KENYA · GUIDE 0005 · EDITION 4.2
Kunde Leaves Profit: Price per Accepted Unit and Field Account
Cost the accepted leaf order without inventing the grain outcome
Specify whether the customer buys a trimmed kilogram or a defined bunch. Record gross leaves picked, stalks removed, buyer rejection, packing, transport and the quantity accepted. Where the field plan also includes grain, keep the later outcome in the same block account; do not credit a leaf sale and assume an unchanged grain harvest without evidence.
Fictional delivery example
All numbers below are invented for arithmetic practice. They are not current Kenyan prices, a crop-yield forecast, a supplier quote or actual farm income.
| Invented leaf delivery | Amount |
|---|---|
| Bunches prepared | 50 |
| Bunches rejected or returned | 10 |
| Bunches accepted and paid | 40 |
| Assumed price per accepted bunch | KSh 30 |
| Revenue | KSh 1,200 |
| Attributable picking, sorting, packing and route cost | KSh 800 |
| Contribution before separately allocated overhead | KSh 400 |
The attributable cost per accepted bunch is KSh 800 ÷ 40 = KSh 20. Dividing by 50 prepared bunches gives KSh 16 and conceals the cost of unaccepted output. The KSh 400 contribution is not final profit and does not value or establish the later grain outcome.
Record the crop trade-off honestly
For the actual block, retain picking dates, labour, accepted leaf sales and the later crop outcome. A comparison of leaf-focused and grain-focused alternatives requires consistent assumptions and reliable evidence; if the effect on later output has not been measured, show it as unknown. Do not enter an invented grain reduction as a verified loss, and do not assume zero effect merely to complete the spreadsheet.
Keep unpaid sales out of available cash
If KSh 700 of the fictional KSh 1,200 has actually been collected, KSh 500 remains outstanding. It cannot pay the next transport bill until collected. Confirm the actual invoicing treatment through KRA and keep customer details private.
For a simple planning calculation, contribution per accepted unit is price minus variable cost per accepted unit. Fixed overhead divided by a positive contribution gives a break-even quantity for the same period, rounded up. With zero or negative contribution, the calculation has no useful positive break-even quantity. Replace all example values with real quotations and records.