Where share farmers are paid directly by the factory, ensure that the appropriate settings have been made on the options screen (see section 3.11). When you enter your milk cheque, ONLY ENTER THE FIGURES THAT RELATE TO YOUR SHARE. If the farm’s milk cheque is $20,000, and you only receive $10,000, enter $10,000 against milk sales, with the share percentage shown as 50%. Enter the total farm production when asked for the physical details of milk and cow numbers. The budget system will then gross up the milk income to display the farm total on the budget screen, and allocate the necessary amount to the share farming category to let you know what your share farmer has received during the year. Old transactions need not be edited - MISTRO will fix them as required.

 

You should also create some extra categories for processing your milk cheque. If you don’t have a category for levies already, create one. Milk levies (UDV is a subscription, not a levy) are free of GST. Create a separate category for your UDV subscriptions indicating that it is taxable. Also create a separate category for “Collection” charges that are handled separately on the milk statement. This will be a requirement for completing your BAS correctly as collection charges have GST charged to you by the milk factory, whereas GST on milk sales is charged by you to the factory.

 

The MG statement will create some complications for you, as the inclusive amounts are not shown for the separate items. This means you will have to add 10% to the amounts that attract GST when you enter them in the inclusive column of the Add Transaction window. Just type in the amount on your statement, and then type  * 1.1  The calculator will pop up to complete this calculation for you. An example section from an MG milk statement is shown below:

 

                                 Details         Farm Total                % Split           GST Rate  Supp Total

 

Total milk income  28552.85                  66.66                   10.00            19033.33

Total GST                                                                                                       1903.33

Total income incl GST                                                                               20936.66

Volume charge        1652.84-                 66.66                   10.00              1101.78-

Collection charge       232.50-                 66.66                   10.00                154.98-

Market milk levy          257.44-                 66.66                                             171.61-

ADC Research levy   263.14-                 66.66                                             175.41-

UDV subscription         24.18-               100.00                   10.00                  24.18-

Trading A/C                                                                                                      890.91-

Credited to share equity                                                                                 255.77-

Sub total deductions:                                                                                   2774.64

Total GST                                                                                                          128.10-

Total deductions including GST                                                                            2902.74-

PAYMENT AMOUNT                                                                                 18033.92

 

The transaction would be entered into MISTRO as follows. You can cross check your GST calculations by calculating the amount of GST on your milk statement (1903.33-128.10) with the amount shown on the form (1775.23).