to the last day of the month, but can be changed.
5. In the Transaction Number box, enter the transaction number for the apply distribution transactions or click the sequence number icon and select the next available sequence number. See theMaintaining Sequence NumbersMaintaining Sequence Numbers topic for more information.
6. In the Memo Line 1 box, enter an optional memo for the transaction. In the Line 2 box, if the transaction is assigned a name that was setup with a default memo, it will display automatically and can be overridden.
7. Enter an optional Notation.
8. Click OK.
9. If you wish to change the distribution amounts in the Amount column before posting, type over the existing amount. Click Edit to add/change/remove account distribution detail lines and recalculate the remaining details (click Reset to set the distribution back to the amounts prior to any changes).
10. Click Post to complete the process.

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