Accounting of the costs of the main production, as well as auxiliary, involves a grouping of key indicators in the following categories:
- by its types - basic, auxiliary, serving;
- by sources of formation - arising directly in the course of production, created in the process of enterprise management;
- on other grounds (direct, productive, waybills and others).
The organization of accounting is determined by the principles of:
- invariance of the established methodology;
- completeness of information about all operations;
- correct correlation of costs by periods;
- differentiation of current costs and capital investments;
- rationing the composition of cost.
The main production is understood as the production activity of an enterprise or company, as a result of which commercial products are produced, services for which this enterprise was created. All costs of the main production are carried out on the basis of the costing account 20, which is called “Main Production”.
As the main production costs are accounted for, the debit of this account summarizes the costs of all funds, and for the credit section they are recorded as written off on the basis of the total cost of already manufactured and sold products. More specifically: the debit of this account reflects the expenses incurred by the company directly with the organization and implementation of production activities. It also reflects the cost accounting of auxiliary production: debit - account 20, credit - account 23. In some cases, in addition to the specified account, sub-accounts are opened to reflect non-core and non-standard cost indicators.
Traditionally, cost accounting of the main production in account 20 involves a classified reflection of indicators by type of goods produced, by type of cost, by the distribution of costs between the structural elements of the company.
The list of reflected articles, which contain the cost accounting of the main production, is regulated by guidelines for its organization and maintenance, which are issued by the relevant specialized departments. They, as a rule, assume such articles (positions):
- Raw materials and semi-finished products.
- Deductible returnable waste.
- Acquired semi-finished products and components.
- Fuel and energy.
- Production services that are provided by third-party enterprises and companies.
- Salary.
- Social payments and deductions.
- Taxes.
- Preparatory production costs.
- Expenses incurred in connection with the maintenance of production equipment.
- General production and general expenses of the enterprise.
- Expenses incurred in connection with the release of defective products.
- Costs associated with the sale of manufactured products.
As a rule, cost accounting of the main production is carried out by the method of costing, which involves calculating the total cost and determining the cost per unit of goods produced.
All accounting data are the most important parameter for the development of strategies and tactics of industrial development of the enterprise. Whatever the type of economy, there are always elements of planning at any enterprise. Therefore, the main indicators of the production plan for the enterprise or company can, and should even, include such sections of indicators as:
- nomenclature - the composition of marketable products by its parametric properties (grades, purpose, types, sizes, etc.);
- coefficient of renewal - a value whose value characterizes the ratio of new product samples to old.
The plans include a classification of indicators into basic and operational. The first group includes, for example, sales, product quality, profit margin, sustainability policy, stock price and others.
The operational ones include policy indicators for reducing costs, added value, turnover ratio, and investments. Current planning includes indicators of the quantity of products in units, stocks of materials, financial indicators, payment fund, its average level and others.