PECULIARITIES OF ACCOUNTING REPRESENTATION AND WAYS OF IMPROVEMENT OF INVENTORIES IN MANAGEMENT OF THE ENTERPRISE

Анотація

The article states that inventories are a very important element of any business. They are considered as part of the material resources that do not participate in the production process, but their presence in a certain amount at the enterprise is an objective condition of its activities. It is determined that the reasonable use of inventory is of great economic importance. It is proved that the provision of inventory is a necessary condition for economic activity of the enterprise, and the effective use of inventory is a necessary condition for the profitability of the enterprise. It is proved that a characteristic feature of inventories is that they belong to current assets. In other words, inventories are intended for sale or consumption during one operating cycle or within 12 months from the balance sheet date. It is stated that inventories are part of current assets because they can be converted into cash during the year or one operating cycle. Working capital is a financial - economic category, which follows from the existence of commodity-money relations and the organization of the enterprise. Inventories are current assets that are held for sale or consumption during the operating cycle or within 12 months of the balance sheet date. In the inventory is reflected in the accounts of class 2, depending on their purpose. The unit of inventory accounting is their name or homogeneous group (type). It is proved that the rational management of inventories in the first place requires timely operational accounting for their receipt and use. It is necessary to control and improve the process of accounting at each site of inventory accounting to obtain reliable information about the receipt, use, internal movement of inventories, compliance with norms and established limits at the enterprise. The offered detailed description of separate subaccounts of the account of production stocks will allow to simplify reception of the accounting information for its effective use in production process. Effective inventory management has been shown to significantly shorten the operating production cycle, helping to reduce inventory costs and freeing up some working capital. These measures will help increase the rational use of inventory and increase the efficiency of the enterprise.

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