How to determine inventory

To produce products, an enterprise needs resources, assets to obtain economic benefits. In order to calculate the volume of current assets, it is necessary to determine the inventories and cash on the accounts of the company.

Instruction manual

1

Inventories are the property of the company. The following groups are distinguished: raw materials and starting materials, additional materials, finished semi-finished products, waste, fuel, containers and packaging, spare parts. As an estimate of this part of current assets in accounting, their actual cost is used, i.e. expenses for their acquisition, net of VAT and other taxes.

2

Groups are formed depending on what role this or that material value plays in production. Raw materials and raw materials constitute the main material part of the goods. Supplementary materials are auxiliary tools used to service tools, such as coolants or lubricants for technical equipment.

3

Prefabricated semi-finished products are a purchased intermediate product, which will then be processed into finished products. Along with the source materials, this group of stocks forms the material basis of the product. Waste - this is the remnants of raw materials created in the production process.

4

Fuel, containers, packaging and spare parts for the repair of worn-out equipment, in fact, are included in the group of additional materials, but they are isolated separately. This is due to the features of their application. Fuel, in turn, is divided into technological (equipment), engine (transport) and household (heating, etc.). A container is a combination of objects and materials for packaging and storage of finished products, as well as the convenience of its transportation to the place of sale.

5

To determine the inventory, it is necessary to calculate the actual cost for each individual group. This allows you to control all stages of production, monitor compliance with consumption standards, timely settle accounts with suppliers, etc. In addition, a detailed analysis helps to identify areas and causes of useless surpluses, and to implement them in a timely manner.

6

The actual cost of inventories are the following financial categories:

• payments to suppliers in accordance with the concluded agreements;

• payment for information and consulting services;

• customs duties;

• taxes per unit of material value;

• interest to intermediary organizations;

• payment for delivery vehicles, including insurance costs.