ACCOUNTING AND ANALYTICAL PROVISION OF INVENTORY MANAGEMENT

Abstract

In the course of research it has been stated that the category of «inventories» is not only the object of accounting, but also the object of management, so the identification of inventories in the assets upon receipt at the enterprise is the initial stage of the accounting process. The process of material and technical base management begins at the stage of searching for suppliers, delivery conditions, formation of the logistics component, determination of transport and procurement costs. There is no doubt that the additional costs associated with these processes will affect the formation of the value of purchased inventories. Therefore, the authors emphasize that the methods of estimating inventories at their receipt and disposal play an important role in accounting, as they affect the formation of the cost of finished goods produced from inventories, and hence the overall financial performance of the enterprise. It should also be taken into account that in accordance with the norms of UAS 9, only the amounts of transportation and procurement costs related to the acquisition (receipt) of inventories are subject to inclusion in the initial cost. In practice, the increase in the value of inventories often includes costs incurred in connection with the internal transportation of inventories on the territory of the enterprise or between its structural units; costs arising from the return of inventories to the supplier; costs for loading, transportation, transshipment and insurance of inventories, finished products (goods), freight forwarding and other services related to the sale of products (goods). Such costs do not affect the formation of the initial cost of inventories. Therefore, the authors highlighted the need for a clear delineation of these costs at specific enterprises with the reflection of provisions in the Order (Regulation) on accounting policies. Most scientists discuss the feasibility of search for a method of cost allocation during transportation, because during this process there can be losses of inventories both within the established norms of natural loss, excessive losses and shortages, as well as spoiled inventories found during asset recognition. The authors gave their own view on the possibility of solving this problem. The solving approach has been presented as well as the peculiarities of the reflection of the distributed transport and procurement costs in the system of accounting have been considered. The situation when the company transport both purchased inventories and those, sold to customers, with its own transport has been considered. In such cases, the authors suggest a method of allocating transportation costs with subsequent allocation to transport and procurement costs, which increase the cost of purchased inventories and distribution costs.