STRATEGIC ACCOUNTING OF MANUFACTURING INVENTORIES IN INDUSTRIAL ENTERPRISE

Abstract

The need for significant resources to acquire inventories requires that they be managed.

As inventory management can be seen for a long period of time, the boundaries of management accounting are widening. In this case we are talking about strategic management inventory.

Despite the large number of publications, the issue of organizing strategic inventory accounting remains relevant.

The purpose of writing the article is to highlight the features of strategic management accounting of industrial inventory.

In the article the features of construction of the forecast model of the financial reporting at operations with production stocks of the industrial enterprise are covered.

Due to the limited financial resources of any company, analysts always have the question of determining the volume of purchase of production stocks. The purchase of inventories is determined by the need for planned production, available balances at the beginning of the planning period, and estimated balances at the end of the planning period.

Any purchase of inventories is accompanied by settlements with suppliers of those inventories. These operations should also be reflected in the forecast balance sheet model. The amount that will be transferred to suppliers will be determined by various factors: the available cash resources, the frequency of their receipt at the company, the order of payment of mandatory payments (wages, taxes, utilities, interest on loans, other). The above factors will affect the amount owed to inventory providers and therefore the forecast balance sheet model.

The article describes the sequence of analytical actions in forecasting settlements with suppliers of inventories and recommendations for forecasting individual financial statements.

Thus, simple inventory operations involve a set of interrelated purchasing, utilization, and inventory calculations.

Each of these operations influences the finite balance forecast model. From the accounting point of view, in order to build a forecast model of the balance it is necessary to enter the forecast figures for the following economic operations: purchase of production stocks; use of inventories for production needs; inventory balances at the end of the reporting period; transferring funds to suppliers.

Under these operations, the analyst will be able to form a balance sheet model and see the effect of inventory dynamics on the forecast balance sheet item. It will also be possible to form models of the forecast form 2 «Statement of financial results» and the forecast form 3 «Statement of cash flows». Actually, the forecast financial statements are an information guideline for the activity of the enterprise aimed at achieving its goal.