Accounting for work in progress and its types

Incomplete production (NP) includes the results of the production process, which were not completed by the end date of the reporting period, and the final product in the form of goods was not received. As a rule, accounting for work in progress includes:

- raw materials and items still in processing, in warehouses of the shops of the enterprise;

- finished items, but not completed or not accepted by the technological control services;

- the same products, but not accepted by the customer's technical experts;

- unfinished operations, executed both for external customers and for the needs of own production.

The IR does not include canceled orders and products rejected by the OTC service department, purchased semi-finished products, as well as those materials and components that have not yet been processed or assembled into a single unit.

The exact establishment of the NP value, the competent and professionally conducted accounting of work in process at the end of the period, plays a decisive role in keeping records of the entire production activity of the enterprise or company, gives an idea of the expenditure of the wage fund and the correct calculation of the cost price of the goods produced.

There are operational accounting for work in progress and accounting. Operational accounting is made by employees of accounting departments of workshops and other divisions of the enterprise, representing intermediate stages of the production cycle (dispatching offices, shiftsmen, foremen). This type of accounting is intended for the operative regulation of the production process, control over the expenditure of component materials and their residues.

Accounting, in addition to quantitative accounting, organizes and conducts accounting for work in progress, posting in which are compiled with a reflection of the value of NP and the dynamics of its change.

Operational accounting at various enterprises is organized in different ways, because its technology largely depends on the nature of production activities, the complexity of the products.

Two methods of operational accounting prevail in industrial production.

The podetalno-operational method is extended on manufacture where there is a small-scale production which release is interfaced to labor-consuming operations of technological processing and assemblage. In this case, the work in progress is accounted for by filling in the so-called routing sheets, which reflect all technologically provided processing operations and the degree of their completeness at each technological stage of manufacturing the commodity.

In the production line, which is characterized by a short time of manufacturing products in large series, the need to maintain a record and account for each operation is not. Here, the evaluation and accounting of work in progress occurs through the registration of monthly (or other terms, due to the specifics of the production process) statements, to which, if necessary, the relevant specifications for a particular type of product and other documents are attached. Such statements are kept in the enterprise subdivisions, then they are generalized, and the balance of details is drawn up. Such a balance sheet reflects data from all production units and reflects information on the receipt of parts from the picking warehouse, marriage and balances within the reporting period.

Nevertheless, due to various circumstances, the information contained in the operational accounting documents is not always accurate. Therefore, at the enterprises within the framework of this procedure, inventory of unfinished production is organized. Their methods and options for carrying out are determined by the physical properties of the product: size, weight, technological parameters of the objects.