Profit is considered a key indicator of socio-economic growth. Her planning should be reasonable. It can be carried out for a short or long term. In the first case, the direct counting method is considered to be the simplest. Let's consider it in more detail.
General information
The company plans to profit from the sale of:
- products, including non-commercial nature, and services;
- fixed assets;
- other property and property rights.
In addition, revenue from the payment of work performed, services provided, as well as income (loss) from non-operating business transactions are forecasted.
When planning are used:
- Direct counting method .
- Combined calculation.
- Analytical method.
Planning value
Economic-based forecasting of the amount of profit allows you to correctly assess the financial capabilities of the enterprise, determine the amount of contributions to the budget, the amount of resources to expand reproduction and stimulate employees. The effectiveness of the dividend policy of a joint-stock company also depends on the amount of income.
Currently, there is no clear regulation of methods for planning and forecasting financial results. However, their rather detailed description is contained in the industry literature.
The direct counting method and the analytical method are considered traditional methods of revenue planning. With slight restrictions, they are used by many enterprises.
How to calculate profit using the direct account method?
This technique is based on the following. The quantity of goods sold (sales) for a particular item is multiplied by the cost of sales and unit costs. The difference between these indicators makes up the projected size of revenues.
When determining the cost of incomparable products, the planned unit costing is taken into account. The formulas for the direct counting method are as follows:
= - or = 1 + - 2, in which:
- profit - P;
- revenue from sales at wholesale cost - B;
- the total cost of production - Z;
- profit in the balance of unsold goods at the beginning and end of the period - P1, P2;
- profit from marketable products - PT.
The total cost includes the cost of goods, services, works, administrative and commercial expenses.
When using the direct account method, the determination of income from marketable products is carried out in accordance with the production plan according to the detailed nomenclature, estimates of commercial and managerial costs, and planned estimates for each product.
Features of the calculation
When planning profit using the direct account method, receipts in carry-over balances of finished goods are calculated based on their totality. They are taken into account at the cost of production. Accordingly, when planning profit using the direct account method, the difference between the amount of input and output balances in selling prices and production costs is calculated.
Administrative and commercial costs are conventionally transferred to the release of goods.
Using the direct account method, you can calculate revenues using production costs and profitability (cost for the last quarter of the reporting and planning periods).
Nuances
Accounting for products sold is made on an accrual basis. The actual movement of funds for goods shipped does not coincide with the material flow.
When using the direct account method, it is important to establish the actual receipt of income. In this regard, when calculating receipts in the balances of unsold products, it is advisable to include, except for balances in the warehouse, shipped but not paid deliveries.
disadvantages
Methodically, the direct counting method is very simple. However, in the presence of a large number of items of goods, its complexity increases significantly. For the calculation you need:
- Define the assortment for all stock items.
- Compile cost estimates for all comparable products.
- Calculate the planned cost and contractual prices for incomparable goods. For this, in turn, it will be necessary to draw up a production estimate for all elements.
- Set selling prices for manufactured products.
One of the significant drawbacks of the method is the inability to identify factors that affect the amount of profit in the forecast period.
conclusions
For annual and long-term revenue planning, the direct account method is not suitable. Currently, it is used mainly in forecasting for the short term, while prices, salaries, other circumstances remain unchanged.
Working capital ratio
Each enterprise independently makes a decision on the rationing of funds for individual objects and identifying the total need for them for the planning period. Along with this, the organization establishes methods of calculation and frequency of forecasting.
When rationing, it is advisable to adhere to general calculation approaches. Traditionally, the norm is determined by:
- in days - for raw materials, fuel, basic materials, finished products, work in progress;
- in rubles or percent - for containers, spare parts, household equipment, work clothing.
The one-day consumption of materials and raw materials, as well as the release of goods, is calculated according to forecast indicators for the fourth quarter of the planning period. The year in the calculation is 360 days, the quarter is 90, and the month is 30.
The working capital standard is the estimated value, reflecting the minimum capital that the company must have constantly. It can be private and general. In the first case, we are talking about the standards for individual articles and objects of working capital. The amount of private standards forms a total.
Standardization Methods: Direct Counting Method
It is considered the most accurate, but, however, the most time-consuming. To use it, you need knowledge of methods for calculating the norms in days.
Rationing consists of the following steps:
- Development of stock by types of inventory items.
- Calculation of private standards.
- Calculation of the general standard.
To determine the need for working capital by the direct account method, it is necessary to establish the stock indicator in days, then determine the one-day need. For this, the total volume for the fourth quarter is divided by 90.
To determine the inventory of work in progress, the cost of the object is taken into account, for the finished product, the production cost of the goods is used.
The stock of raw materials is determined by multiplying the one-day requirement by the stock rate in days.
Analytical methods
They are used in prospective (enlarged) forecasting, in the formation of estimates for business plans in industries characterized by a wide range of products. In addition, analytical methods are used as an addition to the direct counting method.
The basis for the calculation may be:
- Costs per 1 thousand rubles. commercial products.
- A set of reporting indicators of the enterprise.
- Basic profitability.
If the calculation uses costs of 1 thousand rubles. marketable products, income is planned for the entire production of comparable and incomparable products.
The following formula is used for this:
P = T x (1000 - W) / 1000, in which:
- gross profit - P;
- commercial products at selling prices - T;
- costs (in rubles per 1000 rubles) - .
Consider an example. Let's say:
- production output at selling prices in the forecast period will be 300 million rubles;
- costs for 1 thousand rubles. amount to 900 rubles.
Gross profit:
- for 1 thousand rubles products - 1000 - 900 = 100 rubles;
- for the entire issue - 300 x 100/1000 = 30 million rubles.
To determine the total amount of sales proceeds, the result is adjusted for a change in profit for the carry-over of finished products.
Basic profitability
When using this indicator, the ratio of gross profit for production to cost is adjusted for the expected changes in the forecast year.
To compare with the planning period, the expected revenues for the reporting year are adjusted for changes in value. Separately calculated profit:
- for incomparable goods;
- in carry-over balances of unsold products;
- from sales in the forecast year.
Calculation of comparable products
For its implementation, an analysis is made of the impact on the profit of changes in individual factors. Attention is paid to:
- cost of products;
- quality and range of products;
- selling prices.
The calculation is carried out in stages:
- Profit is calculated on comparable products based on basic profitability. For comparability, all products of the planned year are recalculated to the cost of the reporting period in accordance with the stipulated change.
- The effect of changes in cost of production on profit is determined. To do this, a comparison of the indicator of the planning and reporting periods. The difference is the amount of loss or profit from changes in cost.
- The influence of changes in the assortment is determined. The calculation of the average level of profitability is carried out based on the structure of the output of goods of the reporting and planned years. The resulting difference reflects the deviation of the indicator due to changes in the assortment.
- The influence of quality is calculated. In this case, the grade coefficient is used. The specific gravity for each variety in the total production volume, as well as the price ratio of individual varieties, is determined. The cost of the 1st is taken as 100%, of the 2nd - they are calculated to the price of the 1st in%.
- Determining the effect of changes in selling prices. For this, commodity products for which a new value has been introduced are identified. Calculation of the effect is carried out by producing the sales prices for the change.
- Profit calculation for carry-over balances of unsold products. Cost is multiplied by the profitability of the goods of the reporting and forecast periods.
- Calculation of profit from sales. Gross income is determined taking into account the influence of the above factors and profit on carry-over balances of unsold products; management and business expenses are included.
- Calculation of income for incomparable products. It is carried out by a direct method: the cost is deducted from the selling price. If prices have not been set, the calculation is based on the average level of profitability.
- Determination of total realized profit. It is carried out by adding profits on incomparable and comparable products.
Additionally
In practice, the combined method of profit planning is used quite often. It contains elements of the two methods discussed above.
Its essence is as follows. The determination of the cost of production at the prices of the forecast year and at the cost of the reporting period is carried out by the direct account method. The influence of factors on planned income is calculated by an analytical method.
Getting a mass of profit allows you to determine production efficiency. However, in itself it does not characterize the level of performance of the enterprise. To do this, you need to calculate the rate of return.