Advice and answers from the Figured Team

Figured gives you and your accountant the ability to see the value of your livestock in real time. This tool is used for calculating and posting your year end Livestock Valuation journal to Xero.

To access this tool, click on the Adviser tab > Valuations.

Under Valuations is the list of trackers for which Year end Valuations can be calculated. Click on “Settings” to check and edit default valuations scheme and to ensure the accounts have been mapped correctly. 

Note: These accounts must exist in your Xero Chart of Accounts for them to appear here.

For each animal type (e.g. sheep, beef, dairy cattle etc) you will need:

  • A livestock on hand account – Account Type is a Current Asset
  • A non cash movement account – Account Type is a Direct Cost
  • A livestock revaluation reserve account – Account Type is Equity

VALUATION METHODS

There are 3 valuation methods available and careful consideration needs to be given to which option you choose. If you’re unsure, then discuss your farm and individual circumstances with your Accountant beforehand.

  • Market Value is set yourself, based on your historical average values to date.
  • National Standard Cost (NSC) Scheme is a cost of production based method. The calculation takes into account the IRD breeding, rearing and growing costs, purchases and end values (from the year prior) to derive an average closing value.
  • Herd Scheme allows you to value both your opening and closing livestock at the same value per head.

If you would like to read more on valuations follow this link to the IRD’s Information page on Livestock Valuation 

CALCULATION

In the Valuations window, an overview is displayed across the bar at the top of the page via the Total Valuation Summary – this provides a snapshot to see if your valuations have been calculated correctly by checking if the Stock Quantities match and the Total Value is correct.

Underneath is the Scheme Breakdown, which displays a snapshot of how the stock has been distributed between each of the schemes. To edit the allocation simply click “Update Allocation” or “Allocate Stock” under the scheme you wish to edit.
 

Each Scheme window gives you a detailed breakdown of how the valuations are calculated. In the top left hand corner there are two handy functions that allow you to quickly “Allocate all Stock” within the scheme or “Allocate all Unallocated stock”

Figured automatically calculates the Market Value, NSC and Herd Scheme values from your transactions entered throughout the year in your livestock trackers. However if you want to adjust any of these values or are entering historical values – they can be altered in here. (The first time doing valuations you will need to enter the previous NSC and Market Values for Figured to automatically calculate them going forward.)

  • Market Value allows you manually to adjust your market values. As shown above you can edit the quantity of stock and the value per head in the editable fields. 
  • NSC is more complex and gives you a detailed calculation breakdown.

It Divides the livestock classes into  Immature Breeding/Non Breeding and  Mature Breeding/Non Breeding.

The Quantity can be manually adjusted in the editable field, while the Value Per Head can be adjusted by ticking the Override Calculated Value Per Head box and then entering a value.

The “View Automatic Calculation” displays the Stock Quantities obtained Via Purchase and Natural Increase.

  • Herd Scheme allows you to manually adjust the Minimum Quantity, however IRD have some specific rules around this, including livestock movement e.g. deaths by natural causes. 

With the quantities from your trackers and values that are either entered or picked by through the system –  the total Value is automatically calculated, once you are happy with the allocation click “Save & go Back” or alternatively click “Discard Changes” to start again.

If your Closing Quantity doesn’t match with the total of your adjustments, you’ll be able to see the difference in total valuation summary – simply make amendments till the totals are the same.

POSTING A JOURNAL

Once the valuations for the year are complete click “Complete 2016 Valuation” in the top right hand corner (will depend on the year you are working in).

Once completed a banner will appear at the top of the page to confirm the update

Submitting a journal will reverse the existing current value and replace it with your new current value.

  • Journal Date: defaults to today but can be overridden. Ideally this should be dated at year end, however be mindful the system won’t allow you to post prior to a locked date in Xero.
  • Reference: defaults to Closing on hand.
  • Reverse Current on Hand: Current on Hand: defaults to the previous current value, which reverses the last journal.
  • Update on Hand: is automatically calculated by Figured, but can be overridden.

Your final calculation can then be manually posted to Xero or alternatively you can “Skip this Step”. Once you’ve posted the journal, you’ll see a message like this.

If you are using Herd Scheme you will have an additional step where you will be able to post your Herd Scheme Adjustment journals to Xero.

Figured also generates a statement under Reports > Account Reports > Tracker Annual Trading Statement at year end.

Once Completed the Valuations for that year will be locked – however in the top right hand corner of the Tracker Valuation Page there is the Option to “Unlock” this years valuation to make amendments or “Post Valuation Journals” if you have not already done so.

Other articles that may be of interest
Financial Year End Trading Statements
Xero & Figured Chart of Accounts Download
Setting Up the Chart of Accounts

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