1. KENTUCKY AGRICULTURAL EDUCATION RECORD KEEPING INSTRUCTIONS & EXAMPLES 1. I can describe how to access my finances in AET. 2. I can define and explain basic financial terms regarding financial transactions. 3. I can accurately record cash and non-cash financial transactions for my AET Experience (SAE).

2. As with Financial Beginning Inventory, students can get to the Finances link by clicking on the light green box from the AET homepage.

3. This is the Student Financial Page. Remember, students can enter any financial entry, including beginning values, transactions, and loans from this page.

4. Remember, the Experience Manager can easily be accessed from this page, which lists all of your AET Experiences.

5. Also, remember that students can review/edit all financial entries from this screen as well.

6. All beginning values can be accessed/edited from this page.

7. After entering Beginning Values, the next financial entries that will be recorded are financial transactions. All financial transactions will be entered within the “Your Financial Entries” section. Depending on the AET Experience (SAE), students may/may not utilize all of the listed links.

8. RECORDING FINANCIAL TRANSACTIONS

9. SAE Cash Entries Any income or expense that involves the exchange of cash (cash, check, etc.) for a good/service. Only students with Entrepreneurship or Research related SAEs should record SAE Cash Entries.

10. When a student clicks on “SAE cash entries,” the “Cash Income/Expense” menu will be displayed.

11. Cash Income Cash earned from AET Experience project, which is typically referred to as income or sales. Ex: Selling a show animal, collecting rent from an equipment lease, or collecting cash to fund a research project.

12. Recording Cash Income After clicking on “Enter cash income,” students will see the “New Income Transaction” page. Students can distribute the transaction to multiple experiences.

13. Recording Cash Income Students will enter the date, vendor, the SAE Experience, type of transaction, amount of the income, and a memo (quantity/unit) for each transaction.

14. Cash Income Entry Example 1: Brandon sold $50 in banana peppers at the farmers market on June 15 th, 2014. He sold 100 peppers at $.50 each.

15. Cash Income Entry Example 2: Brandon showed Market Steer 202 at the county fair and received $30 in premium money on June 18 th, 2014. The money was distributed from the County Fair Board.

16. Cash Income Entry Example 3: Brandon sold Steer 201 (650 lbs) at the Bluegrass Stockyards for $1170 on August 17 th, 2013.

17. If a student is entering multiple SAE Cash Entries, he/she should select, “Save/Enter Another.” If a student is entering one entry and clicks “Save and Return,” he/she will be directed to the financial transactions page.

18. All cash income entries should be reflected as credits.

19. RECORDING CASH EXPENSE

20. SAE Cash Expense Also within SAE Cash entries is the option to record SAE Cash Expenses.

21. Cash Expense Purchased cash items to be used in AET Experiences (SAEs) to supplement or manage the project’s growth. This is only to be used for current items. You would not record the purchase of non-current/capital items as a cash expense. Ex: Inventory purchased for resale, feed, supplies, rent and other cost needed to develop the project.

22. Like Cash Income, only when a student spends money (cash, check, etc.) from an Entrepreneurship or Research SAE, should the transaction be recorded as a Cash Expense entry.

23. The Expense Transaction page looks very similar to the Income page. Students will need to record the date, vendor, experience, type of expense, amount, and a memo (quantity/unit) for each expense. As with Cash Income, students can split the expense among AET Experience (SAEs).

24. Cash Expense Entry Example 1: Brandon purchases three 50lb bags of 20-20-20 fertilizer from Southern States for his banana pepper field on March 3 rd, 2014. Each bag was valued at $8.

25. Cash Expense Entry Example 2: Brandon paid his cousin, Frank, to help him transplant banana peppers on May 4 th, 2014. They worked for 8 hours, and Brandon paid Frank $8 per hour.

26. Cash Expense Entry Example 3: Brandon bought 2 feeder steers (Steer 203, Steer 204) from Joe Jones for $750/hd on May 10, 2014. Steer 203 weighed 429 lbs. Steer 204 weighed 425 lbs.

27. Cash Expense Entry Example 4: Brandon spent $47 for 500 lbs of feed for his cattle on May 3, 2014 from Brodhead Feed Store. He will use half of this feed for his Market Beef Cattle and half of this purchase for his Breeding Beef Cattle.

28. As with Cash Income, when a student clicks “Save and Return,” after their final cash expense entry, they will be directed to the financial transactions page. The cash expenses should be reflected here. The transaction page is automatically organized by date. Cash expenses should be reflected as debits.

29. RECORDING OLDER CASH EXPENSES

30. If a student is entering information from previous years (i.e. Senior student using AET for the first time), there is an option to enter multiple cash income/expense transactions at once.

31. Information is entered the same as with the separate income/ expense transaction pages. If students are entering online information monthly, this would be the way to enter those multiple transactions accurately.

32. RECORDING NON-CASH FINANCIAL ENTRIES

33. If a student has an Entrepreneurship SAE and has transactions that are considered Non- cash, that information is recorded under “SAE Non-cash entries.”

34. Non-Cash Transactions Income or expense transactions that do not involve cash but rather a trading or bartering for services. All values are usually recognized as market values. Only Entrepreneurship projects should utilize Non-cash transactions. Ex: Selling hay from a hay production project to a show animal project.

35. There are several types of Non-cash entries. REMEMBER, these types of entries can only occur within an Entrepreneurship SAE. Types of SAE Non-Cash Transactions SAE Labor Exchange Non-SAE Labor Exchange Transfer/Barter Gift Used at Home Transfer Capital Item Transfer

36. SAE Labor Exchange (Non-Cash) Trading related project labor for items used in developing an AET Experience (SAE) versus purchasing cash items. Ex: Students mows lawns and is paid in feed to be used in his/her dairy project.

37. The student would enter the date and value of the exchange. The student would also select the projects that would receive the income and expense for the transaction. The student should also specify the type of expense. A short memo can also be recorded for accurate records. The student should always remember to click, “Save.”

38. SAE Labor Exchange Example: For the 2014 mowing season, Brandon mows, weed-eats, and landscapes his family’s yard. Instead of receiving cash payment, Brandon’s father lets him use a portion of the farm to raise his Breeding Beef cattle. Together, Brandon and his father estimate that this land rental is worth $500 per year. Brandon records this entry on October 29 th, 2014.

39. SAE Labor Exchange Example: Brandon would record the date and value of the Non- Cash exchange. Brandon is earning the “income” from mowing the yard and spending the “expense” of the land rental fee on his beef cattle project.

40. Upon saving, students will be directed to the financial home page. To review “Non-cash entries,” select “Review/edit your financial entries.”

41. Remember, entries are recorded by date. For non-cash entries, students should see a debit and a credit to account for the “purchase” of the land rental (debit) with the “income” from the lawn care labor (credit).

42. Non-SAE Labor Exchange (Non-cash) Trading non-related project labor for items used in developing an AET Experience (SAE). Ex: A student working in a family day care center for the expenses to support a production rabbit project.

43. The student would enter the date and value of the exchange. An experience for income does not have to be specified because the transaction is Non-SAE Labor. The student would select the project that would receive the expense for the transaction. The type of expense should also be selected. A short memo can also be recorded for accurate records. Students should also remember to click, “Save.”

44. Non-SAE Labor Exchange Example: Brandon babysits his cousins on November 1 st, 2013. Instead of receiving a cash payment, Brandon’s uncle gives him trimmer line for his Lawn Care Project. Together, they estimate that the value of the line is $20.

45. Non-SAE Labor Exchange Example: Brandon should enter the date and value of the exchange. Because this “income” is not related to any SAE, Brandon only has to select the AET experience that will be “purchasing” the non-cash item. In our example, Brandon’s Lawn Care SAE will be “purchasing” the trimmer line.

46. Once Brandon reviews this financial entry, a debit and a credit to account for the “purchase” of the trimmer line (debit) with the “income” from the babysitting labor (credit) should be seen.

47. Transfer/Barter (Non-Cash) Trading items between AET Experiences (SAE) and recording income to one project while at the same time recognizing an expense to another project. Ex: Raising show pigs from a sow operation (income) and transferring the animals into a new pig project (expense) for the current year

48. The student would enter the date and value of the exchange. The student would select the project that would receive the income (inventory transferred from) and the project that would receive the expense (inventory transferred to) for the transaction. The type of expense should also be selected. A short memo can also be recorded for accurate records. Again, “Save” should be selected before leaving the page.

49. Transfer/Barter Example: Brandon decided to use some excess fertilizer (50 lbs) from his banana pepper project to add to the fertilizer he already had on hand for his Breeding Beef Cattle pasture. He estimates the value of this excess 50 lbs of fertilizer at $8. He made this transfer on March 30 th, 2014.

50. Transfer/Barter Example: Brandon would enter the date and value of the fertilizer exchange. Brandon would select his Banana Pepper Project as receiving the “income” from the “expense” of his Breeding Beef Cattle Project “purchasing” the excess fertilizer.

51. Once he reviews this financial entry, Brandon should again see a debit and a credit to account for the “purchase” of the fertilizer (debit) with the “income” from the transfer (credit).

52. Gift (Non-cash) Receiving an expense related item as a gift which will be used in developing an AET Experience (SAE) as opposed to purchasing the items with cash. Ex: A student receiving a free set of flowers to arrange and sell as a floriculture project.

53. The date and value of the Non-Cash Gift should be recorded. The experience that is “purchasing” the item should be selected. The type of item should also be specified. A short memo should be recorded for accurate records. “Save” should always be clicked.

54. Receive a Gift Example: Brandon’s grandfather decided to give all his grandchildren a calf. Brandon selected a steer (Steer 205) estimated to be worth $768 on July 1 st, 2014. The calf weighed 500 lbs.

55. Receive a Gift Example: Because this “income” is a gift, there will be no drop-down menu for income for Brandon to select from. Brandon would select his Market Beef Cattle AET Experience (SAE), and select “Inventory for Resale,” since he selected a steer. He should also record the tag name and weight for when he records this transaction in his Market Manager.

56. Once Brandon reviews this financial entry, he should again see a debit and a credit to account for the “purchase” of the steer (debit) with the “non-earned income” from the gift (credit).

57. Used at Home (Noncash) Recognizing the non-cash sale to a student’s family and usually is valued at a typical market price. Ex: A student gives their mother baled wheat straw from their project to decorate the family’s home landscape for fall.

58. The date and value of the used inventory item should be recorded. The experience that is “selling” the item should be selected. A short memo should be recorded for accurate records. This should only be used for Current Inventory items. There is another location to record this type of entry for Capital Inventory Items. Students should remember to save the entry.

59. Used at Home Example: On July 31 st, 2014, Brandon’s family decided to have a cookout, and Brandon used some banana peppers from his garden to make fried banana peppers. He estimated the value of the peppers he used to be $10 (20 peppers).

60. Used at Home Example: Brandon would record the date and value of the exchange. He would also select his Banana Pepper Project and include a short memo.

61. Once Brandon reviews this financial entry, he should only see a credit for the “income” from “selling” this item to his family.

62. Transfer to a Capital Item (Non-cash) Relates to transferring young breeding animals into a breeding operation from a current AET Experience project (SAE). Ex: A raised heifer is not sold, but rather retained as a breeding female in a student’s breeding SAE. This is valued at a normal market price.

63. The date and value of the inventory item should be recorded. This transfer occurs within the same project. Therefore, only breeding animal projects should make this type of transfer. The current inventory item is being “sold” to the same project as a breeding animal. A short memo should be recorded for accurate records. Students should also remember to save. REMEMBER, this should only be used for Current Inventory items within a breeding project. There is another location to record this type of entry for Market Project Inventory Items.

64. Transfer to Capital Item Example: Brandon selected a heifer (Calf 099) to use as a replacement female on May 8, 2014. Because she is now considered a breeding animal, she should be transferred from current inventory to non- current inventory. She is valued at $1100.

65. Transfer to Capital Item Example: Brandon would record the date and value of the exchange. He would also select the AET Experience (SAE) that this transfer occurs within. Since this is a raised heifer that we are transferring to a Capital Item, this all occurs within the Breeding Beef Project. Brandon should record the Tag Name within the memo for accurate record keeping.

66. Once Brandon reviews this financial entry, he should see a debit for the “purchase” of this heifer (non-current inventory) and a credit for the “income” from transferring this calf/heifer.

67. After reviewing the entry, students should ensure that the item is also reflected as a capital item. To do this, select “Non-current items.”

68. The Non-Current (Capital) Item Manager should show all beginning inventory capital items, as well as any new items. For the example, Brandon should see Heifer 099 that was previously Calf 099.

69. SAE Labor Exchange for a Capital Item Example: Student conducts SAE-related labor in exchange for payment in the form of a non-current/capital inventory item.

70. The student should enter the date and value of the exchange. The student should also select the AET Experience (SAE) that labor was performed within. There is no need to select an Experience for Expense. Therefore, this type of entry can only be used when the labor being performed and the item being purchased are occurring within the same SAE. Students should then click, “Save.”

71. SAE Labor Exchange for a Capital Item Example: Brandon mowed his neighbor’s yard for the season in exchange for a new Troy Bilt 4 Cycle Tiller for landscaping purposes. He recorded this entry on September 30 th, 2013. Brandon and his neighbor estimated the tiller was worth $300, would have a useful life of 8 years, and a salvage value of $100.

72. SAE Labor Exchange for a Capital Item Example: Brandon should record the date and value of the transfer. He also selected the Experience as his Lawn Care SAE. Because the item purchased was a tiller, the type of expense is “Machinery, equipment, and fixtures.” The Capital item should be named and a short description should be written. He should also include the quantity, salvage value, and depreciation method.

73. Once Brandon reviews this financial entry, he should see a debit for the “purchase” of the capital item and a credit for the “income” from the labor.

74. After reviewing the entry, the student should ensure that the item is also reflected as a capital item. To do this, select “Non-current items.”

75. The Non-Current (Capital) Item Manager should show all beginning inventory capital items, any new items, as well as any non-cash transferred items. For our example, Brandon should see the new Troy-Bilt tiller.

76. All Non-Cash transactions can always be reviewed/edited within the Financial Transactions Log. Remember, the financial transaction list will be organized by date.

77. This concludes the instruction for cash and non-cash entries.