Trade has always been the most important vital activity of any society. Even in antiquity, those countries that contributed to the development of sales on their territory not only strengthened their power, but also additionally created the common wealth of the entire population, without exception. The first trade was the exchange of surplus products, at that moment there were no standards, so everything happened just in the same amount. Gradually, the main idea of such a relationship became the individual needs of a person. In the modern world, retail and wholesale trade has appeared, which was oriented not only to a different number of customers, but also to the specific features of the types of business.
Features and functions of wholesale
This type of relationship involves the sale of large quantities. Such volumes are acquired for subsequent resale or professional use in business. In other words, wholesalers are intermediaries between manufacturers and retailers. At their expense, the effectiveness of the overall trading process is ensured. Wholesale trade is much more productive due to the scope of operations and more business contacts. Goods purchased from such enterprises are used for further resale or for business needs.
Functions:
- sales and his motivation;
- procurement and creation of a product range;
- crushing large batches of goods into small ones;
- Warehousing
- full or partial transportation;
- risk taking;
- providing the necessary market information;
- management and advisory services.
Factors affecting the development of wholesale trade:
- mass production growth;
- increase in production for future use;
- the increase in the number of intermediate stages in front of the final consumer.
Differences
Retail and wholesale trade have some features:
- when selling large volumes, the location of the store does not matter much;
- work occurs only with professional clients;
- quite large volumes of transactions;
- the trade zone is large;
- wholesalers have only cashless payments;
- differences in tax policy.
Company Classifier
Wholesale companies are of the following types:
- Wholesalers-merchants are independent enterprises that always have the full right to own the goods they sell. They can carry out both a full service cycle, which includes storage, installments for payment and delivery, as well as limited, requiring immediate payment for goods and not involving delivery.
- Brokers and agents. Such firms are, in a sense, intermediaries in the buying and selling process, which receive a certain amount of money for their services and do not bear any responsibility for the goods.
- Manufacturers' wholesale offices and offices are one of the main varieties of trade, they work directly with the buyer and are official representatives of a particular manufacturer.
- Various specialized wholesalers. Available in some sectors of the economy, they collect goods from small traders in large lots and sell them to large enterprises.
Wholesale Accounting
The choice of account depends on the type of activity of the company. The following are used in the Chart of Accounts: 41 - “Goods” and 45 - “Goods shipped”. Account 41 is needed to control data on the availability and movement of inventory, regardless of the method of acquisition. Accounting takes place at the actual cost, namely, the costs of the enterprise for its acquisition without taxes. 45 account is used to record the movement of goods shipped, sales proceeds. In addition, finished products that are given on a commission basis are taken into account here. The cost of goods is calculated from the real production cost and the cost of shipping products.
There are such types of wholesale:
- implementation from stock;
- sale in transit.
According to the law, revenue for goods sold is displayed in the accounting department at the time of shipment. Simply put, immediately after the actual shipment, the accountant reflects this operation in accounting, even if the payment has not yet passed. The proceeds are the funds received for the goods, in accounting this is as follows - Dt 62 / Kt 90.1 “Revenue”. The next operation is tax refund.
The most needed accounting entries
The following are used for accounting:
- accounting for goods received - D 41 / K 60 /;
- reflection of VAT - Dt 19.3 / Kt 60;
- reduction in debt to the supplier - D-t 60 / Kt 50, 51;
- advance payment to the supplier - D 60 / Kt 50, 51.
Different types of wholesale do not affect the fundamentals of accounting.
Retail
This type of relationship is the sale of goods to the final consumer for their own needs without further resale. An indispensable attribute are a cash register and a check. A retail store must meet certain characteristics:
- area of the trading premises;
- number of trade names;
- level of service;
- technology of product placement.
The main basis of this trade is the margin - the difference between the acquisition price and the sale price, namely margin is the main income. The main purpose of retail is considered to provide maximum convenience when offering goods to the consumer, regardless of personal capabilities. The following types of retailers are distinguished:
- by breadth of assortment;
- by price level ;
- by the nature of the service.
The above types of trade can connect and create a new direction, such as wholesale and retail trade. It is a mixed form of relationship that usually takes place through trading houses or distributors. With this type of relationship, wholesale transactions of small and medium size occur, they are carried out from the warehouse of the outlet.
Retailers
The main factors for the classification of enterprises are:
- product range;
- price level;
- concentration of the distribution network;
- type of ownership;
- level of service;
- service feature.
The most common enterprises
In retail, each enterprise belongs to a certain group:
- Specialized stores - trade in a certain group of goods. Their main task is to satisfy the needs of certain target markets. There are no other products on their shelves.
- Department stores are large enterprises that sell a wide range of various products. Here, each group is distributed in a separate department, which is a specialized full-range store. In such places there is no self-service, the presence of the seller and the counter is mandatory.
- Supermarkets - are engaged in meeting the needs of potential buyers in food products. The peculiarity is that there is self-service, low prices and a large volume of sales.
- Supermarkets - the presence of a large sales area and an assortment of various goods, the minimum labor costs of sales personnel. It has both self-service and full-service departments. The calculation occurs after all purchases are made upon leaving the store.
- Hypermarkets - the retail space is gigantic, the product range is represented by a huge number of various product names. The main principles are: low prices, extended hours, a large parking lot, self-service. In such stores, you can not only make food purchases for a long time, but also purchase any goods that belong to other groups.
- Convenience stores are small, they work with certain small items. They are located close to buyers and provide only popular goods that are sold through the counter. These are small shops located either in residential buildings or near them.
Retail and wholesale trade have their own special points of sale that meet certain standards.
Unconventional forms of sales
Previously, purchases could only be made in certain places. To do this, you had to visit the store, select a product and immediately make money for it. This form has always had drawbacks: time-consuming, lack of the right product, and others. Today, other forms of trading have appeared that are great for products with a small turnover:
- Order by phone - your orders are collected by telephone, after which you receive delivery to the specified address at a convenient time.
- Vending machines - provide round-the-clock sales with full self-service.
- Discounted order service - assistance to certain groups of people who make a discounted purchase.
- Trading in distribution - when sellers come to your home.
Retail and wholesale trade have many differences, however, together they create the economic situation of any city and even the state.