Inventories - this is a certain part of the property, part of current assets. They are used in the production of goods (products) or in the performance of work, in the provision of any services for sale, in meeting the management needs of an enterprise. Inventories are also used as labor assets that participate in the turnover for no more than twelve months or the standard operating cycle. The considered part of the property is also used as a finished product with a complete set (processing), the qualitative and technical characteristics of which are in accordance with the terms of the agreement or the requirements of other documents established by law. Inventories can also be used as goods that are received or acquired from other persons and are intended for resale (sale) without additional processing.
Part of the current assets of the company include objects of labor. These inventories are divided into raw materials, materials (basic and auxiliary), containers, spare parts, fuel, and labor products. The same means include the means of labor, presented in the form of inventory, household supplies, whose service life is not more than a year. It should be noted that the item number has been adopted as the unit of account.
Basic materials and raw materials form the material basis of the goods. Raw materials are agricultural products, mining products (coal, ore, etc.). The materials include products of the processing (manufacturing) industry (sugar, fabric, metal, etc.).
Auxiliary means effect on the main ones. With their help, the product is also given certain consumer properties. In addition, additional materials are used for maintenance and care of labor tools, facilitating the production process.
The division of funds into basic and additional is considered conditional and is set in accordance with the characteristics of the organization and production technology. For example, starch is considered the main material in the food industry, and auxiliary material in the textile industry.
Acquired components and semi-finished products are considered objects of labor that have passed a number of processing stages. They come from the outside, are used for production and play the role of the main material.
Residues and raw materials are called returnable waste. They are formed during processing and lose the consumer properties of the original material partially or completely. Such waste includes chips, sawdust and more.
Auxiliary raw materials include packaging, fuel. However, in accordance with the features of the application, they are divided into certain categories.
So, the fuel is divided into economic, engine, technological - depending on the purpose.
The container is used for packaging, storage, transportation.
Spare parts are used in repairs, as well as for the replacement of worn parts, equipment units and machines.
Household supplies, tools - this is inventory and other means of labor within the current limit of the period of use, as well as fixtures. These include special tools, shoes, clothing, temporary structures operating in circulation.
Independent groups combine labor products as finished products and goods that are subject to resale (sale) without additional processing.
When organizing the accounting of funds use guidelines for accounting of inventories.