Accounting is the most important area of work for employees of an industrial enterprise. Based on what principles should he line up? What accounting accounts are used as part of accounting for business operations in production?
Accounting as a system
Among Russian experts, an approach is widespread, according to which accounting in production should be considered as a special system. Optimal - as information, along with others that belong to the corresponding category (for example, with technological, regulatory systems). From this point of view, business accounting can also be part of the financial system, and most important, since it is on the basis of data generated by competent specialists with financial education that the economic performance of the enterprise is evaluated.
Using synthetic and analytical methods, the accountant creates an information base, which reflects the assets, liabilities of the company, the results of its economic activities. Accounting as a system can be a resource, useful both for managers of an enterprise making various management decisions, and for owners of a company, its shareholders, investors, and creditors.
The data that accounting in production can be used in planning business development, making decisions regarding changes to the management model of a company, setting priorities when investing in various projects.
Very strict requirements can be put forward for maintaining the type of accounting under consideration both at the level of legislation and in local regulatory acts. Actually, this may be one more confirmation of the importance of such a system of collecting information as accounting.
As for the sphere of production itself, even more serious attention can be paid to it in the regulation of accounting. The corresponding segment of the economy is related to the real sector, it controls the turnover of real assets of the enterprise, raw materials, and all this requires the implementation of clearly regulated approaches to the organization of accounting.
The main requirements for accounting in production
Accounting in production is a type of activity of competent specialists, the results of which can be put forward a number of serious requirements. So, the information recorded in accounting should be:
- objective;
- timely;
- operational;
- verifiable.
Another significant criterion here is the suitability of accounting information to be read, if necessary, by a person who is not an expert in accounting. It can be, for example, an investor or shareholder who has a general understanding of accounting, but at the same time expresses interest in familiarizing with information that reflects the state of affairs in business.
Key Data Sources for Accounting
In any industry, whether it is electronics or furniture production, accounting is carried out using similar types of sources. They will be classified on the following grounds:
- composition;
- purpose;
- the duration of the formation;
- level of generalization.
The composition of accounting documents is divided into:
- for incoming - those that come to the organization from external business entities;
- to outgoing - which are transferred from the company to other organizations;
- internal - their turnover is carried out within the enterprise.
By purpose, accounting documents are classified:
- for administrative - those that reflect management decisions regarding certain business operations;
- on executive - those that legally consolidate the relevant operations.
Of course, in the document circulation of an enterprise, those documents can also be applied that are difficult to unambiguously be attributed to administrative or executive. For example, it can be certificates, various calculations and registers, through which, for example, a competent specialist can reflect production costs in accounting.
By the duration of the formation of accounting documents are divided:
- for one-time - those that reflect a single business transaction;
- for funded ones - those that are formed during a given period in order to reflect information about the same type of business operations.
Based on the degree of generalization, accounting documents can be divided into:
- on primary - those that reflect the operation immediately at the time of its implementation (for example, when materials are shipped);
- to summary, which include data on several primary documents.
Using the above documents, almost any business operations can be recorded at the enterprise. In principle, they are suitable not only for such a segment as production. Accounting using the above sources can be maintained by a trade or service company.
Of course, the practical application of certain documents can be predetermined by the features of business operations in a particular company. But the classification of sources in this case will be unchanged, as well as the basic principles of handling them, since accounting procedures are quite strictly regulated.
Consider now the main tasks of accounting at industrial enterprises.
Accounting in production: main tasks
Again, regardless of the particular segment, whether it is aluminum production or furniture production, accounting at industrial enterprises is carried out in order to solve the following problems:
- the formation of reliable information about the business processes in the company, as well as about the results of its economic development for a certain period;
- control over the movement of various assets and liabilities that belong to the organization, labor, financial resources - on the basis of the established rules of law;
- development of local standards;
- improving production efficiency through the analysis of key indicators recorded in accounting.
These tasks should be solved taking into account the provisions of regulatory legislation on accounting, various by-laws, explanations of departments, and the provisions of internal regulations.
There are also a number of accounting principles in industry.
Principles of accounting in industry
In principle, the organization of accounting for agricultural production, and the solution of the corresponding problems in a software company will be carried out with an emphasis:
- to ensure comparability of information related to the category of accounting with planned indicators;
- the effective distribution of functions for the collection of necessary accounting information, as well as the formation of accounting documents, between competent specialists of the company;
- To engage in advanced, technological approaches to the implementation of accounting;
- on the unity of the document base used by various departments of the company in the formation of information, and documents that are related to accounting.
Accounting Information Requirements
With regard to accounting information, a number of requirements can also be identified. They will be relevant regardless of the specific stages of the release of goods (supply of finished goods - although separate accounting is carried out for them, the production of semi-finished products). These are the following requirements:
- Compliance with the accounting policies adopted by the company;
- full and reliable reflection within the accounting period of indicators of property and business operations of the company;
- ensuring the identity of indicators of analytical and synthetic accounting ;
- efficient distribution of production costs - for example, current and capital, classification of income and expenses for specific periods.
Does a specific area of economic activity matter in terms of prioritizing organization of accounting? As a rule, there is a dependency. We study its specifics.
How does accounting depend on the scope of the firm?
The industry can be divided into 2 main segments - finishing and manufacturing.
The first type of production is characterized primarily by the absence of a large number of redistributions in the manufacture of finished products. That is, in particular, the accounting of costs of auxiliary production may not be carried out in principle. The company, having carried out the extraction of a particular mineral, brings it into a form suitable for supply to the customer, and organizes its transportation.
With regard to production costs in mining enterprises - those are usually reflected by redistribution and are divided, if necessary, within the framework of analytical accounting for individual structural divisions of the company.
If it is supposed to process minerals, then production can already be classified as processing. In this case, its accounting may be much more complicated in the structure and content of operations. The production of semi-finished products in this case may be an obligatory step in the production of the finished product.
Certain nuances may characterize specific segments of the output of goods or services. So, one thing is the processing of raw materials, which results in a finished product. In this case, production accounting can be carried out by processes, sometimes by technological redistribution. Another thing is if a technically complex product is being manufactured. In this case, accounting will be more complicated. The production of equipment, machines, various controls for them involves the mechanical processing and assembly of parts, spare parts, design elements.
Enterprises that operate in their respective segments are adapting accounting to the wide range of materials that are used in production. To select specific accounting tools, the specificity of the managerial model and the basic principles of the formation of an enterprise with human resources may also be of importance.
The important thing is in which structural divisions one or another production operation is carried out, by whom exactly, when interacting with which specialists - inside the company or outside it.
The nuances of accounting: organization of production
Organization of production can be built on different principles. Among the most popular approaches here are stream and non-stream. The organization of production of the first type involves building special technological lines at the factory, which are used to assemble the finished product sequentially.
Accounting of production costs, circulation with the flow scheme, as a rule, is easier to organize based on strict regulation of the enterprise’s production of goods. In turn, in non-continuous production, equipment is installed on a group basis. Specialists working in each of the respective departments carry out part of the specified operations, after which they transfer the semi-finished product or a certain part of the product for assembly to another department of the company.
Accounting in production: postings
The most important nuance that characterizes accounting in production is the use of postings. Consider their features.
Among the main accounts of accounting, which are used to form transactions in the production, is 10. It reflects business transactions for various types of raw materials. The balance on it reflects the cost of the corresponding resources as of a certain date. Another account demanded in the formation of production transactions is 20. It reflects the main business operations of production. The balance on it reflects the value of production in the category of incomplete - as of a certain date. It can be noted that the indicated account reflects the costs of the industrial (accounting of production costs) enterprise. In particular, the following may be recorded here: the cost of raw materials and materials, the salary of employees of production shops.
If necessary, the accountant can open various sub-accounts for the main accounts of accounting. Consider an example of business accounting using postings that involve the accounts in question.
Postings in production: an example of their use in accounting
The first stage of most production is the purchase of fixed assets. As a rule, 3 main business operations are formed here.
First of all, this is the accounting of an invoice for payment of fixed assets from a supplier - without VAT. It is reflected by posting on the Debit of account 08 and Credit 60. In turn, VAT is reflected on the basis of debit of account 19 and Credit 60. The fact of payment for equipment is reflected by posting on debit of account 68 and Credit 19.
Acceptance of VAT for deduction - for Debit 68, Credit 19. The fact of putting fixed assets into operation is reflected in the posting of Debit of account 01, Credit 08.
The next production operation is the purchase of materials. It consists of such business operations as:
- accounting of the bill for materials from the supplier (Debit 10, Credit 60);
- reflection of VAT on delivery (Debit 19, Credit 60);
- reflection of the fact of payment of the invoice from the supplier (Debit 60, Credit 51);
- reflection of VAT deductible (Debit 68, Credit 19).
Accounting for production also involves the depreciation of fixed assets:
- on the main production (Debit 20, Credit 02);
- on auxiliary (Debit 23, Credit 02);
- for general production and general business facilities (respectively, Debit 25, 26, Credit 02).
The release of materials into production is reflected by the postings: for the main production - Debit 20, Credit 10, for the auxiliary - Debit 23, Credit 10. The accrual of a payment to employees of production shops, as well as social contributions for labor costs, is reflected in the following transactions:
- for employees of the main production - Debit 20, Credit 70 (for social contributions - 69);
- for employees of auxiliary workshops - Debit 23, Credit 70 (for social contributions - 69).
The transfer of finished goods to the warehouse is executed by posting with the use of Debit of account 43, Credit 20. The sale of manufactured products involves reflection in the accounting of the following business transactions:
- shipment (Debit 62, Credit 90.1);
- write-offs of the cost of goods (Debit 90.2, Credit 43);
- reflection of VAT (Debit 90.3, Credit 68);
- profit-taking from sales - as a financial result (Debit 90.9, Credit 99);
- reflection of payment for goods from the buyer (Debit 51, Credit 62).
Of course, this is not an exhaustive list of transactions characterizing business operations in the release of goods, accounting for production costs. The tasks that an accountant of an industrial company can solve are significantly wider than the example we have examined. However, the business operations we noted can be called typical, common for the production sphere.