If grazing of stock is a small part of your overall business then recording the grazing of stock can be simply recording the income and expenses associated with the grazing. You could consider creating a cost tag for your grazing expenses.

However, if grazing of stock is a significant part of your business then a more considered approach is required as the grazing stock numbers can impact your reporting and your understanding of the efficiencies of the farming system. In that case, we recommend a two-step process. This will ensure stock movements are reflected accurately, and that the income and expenditure are coded in the right place.

We recommend you record the movement of livestock with a $0.00 invoice and enter the quantities and livestock weights at each event date when stock leaves and enters the farm. This will ensure that your reports show accurate stock numbers and total kilograms of meat grown on-farm. Specifying these numbers will help ensure your reports are meaningful.

Consult your Accountant about the best practice for recording grazing stock for your business. This is generic information.

In the Needs Action screen, under +Record select a Money In Invoice. This will display in your livestock grid as stock is leaving the farm.

Select the appropriate stock code and enter the correct quantity and weight. The date that they left the farm is the Event Date. This will be recorded as a stock Sale.

Make sure that the dollar amount is $0.00.

Click to Save this Invoice.

When you are recording your grazing payments, whether that be monthly installments, progress payments, or a final payment at the end of the term, you can code this as Farm Expenditure > Grazing Expense, or match to the invoice.

When stock returns to the farm, record the return of the livestock. In the Needs Action screen, under +Record, select a Money Out Invoice. Select the appropriate stock code and enter the correct quantity and weights of the stock returning. The date that they return to the farm is the Event Date. This will be recorded as a Stock Purchase. Make sure that the dollar amount is $0.00. Ideally young stock should weigh more and there may have been a few deaths. If there are any deaths, record the deaths as a non-financial livestock event.

IMPORTANT: If your stock are grazing off the farm at the end of the financial year, alert your accountant as these stock are still owned by you (even if they are currently not sitting on your stock reconciliation) and need to be accounted for in your balance sheet.

In the Needs Action screen, under + Record, select Money Out Invoice:

Select the stock code this relates to and enter the correct quantity and weight. The date that they arrived on the farm is the Event Date. This will be recorded as a Stock Purchase. Make sure that the dollar amount is ($0.00).

Click to Save this Invoice.

When you record your grazing income, whether that be monthly installments, progress payments, or a final payment at the end of the term, you can code this as Income > Other Farm Income > Grazing Income, or match it to a corresponding invoice.

When stock leaves your farm, record the livestock leaving. In the Needs Action screen, under +Record, select Money In Invoice. Select the appropriate stock code and enter the correct quantity and weight of the stock leaving the farm. The date that they leave the farm is the Event Date. This will be recorded as a stock Sale. Make sure that the dollar amount is $0.00.

IMPORTANT: If you have stock grazing on your farm at the end of the financial year, alert your accountant as this stock is not owned by you (even if they are currently sitting on your stock reconciliation) and should not be accounted for in your balance sheet.

Be aware that grazing animals will affect your EFS and Livestock Trading report if they cross a financial year.

Opening and closing numbers will be impacted if grazing occurs over a financial year. You can do a livestock adjustment in the EFS report to reflect the stock you own, whether they are on or off-farm at the time.

Calculate the number of stock grazing away or on-farm, and multiply that by the value of each.

Enter a negative amount if you are grazing someone else's stock on the farm.

Enter a positive amount if your stock is grazing off on another farm.

.