Finished products. Accounting and management accounting

Date:

2020-07-03 01:44:08

Views:

863

Rating:

1Like 0Dislike

Share:

Table of contents:

For trade organizations and industrial enterprises have their own special accounting rules that reflect basic differences in the characteristics of their economic activities. For example, the 43rd account, the court listed the finished products, is only used by companies that are engaged in the manufacture of the products sold on their own. On this account transferred the costs accumulated on a 40-year account in the process of manufacture of the product after it arrives at the warehouse ready. This is accomplished using the following transaction – the 40th, the account is credited, and 43rd, respectively, is debited.

Managers of the enterprise can use the information that they provides the account "finished goods", in a variety of ways. First and foremost, this figure allows them to see the extent to which loaded the warehouses of the company. Hence we can conclude about whether to expand production or, alternatively, you need to stimulate sales, as the warehouse of finished products is more than the norm.

In addition, we should not forget about the reserve of finished products, which always must have a company.  the Demand is in the market economy is quite unpredictable variable, so a company should always be prepared for what may follow large order, which can be addressed through the established reserve. However, too large of a reserve fraught with unnecessary storage costs of products, it also increases the likelihood of spoilage of goods stored in the warehouse, which can also result in losses for the company.

Recommended

Staff evaluation: system and methods

Staff evaluation: system and methods

Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...

How to start your own business: important aspects.

How to start your own business: important aspects.

Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...

business activities. its essence and basic functions

Business activities. its essence and basic functions

The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...

After the finished products arrived at the warehouse and is accounted for as an accountant, it expects its future fate. Received order from customer is satisfied with her help, which, of course, must be appropriately reflected. Usually the sale of products is recognised immediately upon shipment, but rather the goods the property of the new owner, in accordance with the terms of transportation. However, in some cases revenue cannot be recognized at once, and then it is necessary to use the additional 45 account.

But first, let's talk about the traditional method of accounting. When finished products are shipped, the transaction will involve, beyond the current 43-second account, also the account of 90-th, referred to as the "sales". The fact of the shipment reflects debit and, accordingly, credit the account "finished products". Later  on 90-th account also contains proceeds received from the sale. The difference between the cost that have migrated to the 90-th account, bypassing our 43rd, as well as revenue from the sale will give the first idea of how much profit the company can get through its business.

If revenue is recorded immediately, but this usually happens if the company specializiruetsya on export transactions, we added to a classic chain account "goods shipped " at number 45. In this case, we need to debit this account, crediting the account of the 43rd. When, under the law, the company receives, finally, the right to recognise revenue, the accountant can transfer the cost of goods 45 account 90-yy.

The account "finished products" ends. As you can see, this account is of secondary importance, reflecting the movement of goods from production departments, through the warehouses of manufacturers and warehouses of the buyer, but it, at the same time, contains essential analytical information needed for decision-making in production and marketing field, so its value should not be underestimated.


Article in other languages:

AR: https://tostpost.com/ar/business/22885-finished-products-accounting-and-management-accounting.html

BE: https://tostpost.com/be/b-znes/37081-gatovaya-pradukcyya-buhgaltarsk-k-ra-n-chy-l-k.html

DE: https://tostpost.com/de/business/37182-fertigprodukte-buchhaltung-und-betriebliches-rechnungswesen.html

ES: https://tostpost.com/es/centro-de/39554-los-productos-terminados-de-contabilidad-y-contabilidad.html

JA: https://tostpost.com/ja/business/22431-finished-products-accounting-and-management-accounting.html

KK: https://tostpost.com/kk/biznes/36807-dayyn-n-m-buhgalterl-k-zh-ne-bas-aru-eseb.html

PL: https://tostpost.com/pl/biznes/35797-gotowe-produkty-ksi-gowo-i-rachunkowo-zarz-dcza.html

PT: https://tostpost.com/pt/neg-cios/36020-produtos-acabados-contabilidade-e-contabilidade-gerencial.html

TR: https://tostpost.com/tr/business/37285-bitmi-r-nler-muhasebe-ve-y-netim-muhasebesi.html

UK: https://tostpost.com/uk/b-znes/36689-gotova-produkc-ya-buhgalters-kiy-upravl-ns-kiy-obl-k.html






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."

Comments (0)

This article has no comment, be the first!

Add comment

Related News

Analysis of profit from sales

Analysis of profit from sales

the activities of the enterprise should be subjected to constant and comprehensive study and control. This can be called a necessary condition for making proper and effective management decisions. The most attention should be paid...

Factor analysis of profit from sales

Factor analysis of profit from sales

Accounting firms is a collection of extremely valuable documents. Their value lies in the information that they contain in themselves. In turn using this information quite a detail the activities of a company. So, on the basis of ...

The Clearance Space Around The Reception Desk

The Clearance Space Around The Reception Desk

it is now a thriving healthy competition in all areas of human activities. An increasing number of companies are thinking as a stylistic design of their own office. After all, it is a hallmark of the firm. The developers of office...

Write a statement about the hiring

Write a statement about the hiring

is it necessary to write the statement of work? What does it matter for the employer and potential employee? Today, when almost every company are issued an employment contract, the statement of work has lost its relevance, which i...

Staffing in the company

Staffing in the company

the Staffing is prepared by the personnel service of the enterprise according to a single standard adopted more than two years ago. The labor code specifies the obligation of writing all enterprises operating on the territory of t...

Homemade tractors - nothing difficult

Homemade tractors - nothing difficult

Our country has always been famous craftsmen, who from simple and available materials can make quite complex structures, for example, tractors. Of course, once you create the perfect homemade tractor you are unlikely to succeed, b...