Included in circulation funds. Working funds and circulation funds

The latter, according to its functional purpose, is divided into circulating funds and circulating production assets. The circulation funds include the following elements:

Commodity products located in warehouses;

Shipped marketable products (goods in transit);

Financial assets in settlements with consumers of commercial products.

Often circulation funds, located in the form of cash, take different forms:

Financial instruments (they may be in accounts with banking or other credit institutions, issued letters of credit or securities);

Funds located directly at the cash desk or in settlements with counterparties.

For the most efficient management of funds, the time of their circulation and the size of the optimal volume are determined, cash flows are analyzed and forecasted.

Circulation funds in the form of goods in transit are divided into groups:

Goods for which payment terms have not yet arrived;

Products for which the payment period has already expired;

Goods stored by the purchasing organization.

The circulation funds, presented in the form of accounts receivable, consist of debt:

Suppliers whose payment terms have expired;

Tax authorities (when there has been an overpayment of taxes, mandatory payments that are made to the budget in the form of an advance payment);

Debtors for disputed debts and claims.

Any one inevitably diverts funds from circulation, therefore the efficiency of their use decreases, which can lead the enterprise to a difficult financial state. Its level is directly related to the payment system adopted by the organization, the range of products and the state of market saturation with similar products. Its share in the entire structure of circulating funds is most often quite large, and therefore requires strict, constant control. Management of this debt involves the control of the responsible financial services of the organization over the speed of turnover of such funds in the relevant calculations.

Since circulation funds are funds invested in stocks of finished marketable products; goods already shipped but unpaid; funds in settlements with debtors, they are closely related to the process of circulation of goods. These funds do not participate in the formation of the value of goods, but are their direct carriers. All movements constitute a continuous single process. At the end of the production cycle, after the production of commercial products, as well as their sale, the entire cost of these funds is reimbursed in the form of proceeds from the sale of products (services, works).

Circulation funds are in continuous movement, therefore they ensure the circulation of funds. At the same time, there is a constant change in the forms of value: so the monetary form becomes a commodity form, then a production form, and again a commodity and monetary form.

The monetary stage of circulation funds becomes the form of industrial inventories, then in the production stage the inventories are transformed into finished products, after the sale (commodity stage) of the product it acquires a monetary form. All funds advanced in the form of inventories are returned, and part of the savings that exceeds the cost of goods sold is the profit of the enterprise.

The efficiency of using circulation funds depends on their turnover rate. The main indicators include the duration of turnover and loading.

In order to fulfill production plans and commodity turnover plans, all enterprises and organizations must have at their disposal fixed and circulating production assets and circulation funds.

Working capital of enterprises is a combination of circulating production assets and circulation funds in cash. Working capital acts as an advance cost that circulates in the process of production and sales of products.

Working capital assets express the cost of labor items necessary for enterprises to ensure the continuity of the production process. They, in turn, are divided into potential funds, i.e., those awaiting entry into the production process, and funds that are directly involved in this process. The first includes fuel, raw materials, main and auxiliary production materials stored as stocks in enterprise warehouses, and the second includes work in progress and semi-finished products.

Circulation funds are used in the sphere of circulation; they consist of finished products and cash. Each manufacturing enterprise systematically sells its products. But in order to timely fulfill obligations to supply goods to other enterprises and organizations, it is necessary to have stocks of finished products in warehouses.

The working capital assets include:

production inventories - items of labor received by the enterprise for subsequent processing and support of the production process (stocks of raw materials, materials, components, fuel, low-value and wearable items, containers, etc.);

work in progress - objects of labor that have entered the production process and are located at workplaces and between them (blanks, semi-finished products, parts, assemblies, products that have not gone through all stages of processing);

deferred expenses - valuation of expenses for the preparation and development of new types of products produced in a given period, but payable in the future (costs of rent paid in advance, etc.).

The circulating funds include:

finished products, goods for resale and shipped goods - objects of labor that have gone through all stages of processing and are ready for sale, i.e. products of labor;

accounts receivable - debts to an enterprise from legal entities, individuals and the state. The accounts receivable include the debt of buyers and customers, bills receivable, debt of subsidiaries and dependent companies, debt of the founders for contributions to the authorized capital, advances issued;

cash.

Fixed production assets include: buildings, structures, equipment, machinery. These also include tools and devices that cannot be written off within one year.

Fixed production assets are the leading factor in determining the type structure of fixed assets; they largely influence the production, financial and economic results of the enterprise.

To evaluate fixed assets, natural and cost indicators are used.

Natural indicators are used in determining the technical level of means of labor, the production capacity of enterprises and its development (in channels, capacity numbers, etc.), as well as when planning the commissioning of communication facilities and structures, and assessing the effectiveness of their use.

Valuation of fixed assets is one of their most important characteristics. It is necessary to determine the total volume of fixed assets, their structure and dynamics, planning their reproduction, and calculating depreciation. The cost of fixed assets underlies the calculation of a number of economic indicators, such as production costs, capital productivity and capital-labor ratio, profitability.

In practice, the following types of assessments of the value of fixed production assets are used:

at original cost;

at replacement cost;

at original cost, minus depreciation (residual value in the original valuation);

at replacement cost, minus depreciation (residual value in the replacement estimate);

at average annual cost.

In practice, fixed production assets are objects of accounting. To get an idea of ​​the availability and movement of fixed production assets, their book value is used - the cost at which they are accepted on the balance sheet of the enterprise. In economic terms, book value is equal to residual value. It also allows one to judge the amount of unreimbursed advanced capital.

The balance of fixed assets at full cost is compiled as follows:

Fkg = Fng + Fvv - Fvyb, (1.2)

where Fng, Fkg - the total cost of fixed assets as of the beginning and end of the year, respectively; Fvv - the cost of the fixed assets put into operation; Fvyb - the total cost of retiring fixed assets.

Since the value of fixed assets changes throughout the year as a result of the introduction of new and disposal of worn-out means of labor, the average annual value of fixed assets is used in economic calculations.

Depreciation of fixed assets

During operation or inactivity, fixed assets are subject to wear and tear. The economic essence of depreciation of fixed assets consists in the gradual loss of their use value and value, which is transferred to the newly created product. In this case, part of the cost of fixed assets is transferred to the product, the size of which is determined by the amount of depreciation.

A distinction is made between physical and moral wear and tear. Physical wear and tear is determined by the fact that, while participating in the production process, fixed assets gradually lose their consumer ability, their mechanical and other properties change. I would like to note that different types of fixed assets wear out at different times. The amount of physical wear and tear on fixed assets depends on the intensity and nature of their operation, storage conditions, etc. The higher the load on them, the faster they wear out.

To assess the degree of physical wear and tear of fixed assets, the expert method and the service life analysis method are used. The expert method, in turn, is based on an examination of the actual technical condition of the object, and the service life analysis is based on a comparison of the actual and standard service life of the corresponding objects.

Obsolescence of fixed assets is expressed in their depreciation, the loss of their use value and value by funds, regardless of their physical condition, due to scientific and technological progress. In the context of scientific and technological progress, the importance of obsolescence of fixed assets increases.

There are two forms of obsolescence of fixed assets.

The first form of obsolescence occurs when, under the influence of increased labor productivity in the production of machinery and equipment, the socially necessary labor costs for their production are reduced, resulting in a reduction in their value. In other words, means of labor of the same design are produced cheaper due to the improvement of their production methods.

The second form of obsolescence is a consequence of the creation of new, more productive and economical means of labor. Obsolescence of the second form of operating fixed assets is characterized by the loss of their use value and value. It is advisable to replace these funds with new ones, despite their physical suitability for further use, if the effect of the replacement exceeds the losses from the incomplete transfer of the cost of the means of labor to the created product.

The main means of preventing losses from obsolescence is more intensive use of equipment. Replacing obsolete equipment with a more advanced model is economically feasible if this replacement allows increasing labor productivity and reducing production costs compared to the same indicators when using old equipment.

The degree of depreciation of fixed assets is determined by the following indicators:

Physical wear and tear (IF):

If = Tf / Tn * 100%, (1.3)

where Tf is the actual service life of fixed assets, Tn is the standard service life of fixed assets,

or If = Ca / OFp * 100%, (1.4)

where Ca is the amount of accrued depreciation, thousand rubles; OFP - initial cost of fixed assets, thousand rubles.

Obsolescence of the first form (Im):

Im = (GPp - PFv) / GPp * 100%, (1.5)

where FV is the replacement cost of fixed assets, thousand rubles,

Obsolescence of the second form (Im?):

Im = (Mon - Ps) / Mon * 100%, (1.6)

where Mon is the productivity of new equipment, Ps is the productivity of old equipment.

The gradual wear and tear of the means of labor leads to the need to accumulate funds to compensate for the wear and tear of fixed assets and their reproduction. This is done through depreciation.

Depreciation is monetary compensation for the cost of depreciation of fixed assets. It is a method of gradually transferring the value of funds to manufactured products. Deductions intended to reimburse the cost of the worn-out part of fixed assets are called depreciation. It should be noted that fixed assets after each production cycle do not require compensation for wear and tear in kind, therefore depreciation charges accumulate, forming a depreciation fund.

There are three main methods of calculating depreciation:

linear (uniform) - depreciation is calculated monthly based on its monthly rate;

accelerated - reducing the depreciation period and increasing its annual rates;

productive - accounting of production volumes at a given facility of production assets.

Indicators of use of fixed assets

The efficiency of using fixed assets is assessed by a system of indicators.

Capital productivity (FRO) is the ratio of the volume of production in monetary terms (OP) to the average annual cost of fixed assets (Afsr).

FO = (OP / OFsr) * 100% (1.7)

Capital intensity of production (FE) is the cost of fixed assets per unit of annual production volume.

FE = 1 / FO (1.8)

Return on fixed assets.

Ro.f = (Pr / OFsr) * 100%, (1.9)

where Pr is profit, million rubles.

Profitability of production.

Рп = Pr / (OFsr + No.s) * 100%, (1.10)

where No.c is the amount of standardized working capital.

Capacity utilization factor.

Ki.m = (OP / PM) * 100%, (1.11)

where OP is the actual volume of production in conditionally natural, physical indicators;

PM is the production capacity of the enterprise in the same units.

The indicator of extensive use of machinery and equipment (Ke) is the ratio of the actual operating time of machinery and equipment (Vf) to the calendar time (Vk).

Ke = Vf / Vk (1.12)

The indicator of intensive use of machinery and equipment (Ci) is the ratio of the actual productivity of a machine per unit of time (Pf) to the technical or planned one (Ppl).

Ki = Pf / Ppl (1.13)

To determine the movement of fixed production assets and the level of their technical improvement, a number of indicators are calculated.

Renewal factor.

kobn = OFnov / OFk.g, (1.14)

where OFnov is the cost of newly introduced fixed assets; OFk.g - the value of fixed assets at the end of the year.

Input factor.

kвв = ОФвв / ОФк.г, (1.15)

where OFVV is the cost of fixed assets put into operation.

Attrition rate.

kselect = OFselect / OFn.g, (1.16)

where OFvyb is the cost of fixed assets disposed of during the year; OFn.g - the cost of fixed assets at the beginning of the year.

Wear rate.

ki = I / OFn.g. (1.17)

Suitability factor.

kg = (OFn.g - I) / OFn.g. (1.18)

Intensive load factor.

kin = (VPf / VPpl) * 100% (1.19)

Extensive utilization factor.

kext = (Tf / Tpl) * 100% (1.20)

Integral utilization factor.

kint = kin * kext (1.21)

Equipment replacement rate.

kcm = Tf / Te, (1.22)

where Te is the effective operating time of equipment in 1 shift.

Thus, in modern conditions, the implementation of reserves for improving working capital and circulation funds is becoming one of the most important functions of the marketing services of communication organizations.

Indicators of efficiency in the use of working capital can be improved by:

improving the organization of production, labor and management, eliminating unscheduled downtime;

reducing time and improving the quality of repairs;

advanced training of personnel;

improvement of equipment and technology;

expansion of the scope of leasing services;

improving the quality of preparation of raw materials and materials for the production process;

increasing equipment load and capacity;

introduction of new, cost-effective communication technology, technical improvement and modernization of equipment;

accelerated development of design capacities, etc.

CIRCULATION FUNDS Part of the working capital of self-supporting socialist enterprises (associations) operating in the sphere of circulation in commodity and monetary forms. They consist of stocks of finished products produced by enterprises, but not yet sold, stocks of goods from trade organizations, containers and other material assets used in the circulation process, accounts receivable and other funds in settlements, as well as cash (at the cash desk, on accounts). Availability of F.o. in socialist enterprises, along with production assets, it ensures the continuity of the reproduction process. After completion of the production process F.o. take the form of finished products, completed by processing at a given enterprise and accepted by technical control. After some time necessary for picking and packing in warehouses, it is shipped to the consumer. After the sale (payment) of its F.O. take monetary form, and the proceeds go to enterprises in the State Bank and are then used again to create inventories, pay wages to enterprise employees, etc. Remains of finished products in warehouses are rationed and are included in the regulated working capital. The sources of their formation are enterprises (within the standard) and borrowed ones - bank loans (for excess balances of finished products). Shipped goods, funds in settlements and together constitute the amount of non-standardized working capital, which is formed from borrowed funds - bank loans and accounts payable arising under the terms of settlements between enterprises and organizations.
Structure of the F. o. depends on the nature of the production activities of enterprises, supply conditions and settlements between suppliers and consumers. In the USSR at the beginning of 1975 F. o. amounted to over 160 billion rubles, i.e. 55.4% of all working capital in the national economy (57.8% in 1965), including in industry over 30 billion rubles, i.e. 31.3%. As part of the F. o. of the national economy, 6.0% are leftovers of finished products, 49.7% of goods, 12.1% of shipped goods and rendered goods, 15.7% of cash, 16.5% of debtors.
With the increase in the production and sale of goods, both for industrial and technical purposes, and for public consumption, financial statements also increase. At the same time, conditions are being created to reduce circulation time and accelerate the turnover of funds at the stages of inventory supply and sales of finished products, which makes it possible to achieve relative savings on investments in financial statements. Accelerating the turnover of working capital in the sphere of circulation is of great economic importance for the development of the national economy, intensification and improvement of the efficiency of social production.

Dictionary of business terms. Akademik.ru. 2001.

See what “circulation funds” are in other dictionaries:

Funds of companies operating in the sphere of circulation. Terminological dictionary of banking and financial terms. 2011… Financial Dictionary

Circulation funds- funds operating not in the sphere of production, but in the sphere of circulation (money and products) ... Librarian's terminological dictionary on socio-economic topics

Part of the working capital (See Working capital) of self-supporting socialist enterprises (associations) operating in the sphere of circulation in commodity and monetary forms. They consist of inventories of finished products produced by enterprises... ...

Circulation funds- operate in the sphere of circulation and consist of the balances of finished products in the enterprise’s warehouse, products shipped but not paid for by buyers, funds in settlements, on a current account, in the cash register, on letters of credit... Commercial power generation. Dictionary-reference book

Circulation funds- in forestry production they consist of finished products in warehouses, goods in transit, cash and accounts receivable... A brief dictionary of basic forestry and economic terms

I (French fond, from Latin fundus foundation), 1) resources, reserves, for example, the national economic fund, land fund, seed fund. 2) Material and monetary assets used by the enterprise, for example, fixed production assets, funds... ... encyclopedic Dictionary

USSR, a set of material and monetary resources systematically created, distributed and used in the process of expanded socialist reproduction to ensure stable and high rates of economic development; main... ... Great Soviet Encyclopedia

In the USSR, a set of material assets and funds used to support production and economic activities and economic incentives for workers. They are divided into 2 groups: production assets,... ... Great Soviet Encyclopedia

- (French fond from Latin fundus base),..1) resources, reserves, e.g. national economic funds, land fund, seed fund2)] Material and monetary resources used by the enterprise, for example, main production funds, circulation fund, fund... ... Big Encyclopedic Dictionary

- (French fond, from Latin fundus base) 1) resources, reserves, e.g. national economic funds, land fund, seed fund; 2) material and monetary assets used by the enterprise, for example, main production assets, circulation fund, fund... ... Political science. Dictionary.

Books

• Finance and Credit No. 33 (561) 2013, Absent. The magazine reveals contemporary problems in the theory and practice of finance, money circulation and credit, banking and insurance, the securities market, tax policy and financial…

Circulation funds— enterprise funds operating in the sphere of circulation; part of working capital.

Circulation funds include:

Enterprise funds invested in finished product inventories, goods shipped but not paid for;

Funds in settlements;

Cash in hand and in accounts.

The amount of working capital employed in production is determined mainly by the duration of production cycles for the manufacture of products, the level of technical development, the perfection of technology and labor organization. The amount of circulating media depends mainly on the conditions for the sale of products and the level of organization of the supply and marketing system.

Working capital represents the more mobile part of assets.

In every Circulation of working capital goes through three stages: monetary, production and commodity.

To ensure an uninterrupted process, the enterprise creates inventories of working capital or material assets awaiting their further production or personal consumption. Inventories are the least liquid item among current assets items.

The following methods for estimating reserves are used:

The cost of each unit of purchased goods;

By average cost, in particular, by weighted average cost, moving average;

At the cost of the first purchases;

At the cost of the most recent purchases.

The unit of accounting for working capital as inventory is a batch, a homogeneous group, and an item number.

Depending on their purpose, inventories are divided into production and commodity. Depending on the functions of use, stocks can be current, preparatory, insurance or warranty, seasonal and carryover.

- Insurance stocks- a reserve of resources intended for the uninterrupted supply of production and consumption in cases of a decrease in supplies compared to those provided.

- Current stocks— stocks of raw materials, materials and resources to meet the current needs of the enterprise.

- Preparatory supplies- Cycle-dependent inventories are required if raw materials are to undergo any processing.

- Carryover stocks- part of unused current inventories that are carried over to the next period.

Working capital is located simultaneously at all stages and in all forms of production, which ensures its continuity and uninterrupted operation of the enterprise. Rhythm, coherence and high performance largely depend on optimal amounts of working capital(working production assets and circulation funds). Therefore, the process of rationing working capital, which relates to current financial planning at the enterprise, is of great importance. Rationing of working capital is the basis for the rational use of a company's economic assets. It consists in developing reasonable norms and standards for their consumption, necessary to create constant minimum reserves and for the uninterrupted operation of the enterprise.

The working capital standard establishes the minimum estimated amount that is constantly required by the enterprise to operate. Failure to fill the working capital standard may lead to a reduction in production and failure to fulfill the production program due to interruptions in production and sales of products.

Standardized working capital is the enterprise's planned size of inventories, work in progress and balances of finished products in warehouses. Working capital stock norm is the time (days) during which OBS are in production inventory. It consists of the following stocks: transport, preparatory, current, insurance and technological. Working capital standard is the minimum amount of working capital, including cash, necessary for a company or firm to create or maintain carry-over inventories and ensure continuity of work.

Sources for the formation of working capital can be profits, loans (bank and commercial, i.e. deferred payment), share capital, share contributions, budget funds, redistributed resources (insurance, vertical management structures), accounts payable, etc.

The efficiency of using working capital affects the financial results of the enterprise. When analyzing it, the following indicators are used: the availability of own working capital, the ratio between own and borrowed resources, the solvency of the enterprise, its liquidity, turnover of working capital, etc. Turnover of working capital is understood as the duration of the sequential passage of funds through individual stages of production and circulation.

The following indicators of working capital turnover are distinguished:

Turnover ratio;

Duration of one revolution;

Working capital utilization ratio.

Funds turnover ratio(turnover speed) characterizes the amount of revenue from sales of products by the average cost of working capital. Duration of one revolution in days is equal to the quotient of dividing the number of days for the analyzed period (30, 90, 360) by the turnover of working capital. The reciprocal of the turnover rate shows the amount of working capital advanced per 1 ruble. revenue from product sales. This ratio characterizes the degree of utilization of funds in circulation and is called working capital load factor. The lower the working capital load factor, the more efficiently working capital is used.

The main goal of managing enterprise assets, including working capital, is to maximize profit on invested capital while ensuring stable and sufficient solvency of the enterprise. To ensure sustainable solvency, the enterprise must always have a certain amount of money in its account, which is actually withdrawn from circulation for current payments. Part of the funds should be placed in the form of highly liquid assets.

An important task in terms of managing working capital of an enterprise is to ensure an optimal balance between solvency and profitability by maintaining the appropriate size and structure of current assets. It is also necessary to maintain an optimal ratio of own and borrowed working capital, since the financial stability and independence of the enterprise and the possibility of obtaining new loans directly depend on this.

Main elements of production assets

The company's production assets consist of their main elements, where none of them can be excluded from production. The combination of all elements in production happens quite often, and cases of partial combination of individual elements are also possible. The main elements of production assets include:

• Auxiliary elements of the production process are all objects adjacent to the main production assets: roads, tunnels, bridges, crossings, etc. Without such infrastructure it is impossible to establish the production process as a whole;
• All production elements where the product is directly produced, that is, those that participate in the production process. Such elements can be: a factory building, garages, barns, workshops, etc.;
• Elements of a circulating nature in production, that is, those that are not of a fundamental nature, that quickly or relatively quickly fail and require replacement with more modernized or innovative ones. These include: a production tool, with which you can troubleshoot production equipment, repair or build something. These include all impact or cutting tools, for fastening something, or for performing installation work. Inventory for industrial or business purposes, which is intended for the process of servicing production. These revolving funds are designed to make work easier, provide opportunities for rest and breaks, or ease of maintenance of capital equipment. An example could be: tables, sofas, chairs, industrial hygiene items, special devices for cleaning production equipment or washing it, etc.;
• Production maintenance elements. This group includes all transmission devices that provide the production process with heat, electricity, water, gas, etc. Such objects include: heating networks, electrical wires and installations, gas stations, water towers, etc.

Elements of transport services for the production process. These elements include: vehicles that bring raw materials and deliver finished products; production equipment on which goods are directly produced or packaged; machines for servicing production equipment, etc.

The high cost of all the elements of production assets that participate in the production process leads to the fact that enterprises pay a lot of attention to the issues of operating fixed production assets. This gives rise to the need to keep records of both the availability and movement of funds within the enterprise. Such accounting has the task of ensuring complete knowledge about the size of fixed assets, as well as the degree of their influence on production, cost levels and other indicators.

One of the important indicators of such accounting, which can make adjustments to the structure of fixed production assets, is depreciation. It occurs as a result of the use of funds, and is reimbursed through restoration. As production activity progresses, the means of labor wear out and their properties deteriorate.

Definition 1

Depreciation of all elements of production assets is the transfer of the value of these assets to the cost of the company's final products.

Circulation funds

The circulating funds and the production assets of an enterprise are closely related to each other, since the circulating funds seem to flow from the work and activity of the production assets.

Definition 2

Circulation funds are a type of working capital of an enterprise, which represents either finished products of the enterprise or shipped, but not paid, cash in the company’s cash register or on a current account.

These company funds are liquid and are associated with a process that is responsible for servicing the goods produced by the company.

Note 1

It should also be noted that the circulation funds themselves do not take part in the process of money formation, since they themselves are expressed in monetary form.

Structure and composition of circulation funds

Based on the definition of circulation funds, their composition and structure include:

1. All the company’s funds that are in cash at the cash desk at a particular point in time;
2. All funds that the company has on a certain date in its current account or bank accounts;
3. Finished products, at a specific point in time, located in the company’s warehouse;
4. Finished products shipped to the buyer, but taking into account that they have not yet been paid, that is, accounts receivable.

Factors influencing circulation funds

A company's circulation funds are mobile working capital that is in constant motion and change. These changes are influenced by a certain number of internal factors:

• Organization of technical process and organizational control at the enterprise;
• Specifics of the production process;
• The location of the company in the system of commodity relations (proximity to consumers and suppliers);
• Length of the entire production process, etc.
• The influence of external factors on circulation funds determines:
• Ways, methods and capabilities of the company’s product sales system;
• Level of product distribution in the sales market;
• Marketing activities of the company and the level of its development, etc.

Note 2

Circulation funds are an important element of the economic activity of an enterprise. It is believed that the fewer circulating funds a company currently has, the better, since this indicates that there are fewer stocks of finished products in the warehouse, that debtors have paid receivables on time or to a greater extent, that money in the current account has been invested in development and do not hang as a “dead weight”, etc.

Thus, circulating funds represent a special type of working capital of a company, which shows the value expression of those working capital that the enterprise currently possesses (finished products, money in the cash register or in a current account). The structure of circulating funds is influenced by external and internal factors, but it is generally accepted that the lower the indicator of circulating funds, the more successful the enterprise is.