DEFINITIONS:

Account Code: This is a four-digit to eight-digit code that is used to group like transactions together.

Detail Code (DTL): This is a code that can be up to four characters in length. This code can be numeric, alpha or alphanumeric. Using a detail code allows for greater detail within a given account to give management more detailed information for decision making purposes but also allows for financials to be “rolled-up” for reporting purpose to a board of directors, financial institutions and/or others who may need to see high level financial statements.

Profit Center Code (PFC): This is a three-character code which can be numeric, alpha or alphanumeric and is used to distinguish one department or enterprise from another at the same location. With multiple locations, like departments should have the same profit center code. This allows financial statements to be generated for a specific profit center at one location or for all locations. If using the Location Code to identify unique departments/enterprises then this code would not be use.

Location Code (LOC): This is a three-character system code that is set up under the maintenance Menu. This code controls several function areas with AGRIS. All transactions have at least one location code. A transaction can be created in one location on behalf of another location. Example: An invoice can be created in location A, this becomes the document location using inventory items from location B and this becomes the activity location. The sales and cost of sales will be posted to the ledger with location B on the transaction. This allows financial statements to be generated by location. The location code can be used to identify unique physical locations (i.e. towns) or to identify unique departments or enterprises. The one exception to this is that the administrative income and expenses should be in a unique location. This will allow them to be split to other locations and/or profit centers.

Account Structure: The account structure is the Account Code followed by the Detail Code followed by the Profit Center Code. The detail code and profit center code are not required and one can be used with out the other one.

Example: Three Locations and numerous detail codes. 100 series is administrative, 200 series is grain, 300 series is fertilizer, 400 is feed mill, 600 series is farm store, 700 series is convenience store

Location 100, 200 & 300 Detail Code

Administrative 100 (only used in location 100)

Wheat 210

Corn 220

Soybean 230

Liquid Fertilizer 310

Dry Fertilizer 320

Chemicals 330

Crop Production 340

Beef Feed 410

Dairy Feed 420

Swine Feed 430

Horse Feed 440

Unleaded 510

Ethanol 520

Farm Diesel 530

Road Diesel 540

Tires 610

Animal Health 620

Lawn& Garden 630

Groceries 710

Dairy 720

Auto 730

Candy 740

Beer 750

Tobacco 760

Example: Three Locations, Seven Profit Centers with numerous detail codes

Location 100 Profit Center Detail Codes

Administrative ADM

Grain Department GRN

Wheat 110

Corn 120

Soybean 130

Fertilizer Department FRT

Liquid Fertilizer 210

Dry Fertilizer 220

Chemicals 230

Feed Mill FDM

Dairy Feed 310

Beef Feed 320

Horse Feed 330

Swine Feed 340

Location 200

Grain Department GRN

Wheat 110

Corn 120

Soybeans 130

Bulk Fuel Department PTR

Unleaded 410

Ethanol 420

Clear Diesel 430

Dyed Diesel 440

Farm Store FST

Tires 510

Animal Health 520

Clothing 530

Lawn & Garden 540

Location 300

Grain Department GRN

Feed Mill FDM

Fertilizer Department FRT

C Store CST

Dairy 610

Fuel 620

Groceries 630

Auto 640

Candy 650

Beer 660

Tobacco 670

Below are two excerpts from a chart of accounts set up using the concept outlined above. The first excerpt is a portion of for the balance sheet accounts and the second excerpt is a portion of the income statement accounts.

Excerpt #1

1000 ASSETS FORMAT ... HEADING

1010 CURRENT ASSETS FORMAT ... HEADING.

1020 CASH TEXT ONLY

1020 01 CHECKING ACCOUNT POSTING

1020 03 SAVINGS ACCOUNT POSTING

1030 CASH ON HAND TEXT ONLY

1030 C1 CASH ON HAND - LOCATION 100 POSTING

1030 C2 CASH ON HAND - LOCATION 200 POSTING

1030 C3 CASH ON HAND - LOCATION 300 POSTING

1030 C9 CASH ON HAND - LOCATION 900 POSTING

1040 HEDGE ACCOUNT POSTING

1070 TOTAL CASH FORMAT ... TOTAL

1110 ACCOUNTS RECEIVABLE FORMAT ... HEADING

1120 TRADE RECEIVABLES POSTING

1125 CREDIT CARD RECEIVABLES POSTING

1130 EMPLOYEE RECEIVABLES POSTING

1140 NOTES RECEIVABLE POSTING

1150 GRAIN RECEIVABLES POSTING

1160 MISCELLANEOUS RECEIVABLES POSTING

1170 BGT BILL DELIVERED RECEIVABLES POSTING

1180 BGT BILL RECURRING RECEIVABLES POSTING

1190 TOTAL ACCOUNTS RECEIVABLE FORMAT ... TOTAL

1200 PREPAID EXPENSES FORMAT ... HEADING

1210 PREPAID EXPENSES POSTING

1220 PREPAID INSURANCE POSTING

1230 UTILITY DEPOSITS POSTING

1240 OTHER PREPAID EXPENSES POSTING

1270 TOTAL PREPAID EXPENSES FORMAT ... TOTAL.

1300 INVENTORY FORMAT ... HEADING.

1310 GRN GRAIN INVENTORY TEXT ONLY

1310 CN GRN CORN INVENTORY POSTING

1310 OT GRN OAT INVENTORY POSTING

1310 SB GRN SOYBEAN INVENTORY POSTING

1310 SG GRN MILO INVENTORY POSTING

1310 WW GRN WHEAT INVENTORY POSTING

1315 AGY CROP PRODUCTION INVENTORY TEXT ONLY

1315 A1 AGY LIQUID FERTILIZER INVENTORY POSTING

1315 A2 AGY DRY FERTILIZER INVENTORY POSTING

1315 A3 AGY ANHYDROUS INVENTORY POSTING

1315 A5 AGY LIQUID CHEMICAL INVENTORY POSTING

1315 A6 AGY DRY CHEMICAL INVENTORY POSTING

1320 FDM FEED INVENTORY TEXT ONLY

1320 F1 FDM BOVINE FEED INVENTORY POSTING

1320 F2 FDM EQUINE FEED INVENTORY POSTING

1320 F8 FDM FEED INGREDIENTS INVENTORY POSTING

1320 FF FDM MISCELLANEOUS FEED INVENTORY POSTING

1325 FST FARM STORE INVENTORY TEXT ONLY

1325 FS FST MISC FARM SUPPLIES INVENTORY POSTING

1325 G2 FST BUNKS & FEEDERS INVENTORY POSTING

1325 G3 FST STOCK TANK INVENTORY POSTING

1325 G5 FST GATES & PANELS INVENTORY POSTING

1325 G6 FST CHUTES INVENTORY POSTING

1325 GS FST SEED INVENTORY POSTING

1330 PET PETROLEUM INVENTORY TEXT ONLY

1330 N1 PET OIL & GREASE INVENTORY POSTING

1330 N3 PET TIRE & TUBE INVENTORY POSTING

1330 N5 PET TBA INVENTORY POSTING

1330 P1 PET UNLEADED AND ETHANOL INV POSTING

1330 P2 PET FARM DIESEL INVENTORY POSTING

1330 P3 PET ROAD DIESEL INVENTORY POSTING

1330 P5 PET PROPANE INVENTORY POSTING

1340 CST C-STORE INVENTORY TEXT ONLY

1340 S1 CST GROCERY INVENTORY POSTING

1340 S2 CST DELI INVENTORY POSTING

1340 S3 CST DAIRY INVENTORY POSTING

1340 S4 CST MERCHANDISE INVENTORY POSTING

1340 S5 CST BEVERAGE INVENTORY POSTING

1340 SA CST C-STORE TBA INVENTORY POSTING

1370 TOTAL INVENTORY FORMAT

Excerpt #2

4000 SALES FORMAT ... HEADING

4210 GRN GRAIN SALES TEXT ONLY

4210 CN GRN CORN SALES POSTING

4210 OT GRN OAT SALES POSTING

4210 SB GRN SOYBEAN SALES POSTING

4210 SG GRN MILO SALES POSTING

4210 WW GRN WHEAT SALES POSTING

4315 AGY CROP PRODUCTION SALES TEXT ONLY

4315 A1 AGY LIQUID FERTILIZER SALES POSTING

4315 A2 AGY DRY FERTILIZER SALES POSTING

4315 A3 AGY ANHYDROUS SALES POSTING

4315 A5 AGY LIQUID CHEMICAL SALES POSTING

4315 A6 AGY DRY CHEMICAL SALES POSTING

4320 FDM FEED SALES TEXT ONLY

4320 F1 FDM BEEF FEED SALES POSTING

4320 F2 FDM HORSE FEED SALES POSTING

4320 F8 FDM FEED INGREDIENT SALES POSTING

4320 FF FDM MISCELLANEOUS FEED SALES POSTING

4325 FST FARM STORE SALES TEXT ONLY

4325 FS FST MISC FARM SUIPPLIES SALES POSTING

4325 G2 FST BUNKS & FEEDERS SALES POSTING

4325 G3 FST STOCK TANK SALES POSTING

4325 G5 FST GATES & PANELS SALES POSTING

4325 G6 FST CHUTES SALES POSTING

4325 GS FST SEED SALES POSTING

4330 PET PETROLEUM SALES POSTING

4330 N1 PET OIL & GREASE SALES POSTING

4330 N3 PET TIRE SALES POSTING

4330 N5 PET TBA SALES POSTING

4330 P1 PET UNLEADED & ETHANOL SALES POSTING

4330 P2 PET FARM DIESEL SALES POSTING

4330 P3 PET ROAD DIESEL SALES POSTING

4330 P5 PET PROPANE SALES POSTING

4340 CST C-STORE SALES TEXT ONLY

4340 S1 CST GROCERY SALES POSTING

4340 S2 CST DELI SALES POSTING

4340 S3 CST DAIRY SALES POSTING

4340 S4 CST MERCHANDISE SALES POSTING

4340 S5 CST BEVERAGE SALES POSTING

4340 SA CST C-STORE TBA SALES POSTING

4490 TOTAL SALES FORMAT ... TOTAL

4580 OTHER REVENUE FORMAT ... HEADING

4610 FREIGHT INCOME TEXT ONLY

4610 FDM FREIGHT - FEEDMILL POSTING

4610 CN GRN FREIGHT - CORN POSTING

4610 SB GRN FREIGHT - SOYBEANS POSTING

4610 SG GRN FREIGHT - MILO POSTING

4610 WW GRN FREIGHT - WHEAT POSTING

4630 GRN DRYING INCOME TEXT ONLY

4630 CN GRN DRYING CHARGE - CORN POSTING

4630 SB GRN DRYING CHARGE - SOYBEANS POSTING

4630 SG GRN DRYING CHARGE - MILO POSTING

4630 WW GRN DRYING CHARGE - WHEAT POSTING

4650 GRN STORAGE INCOME TEXT ONLY

4650 CN GRN STORAGE - CORN POSTING

4650 SB GRN STORAGE - SOYBEANS POSTING

4650 SG GRN STORAGE - MILO POSTING

4650 WW GRN STORAGE - WHEAT POSTING

4670 GRN D.P. REVENUE TEXT ONLY

4670 CN GRN D.P. REVENUE - CORN POSTING

4670 SB GRN D.P. REVENUE - SOYBEANS POSTING

4670 SG GRN D.P. REVENUE - MILO POSTING

4670 WW GRN D.P. REVENUE - WHEAT POSTING

4710 AGY CROP PRODUCTION SERVICES POSTING

4730 FDM FEEDMILL SERVICES REVENUE POSTING

4750 PET PETROLEUM SERVICES INCOME POSTING

4770 TOTAL OTHER REVENUE FORMAT ... TOTAL

4799 GROSS SALES

Below is an excerpt from a balance sheet report at the account code level, note the inventory accounts. Because this is a condensed version, this balance sheet can be shared with third parties and board members.

DATE: 06/09/11 AG SUPPLY COOPERATIVE PAGE: 1
TIME: 5:49 pm Balance Sheet - Current Only

CUR YTD 11/30/08

CURR YTD

ACCOUNT DESCRIPTION AMOUNT

---------------------------------------------------------------------------------------------------------------------

ASSETS

CURRENT ASSETS

CASH 17,500.00

CASH ON HAND 56,260.00

HEDGE ACCOUNT 31,500.00

--------------

TOTAL CASH 105,260.00

ACCOUNTS RECEIVABLE

TRADE RECEIVABLES 1,260.00

CREDIT CARD RECEIVABLES 2,500.00

BGT BILL DELIVERED RECEIVABLES 500.00-

--------------

TOTAL ACCOUNTS RECEIVABLE 3,260.00

PREPAID EXPENSES

PREPAID EXPENSES 56,400.00

PREPAID INSURANCE 9,400.00-

UTILITY DEPOSITS 500.00

--------------

TOTAL PREPAID EXPENSES 47,500.00

INVENTORY

GRAIN INVENTORY 83,540.00-

CROP PRODUCTION INVENTORY 52,550.00

FEED INVENTORY 19,668.10

FARM STORE INVENTORY 46,550.00

PETROLEUM INVENTORY 181,400.00

--------------

TOTAL INVENTORY 216,628.10

--------------

TOTAL CURRENT ASSETS 372,648.10

Below is an excerpt of a balance sheet report at the detail code level, again note the inventory accounts. Because this balance sheet contains more information it is very useful for management.

DATE: 06/09/11 AG SUPPLY COOPERATIVE PAGE: 1

TIME: 5:56 pm Balance Sheet - Current Only

CUR YTD 11/30/08

CURR YTD

ACCOUNT DESCRIPTION AMOUNT

------------------------------------------------------------------------------------------------------------------------

ASSETS

CURRENT ASSETS

CHECKING ACCOUNT 12,500.00

SAVINGS ACCOUNT 5,000.00

CASH ON HAND - LOCATION 100 25,660.00

CASH ON HAND - LOCATION 200 150.00

CASH ON HAND - LOCATION 300 300.00

CASH ON HAND - LOCATION 900 150.00

HEDGE ACCOUNT 31,500.00

--------------

TOTAL CASH 105,260.00

ACCOUNTS RECEIVABLE

TRADE RECEIVABLES 1,260.00

CREDIT CARD RECEIVABLES 2,500.00

BGT BILL DELIVERED RECEIVABLES 500.00-

--------------

TOTAL ACCOUNTS RECEIVABLE 3,260.00

PREPAID EXPENSES

PREPAID EXPENSES 56,400.00

PREPAID INSURANCE 9,400.00-

UTILITY DEPOSITS 500.00

--------------

TOTAL PREPAID EXPENSES 47,500.00

INVENTORY

CORN INVENTORY 30,500.00-

OAT INVENTORY 9,625.00-

MILO INVENTORY 15,290.00-

WHEAT INVENTORY 28,125.00-

LIQUID FERTILIZER INVENTORY 17,500.00

DRY FERTILIZER INVENTORY 7,800.00

ANHYDROUS INVENTORY 15,000.00

LIQUID CHEMICAL INVENTORY 7,250.00

DRY CHEMICAL INVENTORY 5,000.00

BOVINE FEED INVENTORY 3,000.00

EQUINE FEED INVENTORY 2,500.00

FEED INGREDIENTS INVENTORY 12,368.10

MISCELLANEOUS FEED INVENTORY 1,800.00

MISC FARM SUPPLIES INVENTORY 15,000.00

BUNKS & FEEDERS INVENTORY 5,000.00

STOCK TANK INVENTORY 3,500.00

GATES & PANELS INVENTORY 3,550.00

CHUTES INVENTORY 8,000.00

SEED INVENTORY 11,500.00

OIL & GREASE INVENTORY 3,000.00

TIRE & TUBE INVENTORY 8,000.00

TBA INVENTORY 1,500.00

UNLEADED AND ETHANOL INVENTORY 55,000.00

FARM DIESEL INVENTORY 37,500.00

ROAD DIESEL INVENTORY 26,000.00

PROPANE INVENTORY 50,400.00

--------------

TOTAL INVENTORY 216,628.10
--------------

TOTAL CURRENT ASSETS 372,648.10

Administrative Splits: To utilize Administrative Splits, all administrative expenses must be in one location code. This can be a separate location code or if you use Profit Centers, the administrative expenses can be in a unique Profit Center.