Agriculture and forestry for sole proprietorships

Specific agricultural clients from accounting systems

Some accounting systems have specific agricultural setups, including specialized charts of accounts. Period & Year currently integrates with several of these:

• Poweroffice Go
• Duett
• Unimicro
• DNB Regnskap
• Sparebank 1 Regnskap
• Eika Økonomi

You can read more here about Importing agricultural clients.

Setup

Under the menu item Information -> Client information, you select which primary industries are required. By checking the boxes for primary industries, various options will appear:

• Automatic allocation: Accounts are linked to industries (only for entities without statutory accounting obligations).
• Agriculture, nurseries, etc.
• Forestry
• Slate production in Finnmark and Nord-Troms
• Reindeer husbandry
• Fishing and hunting

If automatic allocation is enabled, two additional options become available:

1. Other business
2. Family nursery in own home

Available menu items based on industry selection

• Agriculture: The menu item Information - Agricultural Account becomes available.
• Forestry: The menu item Information - Timber Account and Forest Fund becomes available.
• Reindeer Husbandry: The tab Reindeer Husbandry under Business Income - Business Income and Spousal Distribution becomes available.

Automatic allocation: If automatic allocation is turned on, the following menu items will be available for completion under Information:

• Allocate accounts between industries
• Agriculture, income and expenses
• Forestry, income and expenses

Allocate accounts between industries

This function allows you to distribute all the accounts in the ledger between different departments/industries.

Specific agricultural clients

For these clients, the distribution occurs automatically based on account properties.

Other clients

For these, distribution is performed manually based on the following choices:

• Standard industry assignment: A default industry is selected. Accounts will automatically be linked to this, with the exception of specific accounts (timber/agriculture).
• Manual allocation: Accounts with this selection will have unallocated values added to the standard industry.

Each account can be manually linked to an industry selected under Client information.

• Special items: Depreciation, negative balances, and items from the gains and losses account must be allocated manually if they are not to be allocated as a whole.

Specifications for agriculture and forestry

Agriculture, income and expenses

Used to automatically distribute between:

• Yes: Included in the agricultural account.
• No: Not included in the agricultural account.
• Not applicable: Accounts concerning the actual postings for the agricultural account.

The accounts shown in this overview are those allocated to the industry via the Allocate accounts between industries function. The balance shown is the balance (or portion thereof) allocated to the agricultural industry.

Timber account, income and expenses

This function is used automatically to distribute income and expenses between the following options.

Distribution of income

Choose between various income items under the timber account:

1. Sales income and withdrawals (sawlogs, pulpwood, standing timber sales, etc.).
2. Sales income and withdrawals (firewood and biomass).
3. Income from hunting, fishing, peat extraction, and rental income.

Additionally, based on the reference account, options will appear automatically that cannot be overridden by the user:

• Recognition of negative balance
• Annual income from the gains and losses account
• Not applicable (Income recognition from timber account)

For expenses, there are two choices, similar to the agricultural account:

• Yes = included in the timber account
• No = not included in the timber account

Accounts relating to postings for the timber account will be displayed as not applicable in the overview.

The accounts shown in this overview are those allocated to the industry via the Allocate accounts between industries function. The balance shown is the balance (or portion thereof) allocated to the forestry industry.

Agricultural account

The agricultural account section can contain one or more accounts—one per operating unit. If automatic allocation is selected under Client information, the first operating unit will be automatically assigned income and expenses based on selections in the Agriculture, income and expenses menu.

Furthermore, choices are made in accordance with tax regulations, where the following options can be exercised if desired:

• Income is transferred to the agricultural account from calculations in the upper section. It is possible to override the transferred income if you wish for all or part of the income to be recognized directly. This is most relevant in cases where the agricultural account is negative from previous years and the taxpayer wishes to show a positive income on the tax return.

• The percentage for income recognition or deduction is set at a standard rate, but you can override this to another rate permitted under tax rules. A warning will appear if an invalid rate is used.

  • Income recognition can be performed at a higher rate.
  • Deductions can be performed at a lower rate.

Timber account and automatic calculation

The timber account section can contain one or more timber accounts—one per operating unit.

If automatic allocation is selected under Client information, the first operating unit will be automatically assigned income and expenses based on selections in the Timber account, income and expenses menu.

Furthermore, choices are made in accordance with tax regulations, where the following options can be exercised if desired:

• Income is transferred to the timber account from calculations in the upper section. It is possible to override the transferred income if you wish for all or part of the income to be recognized directly. This is most relevant in cases where the timber account is negative from previous years and the taxpayer wishes to show a positive income on the tax return, as the income recognition percentage can also be changed to a higher rate than the standard.

• The percentage for income recognition or deduction is set at a standard rate but can be overridden by the user if desired to another rate permitted under tax rules. A warning will appear if an invalid rate is used.

  • Income recognition can be performed at a higher rate.
  • Deductions can be performed at a lower rate.