The work in process and its types

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2020-07-03 01:21:05

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Work in progress (NP) includes the results of the production process that were not completed by the end of the reporting period, and the final product in the form of goods not received. As a rule, work in process includes:

- raw materials and items that are still in the processing, in warehouses of shops of the enterprise;

- finished production items, but not complete or not accepted service of technological control;

- the same products, but not agreed by the technical experts of the customer;

unfinished operations performed for external customers and for own consumption.

The structure of NP are not included cancelled orders and the products rejected by the quality Department, purchased semi-finished products, as well as those materials and components which are not processed or assembled into a single unit.

Accurate determination of the values of NP, competent and professionally carried out the work in process at the end of the period, plays a decisive role for keeping records of all production activities of the enterprise or company, and gives an idea about the spending of payroll and proper computation of the cost of manufactured goods.

Distinguish between operational accounting and WIP accounting. Records produced by employees of the accounting units of departments and other units of the company representing intermediate stages of the production cycle (dispatching office, the master shifts, foremen). This type of accounting is intended for operational control of the production process, control of the expenditure components materials and their residues.

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Bookkeeping, in addition to the quantitative account, organizes and conducts the work in process transactions which are reflection of the value of NP and the dynamics of its change.

Operational accounting at different enterprises arranged in different ways, because its technology is largely dependent on the nature of the production activities, the complexity of products.

In industrial production is dominated by two operational accounting.

Exploded-operating method for distributed production, where small-scale production, which is associated with labor-intensive processing and Assembly. In this case, the work in process is conducted through filling in the so-called route sheets, which will reflect all technologically envisaged processing operations and their degree of completion at each technological stage of manufacture of commercial products.

In mass production, which is characterized by a short production time in large series, need to run commit and record of each transaction no. Here, the assessment and accounting of unfinished production is calculated by processing of the monthly (or other time, due to the specific production process) statements, which if necessary shall be accompanied by relevant specifications for specific product and other documents. These records are maintained in the departments, then they are compiled, and compilation of the balance of parts. This balance sheet reflects data from all production units and reflect information on income details of pick list warehouse on marriage and balances within the reporting period.

However, due to various circumstances, the information contained in the documents of the operational records are not always accurate. Therefore, the enterprises in the framework of this procedure organizes conducting of inventories of work in progress. Their methods and conduct are determined by the physical properties of the products: size, weight, technological parameters of the object.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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