Smart pasture cost accounting algorithm

Abstract

The invention discloses an intelligent pasture cost accounting algorithm. The algorithm comprises the following steps: S1, a data acquisition stage: cost data comes from the following three aspects; the method comprises the following steps: firstly, carrying out data connection with a smart pasture resource planning (ERP) system; according to the intelligent pasture cost accounting algorithm, through multi-source data acquisition and preprocessing provided by a pasture ERP, intelligent equipment in an intelligent pasture and a livestock breeding file system, pasture cost is divided into production cost, fixed cost, labor cost and indirect cost, and an accounting rule is determined; and constructing a cost accounting model to calculate various costs, and carrying out multi-dimensional cost analysis and early warning. By using big data and artificial intelligence technologies, the cost accounting accuracy and real-time performance are improved, and the cost composition and change trend are deeply analyzed. Decision support and optimization suggestions are provided for pasture managers, operation cost is reduced, economic benefits are improved, and the method can be widely applied to cost management, performance analysis and prediction decision optimization of the smart pasture.

Description

Technical Field

[0001] This invention relates to the field of smart ranch management technology, and in particular to a smart ranch cost accounting algorithm. Background Technology

[0002] With the development of animal husbandry, smart ranches have gradually become an important direction for the development of modern animal husbandry. Smart ranches utilize advanced information technology and equipment to achieve intelligent and automated ranch management. However, currently, there is a lack of a comprehensive, scientific methodology for cost accounting of smart ranches that is applicable to different operating models.

[0003] Traditional ranch cost accounting methods are often overly simplistic, lacking clear cost accounting objects and periods, reasonable cost collection and allocation, and insufficient attention to fixed costs such as depreciation of facilities and equipment, as well as labor costs. They fail to accurately reflect cost differences under different operating models. For example, in free-range farming, livestock have a large activity area, making the accounting of feed consumption and disease prevention costs more complex; while pen-raising focuses more on the use and maintenance costs of pen facilities. A combined free-range and pen-raising model requires a comprehensive consideration of the characteristics of both models for cost accounting. Furthermore, existing accounting methods largely fail to fully utilize the data provided by ERP systems and smart devices and livestock breeding record systems within smart ranches, resulting in insufficient accuracy and timeliness in cost accounting. Therefore, researching and developing a smart ranch cost accounting methodology applicable to multiple operating models is of significant practical importance.

[0004] Furthermore, smart ranches involve a large number of IoT devices and complex systems, generating massive amounts of multi-source heterogeneous data, including livestock growth data, environmental data, feed consumption data, and equipment operation data. How to integrate and utilize this data for accurate cost accounting is a pressing issue in current smart ranch management. At the same time, the lack of a scientific and reasonable cost accounting system also leaves ranches without effective decision-making basis for formulating breeding strategies, optimizing resource allocation, and improving economic efficiency. Summary of the Invention

[0005] The main objective of this invention is to provide a smart ranch cost accounting algorithm that can effectively solve the problems in the background technology.

[0006] To achieve the above objectives, the technical solution adopted by the present invention is as follows:

[0007] A smart ranch cost accounting algorithm includes the following steps:

[0008] S1. Data Acquisition Phase: Cost data comes from the following three aspects. First, data is integrated with the Smart Ranch Resource Planning (ERP) system to extract relevant data related to smart ranch operations. This data includes at least the procurement data for ranch materials, facilities, and biological assets (calves / young calves, lambs, foals, etc.), personnel salary and social security data, and equipment procurement and maintenance data. Second, real-time data is collected through various sensors deployed within the ranch. These sensors include, but are not limited to, feed consumption sensors, livestock growth monitoring sensors, and environmental monitoring sensors. The collected data includes feed consumption, livestock growth indicators, and ranch environmental parameters. Third, data from the livestock breeding record system can include records of lactation, feeding, disease prevention, and medication use at each stage from mating, gestation, calving (lambing) to calves, young calves, and adult cattle. This data is used to accurately determine the cost composition of different cost objects and the value-added range of biological assets within an accounting period.

[0009] S2. Cost Object Determination Stage: Based on the different operating models of smart ranches, livestock breeding costs are divided into free-range mode, pen mode, and a combination of free-range and pen mode. The livestock are also divided into different groups for a group accounting system (taking cattle ranches as an example, they are divided into basic cattle groups (cows and bulls), calves under 6 months old, and young cattle over 6 months old).

[0010] S3. Cost Structure Analysis Stage: For livestock breeding cost objects (different groups), the cost components include production costs, fixed costs, labor costs, and indirect costs (manufacturing costs).

[0011] S4. Cost Accounting Rule Formulation and Implementation Phase:

[0012] Production costs: Taking a cattle ranch as an example, the basic herd (including cows and bulls); calves under 6 months old; and young cattle over 6 months old are calculated separately for each group, and fixed costs, labor costs, and manufacturing costs are allocated among the cost objects.

[0013] Specifically as follows:

[0014] Production costs refer to the expenses incurred in livestock farming, such as feed and medical care for livestock and poultry. The specific calculations are as follows:

[0015] 1.01 Concentrated feed: Number of days of use × Daily usage × Unit price (or per month);

[0016] 1.02 Silage: Number of days of use × daily usage × unit price (or monthly);

[0017] 1.03 Hay: Number of days this feed is used × Daily usage × Unit price (or per month);

[0018] 1.04 Corn: Calculated based on market price (or monthly) for self-input corn;

[0019] 1.05 Straw: Calculated at market price (or monthly) for self-incurred straw.

[0020] 1.06 Oats: Feed usage days × daily usage × unit price (or monthly);

[0021] 1.07 Distillers' grains: Number of days this feed is used × Daily usage × Unit price (or per month);

[0022] 1.08 Soybean Meal: Number of days of use of this feed × Daily usage × Unit price (or monthly);

[0023] 1.09 Rice straw: Number of days of use for this feed × Daily usage × Unit price (or per month);

[0024] 1.10 Salt: Number of days of use of this feed × daily usage × unit price (or monthly);

[0025] 1.11 Vitamins, minerals, and other supplements: Calculated based on actual expenditure (or monthly).

[0026] 1.12 Medical and healthcare expenses: various medical expenses + veterinary service fees + round-trip travel expenses;

[0027] Total production costs = 1.01 + 1.02 + 1.03 + 1.04 + 1.05 + 1.06 + 1.07 + 1.08 + 1.09 + 1.10 + 1.11 + 1.12;

[0028] Indirect costs (manufacturing overhead) are calculated in detail as follows:

[0029] 2.01 Pasture rental fee: calculated and apportioned based on actual expenditure;

[0030] 2.02 Fuel and maintenance costs: calculated and allocated based on actual expenditures;

[0031] 2.03 Tool and material costs: calculated and allocated based on actual expenditures;

[0032] 2.04 Insurance premiums: Factory and machinery insurance premiums + livestock insurance premiums;

[0033] 2.05 Manure transfer expenditure: calculated based on actual expenditure;

[0034] 2.06 Barn and office supplies: Calculated based on actual expenditures;

[0035] 2.07 Breeding fee: Calculated based on actual expenditure;

[0036] 2.08 Water and electricity fees: (Shared expenses incurred jointly shall be apportioned);

[0037] 2.09 Death loss: calculated as weight at the time * market price - insurance reimbursement;

[0038] 2.10 Interest expense: Calculated and allocated based on actual expenditure;

[0039] Subtotal of indirect costs = 2.01 + 2.02 + 2.03 + 2.04 + 2.05 + 2.06 + 2.07 + 2.08 + 2.09 + 2.10;

[0040] Fixed costs refer to the depreciation of buildings and machinery in livestock farming (depreciation of specialized equipment, depreciation of livestock, etc.), calculated as follows:

[0041] 3.01 Buildings: Original value ÷ 20 years, including: cost of buildings such as cowsheds, barns, and silage pits (silage cellars);

[0042] 3.02 Machinery and equipment: Original value ÷ 10 years, including harvesters, lawn mowers, four-wheeled vehicles, mixers, and other machinery and equipment;

[0043] 3.03 Appliances, tools, furniture, etc. related to production and business activities: Original value ÷ 5 years;

[0044] 3.04 Means of transport: Original value ÷ 4 years;

[0045] 3.05 Electronic equipment: Original value ÷ 3 years;

[0046] 3.06 Livestock productive biological assets (cows, bulls): Original value ÷ 3 years;

[0047] Total fixed costs = 3.01 + 3.02 + 3.03 + 3.04 + 3.05 + 3.06;

[0048] Labor costs refer to the wages of personnel directly engaged in livestock production at the smart ranch, as well as the wages of management and processing personnel. Social insurance premiums and housing provident fund contributions are calculated and paid based on the total wages, as detailed below:

[0049] 4.01 Wages, benefits and social security contributions for production personnel: calculated based on the actual amount of wages, benefits and social security contributions incurred over one year;

[0050] 4.02 Wages of management personnel related to production: Wage cost allocation rate to be borne by this herd = number of feeding days of this herd this month × number of cattle fed / ∑ number of feeding days of each herd this month × number of cattle fed in each herd;

[0051] 4.03 Wages of feed processing personnel: The wage cost allocation rate to be borne by this group = the amount of processed feed consumed by this group this month / the total amount of processed feed consumed this month;

[0052] Subtotal of labor costs = 4.01 + 4.02 + 4.03;

[0053] Cost per cow = (Production cost + Allocated indirect costs + Allocated fixed cost depreciation + Allocated labor costs) / Number of cows;

[0054] S5. Cost Accounting Model Construction and Calculation Stage: Based on the collected and preprocessed data and the determined accounting rules, a cost accounting model is constructed. This model considers the correlation between various cost factors and the dynamic changes in data. Big data analysis and artificial intelligence algorithms are used to train and optimize the model to improve the accuracy and efficiency of cost accounting. The cost accounting model is used to calculate the total cost, unit cost, and proportion of each cost for each head of livestock, each breeding batch, or the entire ranch within a specific time period.

[0055] S6. Cost Analysis and Early Warning: Perform multi-dimensional analysis on the calculated cost data, including time dimension (such as cost changes in different months, quarters, and years), spatial dimension (such as cost differences in different breeding areas), and cost structure dimension (such as changes in the proportion of various costs); set cost early warning thresholds, and when a certain cost or the total cost exceeds the threshold, the system will automatically issue an early warning signal and provide a detailed cost anomaly analysis report, pointing out the possible causes of cost anomalies.

[0056] Preferably, step S1 further includes a step of cleaning and preprocessing the collected data, specifically: unifying the format of data collected from the ERP system, sensors, and livestock breeding records, and removing duplicate, erroneous, and missing data; and normalizing the cleaned data for subsequent cost accounting, performance analysis, and predictive decision-making.

[0057] Preferably, in step S2, new cost objects can be added according to the business expansion and operational needs of the ranch, such as new product R&D cost objects and marketing cost objects.

[0058] Preferably, step S4 further includes the steps of auditing and verifying the cost accounting results, specifically: periodically conducting internal audits of cost accounting reports to check whether the accounting process complies with established accounting rules; and introducing a third-party auditing institution to verify the cost accounting results to ensure the accuracy and fairness of cost accounting.

[0059] Preferably, the method also includes steps for cost analysis and optimization based on cost accounting results, specifically: analyzing the cost composition of each cost object to identify items with high cost proportions and items with large cost fluctuations; formulating corresponding cost optimization measures for items with high cost proportions and large cost fluctuations, such as optimizing feed formulations, improving equipment utilization, and reducing energy consumption; and regularly evaluating and adjusting the implementation effect of cost optimization measures.

[0060] Compared with the prior art, the present invention has the following beneficial effects:

[0061] (1) Improve the accuracy and timeliness of cost accounting: This invention combines ERP system data and data collected by intelligent equipment in smart ranches to achieve timely, comprehensive and accurate collection of cost data. It can more accurately calculate the cost of each cost object under different business models in different periods, meet the timeliness requirements of accounting at each stage of breeding and slaughter, and also reduce human estimation and statistical errors.

[0062] (2) Adapting to different business models: For three different business models, namely free-range, pen-raising and a combination of free-range and pen-raising, the cost objects and cost components are determined respectively, and corresponding accounting rules are formulated. This can meet the cost accounting needs under different business models and provide ranch managers with more targeted cost information.

[0063] (3) Support cost control, performance analysis and forecasting decision-making: Detailed cost accounting reports provide ranch managers with clear information on cost structure and cost ratio, which helps managers identify key points of cost control, formulate reasonable operating cost control strategies, and provide a scientific basis for ranch performance analysis and forecasting decision-making. Attached Figure Description

[0064] Figure 1 This is a schematic diagram illustrating the steps of a smart ranch cost accounting algorithm according to the present invention. Detailed Implementation

[0065] To make the technical means, creative features, objectives and effects of this invention easier to understand, the invention will be further described below in conjunction with specific embodiments.

[0066] Example 1:

[0067] S1. Data Acquisition Phase: Assign professional technical personnel to liaise with the ERP system vendor to ensure successful acquisition of the required data. Perform preliminary organization and classification of the acquired ERP system data, and establish a data storage database.

[0068] S2. Cost Object Determination Stage: For free-range farming, determine the start time and quantity of each batch of free-range livestock based on the ranch's breeding plan and batch arrangements, while clarifying the scope and usage period of the free-range area; for pen-raising, number and label each pen, and record the type, quantity, and growth stage of livestock in the pen to accurately determine the cost object; for a combination of free-range and pen-raising, develop a detailed model conversion plan, record the time of each conversion, the number of livestock, and the use of related resources, and comprehensively determine the cost object.

[0069] S3. Cost Composition Analysis Stage: Conduct in-depth analysis of cost components under different business models and pre-select cost accounting models: Refer to industry standards and historical data of ranches to determine the reasonable range and proportion rules of each cost component; establish a cost component database and update and maintain the relevant data of each cost component in real time to accurately calculate costs.

[0070] S4. Cost Accounting Rule Formulation and Implementation Stage: Based on cost components and relevant data, formulate detailed cost accounting rules and calculation formulas. Develop computer programs to automate and standardize cost accounting; regularly review and verify the cost accounting results to ensure accuracy. For example, check the monthly feed cost calculation results to verify consistency between feed purchase data and feeding volume data.

[0071] S5. Cost Analysis and Early Warning Stage: Generate detailed cost accounting reports based on the cost accounting results. The report format can be customized according to the needs of the ranch manager, highlighting key cost information and cost percentages; regularly submit the cost accounting reports to the ranch manager, and provide detailed interpretation and analysis of the report content to offer cost control and decision-making suggestions to the manager.

[0072] The foregoing has shown and described the basic principles, main features, and advantages of the present invention. Those skilled in the art should understand that the present invention is not limited to the above embodiments. The embodiments and descriptions in the specification are merely illustrative of the principles of the invention. Various changes and modifications can be made to the invention without departing from its spirit and scope, and all such changes and modifications fall within the scope of the present invention as claimed. The scope of protection of this invention is defined by the appended claims and their equivalents.

Claims

1. A smart ranch cost accounting algorithm, characterized by the following steps: S1. Data Acquisition Phase: Cost data comes from the following three aspects. First, data is integrated with the Smart Ranch Resource Planning (ERP) system to extract relevant data related to smart ranch operations. This data includes at least the procurement data for ranch materials, facilities, and biological assets (calves / young calves, lambs, foals, etc.), personnel salary and social security data, and equipment procurement and maintenance data. Second, real-time data is collected through various sensors deployed within the ranch. These sensors include, but are not limited to, feed consumption sensors, livestock growth monitoring sensors, and environmental monitoring sensors. The collected data includes feed consumption, livestock growth indicators, and ranch environmental parameters. Third, data from the livestock breeding record system can include records of lactation, feeding, disease prevention, and medication use at each stage from mating, gestation, calving (lambing) to calves, young calves, and adult cattle. This data is used to accurately determine the cost composition of different cost objects and the value-added range of biological assets within an accounting period. S2. Cost Object Determination Stage: Based on the different operating models of smart ranches, livestock breeding costs are divided into free-range mode, pen mode, and a combination of free-range and pen mode. The livestock are also divided into different groups for a group accounting system (taking cattle ranches as an example, they are divided into basic cattle groups (cows and bulls), calves under 6 months old, and young cattle over 6 months old). S3. Cost Structure Analysis Stage: For livestock breeding cost objects (different groups), the cost components include production costs, fixed costs, labor costs, and indirect costs (manufacturing costs). S4. Cost Accounting Rule Formulation and Implementation Phase: Production costs: Taking a cattle ranch as an example, the basic herd (including cows and bulls); calves under 6 months old; and young cattle over 6 months old are calculated separately for each group, and fixed costs, labor costs, and manufacturing costs are allocated among the cost objects. Specifically as follows: Production costs refer to the expenses incurred in livestock farming, such as feed and medical care for livestock and poultry. The specific calculations are as follows: 1.01 Concentrated feed: Number of days of use × Daily usage × Unit price (or per month); 1.02 Silage: Number of days of use × daily usage × unit price (or monthly); 1.03 Hay: Number of days this feed is used × Daily usage × Unit price (or per month); 1.04 Corn: Calculated based on market price (or monthly) for self-input corn; 1.05 Straw: Calculated at market price (or monthly) for self-incurred straw. 1.06 Oats: Feed usage days × daily usage × unit price (or monthly); 1.07 Distillers' grains: Number of days this feed is used × Daily usage × Unit price (or per month); 1.08 Soybean Meal: Number of days of use of this feed × Daily usage × Unit price (or monthly); 1.09 Rice straw: Number of days of use for this feed × Daily usage × Unit price (or per month); 1.10 Salt: Number of days of use of this feed × daily usage × unit price (or monthly); 1.11 Vitamins, minerals, and other supplements: Calculated based on actual expenditure (or monthly). 1.12 Medical and healthcare expenses: various medical expenses + veterinary service fees + round-trip travel expenses; Total production costs = 1.01 + 1.02 + 1.03 + 1.04 + 1.05 + 1.06 + 1.07 + 1.08 + 1.09 + 1.10 + 1.11 + 1.12; Indirect costs (manufacturing overhead) are calculated in detail as follows: 2.01 Pasture rental fee: calculated and apportioned based on actual expenditure; 2.02 Fuel and maintenance costs: calculated and allocated based on actual expenditures; 2.03 Tool and material costs: calculated and allocated based on actual expenditures; 2.04 Insurance premiums: Factory and machinery insurance premiums + livestock insurance premiums; 2.05 Manure transfer expenditure: calculated based on actual expenditure; 2.06 Barn and office supplies: Calculated based on actual expenditures; 2.07 Breeding fee: Calculated based on actual expenditure; 2.08 Water and electricity fees: (Shared expenses incurred jointly shall be apportioned); 2.09 Death loss: calculated as weight at the time * market price - insurance reimbursement; 2.10 Interest expense: Calculated and allocated based on actual expenditure; Subtotal of indirect costs = 2.01 + 2.02 + 2.03 + 2.04 + 2.05 + 2.06 + 2.07 + 2.08 + 2.09 + 2.10; Fixed costs refer to the depreciation of buildings and machinery in livestock farming (depreciation of specialized equipment, depreciation of livestock, etc.), calculated as follows: 3.01 Buildings: Original value ÷ 20 years, including: the cost of buildings such as cowsheds, barns, and silage pits (silage cellars); 3.02 Machinery and equipment: Original value ÷ 10 years, including harvesters, lawn mowers, four-wheeled vehicles, mixers, and other machinery and equipment; 3.03 Appliances, tools, furniture, etc. related to production and business activities: Original value ÷ 5 years; 3.04 Means of transport: Original value ÷ 4 years; 3.05 Electronic equipment: Original value ÷ 3 years; 3.06 Livestock productive biological assets (cows, bulls): Original value ÷ 3 years; Total fixed costs = 3.01 + 3.02 + 3.03 + 3.04 + 3.05 + 3.06; Labor costs refer to the wages of personnel directly engaged in livestock production at the smart ranch, as well as the wages of management and processing personnel. Social insurance premiums and housing provident fund contributions are calculated and paid based on the total wages, as detailed below: 4.01 Wages, benefits and social security contributions for production personnel: calculated based on the actual amount of wages, benefits and social security contributions incurred over one year; 4.02 Wages of management personnel related to production: Wage cost allocation rate to be borne by this herd = number of feeding days of this herd this month × number of cattle fed / ∑ number of feeding days of each herd this month × number of cattle fed in each herd; 4.03 Wages of feed processing personnel: The wage cost allocation rate to be borne by this group = the amount of processed feed consumed by this group this month / the total amount of processed feed consumed this month; Subtotal of labor costs = 4.01 + 4.02 + 4.03; Cost per cow = (Production cost + Allocated indirect costs + Allocated fixed cost depreciation + Allocated labor costs) / Number of cows; S5. Cost Accounting Model Construction and Calculation Stage: Based on the collected and preprocessed data and the determined accounting rules, a cost accounting model is constructed. This model considers the correlation between various cost factors and the dynamic changes in data. Big data analysis and artificial intelligence algorithms are used to train and optimize the model to improve the accuracy and efficiency of cost accounting. The cost accounting model is used to calculate the total cost, unit cost, and proportion of each cost for each head of livestock, each breeding batch, or the entire ranch within a specific time period. S6. Cost Analysis and Early Warning: Perform multi-dimensional analysis on the calculated cost data, including time dimension (such as cost changes in different months, quarters, and years), spatial dimension (such as cost differences in different breeding areas), and cost structure dimension (such as changes in the proportion of various costs); set cost early warning thresholds, and when a certain cost or the total cost exceeds the threshold, the system will automatically issue an early warning signal and provide a detailed cost anomaly analysis report, pointing out the possible causes of cost anomalies.

2. The smart ranch cost accounting algorithm according to claim 1, characterized in that: S1 also includes steps for cleaning and preprocessing the collected data, specifically: unifying the format of data collected from the ERP system, sensors, and livestock breeding records, and removing duplicate, erroneous, and missing data; and normalizing the cleaned data for subsequent cost accounting, performance analysis, and predictive decision-making.

3. The smart ranch cost accounting algorithm according to claim 1, characterized in that: In S2, new cost objects can be added according to the business expansion and operation needs of the ranch, such as new product development cost objects and marketing cost objects.

4. The smart ranch cost accounting algorithm according to claim 3, characterized in that: S4 also includes the steps of auditing and verifying the cost accounting results, specifically: conducting internal audits of cost accounting reports regularly to check whether the accounting process complies with established accounting rules; and introducing a third-party auditing institution to verify the cost accounting results to ensure the accuracy and fairness of cost accounting.

5. The smart ranch cost accounting algorithm according to claim 1, characterized in that: It also includes steps for cost analysis and optimization based on cost accounting results, specifically: analyzing the cost composition of each cost object to identify items with high cost proportions and items with large cost fluctuations; formulating corresponding cost optimization measures for items with high cost proportions and large cost fluctuations, such as optimizing feed formulation, improving equipment utilization, and reducing energy consumption; and regularly evaluating and adjusting the implementation effect of cost optimization measures.

Images