We breed dogs. It seems there aren't a lot of QB or tax experts that understand "farm" accounting. :(
The breeding dogs we purchase are entered on the Chart of Accounts as Assets as follows. Note, this example accounts for separating your "breeders" from the cost of a regular kitten. You'll see how this benefits later with depreciation and further, when you stop breeding that particular cat - sold, neutered, or otherwise.
Let's start out with your Chart of Accounts:
1) Create a new account in Chart of Accounts - call it "Purchased Breeding Stock", choose B/S-Assets: Buildings/oth. depr. assets
2) Create a sub-account of this account - use the name of your source, ex: Lovable Kittens 2019
3) Create another sub-account of Lovable Kittens called "Breeding Rights"
4) Create two sub-accounts of Breeding rights, one called "Cost" and one "Depreciation"
5) Create a sub-account of Lovable Kittens called "the name of the breeding animal", ex: Cuddles
6) Create two sub-accounts of Cuddles, one called "Cost" and one "Depreciation"
This basically moves your cash asset to an asset represented by your breeding cat (will show the B/S as an asset).
Now Let's Describe Your Assets:
We'll make some assumptions here... Cost of kitten: $500 Cost of a Breeding Cat $2,500.
1) Go to Lists, Fixed Item Asset List
2) Create a New Item called "Lovable Kittens 2019"
3) Enter all your pertinent information with a cost of $2,000.
4) Choose the Asset Account "Purchased Breeding Stock:Lovable Kittens 2019:Breeding Rights:Cost"
5) Create another New Item called "Cuddles"
6) Enter all your pertinent information with a cost of $500.
7) Choose the Asset Account "Purchased Breeding Stock:Lovable Kittens 2019:Cuddles:Cost"
OK, now lets get the breeder on your Books!
1) Enter a bill for Lovable Kittens for the $2,500
2) On the "ltems" tab,
Put Cuddles on the first line, Description "Breeding Female" for $500
Put Lovable Kittens the second line, Description "Breeding Rights" for $2000
Pay the bill with a check. Done!
Every year, depreciate the Breeding Rights AND the breeder separately.
