In accordance with the principles of the organization share non-standardized and standardized working capital. The first include shipped products that are in transit, but not paid. Not normalized are working capital at the cash desk or on the current account. They are influenced to a greater extent by external factors, rather than directly the production and economic activities of the organization.
By the standard include all categories of working capital. This, in particular, stocks, work in progress, costs of future periods, as well as finished goods in stock.
Rationing of working capital contributes to the solution of two main tasks.
Firstly, the correspondence between the size of the enterprise’s resources and the need for them is constantly maintained to ensure the minimum necessary supply of material assets. At the same time, it should be understood that for each organization it is necessary to establish such indicators that, in carrying out ordinary business activities, it does not experience financial difficulties to ensure the implementation and production process.
Secondly, the rationing of working capital is used in managing the size of stocks. In this case, stimulation of improvements in economic activity, the search for additional resources and reserves are carried out, a competent combination of supply forms, etc. is formed.
Rationing of working capital in size should correspond to the actual production needs. The company sets the minimum, but at the same time sufficient demand. Each group of working capital is monitored at each stage of the movement, due to the fact that large reserves require attracting resources for other purposes, accounting, security, and warehouse are necessary.
Low standards will not allow the company to provide the necessary inventories. In addition, the organization will not be able to pay employees or suppliers in a timely manner.
Overstated standards contribute to the formation of significant reserves. In this case, freezing of resources occurs, which leads to losses. In addition, the level of profitability is reduced , the size of payments for increasing the value of the property of the organization is increasing.
Rationing of working capital is the establishment of standards and norms for the corresponding group of resources (funds). There are various ways to carry out this procedure.
Before you start listing the methods of rationing, you should clarify the concepts of norm and norm. In the first case, they speak of a relative value. The norm corresponds to the minimum inventory of material assets. This relative value is economically justified and is set in days. The norm refers to the minimum required amount of financial resources. They provide the economic activities of the organization.
The main methods of rationing working capital:
- Experimental laboratory.
- Reporting and statistical.
- Analytical.
- Direct invoice.
- Coefficient.
The main one is the fourth direct account method for the components of funds separately. It is based on actual resource requirements. Other techniques are used in industry as auxiliary.
The analytical method helps to establish a standard for the actual amount of funds in a certain period. This takes into account the adjustment for unnecessary stocks and surpluses, changes in the conditions of supply and production.
The experimental laboratory method is a measurement of the costs of funds and volumes of the finished product in the experimental production and laboratory conditions.
Reporting and statistical reception is based on the analysis of reporting data (operational or accounting) on the actual consumption of materials per commodity unit for the previous (base) period.
The coefficient method allows you to set the standard for the coming period using the standard for the previous period.