How to Record a Crop Sale with an Advance (Basis) Payment

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This transaction will reduce your inventory and update the average price used on Field Profit Centers and will show the net sales (Total sale less discounts) as Revenue on your Cash Income statement and Schedule F

Step 1: Record the Advance Payment (Deposit)

When you receive and deposit the advance payment:

Go to the Account Register
Select Add New → Deposit
Select the company that paid the advance
Enter the date and (if applicable) a reference number
Select Other for the Type
Select the revenue account for the crop related to the advance
Enter the advance amount
Do NOT allocate the amount
Enter a Memo and Description (example: Advance on Basis Contract)
Select Save and Close

Result

The advance payment is recorded as revenue
It appears on the Cash Income Statement and Schedule F

Step 2: Record the Final Settlement

When the grain is settled and you receive the remaining payment:

Go to the Account Register
Select Add New → Deposit
Select the company that paid the advance
Enter the date and (if applicable) a reference number
Select Crops for the Type
Select the Account
Select the Harvest Product
Select the Crop Year
Select the Storage Location
Enter the TOTAL quantity sold
Enter the unit price or total sale amount
(This should be the gross sale amount before basis advances.)
Select Add Row
Select Other for the Type
Select the same revenue account used for the advance
Enter the advance amount as a NEGATIVE value
Do NOT allocate the amount
Enter a Memo and Description (example: Corn Settlement minus $75,000 Advance Payment)

Optional Adjustments

For additional reductions (e.g., drying, shrink, discounts):
- Select Add Row
- Choose the appropriate expense account
- Enter the amount as a negative value

Confirm the Total Deposit matches the amount paid

18. Select Save and Close

What This Process Does

Reduces crop inventory
Updates the average price used in Field Profit Centers
Reports net crop sales (gross sale minus advances and adjustments) as revenue on:
- Cash Income Statement
- Schedule F