Accounting in production and its features

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Accounting is the most important area of work for employees of an industrial enterprise. Based on what principles should it be built? What accounting accounts are used as part of accounting for business transactions in production?

Accounting as a system

According to which accounting in production should be considered as a special system, there is a widespread approach among Russian experts. Optimally - as informational, along with others that belong to the appropriate category (for example, with technological, regulatory systems). From this point of view, accounting in production can also be a part of the financial system, and the most important one, since it is on the basis of data generated by competent specialists with a financial education that the economic performance of an enterprise is assessed.

Using synthetic and analytical methods, the accountant creates an information base that reflects the assets, liabilities of the company, the results of its economic activity. Accounting as a system can be a useful resource for both managersenterprises that make various management decisions, as well as for the owners of the company, its shareholders, investors, creditors.

The data contained in production accounting can be used when planning business development, making decisions regarding changes to the company management model, setting priorities when investing in various projects.

To maintain the type of accounting in question, both at the level of legislation and in local regulations, very stringent requirements can be put forward. Actually, this may be another confirmation of the importance of such an information collection system as accounting.

As far as the sphere of production is concerned, even more serious attention can be paid to the regulation of accounting. The corresponding segment of the economy is related to the real sector, it controls the turnover of the real assets of the enterprise, raw materials, and all this requires the implementation of clearly regulated approaches to the organization of accounting.

Main requirements for accounting in production

Accounting in production is a type of activity of competent specialists, to the results of which a number of serious requirements can be put forward. So, the information recorded in accounting should be:

- objective;

- timely;

- operational;

- verifiable.

Another significant criterion here is the readability of accounting information, if required,a person who is not an accountant. It could be, for example, an investor or shareholder who has a general understanding of accounting, but at the same time expresses an interest in getting acquainted with information that reflects the state of affairs in the business.

Main data sources for accounting

In any industry, be it electronics or furniture, accounting is done using similar types of sources. They will be classified according to the following criteria:

- composition;

- destination;

- duration of formation;

- level of generalization.

By composition, accounting documents are divided:

- to incoming - those that come to the organization from third-party business entities;

- to outgoing - which are transferred from the company to other organizations;

- to internal - their turnover is carried out within the enterprise.

By purpose, accounting documents are classified:

- on administrative - those that reflect the decisions of the management regarding certain business transactions;

- executive - those that legally secure the relevant operations.

Of course, in the document flow of an enterprise, those documents that are difficult to unambiguously attribute to administrative or executive can also be used. For example, these can be certificates, various calculations and registers, through which, for example, a competent specialist can reflect production costs in accounting.

According to the duration of formation, accounting documents are divided:

- for one-time - those that reflect a single business transaction;

- accumulative - those that are formed during a particular period in order to reflect information about the same type of business transactions.

Based on the degree of generalization, accounting documents can be subdivided:

- to primary - those that reflect the operation immediately at the time of its implementation (for example, when materials are shipped);

- into consolidated ones, which include data from several primary documents.

With the use of the above documents, almost any business transactions can be recorded at the enterprise. In principle, they are suitable not only for such a segment as the production sector. Accounting using the listed sources can be carried out by a trade, service company.

Of course, the practical application of certain documents may be predetermined by the peculiarities of business operations in a particular firm. But the classification of sources will remain unchanged, as well as the basic principles for handling them, since accounting procedures are quite strictly regulated.

Now consider the main tasks of accounting in industrial enterprises.

Accounting in production: the main tasks

Again, regardless of the specific segment, be it the releasealuminum or furniture production, accounting in industrial enterprises is carried out in order to solve the following tasks:

- formation of reliable information about the business processes in the company, as well as 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 - based on the operation of established rules of law;

- development of local regulations;

- increasing production efficiency by analyzing key indicators recorded in accounting.

These tasks should be solved taking into account the provisions of the regulatory legislation on accounting, various by-laws, clarifications of departments, provisions of internal corporate regulations.

There are also a number of accounting principles in industry.

Principles of accounting in industry

In principle, both the organization of accounting for agricultural production and the solution of related tasks in a software company will be carried out with an emphasis:

- to ensure the comparability of information related to the accounting category with planned indicators;

- to the effective distribution of functions for collecting the necessary accounting information, as well as the formation of accounting documentation - between the competent specialists of the company;

- on the use of advanced, technological approaches to the implementation of accounting;

- on the unity of the documentary base usedvarious divisions of the company in the formation of information and documents that are related to accounting.

Requirements for accounting information

In relation 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 (delivery of finished goods - although separate accounting is maintained for them, production of semi-finished products). These are the following requirements:

- compliance with the accounting policy adopted by the company;

- complete and reliable reflection within the accounting period of indicators on the property and business operations of the company;

- ensuring the identity of indicators of analytical and synthetic accounting;

- efficient distribution of production costs - for example, for current and capital, classification of income and expenses for specific periods.

Does a specific area of economic activity matter from the point of view of setting priorities in the organization of accounting? As a rule, there is a dependency here. Let's study its specifics.

How does accounting depend on the scope of the firm?

The industry can be divided into 2 main segments - finishing and processing.

For productions of the first type, the absence of a large number of redistributions in the production of finished products is characteristic, first of all. That is, in particular, accounting for the costs of auxiliary production may not be kept in principle. Firm,having carried out the extraction of one or another mineral, he brings it into a form suitable for deliveries to the customer, and organizes its transportation.

As for production costs at mining enterprises, they are usually reflected by redistribution and subdivided, if necessary, within the framework of analytical accounting for individual structural divisions of the company.

If the processing of a mineral is supposed, then the production can already be classified as processing. In this case, its accounting can be much more complex in terms of the structure and content of operations. The production of semi-finished products in this case may be a mandatory step in the release of the finished product.

Certain nuances may be characteristic of specific segments of the production of goods or services. So, it is one thing - the processing of raw materials and materials, as a result of which a finished product is obtained. In this case, accounting in production can be carried out according to processes, sometimes technological conversions. Another thing is if a technically complex product is being manufactured. In this case, accounting will be more difficult. The production of equipment, machines, various controls for them involves the machining and assembly of parts, spare parts, design elements.

Enterprises that operate in the respective segments adapt accounting to a large range of materials that are used in production. For the choice of specific accounting tools, the specifics of the management model may also be important,the basic principles of forming an enterprise with human resources.

The important thing is in which structural divisions certain production operations are carried out, by whom, in cooperation with which specialists - inside the company or outside it.

Accounting nuances: organization of production

Organization of production can be based on different principles. Among the most popular approaches here are streaming and non-streaming. The organization of production of the first type involves building special technological lines at the factory, using which the finished product is sequentially assembled.

Accounting for production costs, circulation with a flow scheme, as a rule, is easier to organize based on the strict regulation of the operations of the release of goods by an enterprise. In turn, in non-flow production, equipment is installed on a group basis. Specialists working in each of the relevant departments perform 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 accounting accounts that are used to generate postings in production, there are 10. It reflects business transactions for various types of raw materials and materials. The remainder reflects the valuerelevant resources by status as of a specific date. Another account in demand in the formation of production transactions is 20. It reflects the main business operations for production. The balance on it reflects the cost of production, classified as work in progress - as of a certain date. It can be noted that the specified account reflects the costs of an industrial (accounting for production costs) enterprise. In particular, the following can be recorded here: the cost of raw materials and materials, the amount of wages of employees of production shops.

If necessary, an accountant can open various sub-accounts to the main accounting accounts. Let's consider an example of accounting in production using transactions that involve the accounts in question.

Transactions in production: an example of their use in accounting

The first stage of most production is the purchase of a fixed asset. As a rule, 3 main business transactions are formed here.

First of all, this is accounting for an invoice for payment of a fixed asset from a supplier - without VAT. It is reflected in the posting on the Debit of account 08 and Credit 60. In turn, VAT is reflected using the Debit of account 19 and Credit 60. The fact of payment for the equipment is reflected in the posting on the Debit of account 68 and Credit 19.

Acceptance of VAT for deduction - on Debit 68, Credit 19. The fact of putting fixed assets into operation is reflected in the posting on Debit of account 01, Credit 08.

Next productionoperation - purchase of materials. It consists of such business transactions as:

- accounting for an invoice for materials from a 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 in production also involves the calculation of depreciation of fixed assets:

- for main production (Debit 20, Credit 02);

- for auxiliary (Debit 23, Credit 02);

- for general production, as well as general business facilities (respectively, Debit 25, 26, Credit 02).

The release of materials into production is reflected in the entries: for the main production - Debit 20, Credit 10, for the auxiliary - Debit 23, Credit 10. The accrual of salaries to employees of production shops, as well as social contributions to wages, is reflected in the entries:

- for employees of the main production - Debit 20, Credit 70 (for social contributions - 69);

- for workers of auxiliary shops - Debit 23, Credit 70 (for social contributions - 69).

The transfer of finished goods to the warehouse is documented by posting using the Debit of account 43, Credit 20. The sale of manufactured products involves the reflection in accounting of the following business transactions:

- shipments (Debit 62, Credit 90.1);

- writing off the cost of goods (Debit 90.2, Credit 43);

- VAT reflections (Debit 90.3, Credit 68);

- fixing profits from the sale - as a financialresult (Debit 90.9, Credit 99);

- reflections of payment for goods from the buyer (Debit 51, Credit 62).

Of course, this is not an exhaustive list of transactions that characterize business transactions in the release of goods, accounting for production costs. The tasks that an accountant of an industrial firm can solve are much broader than the example we have considered. However, the business operations we noted can be called typical, common for the production sector.