Scenario: There is still some of last season’s harvested crop in storage which I did not sell because of its poor grading. This new season’s harvest has a much better grading and I can now blend some of last season’s harvest into this season’s and get a better price for last season’s harvest.
- Keep the last season and this season’s two crop marketing plans separate, but when you do a transaction split it into two transactions according to your blending ratio, and give the two transactions the same transaction price.
- For example, 100 ton of the blended crop is sold at R3000/ton. If 25% of the old poorly graded crop is mixed into 75% of the new better grade crop, do a 25 ton transaction for the old season and a 75 ton transaction for this season’s, both at R3000/ton.
- You do not have to compensate for the storage cost of the old season, each season’s crop marketing plan calculates its own storage cost and it is therefore already accounted for in both transaction’s net profit calculations.
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