09.10.2019
Increasing the volume of goods sold: tips and practical examples. How to increase sales volume
Introduction
As Russia takes the market path of economic development, the role of such indicators as the volume of production and sales of enterprise products increases. It is these indicators that are the decisive factor in generating profit.
The volume of production and sales of products are the most important aspects for all interested parties - the owners of the enterprise, the state. Employees, local society, since the successful implementation of production programs, stable and widespread sales of products allow all participants in production activities to ultimately achieve their financial goals - primarily increasing well-being and quality of life.
In the absence of “top-down” state plans, the implementation of which was the main goal of enterprises operating in a centrally planned economy, the main guideline for enterprises in a market economy is the implementation of production and investment programs developed by the enterprises themselves and compliance with budgets.
The amount of revenue is determined by internal and external (market) factors. Ways to increase the volume of production and sales of products are determined by such factors as production capacity, the structure of products, the rhythm of production, and the quality of products at the enterprise.
The relevance of the topic lies in the fact that the volume of production and sales of products are interdependent indicators. In conditions of limited production capabilities and unlimited demand, the volume of production comes first. But as the market becomes saturated and competition intensifies, it is not production that determines the volume of sales, but, on the contrary, the possible volume of sales is the basis of production capacity. An enterprise must produce only those goods and in such volumes that it can actually sell.
The development and efficiency of the enterprise's production volume is significantly influenced by the volume of product sales and the resulting financial results. Therefore, in modern conditions, the importance of ways to increase production volumes and sales of products is significantly increasing.
The growth rate of production volume and product sales directly affects the cost, profit and profitability of the enterprise, as well as the overall efficiency of the organization, so the significance of these indicators cannot be disputed. The reason for this is that in market conditions new factors are added, ignoring which can lead to dire consequences - financial losses, and in case of unfavorable developments - bankruptcy.
The purpose of the bachelor's final work is to consider the theoretical foundations of the volume of production and sales of products at the enterprise and identify ways to increase them. In connection with this goal, the following tasks can be identified:
Consider indicators characterizing the volume of production and sales of products;
identify factors influencing changes in the volume of production and sales of products;
identify ways to increase the volume of production and sales of products.
The object of the study was a modern industrial complex for the production of chemical products for industrial and technical purposes and goods household chemicals- JSC "Kaustik", Volgograd.
The study period for this enterprise is 3 years (from 2008 to 2010).
1. Theoretical part. Theoretical foundations of production volume and sales of products and ways to increase them
1.1Indicators characterizing the volume of production and sales of products In Russian practice, a special terminology has developed that allows us to describe the volume of production and sales of products. Speaking about product output, it should be taken into account that products produced in a given period (PP) are not identical to products released into circulation (PV), i.e. finished. On the one hand, not everything produced can be completed, and then PP > PV. On the other hand, what was produced could consist of what was produced in a given period plus the remaining stock of the previous period, then VP > PP. The first case corresponds to an increase in stocks of semi-finished products, and the second to their decrease. It is impossible to say unequivocally that one of these situations is good and the other is bad, since the business activity of any enterprise is cyclical. In the process of operation of any enterprise there are periods when the implementation large quantity Urgent orders require increased production rates. During these periods, the volume of output may exceed the volume of production. In order for the enterprise to cope with such situations, during periods of relative “calm”, stocks of semi-finished products, blanks, and partially processed products are created. If the output produced during these periods is not large, its volume will be lower than the volume produced. Products should be distinguished by the degree of readiness from the point of view of the production cycle of a given enterprise and from the point of view of consumption needs. A product, completed from the point of view of the production cycle of a given enterprise, is a finished product (FP) and is produced for sale to external consumers. Finished products are part of the enterprise's commercial products (TP). Commercial products include the cost of: finished products planned for release (accepted by the technical control department, completed and delivered to the enterprise's finished product warehouse); semi-finished products, components and assembly units intended for external sales; tools, devices and works (services) sold externally (IPRS), as well as products manufactured at the enterprise for use (consumption) at the enterprise itself. It is expressed in wholesale prices of the enterprise and in comparable prices. The former are used to link the production plan with financial plan; the second - to determine the pace, dynamics and changes in the structure of production. Commercial output characterizes the volume of finished goods produced and is used to calculate production costs, financial results, profitability and other indicators of production efficiency. If the products produced by a workshop, department or other division of the enterprise are not intended for sale or consumption, but for further processing by other divisions of the enterprise, it belongs to the category of semi-finished products. A semi-finished product (PF) is a finished product of enterprise divisions intended for further processing within the enterprise. Commodity products excluding semi-finished products sold externally will constitute finished products (FP). Thus: TP = GP + PF + IPRS (1.1) The same product can be a raw material, a semi-finished product and a finished product for different stages of production. Products that, at the time of analysis, are in the workshops of the enterprise in ongoing or stopped technological processes and are not yet ready for transfer to other divisions of the enterprise are intra-shop work in progress (IWIP). In-shop work in progress together with semi-finished products constitute complete work in progress (WP), i.e. NP = PF + VCNP (1.2) Gross output (GP) is the cost of all products produced and work performed, including work in progress. Gross output includes: ) finished products (products) produced during the reporting period by all divisions of a legal entity (both from their own raw materials and materials, and from the customer’s raw materials and materials), intended for external sales, transfer to their capital construction and their non-industrial divisions, inclusion in the composition own fixed assets, as well as issuance to their employees as payment for labor; ) semi-finished products of their output, sold during the reporting period to the outside, to their capital construction and to their non-industrial divisions, regardless of whether they were produced in the reporting period or earlier; ) work (services) of an industrial nature, performed under orders from outside, for its own capital construction and its non-industrial divisions, as well as work on the modernization and reconstruction of its own equipment; ) work on the manufacture of products (products) with a long production cycle, the production of which was not completed in the reporting period. There is a distinction between gross net production and gross gross production: in the first, in-shop work in progress is not included, in the second it is included. The corresponding formulas for calculating gross net production (GP net ) and gross gross output (GP gross ) have the form: VP net = GP + (PF 2- PF 1) + PFS + IPRS (1.3) VP gross = GP + (NP 2- NP 1) + PFS + IPRS (1.4) where PF 2 -balances at the end of the period; PF 1- the amount of balances at the beginning of the period. The values in brackets can be both positive and negative, since in certain periods there can be both an increase and a decrease in the balances of semi-finished products and work in progress. From the definition of marketable products as the sum of finished products and semi-finished products sold externally, it also follows that VP net = TP + (PF 2- PF 1) (1.5)
Gross turnover is the total cost of all types of products of an enterprise, which are intended for sale externally and for internal consumption, as well as the cost of industrial work for its divisions and for other consumers. A distinction is made between net gross turnover (without intra-shop work in progress) and gross gross turnover (taking into account intra-shop work in progress). The corresponding calculation formulas are: IN net = VP net +PFP (1.6) IN gross = VP gross + PFP (1.7) Gross turnover is equal to gross output if all workshops and divisions of the enterprise operate independently of each other, i.e. produce products directly intended for sale and do not transfer their products to other departments for processing. Since, when calculating the value of gross turnover, each semi-finished product is included in the calculation several times (as many times as the product containing it is transferred to another workshop or division), this indicator has very limited significance, being only an indicator of the length of the production cycle in comparison with the production cycle of similar enterprises. Intra-production turnover is the cost of finished products or semi-finished products and industrial works that are consumed within the enterprise. Sold products - products paid for by the buyer or sales organization are considered. Its volume is calculated as the cost of finished products and semi-finished products of own production, intended for delivery according to the plan and subject to payment by the customer, spare parts of all types and purposes, consumer goods, work performed and services provided, sold in accordance with business agreements with consumers of products or through its own sales network. Net production is the cost of the enterprise's products minus all material costs and depreciation of the main enterprise. Thus, the basis for developing ways to increase production volumes and sales of products is a system of certain indicators that characterize the activities of the enterprise in producing products. Figure 1.1 illustrates indicators characterizing the volume of production and sales of products. Figure 1.1 - Indicators characterizing the volume of production and sales of products at the enterprise 2 Basic information about the volume of production and sales of products The volume of production and the volume of product sales are interdependent indicators. In conditions of limited production capabilities and unlimited demand, the volume of production comes first. But as the market becomes saturated and competition intensifies, it is not production that determines sales volume, but, on the contrary, the possible sales volume is the basis for developing a production program. An enterprise must produce only those goods and in such volumes that it can actually sell. The main task of industrial enterprises is to most fully meet the demand of the population with high-quality products. The growth rate of production volume and sales of products, improving its quality directly affect the amount of costs, profits and profitability of the enterprise. Therefore, the analysis of these indicators is important. Its main tasks: determining the influence of factors on changes in the values of these indicators; identifying ways to increase production and sales of products; Sources of information for analyzing production and sales of products are the enterprise’s business plan, operational plans and schedules, reporting form No. 1-p (annual) “Product Report”, form No. 1-p (quarterly) “Quarterly reporting of an industrial enterprise ( association) on the release of certain types of products in the assortment", form No. 1-p (monthly) "Urgent reporting of an industrial enterprise (association) on products", form No. 2 "Profit and loss statement", statement No. 16 "Movement of finished products, their shipment and sale." The main task of a comprehensive targeted study of the volume of production and sales of products is to determine the competitive position of the enterprise and its ability to flexibly maneuver resources when market conditions change. This general task is realized by solving the following particular problems: assessing the degree of fulfillment of contractual deliveries of products; assessing the impact of the structure of products; assessment of production capacity, product quality, rhythm of production; establishing the reasons for the decline in production facilities and irregular production; quantification reserves for growth in output and sales of products. The purpose of analyzing the volume of production and sales of products is to find ways to increase sales volumes compared to competitors, expand market share while maximizing the use of production capacity and, as a result, increase the profit of the enterprise. The volume of industrial production can be expressed in natural, conditionally natural and cost measures. The main indicators of production volume are commodity, gross and sold products. The volume of product sales is determined either by shipment of products to customers or by payment (revenue). Can be expressed in comparable, planned and current prices. In a market economy, this indicator becomes of paramount importance. Sales of products are the link between production and the consumer. The volume of production depends on how the products are sold and the demand for them in the market. Product production is assessed using natural and conditionally natural indicators, in units of labor intensity and cost. The volume of production is characterized by gross and net products, output - by finished and commercial products, sales - by shipped and sold commercial products. The plan for the release (manufacturing) of products (by types and volumes) in the coming periods constitutes the production program of the enterprise. Based on planning timeframes, a distinction is made between strategic and operational production programs. The study of production volumes is carried out in a certain range of business activity, i.e. within the limits min - max representing the relevant series. The analysis can be carried out not only within the boundaries of absolute min - max, but also within the limits of constant fixed costs. The relevant series consists of the minimum permissible, maximum permissible, optimal and actual volumes of production and sales of products. The minimum acceptable (break-even) sales volume is the volume at which equality of income and costs is achieved under the current production conditions and product prices. The maximum volume ensures maximum utilization of production factors. The optimal volume of sales is considered to be the one that ensures maximum profit under current production conditions in a certain price range. The optimization problem is more theoretical than practical, however, the optimal volume when planning production is the guideline whose knowledge is necessary. The growth of production of products (works and services) in value terms is one of the general indicators of the economic efficiency of production. The expansion of production occurs, first of all, due to the better use of technology and materials, and increased labor productivity. Analysis of the structure of commercial products. Uneven implementation of the plan for individual types of products leads to a change in its structure, i.e. the ratio of individual products, in general, to their output. Fulfilling the plan according to the structure means preserving the planned ratios of its individual types in the actual output of products. The structure of products is determined by calculating the share of each type of product as a percentage of the total volume of products in monetary terms. In the process of analysis, it is necessary to study changes not only in the volume of production of commercial products, but also in the volume of their sales, on which the financial position and solvency of the enterprise depend. Sales of products is the final stage of the production and economic activity of the enterprise. Products are considered sold from the moment funds are received in the supplier's bank account. To determine the implementation of the plan for the volume of product sales, wholesale prices of the enterprise are used. To ensure more complete satisfaction of the needs of the population, it is necessary that the enterprise fulfills the plan not only for the total volume of products, but also for the range and nomenclature. Nomenclature - a list of product names and their codes established for the corresponding types of products in the All-Union Classifier of Industrial Products (OKPP), operating in the CIS. Assortment - a list of product names indicating its production volume for each type. It can be full, group and intra-group. Analysis of plan implementation by product range is based on a comparison of actual and planned production output for products that are included in the main list. Sources of information for analyzing the production program of an enterprise are plans for the economic and social development of the enterprise, operational plans - schedules, reporting form 1-p "Enterprise Product Report". 2.1 Main directions and information support for studying the volume of production The volume of production is the most important area of economic analysis. This is explained by the fact that the cost, profit, profitability, turnover of funds, solvency of the enterprise and other indicators characterizing the efficiency of the enterprise depend on the volume of production, composition, assortment, quality of manufactured and sold products, and the rhythm of production. Data sources for analysis: 1)enterprise passport; 2)planned task; )operational, statistical and accounting information. Analysis of various product categories is carried out in terms of compliance of the achieved results with their planned levels. In a market economy, the implementation of the plan does not play the role that it played in the conditions of centralized planning, therefore, such an analysis is of primary importance only for internal control procedures at the enterprise itself, management accounting and evaluation of the performance of production managers. Carrying out such an analysis is a rather labor-intensive process. It requires generalization of large volumes of information, and with the growth of production size, the volume of information increases at a high speed. Therefore, when deciding on the need to conduct a complete analysis of product categories at an enterprise, management must understand that this will require a significant investment of working time, not only of special analytical service employees, but also of production managers. In any case, you should first decide whether the result will justify such costs. Analysis of product production over a certain period of time can be performed both in physical and monetary terms. In physical terms, the products produced are valued in tons, meters, pieces, etc. units. In monetary terms, production volume is estimated in rubles or other currencies. Since the issue of monetary valuation of a product at different stages of production is quite controversial, the natural expression is most often used to analyze product output. There are, however, certain subtleties in using natural units. Since different brands, varieties and varieties of products require different technological processes, time, labor and materials for their production, it is incorrect to compare and summarize the output of different (even related) types of products. In addition, it significantly affects the commercial result and quality of manufactured products. Therefore, to make correct conclusions about the quantity of products produced, it is necessary to find a way to take into account differences in technology and quality. This is done by converting the results into conventional units - conventional tons, conventional pieces, etc. recalculation is carried out by multiplying natural units by coefficients established for each grade and variety, based primarily on the duration of the technological process in relation to the costs of various resources for the manufacture of an equivalent product. The introduction of conventional units of output sometimes leads to the fact that the picture of the implementation of planned or budgetary tasks turns out to be completely different than when using natural units. It is clear, however, that it is possible to establish conventional units for comparison of natural indicators only for related products. If products are heterogeneous, comparisons of natural indicators are meaningless. In this case, the only measure of output becomes monetary units. The growth in product output, both in kind and in monetary terms, is evidence of the successful operation of the enterprise and its good prospects. However, the monetary valuation of manufactured products is fraught with danger: during periods of rapid price growth (namely, price growth, or inflation, is one of the main factors characterizing the economic situation in Russia over the last decade), an increase in output in monetary terms may not be evidence of real growth enterprises, if this increase does not keep pace with the rate of inflation. In analyzing the volume of production and sales of products, a number of coefficients are used that characterize the production activities of both the enterprise as a whole and its individual divisions. As a characteristic of the length of the production cycle, the indicator of intra-factory turnover is used: TO ext. - manager rev. = VP/VO (1.8) Its value is equal to one if there is no intra-plant turnover between different divisions of the enterprise, i.e. transfer of semi-finished products from one technological process to another. An indicator of the share of marketable products in the volume of gross output is the marketability coefficient: TO Comrade = TP/VP (1.9) The equality of this indicator to one indicates either the absence of unfinished in-shop production and semi-finished products at the analyzed enterprise, or that their balances at the end of the period did not change compared to its beginning. To analyze the composition of commercial products, the readiness coefficient is used: TO Goth. = GP/TP (1.10) Like the two previous coefficients, its value can range from 0 to 1, showing the share of finished products in the total output of the enterprise. If the value of this coefficient steadily decreases over several periods, this indicates that the share of semi-finished products and other products other than the main one of the enterprise in the total volume of marketable products is increasing. Consumers are less and less interested in the finished products of the enterprise, and the greatest demand is for those types of output that were previously considered by-products or auxiliary. In this case, the management of the enterprise should think about changing the structure of the products produced, and maybe even repurposing production. Another indicator characterizing product output, and in fact the market activity of an enterprise, is the sales ratio: TO real. = RP/TP, (1.11) where RP is the sold products of the enterprise, i.e. products that found their buyer during the analyzed period of time. Its volume is calculated according to financial statements as sales volume for the corresponding period. 1.2.2 Main directions for studying the volume of product sales The volume of product sales is the final result of the activity of an enterprise as a production complex; revenue analysis is carried out both for the enterprise as a whole and in the context of its structural divisions or types of products, as well as for its separate economic units conducting independent production activities (workshops, branches). Of course, such an analysis makes sense only if it is possible to isolate the revenue of a specific division from the financial flows of the entire enterprise, and also if the amount of this revenue is significant for the enterprise as a whole. As with the analysis of product production volume, revenue analysis will require a significant investment of time by employees of both analytical services and line departments. Therefore, it can be considered justified only to the extent that it provides useful information for determining the prospects of the enterprise and its individual divisions. Analysis of sales volume is of great importance for enterprises with a divisional organizational structure. Comparative analysis revenue of various divisions can give more reasonable conclusions regarding the efficiency of branches or workshops than an analysis of profit, contribution and other indicators of financial performance. In the case when an enterprise produces complex, unique or very expensive products, fulfilling a limited number of large orders during a quarter or year. For such enterprises, it is quite difficult to talk about the dynamics of product sales, since revenue does not represent a constant flow, and the fulfillment of each order makes a significant contribution to the total sales volume. The tool for analyzing the financial and economic activities of an economic entity is accounting reporting. And the first thing you should find out when starting to analyze sales is the principle of revenue registration. In Russian accounting practice, there are two main ways of recording revenue - sales are recognized at the time of payment or at the time of shipment of products. Using these two methods has its pros and cons. Since standard business practice in market conditions provides for the provision of deferred payments to buyers and consumers, the choice of method for reflecting revenue will affect its dynamics. This influence will be especially noticeable in those enterprises where the flow of cash receipts is heterogeneous, revenue arrives in large amounts, at unequal (and most often, indefinite) intervals. It is clear that the sales schedules accounted for payment and shipment, when deferments are granted to buyers, will be shifted relative to each other in time for a period equal to the duration of these deferrals. Very often, enterprises adhere to a specific policy, identical for almost all buyers, regarding payment for shipped products. If such a practice is adopted at an enterprise that produces standard mass products, then the gap between shipment and payment in the normal state of affairs at the enterprise should be approximately equal to the duration of the usual delay. An increase in this gap indicates that buyers of the company's products do not comply with contractual relations and delay payment for the products received. In this case, the financial management of the enterprise should pay more attention to working with debtors and more carefully monitor the implementation of contracts, applying, if necessary, penalties to guilty debtors. If we compare the dynamics of production and sales of products, it is obvious that even if revenue from shipment is recognized, there will be an incomplete coincidence between the schedules. In the vast majority of enterprises, some period of time passes between production and shipment to consumers: for the chemical industry, due to the characteristics of the product itself, it is long and can be calculated in months. If the accounting policy of the enterprise provides for the recognition of revenue on payment, then the gap between production and sales becomes even greater. 1.3 Factors influencing changes in the volume of production and sales of products 3.1 Production capacity The determining factor in production volume is the amount of power. It reflects the potential capabilities of enterprises and workshops for production. Determining the value of production capacity occupies a leading place in identifying ways to increase production volumes. Production capacity is the maximum possible output of products provided for the corresponding period (decade, month, quarter, year) in a given nomenclature and assortment, taking into account the optimal use of available equipment and production space, progressive technology, advanced organization of production and labor. The economic justification of production capacity is the most important tool for planning industrial production. In other words, this is a potential opportunity for gross industrial output. The production capacity of an enterprise depends on the following factors: the quantity and quality of existing equipment; the maximum possible productivity of each piece of equipment and the throughput of areas per unit of time; accepted operating mode (shift, duration of one shift, intermittent, continuous production, etc.); nomenclature and range of products, labor intensity of manufactured products; proportionality (connectivity) of production areas of individual workshops, sections, units, groups of equipment; level of intra-factory and inter-factory specialization and cooperation; level of organization of labor and production. When forming production capacity, the influence of such factors as nomenclature, assortment, quality of products, the stock of main technological equipment, the average age of the equipment and the effective annual fund of its operating time in the established mode, the level of contingency of the fleet, the size of production areas, etc. are taken into account. The degree of satisfaction of market demand, which can vary in volume, nomenclature and assortment, depends on production capacity, therefore production capacity must provide for the flexibility of all technological operations, i.e. the ability to timely restructure the production process depending on the growth of product competitiveness, changes in volume, nomenclature and assortment. Production capacity is calculated for the entire list of nomenclature and range of products. In conditions of multi-product production, when manufactured products are characterized by hundreds of product names, each of which differs not only in purpose or design features, but also in manufacturing technology, the entire range of manufactured products is grouped and a representative product is selected. To calculate production capacity, you must have the following initial data: planned working time fund for one piece of equipment; number of cars; equipment performance; labor intensity of the production program; achieved percentage of fulfillment of production standards. The production capacity of the leading divisions is determined by formula 1.12. PM = n ´ Nm ´ F, (1.12) where PM is the production capacity of the department (workshop, site); n - number of units of the same leading equipment, units; Nm - hourly technical power of a piece of equipment, units; F - equipment operating time fund, hours. In the short run, production capacity is constant value. In the long term, it can be reduced by removing physically and morally obsolete, redundant machinery, equipment and space from production, or increased by technical re-equipment of production, reconstruction and expansion of the enterprise. In this regard, when justifying the production program by production capacity, the following are calculated: input power; output power; average annual production capacity. Input production capacity is the capacity at the beginning of the reporting or planning period. Output production capacity is the capacity of the enterprise at the end of the reporting or planning period. In this case, the output power of the previous period is the input power of the subsequent period. Output power is calculated using the formula: PMout = PMin + PMm + PMr + PMns - PMout, (1.13) where PMout is the output production capacity; PMvkh - input production capacity; PMm - increase in production capacity due to technical re-equipment of production; PMR - increase in production capacity due to reconstruction of the enterprise; PMns - increase in production capacity due to expansion (new construction) of the enterprise; PMvyb - retiring production capacity. Since the input and output of capacities occurs throughout the entire planned period, it becomes necessary to calculate the average annual production capacity. It is determined by the formula: PMs = PMin + Σ PMiinput ´ tid / 12 - Σ PMjvyv. ´ tjd / 12, (1.14)
where PMs is the average annual production capacity; PMiinput - input i-th production power; tid - the number of months per year during which the i-th power will operate; PMjvyv - output j-th production power; tjд is the number of months in a year during which the jth output power will not operate. The given methodology for determining the average annual capacity is applicable in cases where the enterprise development plan provides for a specific month for the commissioning of new production capacities. If the current plan for capital construction or organizational and technical measures provides for the commissioning of capacities not by months, but by quarters, then when calculating the average annual capacity it is considered that they will be commissioned in the middle of the planned quarters. Indicators characterizing the level of utilization of production capacity include the capacity utilization factor, determined as follows: where Vf(pl.) is the actual (or planned) volume of production, produced per year in natural units of measurement. For a deeper analysis of the reasons for deviations in power use, it is advisable to determine the coefficients of intensive, extensive and integral use of leading equipment. The coefficients are determined as follows: where Kint is the coefficient of intensive use of equipment; Nf(pl.) - actual (planned) productivity of the leading unit equipment per unit of time, t/hour; N That. - technically justified productivity, t/hour. where Kex is the coefficient of extensive use of leading equipment; Tf(pl.) - actual (planned) time of use of leading equipment, hour. TO integ = K int × TO the ex , (1.18)
where K integ - integral utilization factor of leading equipment. It is important to determine the reserve for the use of production capacity, which is calculated as follows: R m = 1 - K integ (1.19)
If the calculation is correct, the following equality must be maintained: TO m = P m (1.20)
3.2 Fulfillment of contractual deliveries of products Degree of fulfillment of contractual deliveries (K d.p. ) of products is determined by the final indicator reflecting the ratio of the cost of actual revenue to the cost of contractual obligations (K d ). This indicator can be determined by the formula: where T f - actual volume of commercial products delivered according to contracts, in natural units of measurement; T d - volume of supplies of commercial products under contracts, in natural units of measurement; C f , C d - accordingly, the actual prices and prices, established when signing contracts, rub./unit. The value of this indicator is influenced by two factors - physical volume and deviations in prices, if the contracts provide for their subsequent adjustment. Therefore, it is necessary to measure the influence of each of these factors. The index method can be used to identify individual factors. Accordingly, in order to determine the impact on the amount of revenue as a result of deviations in the physical volume of fulfilled obligations from accepted ones, it is necessary to calculate at base prices both the volume of accepted obligations and the actual volume. where is the coefficient of fulfillment of obligations in terms of physical volume. To determine the degree of influence of price deviations, the actual volume of supplies for the reporting period is estimated at base prices and at the actual prices of its value calculated at base prices, we obtain the price change coefficient (). The influence of factors of physical volume and prices in quantitative terms is achieved by calculating the difference between the numerator and denominator in the corresponding formulas. The enterprise must also take into account the timeliness of fulfillment of delivery obligations, the purpose of which is to identify the amount of obligations that are overdue and the reasons for failure to meet delivery deadlines. The importance of this is that in addition to untimely receipt of revenue, failure to meet delivery deadlines entails the payment of fines, penalties and penalties, which subsequently negatively affects the performance indicators of the enterprise. 1.3.3 Structure of products The nomenclature represents a list of names of manufactured products. Assortment - a set of varieties of products of the same name, differing in technical and economic indicators. The assortment formation system includes the following main points: identifying current and future customer needs; assessment of the level of competitiveness of manufactured products; studying the life cycle of products and the introduction of new advanced types of products and the withdrawal of obsolete products; assessment of economic efficiency and degree of risk of changes in the product range. Much attention should be paid to the implementation of the assortment plan, as this contributes to the most efficient and rational use of labor, raw materials, and financial resources available to the enterprise. Assortment plan fulfillment rate (K A ) will be: Particular attention must be paid to the structure of the products produced. A change in structure is a structural shift. The impact of structural changes on the volume of production is determined by multiplying the difference in the level of plan implementation in cost and physical terms by the planned output in value terms. ∆VPstr = (Kst - Kn) × VPp (1.25) Instead of the plan fulfillment coefficient in physical terms, the plan fulfillment coefficient in terms of labor intensity can be used. If an enterprise has a higher percentage of growth in product volume in value terms, this means that it produces less labor-intensive, but more expensive products. Because of this, production output increases. If there is a higher growth in production volume in physical terms, this means that more labor-intensive, but cheaper and less profitable products are being produced. As a result, the volume of production decreases. 1.3.4 Rhythm of production Rhythm - uniform production of products in accordance with the schedule in the volume and assortment provided for by the plan. Rhythm is a qualitative indicator characterizing the work of an enterprise. Good rhythm ensures more complete use of production capacities, labor and material resources. Irregular work leads to a decrease in product quality, increased labor costs, payment of fines for short deliveries and other losses. There are direct indicators for assessing rhythmicity, which include: rhythmicity coefficient (K R ):
where ∑Vpl is the total value of planned tasks in the planning period; ∑∆B is the total overfulfillment of planned targets for the analyzed period. coefficient of variation (Kv), defined as the ratio of the standard deviation from the planned target per day (decade, month, quarter) to the average daily (average ten-day, average monthly, average quarterly) planned production output. The calculation is performed using formula 1.27: where is the square deviation from the average ten-day target; is the number of periods; Planned mid-ten-day production output. Indirect indicators of rhythm are the presence of additional payments for overtime work, payment for downtime due to the fault of the enterprise, losses from defects, payment of fines for underdelivery and late shipment of products, etc. Arrhythmia coefficient is the sum of positive and negative deviations of the plan implementation coefficients by period. The higher this indicator, the worse the rhythm of the enterprise. The arrhythmia of product production affects all economic indicators: the quality of products decreases, the volume of work in progress and excess balances of finished products in warehouses increase, the turnover of the enterprise's working capital slows down. For unfulfilled deliveries of products, the enterprise pays fines, revenues are not received on time, the wage fund is overspent, the cost of production increases, and profits fall. The causes of rhythm disturbances can be external and internal. External: lack of energy resources, etc. Internal: low level of production organization, production control, difficult financial situation. Negative consequences entail not only underfulfillment or untimely fulfillment of planned tasks, but in some cases overfulfillment. Therefore, it is advisable to take into account both negative deviations from the plan and positive ones when assessing rhythm. 1.3.5 Product quality at the enterprise The most important indicator of the enterprise's activity is product quality. Improving quality helps to increase demand for products and increase profits not only due to sales volume, but also due to higher prices. Product quality is one of the main factors contributing to the growth of product sales. This is the main indicator of the competitiveness of products and enterprises. However, as a rule, improving product quality requires additional costs and increases the cost per unit of production. The growth in output due to quality is reflected through cost, price, profit and is the object of economic analysis. Product quality is regulated and established by a quality certificate. It affects the volume of output and sales in value terms because it provides grounds for higher prices and increased demand for higher quality products. Distinguish between and analyze work quality and product quality. Figure 1.2 shows their influence on the volume of production. The impact of product quality on the performance indicators of the enterprise is assessed using quality indicators. Product quality is a set of product properties that determine its suitability to meet certain needs in accordance with its purpose. Figure 1.2 - Relationship between quality and volume of production A quantitative characteristic of one or more product properties that make up its quality is called a quality indicator. There are general, individual and indirect indicators of product quality. Quality indicators characterize the parametric, consumer, technological, design properties of the product, the level of its standardization and unification, reliability and durability. The main quality indicators are general indicators, individual indicators and indirect indicators. 1)General indicators, i.e. independent of its type and purpose: Share of certified products; share of products that meet international standards; share of products manufactured for export. 2)Individual indicators characterizing the properties of products: Utility; reliability; manufacturability; aesthetics. 3)Indirect indicators: Fines for low-quality products; the volume of rejected products and the proportion of defects; losses from marriage. During the analysis, the dynamics of these indicators are studied and the reasons for changes in quality indicators are clarified. At enterprises producing products of different grades, the average grade coefficient is calculated according to plan and actually by dividing the actual volume of products produced in value terms by the output of products at the price of 1 grade. TO variety = ∑Q i × p i /∑Q i × p 1 (1.28)
As a result of changes occurring in the quality of products, average prices for products change. It is necessary to calculate them according to plan, in fact, and find their impact on the performance of the enterprise. P = ∑Qi × pi / ∑Qi (1.30) ∆TP = (Pfact - Pplan) × Qfact (1.31) ∆P = (Pfact - Pplan) × K (1.32) ∆P = (Pfact - Pplan) × K - (Fact - Plan) × K, (1.33) where K is the quantity of products sold; C is the cost per unit of production. An indirect indicator of quality is losses from defects. A production defect is considered to be a product that, in terms of its technical or quality characteristics, does not meet the standard of a given type of product and is not capable of performing the functions provided for this product. Products can be recognized as defective at any stage of production, and the detected defect can be produced either at this or any previous operation of the production cycle. Marriage analysis is carried out in the following areas: 1)according to the method of use - for defective and irreparable. If the product, after modification, can be used in the capacity for which it was originally intended, the defect is considered correctable. Otherwise, there are several possible ways to use it: As a preparation for other products in the same production; as a material for main production; for external sales; 2)for workshops and operations separately - those who discovered the defect and those responsible for its production; 3)by product; 4)for reasons of origin of marriage. There can be many reasons, for example: Low-quality raw materials and materials; incorrectly executed drawings and other technical documentation; inappropriate equipment and tools; ineffective organization of production and management; lack of proper control at previous stages of production; 5)according to defective characteristics. Analysis of defects at an enterprise has two main goals: the first of them is to identify the causes of defects and their further elimination. The second important goal of such an analysis is to identify those responsible for the fact that some of the enterprise’s products did not meet the standards. From this point of view, defect analysis is part of monitoring the performance of all employees of the enterprise. It should, however, be remembered that the fact of marriage itself should not be a reason or reason for taking specific sanctions against the employee or department in which the marriage occurred. Without an analysis of the reasons for the defects, such sanctions will have the opposite effect, leading not to an increase in quality, but, on the contrary, to a decrease in quality and attempts by workers to hide the shortcomings they have discovered. Indeed, often the same type of marriage can be caused by different reasons or a combination of these reasons. For example, the product may not correspond to the declared properties due to the fact that the operator did not follow the technological scheme for production of the product, or perhaps because the raw materials turned out to be of poor quality, and the supply department is to blame for this. In any case, the management of an enterprise where regular quality control and defect analysis is carried out must understand that the value of the analysis lies only in the conclusions that are drawn on its basis, but one should be very careful about the conclusions. The culmination of analytical procedures in this part of production analysis should be the development of measures to eliminate the causes of defects and prevent their occurrence in the future. Otherwise, this rather labor-intensive section of the analysis will have very little value. 3.6 Use of labor resources At the enterprises of the chemical complex there are production facilities in which the volume of output is directly related to the number of main production workers, the time worked by each worker, and the level of labor productivity. Such industries include the production of consumer goods, the production of plastic and rubber products, and others. The main indicators characterizing the volume of production are: average number of workers, people. (H R );
average number of days worked by one worker, days per year (D); average number of hours worked by one worker, hours per day (T); average output per man-hour worked, rub./man-hour (P). The dependence of the volume of production on labor factors can be mathematically expressed as follows: V = H R × D × T × P, (1.34) where B is the volume of production, thousand rubles. 5 Ways to increase production volume and sales of products at the enterprise The main features of the classification of factors influencing the production and sale of products are as follows. From the point of view of the product life cycle, the analysis should cover the processes of: product design, production preparation, production, sales, starting from the moment the goods are delivered to the market and ending with the removal of the product from sale. From this point of view, the factors determining the production, marketing and sale of products are identified (Fig. 4). By stages of product circulation, factors are grouped in the sphere of production and the sphere of circulation of finished products. Figure 1.3 shows the factors of production and sales of products Figure 1.3 - Factors of production volume and product sales There are intra-production (internal) ways of increasing and external - non-production. Non-production factors include: level of specialization, level of supplies of raw materials and materials, supplies through cooperation, changes in prices and tariffs for supplies, factors environment, in particular environmental protection. Intra-production factors, in accordance with the three elements of the production process, can be divided into three: factors of means of labor, factors of objects of labor, factors associated with the use of labor itself. The volume of production is the first result indicator and influences other results of production and economic activities (Figure 1.4). Figure 1.4 - Relationship between production volume and product sales with other performance indicators of the enterprise Thus, the basis for developing ways to increase production volumes and sales of products is a system of certain indicators and factors that characterize production and economic activities. 1.5.1 Ways to increase production volume Ways to increase production volume are quantitatively measurable opportunities to increase it by improving the use of enterprise resources. The search for ways to increase is facilitated by their classification, one of the options of which is shown in Figure 1.5. The completeness of the calculations depends on the definition of the decisive group of resources. The decisive group is distinguished by the structure of production costs, by which it can be determined whether production is material-intensive, capital-intensive or labor-intensive. Figure 1.5 - Ways to increase production volumes due to intra-production factors Let's consider the increase in production volume due to each factor (type of reserves). Product volume increment: 1)Increase in production as a result of creating additional jobs: ∆N (PM) = ∆M × B 0, (1.35)
where ∆M are additional jobs; B 0 - average annual output, thousand rubles. 2)Increase in production volume from the commissioning of new equipment: where n is the number of units of newly introduced equipment; Tfi - useful operating time of each type of equipment, machine-hour; Vfi - production output per 1 machine-hour of each type of equipment, rub. 3)Increase in production from the elimination of lost working time: ∆N (L sweat ) = T sweat × V , (1.37)
where T sweat - number of lost working hours; c - average hourly output. 4)The increase in production from the elimination of loss of equipment operating time is calculated similarly to point 3. 5)Product increment from the implementation of measures to improve technology and organization of production and labor: where T1i is the operating time of the i-th type of equipment in the reporting period; B0, B1 - production of products before and after the introduction of new technologies. 6)Increase in product output as a result of improved organization of production and labor (by labor resources): ∆N (V h ) = ∆B h × T 1∑ , (1.39)
where ∆B h - increase in average hourly output as a result of improved organization of production and labor; T 1∑ - the number of hours worked by all workers. 7)Increase in product output from a reduction in consumption rates of raw materials and materials as a result of the introduction of new technologies: ∆N (M) = ∑(N 1i - N 0i ) × p 0 × Q 1 , (1.40)
where N 1, N 0 - consumption rates of raw materials and materials, respectively, before the implementation of the i-th action according to the plan, taking into account the expected implementation of this action; p 0 - planned price per unit of raw materials; Q 1 - planned product release. The analysis allows us to assess the enterprise’s ability to increase production output, as well as to identify imbalances in the use of resources that lead to a decrease in financial results. 1.5.2 Ways to increase sales volumes Fulfillment of the sales volume plan depends on the degree of availability of commodity and raw material resources. To study this indicator, a balance of marketable products is compiled in two estimates: at cost and at selling prices. Changes in the volume of product sales are influenced by the factors shown in Figure 1.6. Figure 1.6 - Factors influencing changes in sales volume Factors of change in sales volume are calculated by comparison. At the same time, it is taken into account that the factors of change in the balance of marketable products at the end of the year and goods shipped at the end of the year have an effect that is opposite in sign to the change in these indicators themselves. In particular, ways to increase production volume can be: ) reduction of balances of commercial products in the warehouse compared to the reporting period: ) decrease in the volume of shipped but not paid for products compared to the reporting period: where ∆Р is the increase in sales volume, thousand rubles; Accordingly, the volume of shipped but not paid for products at the beginning and end of the year, thousand rubles. When determining ways to increase product sales, it is necessary to take into account excess balances of finished products in the enterprise’s warehouses and those shipped to customers. The demand for the product and the real possibility of its sale should be taken into account. conclusions The first part of the work examines the theoretical foundations of production volume and product sales. The purpose of studying the production and sales of products is to find ways to increase the volume of production and sales of products to solve the main task of the enterprise - increasing profits. The volume of production and sales of products is characterized by the following indicators: gross turnover, intra-production turnover, gross, marketable and sold products. The volume of production and sales of products is influenced by such factors as: the production capacity of the enterprise, the fulfillment of contractual deliveries of products, the structure of products, the rhythm of production, the quality of products at the enterprise, the use of labor resources. Ways to increase the volume of production can be identified as follows: creating additional jobs, introducing new equipment, eliminating lost working time, eliminating lost operating time of equipment, introducing measures to improve technology and organization of production and labor; improving the organization of production and labor, reducing consumption rates of raw materials and materials as a result of the introduction of new technologies. Ways to increase the volume of product sales can be: reducing the balance of commercial products in the warehouse compared to the reporting period, reducing the volume of shipped but not paid for products compared to the reporting period. Thus, ways to increase production volume and product sales are quantifiable opportunities to increase the profitability of an enterprise by improving the use of external and internal resources of the enterprise. 2. Analytical part. Analysis of the financial and economic activities of the enterprise 1 Characteristics of OJSC "Caustic", Volgograd Volgograd open joint-stock company "Caustic" is a modern industrial complex for the production of chemical products for industrial and technical purposes and household chemicals. OJSC "Kaustik" firmly ranks first in Russia in the production of caustic soda, chlorinated paraffins, synthetic of hydrochloric acid, commercial chlorine; second place in the production of liquid caustic soda and sodium hypochlorite. The enterprise has an advantageous geographical position: it is located near the Svetloyarsk salt deposit, the proven reserves of which will provide raw materials for at least a hundred years. A powerful environmental complex has been created, which includes: biochemical treatment facilities with storage ponds and evaporators, which eliminates the discharge of chemically polluted wastewater into the Volga River, as well as receiving wastewater from the southern regions of Volgograd and Svetly Yar; six water circulation systems; equipped industrial landfill; local installations for purification of gas emissions. OJSC "Kaustik" produces high quality products. According to the results of the annual federal competition “100 Best Products of Russia”, organized by the State Standard of Russia in order to support high-quality products of domestic producers, four types of products became laureates of the competition and were awarded diplomas, “gold” and “silver” logos. OJSC "Kaustik" was awarded by Gosstandart with a special sign "For achievements in the field of quality." In 2005, calcined calcium chloride, granules were awarded the gold quality mark “Russian Brand”; in 2004, granulated sodium hydroxide, phenidone-A, calcined calcium chloride, granules were awarded diplomas and silver medals of the International Program “Golden Galax”. The development of the company OJSC "Caustic" is focused on servicing newly created businesses, the basis of which is advanced technologies and qualified management. The company's strategic development goals require diversification of existing production, with the aim of moving from oligopolistic goods to food chains. The production development strategy is aimed at occupying a leading position in the PVC markets (JSC Plastkard), and, as a result, increasing the production capacity of chlorine (JSC Kaustik), used as a semi-finished product for the production of PVC. At the same time, an increase in chlorine production entails an increase in the production of a by-product - caustic soda, the market of which tends to have supply prevailing over demand. 2 Analysis of production and sales of products The analysis of economic activity is carried out in several directions and, since the growth rate of production volume and the improvement of its quality directly depends on the amount of costs, profits and profitability of production, the analysis of the work of industrial enterprises begins with a study of product output indicators. The volume of production and the volume of product sales are interdependent indicators. In conditions of limited production capacity and unlimited demand, priority is given to the volume of production, which determines the volume of sales. But as the market becomes saturated and competition intensifies, it is not production that determines sales volume, but, on the contrary, the possible sales volume is the basis for developing a production program. An enterprise must produce only those goods and in such volumes that it can sell. The growth rate of production volume and sales of products, improving its quality directly affect the amount of costs, profits and profitability of the enterprise. Therefore, the analysis of these indicators is of great importance. 2.1 Analysis of the dynamics of production volumes and product sales The analysis begins with studying the dynamics of production and sales of products, calculating the basic and chain growth rates and increments. Tables 2.1 and 2.2 provide a horizontal and trend analysis of product production at the OJSC Caustic enterprise in 2008 - 2010. As can be seen from Tables 2.1 and 2.2, the volume of commercial output in value terms in the period 2008-2010. increased by 25%. This change was caused by an increase in production volumes of the following products: The largest share in the structure of commercial chemical products produced (in value terms) is occupied by granulated soda - 29.1%, liquid soda - 20.1%, liquid chlorine (various packaging) - 6%, chlorinated paraffins - 5%, synthetic hydrochloric acid - 4.5%. Product name Value of indicators by period Horizontal analysis of changes, % 2008 2009 2010 09/08 10/09 tons thousand. RUR tons thousand RUR tons thousand RUR tons thousand RUR tons thousand RUR Liquid soda 139 286833 561143 2671 364 291111 7041 000 6911031647873 Granulated soda 82 339895 18869 1771 044 99088 2601 449 67284117128139 Synthet ethical hydrochloric acid241 839249 219251 901261 358 248 466224 3991041059986 Chlorine in containers20 626207 41818 614232 17714 181186 783901127680Chlorine in cylinders2 54 440 5832 45647 1861 89634 325971167773 Chloromethyl7 041111 0244 18970 65797018 54359642326 Copolymer 19514 15743136 085332 71822125588 Liquid chlorine in tanks 29 61392 29023 76064 33221 854101 610807092158 Chlorinated paraffins 13 433339 256 11 496294 34010 499250 02586879185 Other-1 197 455-1 740 206-1 709 917-145-98 Total commercial products-3 980 151-5 155 622-4 978 683- 130-97 Product name Value of indicators by period Trend analysis of changes, % 2008 2009 2010 09/08 10/08 tons thousand. RUR tons thousand RUR tons thousand RUR tons thousand RUR tons thousand RUR Liquid soda 139 286833 561143 2671 364 291111 7041 000 69110316480120 Granulated soda 82 339895 18869 1771 044 99088 2601 449 67284117107162С synthetic hydrochloric acid241 839249 219251 901261 358 1248 466224 39910410510390Chlorine in containers20 626207 41818 614232 17714 181186 783901126990Chlorine in cylinders2 54440 5832 45647 1861 89634 325971167585 Chloromethyl7 041111 0244 18970 65797018 54359641417Copolymer19514 15743136 085332 7182212551719Liquid chlorine in tanks29 61392 29023 76064 33221 854101 610807074110Chlorinated paraffins13 433339 2 5611 496294 34010 499250 02586877874 Other-1 197 455-1 740 206-1 709 917-145-143 Total commercial products-3 980 151-5 155 622-4 978 683- 130-125 Product nameValue of indicators by period (excluding VAT)Horizontal analysis of changes, %20082009201009/0810/09 tons thousand. RUR tons thousand RUR tons thousand RUR tons thousand RUR tons thousand RUR Liquid soda 139 286833 561141 1871 339 266112 1331 012 3551011607976 Granulated soda 83 954913 94666 160985 15989 0141 472 97479108135150 Synthetic hydrochloric acid232 692246 542244 359260 305243 251228 5901051069988Chloromethyl7 041111 0244 18970 65797018 54359642326Liquid chlorine (in tanks, cylinders, containers)52 11 6383 65743 830390 75639 518327 436841029084 Chlorinated paraffins 13 224337 07611 205285 6573 058 257 50985852790 Other-1 453 045-2 029 687-2 070 230-140-102 Total commercial products-4 278 852-5 361 487-5 387 637-125-101 Table 2.4 - Dynamics of sales volumes of products of OJSC "Caustic" (trend analysis) Name of product Value of indicators by period (excluding VAT) Trend analysis of changes, % 2008 2009 2010 09/08 10/08 tons thousand. RUR tons thousand RUR tons thousand RUR tons thousand RUR tons thousand rub. Liquid soda 139 286833 561141 1871 339 266112 1331 012 35510116081121 Granulated soda 83 954913 94666 160985 15989 0141 472 97479108106161 Synthe tic hydrochloric acid232 692246 542244 359260 305243 251228 59010510610593 Chloromethyl7 041111 0244 18970 65797018 54359641417 Liquid chlorine (in tanks, cylinders, containers)52 116383 65743 830390 75639 518327 436841027685 Chlorinated paraffins 13 224337 07611 205285 6573 058 257 50985852376Others-1 453 045-2 029 687-2 070 230-140-142Total commercial products-4 278 852-5 361 487-5 387 637-125-126 Based on the available data, we will construct Figure 2.1. Figure 2.1 - Dynamics of production and sales of products of OJSC "Caustic" Product name Value of indicators by period (excluding VAT) Horizontal analysis of changes, % Trend analysis of changes, % 2008 2009 2010 09/0810/0909/0810/08 Liquid soda 5 9859 4869 02815995159151 Granulated soda 10 88614 89116 548137111137152Synthetic hydrochloric acid1 0601 0659401018810189Chloromethyl15 76816 86718 704107111107119 Liquid chlorine (in tanks, cylinders, containers)7 5538 9158 28612193121110 Chlorinated paraffins25 49025 49484 208100330100330 Product nameVertical analysis 2008 2009 2010 thousand. rub.%thousand rub.%thousand rub.% Liquid soda833 56119.481 339 26624.981 012 35518.80Granulated soda913 94621.36985 15918.371 472 97427.30Synthetic hydrochloric acid246 5425.76260 3054.8622 8 5904.20 Chloromethyl 111 0242.5970 6571.3218 5430.34 Liquid chlorine (in tanks, cylinders, containers)383 6578.97390 7567.29327 4366.10 Chlorinated paraffins 337 0767.88285 6575.33257 5094.80 Other1 453 04533.962 029 68737.862 070 23 038.46Total marketable products4 278 852100.005 361 487100.005 387 637100, 00 Based on the results of 2010, the largest share in the structure of sales of chemical products of JSC Kaustik is occupied by caustic soda, including granulated soda, whose share is 27.3%, liquid soda occupies 18.8%. Analysis of Table 2.6 shows that in the period 2008-2010. There have been significant changes in the structure of products sold. This change was caused by structural changes in the following product positions: Sales of liquid soda rose to 24.98% in 2009 and decreased in 2010 to 18.8%; such changes in the share of liquid soda in the total sales volume are associated with the constant redistribution of the share of each type of product as a result of the instability of their production at the OJSC Kaustik enterprise; List of composition of OPFS Valuation, thousand rubles Horizontal analysis of change, % Trend analysis of change, % 2008 2009 201009/0810/0909/0810/08 Buildings 1 243 0981 214 9531 218 84098 1009898 Structures and transmission devices 2 009 7332 010 1822 014 446100100100100 Machinery and equipment1 359 2741 518 1101 618 170112107112119Vehicles283 984286 358283 90810199101100Industrial and household equipment12 31112 98313 121105101105107Other types of OPF726726726100100100100Z land plots and environmental management facilities20 05620 056142 831100712100712Total 4 929 1825 063 3685 292 042103105103107 List of composition of OPFVertical analysis200820092010 thousand. rub.ud. weight, %thousand rub.ud. weight, %thousand rub.ud. weight, %Buildings 1 243 098251 214 953241 218 84023 Structures and transfer devices 2 009 733412 010 182402 014 44638 Machinery and equipment 1 359 274281 518 110301 618 17030.6 Tran sports equipment283 9845.4286 3585.6283 9085.4 Industrial and household equipment12 3110.2512 9830.2413 1210 .25Other types of industrial enterprises7260.017260.017260.01Land plots and natural resources management facilities20 0560.420 0560.4142 8312.74Total 4,929 182100.005 063 368100.005 292 042100.0 0 Years Indicator value at the beginning of the year arrived end of the year 20084 926 076188 072184 9664 929 18220094 929 182202 33568 1495 063 36820105 063 368253 78525 1115 292 0 42 Name of indicator Indicator value by year 2008, 2009, 2010 Renewal coefficient 0.0380.0400.048 Retirement coefficient 0.0380.0140.005 Growth coefficient 0.0010.0270.045 Wear coefficient 0.620.620.63 Coefficient validity0.380.380.37 Figure 2.2 - Dynamics of coefficients of condition and movement of fixed assets of OJSC "Caustic" for 2008 - 2010. Name of the indicator 2008 2009 2010 Commodity products, thousand rubles 4 278 8525 361 4875 387 637 Profit from sales of products, thousand rubles 687 8781 099 6751 032 355 Average annual (accounting) cost of general fund, thousand rubles 4 918 2204 964 3395 180 420 Number of employees, people 5 3205 2284 466 Capital productivity, RUR/RUB 0.871,081.04 Capital intensity, RUR/RUB 1,150,920.96 Capital productivity, % 14,022,219.9 Capital-labor ratio, thousand RUR/ people924.48949.571159.97 The dynamics of the number and structure of employees of OJSC "Caustic" is given in tables 2.12-2.13. List of PPP composition Value of the headcount indicator, people Horizontal analysis of change, in % Trend analysis of change, in % 01Specialists6987026201018810189Employees2525111004410044Total number of staff at the end of the year5 3205 2284 46696879684 List of PPP composition Vertical analysis 2008 2009 2010 people Ud. weight, % person. weight, % person. weight, %Workers3 96674.53 82474.73 19571.5Managers63111.967713.264014.3Specialists69813.170213.762014Employees250.5250.5110.2Total number of teaching staff at the end of the year5 320100.05 228100.04 466100.0 Name of indicator Value of indicators by year 2008, 2009, 2010 Turnover coefficient for admission, % 9.89, 27.8 Turnover coefficient for retirement, % 16.425, 412.7 Staff turnover rate, % 9.1124 Staff constancy rate, % 10492102 The data in Table 2.14 show that the largest movement of workers occurred in 2009. There is a significant attrition of personnel, which is due, among other things, to the separation of business units into separate structures. Figure 2.3 - Movement of labor at OJSC "Caustic" During the period 2008-2009. the turnover rate increased from 9.1% to 12%. The main reason for leaving an enterprise is dissatisfaction with the level of earnings; this is stated by about 50% of those leaving voluntarily. In 2010, this figure dropped to 4%, which is associated with the global financial crisis. 4.2 Analysis of the use of labor resources The complete use of labor resources can be assessed by the number of days and hours worked by one employee during the analyzed period of time, as well as by the indicator of the working time fund. The use of the enterprise's labor resources is reflected in table 2.15. Table 2.15 - Use of labor resources of the enterprise OJSC "Caustic" in 2008-2010. Name of indicator Value of indicators by year 2008 2009 2010 Average number of employees, people 5 3205 1204 377 Worked per year by one worker: days 232232225 hours 1 9861 9951 795 Average working day, hours 8,568,607.97 Working time fund, thousand hour 10 566102147 857 Name of indicator Value of indicators by year 2008, 2009, 2010 Volume of production of marketable products in value terms, thousand/RUB 3,980,1515,155 6,224,978,683 Average headcount of PPP, people, incl. workers5 320 3 9665 120 3 8244 377 3 141Average annual output, rub./person per worker per worker 748 149 1 003 568 1 006 957 1 348 227 1 137 465 1 585 063 For a more detailed study of labor productivity, we will conduct horizontal and trend analyzes of this indicator in Table 2.17 and Table 2.18.
More than 30 years ago, on June 4, 1973, the Ministry of Foreign Affairs of Ukraine sent a secret document from the US National Association of Trade Enterprises on the issue of improving sales of goods to the Central Committee of the Communist Party of Ukraine. The document contained fifty ways to increase trade turnover. In those years we there were no problems with the sale of goods. The contents of the document were not relevant, they did not give it a go, and it lay in the archive for many years, until in December 1994 it was published by Doctor of Historical Sciences V. Sergiychuk. Time has changed, and American methods of accelerating sales have become relevant, interesting, and important for Ukraine. They can be especially useful for budding entrepreneurs. So, fifty ways to improve product sales:
1. Large grocery stores make more profit from the sale of cigarettes, which bring in 8% of the profit, than from the sale of dishes and household goods, which bring in 40% of the profit. If $1,000,000 worth of cigarettes were sold and the inventory was turned over 26 times, by the end of the year it would have generated a 208% profit on the retail cost of the product. At the same time, the million-dollar cost of dishes and household goods, which turns over 4 times a year, will bring only 160% profit. Don't ignore cheap but fast moving items.
2. Some stores use the services of suppliers for prestigious and other reasons. What is the prestige if the goods of these suppliers are not in demand??
3. Be careful when entering into supply agreements with manufacturers who call additional forced assortment.
4. Make it a rule that all goods received must be
V trading floor no later than 24 hours after their delivery. Every day they are kept in the warehouse slows down trade turnover.
5. If you bought a slow-selling product, try to sell it immediately (maybe even without a profit). This will give you the opportunity to free up money to purchase popular goods.
6. Buy from local suppliers whenever possible if you are faced with a choice between excellent quality goods but poor turnover (due to distance to the supplier) and good quality goods but excellent turnover.
7. Don't give the best space in the store to slow-selling items. This rule also applies to goods that have passed the brisk demand for them.
8. Trade turnover is not an end in itself. You can have superior turnover by lowering the cost of goods or by undercutting the buyer's needs. Trade turnover is rather the result of well-placed purchases based on objective planning and control.
9. Oversaturation of goods is the enemy of profit. It reduces turnover, increases the number of goods that need revaluation, and clutters stores.
10. Have the courage to say “No” to unnecessary goods, because they slow down turnover.
11. One of the large stores has a precise assortment policy: if you come the new kind goods, old goods of the same kind must be removed from the store.
12. Concentrate your product according to the principle “trading products should be in the center of the sales line.”
13. Concentrate your financial resources. You must have a reserve of money to immediately purchase popular goods. Scattering money in order to have many types of goods slows down trade turnover and leads to an inevitable discounting of goods.
14. Avoid duplicating products “in competing lines” (fish, meat, wine and vodka; products made from artificial and natural materials, etc.). This slows down trade turnover.
15. Do not display goods on sales lines too far in advance of the season, unless it is indicated in the explanation that the buyer needs them from a certain time.
16. Concentrate in trade lines goods for which prices change quickly (vegetables, fruits, etc.).
17. Unsold balances of goods create congestion in warehouses and sales lines, reducing the turnover of goods.
18. It’s surprising, but a buyer who buys an item for himself for $30 treats the purchase very carefully, chooses it carefully, but if he is instructed to make a wholesale purchase for a store in the amount of $30,000, he can accumulate a lot of money for this amount unnecessary goods.
19. Spend more time on drawing up a purchasing plan, draw it up in detail and to the maximum extent possible.
20. More carefully keep internal records of the progress of the sale of each product, be guided by it, this will speed up turnover.
21. Understand that you cannot fully satisfy the needs of all customers.
22. Don’t be afraid to discount items that are not in demand. They take up space, load up warehouses, deteriorate, and deaden capital. Believe that the costs of storing and writing off damaged goods are greater than the losses from immediate markdown. Products lying on the shelves will not improve.
23. Improve and develop the system for ordering goods from manufacturers. This will make it possible to deliver them to the store faster.
24. For each store, identify slow-moving goods that are not fully covered by individual orders, but which can be purchased in large quantities by one buyer (stationery, musical instruments, videos, records, etc.). Order such goods from one supplier and immediately divide it between stores.
25. Concentrate non-standard colors and sizes of goods that are not in demand in one store in order to free up other stores and concentrate the largest assortment of such goods in only one.
26. Please note that buyers prefer to buy goods where there are a large number of them (in large stores), and, as a rule, ignore small stores where there are only a few such goods. Do not disperse popular products of different sizes and colors into small spots: they are easier and faster to sell out in 2-3 large stores.
27. Interest our buyer by showing him that you care about regularly supplying him, for at least a month, with a certain product (bread, milk, butter, groceries, etc.)
28. Encourage manufacturers to clearly and firmly mark prices on products. This will speed up their progress to the trading floors.
29. Be prepared to accept new product samples into the store at any time.
30. Be prepared to automatically restock items that are selling well at any time. Sometimes such orders are sent when customer demand decreases (especially for seasonal goods).
31. Use caution when discussing future trade orders with manufacturers' representatives. Sometimes these orders are actually based on the items the manufacturer has, rather than what the buyer needs.
32. Check every product order you place. Often it is based on data from last year’s implementation, but this year may no longer be indicative.
33. There is no need to order a lot of goods, just so that it fills the remaining transport capacities. Frequently, transportation costs are completely offset by significantly higher costs for markdowns and write-offs of slow-moving goods.
34. The problem of turnover is a very big problem that cannot be solved at the store department level. The correct answer can only be found by taking into account a large amount of data on the sale of goods in several stores.
35. The relationship between the availability of goods and their sales is a true thermometer of condition retail sales. Don't worry about cost, know your store's "temperature" and adjust it. This “temperature” may be the earliest warning signal of “malignancy” in unsold goods.
36. At the beginning of the season, do not agree to supply the entire quantity of a particular product at once. Be able to insist on delivering only part of the goods at the beginning of the season to check whether there is a prospect of its full sale.
37. Keep accurate records of goods (quality, color, size) that you were forced to discount. This will help you avoid orders for slow-selling items.
38. Change the ink color on product labels each season to distinguish new arrivals from older items. Train salespeople to offer last season's items to customers whenever possible.
39. More often practice the introduction of different prices for bulk purchases of slow-moving (especially food) goods. If, for example, 1 unit. of such a product costs 1 dollar, then 2 costs 1.88 dollars, and 3 costs 2.80 dollars, etc.
40. Turnover is the art of balancing a large number of assortment sizes. The best results are achieved with the best balance. Don't try to reconcile the desire to have all types, sizes, etc. with this kind of balance.
41. Think twice before, for reasons of increasing turnover, prestige, etc. re-equip trade lines to sell goods of a different nature than it was before, since for a long time, having lost regular old customers, you will not be able to acquire regular new ones. It’s better to add several new trade lines or, as a last resort (which is also undesirable), do such a restructuring gradually.
42. Review the goods produced in your country, department by department, class by class. Too large purchases abroad (which, as a rule, are expensive) will inevitably lead to the creation of a gap between the quality of imported and domestic goods, which is especially disadvantageous for you, makes you dependent on the policies of other states, and suppresses the production of high-quality goods in your country.
43. Think carefully before accepting goods received after the agreed delivery time. The peak of their sales may pass, and you will overload your warehouses and sales lines.
44. Follow strict records of the progress of sales of goods in order to promptly supply trading lines with quickly sold-out goods from your warehouse. If a product is selling slowly, do not rush to discount it, maybe you display it poorly, maybe you placed it incorrectly on the sales floor, and it lies unnoticed by customers in some drawer.
45. Watch and pay maximum attention to fast-moving goods, because they not only increase the quantity of this type of goods sold, but also accelerate the overall turnover.
46. For items that are not selling well, try a combination approach (eg paint + brushes, fresh vegetables + salad dressing and spices, etc.) or change the product packaging.
47. Set the turnaround time for each product, taking into account past (no more than a year) experience. Try to take into account the experience of “Penny” (a trading company that has prioritized the practice of mass selling inexpensive goods that do not bring much profit). However, if a given type of product is not sold within three days, then the company does not buy more of this product, although it can buy the same type from another manufacturer (which happens very rarely). Based on past experience and the progress of current sales, set a specific date when each type of product should be completely sold. After this date, the unsold balance should be the subject of your daily attention.
48. Concentrate your efforts on products that sell quickly.
49. Try to change the relationship between the "staple" products in your store and the "trendy" products by emphasizing the trendy and latest products rather than the staples: the products sold in your store
50. Sometimes you can resolve the issue of discounting a product with its supplier, who is also interested in selling their products. Marking down goods improves turnover, because it is better to lose 10 cents and sell the goods than, after a year of aging it in a warehouse, in a shopping arcade and damage, throw it away or, after this period, discount it by 5-6 dollars.
Most entrepreneurs who started their business from scratch, and even experienced businessmen, are concerned about the question: how to increase sales in a store?
This article will look at 9 effective ways that can increase profits.
A big plus: they will not require additional substantial investment in implementation.
How to increase sales in a store: determine the main factors
Before moving on to the main topic of how to increase sales, it is necessary to determine what their level depends on:
- Also, of course, the level of sales depends on the ratio of price and quality.
The arrangement of products on shelves, racks or hangers plays a huge role in sales.
There is even a special “science” - merchandising.
It is also important what the product looks like.
For example, it will be difficult to persuade a client that this meat is worth buying if it looks like it has been sitting on the display case for a week.
Products must be intact, clean, and look presentable.
Now let's move on to learning the basic tricks that will help increase sales.
9 working ways to increase store sales
Rule No. 1. The more expensive the better.
The sales assistant must closely monitor every visitor in the store.
And not because the buyer can appropriate something for himself and not pay for it at the checkout, but in order to offer the product at a higher price in time and thereby increase the number of sales.
Sounds absurd?
For example, a sales consultant noticed that a visitor was already ready to buy a hat.
At this moment, he comes up and, without any intrusiveness or trembling in his voice, offers a similar product, only 15–20% more expensive.
Of course, for a reason.
At the same time, he refers to the fact that the hat he proposed:
- several orders of magnitude better quality than the previous hat;
- produced by a well-known company;
- this brand will be popular in the coming season;
- be in the status of exclusive accessories, etc.
No fashionista can resist such a list of advantages.
In addition, psychology comes into play here: most people cannot utter the phrases “this is expensive for me,” “I want something cheaper.”
This move allows you to increase the number of products sold, despite the fact that “misfires” in this scheme, of course, happen quite often.
But even if 30–45% of all visitors fall for this trick, then this method will increase conversion by 22%!
Rule No. 2. The more the merrier.
For a consumer to buy not one, but several products, he needs a compelling reason.
Let's return, again, to the example with the hat.
Only in this case should the seller increase sales by offering to additionally buy another item at the point of sale, and not a similar product.
For example, buy matching gloves or an elegant scarf to go with your new hat.
In no case should an employee force you to try on the product on offer and be intrusive!
This will have the opposite effect.
The buyer can even henceforth take the tenth route around the store to avoid this “pesky character.”
The seller must demonstrate the second item, describing its advantages.
It is important to explain to the person why he should leave with two purchases at all.
For example, noticing that the proposed scarf is in harmony with the chosen hat, while creating a full-fledged fashionable look.
This is a good trick to increase sales in the store.
Rule No. 3. How to increase sales in the store with the help of a related offer?
This rule is in some sense “consonant” with the previous one.
Every clothing store contains products that can additionally increase sales, but are usually not offered to customers when choosing the main item.
These are the so-called small items, which are usually displayed in the checkout area or on small racks around the sales floor.
Such related products may be:
- scarves;
- hairpins;
- umbrellas;
- bijouterie;
- various cases, wallets.
How it works?
For example, a man buys jeans.
At the checkout he is offered to purchase an additional pair of men's socks.
This is argued by the fact that then the purchase amount will reach the required minimum in order to open a discount card.
Few buyers will refuse: socks will always come in handy, and participation in the savings system is an opportunity to save on future purchases.
The consumer thinks this is a good investment and agrees.
Even if the entrepreneur’s profit from one such sale is small, but if you sum up the results of the month, the increase in sales using this method becomes obvious.
Therefore, store owners should not refuse to use such zones, and they also need to motivate sellers and cashiers to mention the existence of such goods to customers.
Rule #4: Don't forget about your customers
Use methods that will allow you to find out the buyer’s contact number at the time of sale of any product.
The easiest way is to ask to fill out a small form, for which the client can receive a discount card.
In this way you can create a database of store visitors.
How will this help increase sales at the point of sale?
The collected contact numbers of consumers are used for calling.
Here's how consultants can justify calling a buyer:
- Information about new deliveries to the store.
- Messages about profitable offers.
For example, “buy one razor as a gift for a man on February 14, receive the second as a gift” or “we will pack it in beautiful gift paper for free.” - To find out why the client has not visited the store for a long time, and whether he has any wishes regarding service or product.
The ability to work correctly with such a tool is a real art.
Only those employees who have good diction and know how to work with objections should do this.
They also give a good response rate and will also increase sales in the store.
The effectiveness of this method is confirmed by statistics:
Rule No. 5. Enter your discount card
To increase store sales in this way, you need to become familiar with the two sides of the coin in this process.
The positive side of the coin
How to increase sales in a store?
Mainly by increasing the number of consumers. And a discount card allows you to “get” them.
Buyers will always be attracted by the opportunity to save money.
For example, a girl wants to buy herself a handbag. This model is in two nearby stores. Only in one she has a discount card, and in the other she does not. Of course, she will go to buy goods where at least a small saving awaits her. Reasonable, isn't it?
With the help of discounts, we can increase sales by attracting more customers rather than increasing prices.
Negative side
When issuing such cards to regular customers, the store loses the lion's share of profit.
Whatever one may say, the amount “underpaid” by the buyer is the lost profit of the outlet.
Therefore, the feasibility of using cards must be calculated in each specific case separately.
Each owner will determine for himself whether it is worth using this method of attracting visitors.
But its effectiveness cannot be denied. Moreover, the efficiency gradually increases.
Pay attention to the comparative statistics of whether the presence of a discount card affects attendance:
Rule No. 6. Bonus program to increase sales
This is another move that is aimed at increasing sales in the store.
Calculate the average enterprise and add approximately 25-35% to it.
This amount will be the control minimum for the bonus program.
For example, the average store receipt was about 2,000 rubles. Then, to receive bonuses, the buyer will need to cross the threshold of 2,500 rubles (2,000 + 25% = 2,500).
Come up with some gifts as encouragement.
This can be either store products or any products from partner companies.
This method can increase sales in the store.
In addition, teach your employees to say the following words: “You made a purchase in the amount of 2,320 rubles.
If you purchase another 180 rubles worth of goods, we will give you one of the gifts to choose from:
- plush toy;
- flashlight;
- keychain;
- handle;
- fridge magnet".
It can be anything! The main thing is to interest the buyer and make him pay even more.
Also, instead of gifts, according to the terms of the bonus program, you can award points that customers can spend on future purchases.
This kills two birds with one stone: it attracts people and makes them become regular customers.
The scheme is like this:
Rule No. 7. How to increase sales in a store with the help of promotions?
This list of the top 10 ways to increase in-store sales wouldn't be complete if you consider promotions.
Promotions will always exist, because this is the easiest way to increase the volume of goods sold.
They allow you to motivate a person and persuade him to spend more than he originally planned.
The most effective scheme that will help increase sales is 2+1 or 3+1 (buy three things and get the fourth as a gift).
This method not only allows you to increase sales in the store, but will also help when changing products to a new collection or switching to another season.
The store sells several items at once that might otherwise sit unsold, instead of writing them off and sending them to stock centers.
In addition, this method will help increase the number of customers in the store.
It is noted that information about such actions is disseminated through word of mouth especially actively.
Rule No. 8. “Book of complaints and suggestions”
According to the law, every business must have such a book and issue it upon the client’s first request.
But often the owners completely ignore their presence: the document is sent “to the table”, and is issued only upon urgent requests (“otherwise you never know what kind of nasty things they’ll write to us”).
Meanwhile, this may be one of the reasons why it is not possible to increase sales in the store.
Surprised?
The fact is that based on complaints and suggestions, self-respecting boutiques or retail outlets determine what exactly customers are missing!
Of course, you shouldn’t invite every visitor to leave a note there.
Instead, you can introduce short surveys.
They can be carried out by cashiers when selling goods, and you can also place a box for requests and wishes on the sales floor.
You can ask buyers how they feel about:
- price level in the store,
- variety of assortment,
- service personnel,
- atmosphere in the store (music playing, decor, product location).
In addition, you can unobtrusively ask to leave a comment about the operation of the outlet on the site.
This will not only give feedback, but will also attract new people to visit you.
Sheets with answers need to be USED, improving the operation of the outlet, and not being sent to a distant drawer.
Then you can increase sales by correcting possible problems.
The video shows practical advice to increase sales from an experienced entrepreneur:
Rule No. 9. Communication with the client
To increase sales in a store, you need to think not only about selling “here and now.”
Work for the future too.
For example, a person bought an expensive tablet, phone, laptop in your store.
And suddenly, a day or two later, store representatives call the buyer and ask:
- Is the consumer satisfied with the purchase?
- How quickly did you manage to set up an expensive purchase?
- Do you need help mastering technology?
- Do you have any suggestions for improving the store?
Agree, this gesture is very pleasant.
Every person will appreciate such care.
In addition, you will definitely want to tell your friends and acquaintances about this step of the store.
And word of mouth is an effective method of free advertising.
The methods listed above will help you decide how to increase sales in a store.
But we can’t forget about the main thing behind the “tinsel”: the key to the success of a retail outlet is customer care, quality products and highly qualified sales consultants.
If everything is in order with this “base”, the methods described in the article will help increase sales in the store in a short time.
Send your good work in the knowledge base is simple. Use the form below
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
Posted on http://www.allbest.ru/
Introduction
As Russia takes the market path of economic development, the role of such indicators as the volume of production and sales of enterprise products increases. It is these indicators that are the decisive factor in generating profit.
The volume of production and sales of products are the most important aspects for all interested parties - the owners of the enterprise, the state. Employees, local society, since the successful implementation of production programs, stable and widespread sales of products allow all participants in production activities to ultimately achieve their financial goals - primarily increasing well-being and quality of life.
In the absence of “top-down” state plans, the implementation of which was the main goal of enterprises operating in a centrally planned economy, the main guideline for enterprises in a market economy is the implementation of production and investment programs developed by the enterprises themselves and compliance with budgets.
The amount of revenue is determined by internal and external (market) factors. Ways to increase the volume of production and sales of products are determined by such factors as production capacity, the structure of products, the rhythm of production, and the quality of products at the enterprise.
The relevance of the topic lies in the fact that the volume of production and sales of products are interdependent indicators. In conditions of limited production capabilities and unlimited demand, the volume of production comes first. But as the market becomes saturated and competition intensifies, it is not production that determines the volume of sales, but, on the contrary, the possible volume of sales is the basis of production capacity. An enterprise must produce only those goods and in such volumes that it can actually sell.
The development and efficiency of the enterprise's production volume is significantly influenced by the volume of product sales and the resulting financial results. Therefore, in modern conditions, the importance of ways to increase production volumes and sales of products is significantly increasing.
The growth rate of production volume and product sales directly affects the cost, profit and profitability of the enterprise, as well as the overall efficiency of the organization, so the significance of these indicators cannot be disputed. The reason for this is that in market conditions new factors are added, ignoring which can lead to dire consequences - financial losses, and in case of unfavorable developments - bankruptcy.
The purpose of the bachelor's final work is to consider the theoretical foundations of the volume of production and sales of products at the enterprise and identify ways to increase them. In connection with this goal, the following tasks can be identified:
Consider indicators characterizing the volume of production and sales of products;
Identify factors influencing changes in the volume of production and sales of products;
Identify ways to increase the volume of production and sales of products.
The object of the study was a modern industrial complex for the production of chemical products for industrial and technical purposes and household chemicals - OJSC "Kaustik", the city of Volgograd.
The study period for this enterprise is 3 years (from 2008 to 2010).
1. Theoretical part. Theoretical foundations of production volume and sales of products and ways to increase them
1.1 Indicators characterizing the volume of production and sales of products
In Russian practice, a special terminology has developed that allows us to describe the volume of production and sales of products. Speaking about product output, it should be taken into account that products produced in a given period (PP) are not identical to products released into circulation (PV), i.e. finished. On the one hand, not everything produced can be completed, and then PP > PV. On the other hand, what was produced could consist of what was produced in a given period plus the remaining stock of the previous period, then VP > PP. The first case corresponds to an increase in stocks of semi-finished products, and the second to their decrease.
It is impossible to say unequivocally that one of these situations is good and the other is bad, since the business activity of any enterprise is cyclical. During the operation of any enterprise, there are periods when the fulfillment of a large number of urgent orders requires increased production rates. During these periods, the volume of output may exceed the volume of production. In order for the enterprise to cope with such situations, during periods of relative “calm”, stocks of semi-finished products, blanks, and partially processed products are created. If the output produced during these periods is not large, its volume will be lower than the volume produced.
The volume of production and sales of products is characterized by the following indicators: gross turnover, intra-production turnover, gross, marketable and sold products.
Products should be distinguished by the degree of readiness from the point of view of the production cycle of a given enterprise and from the point of view of consumption needs. A product, completed from the point of view of the production cycle of a given enterprise, is a finished product (FP) and is produced for sale to external consumers. Finished products are part of the enterprise's commercial products (TP).
Commercial products include the cost of: finished products planned for release (accepted by the technical control department, completed and delivered to the enterprise's finished product warehouse); semi-finished products, components and assembly units intended for external sales; tools, devices and works (services) sold externally (IPRS), as well as products manufactured at the enterprise for use (consumption) at the enterprise itself. It is expressed in wholesale prices of the enterprise and in comparable prices. The former are used to link the production plan with the financial plan; the second - to determine the pace, dynamics and changes in the structure of production.
Commercial output characterizes the volume of finished goods produced and is used to calculate production costs, financial results, profitability and other indicators of production efficiency.
If the products produced by a workshop, department or other division of the enterprise are not intended for sale or consumption, but for further processing by other divisions of the enterprise, they belong to the category of semi-finished products. A semi-finished product (PF) is a finished product of enterprise divisions intended for further processing within the enterprise.
Commodity products excluding semi-finished products sold externally will constitute finished products (FP). Thus:
TP = GP + PF + IPRS (1.1)
The same product can be a raw material, a semi-finished product and a finished product for different stages of production.
Products that, at the time of analysis, are in the workshops of the enterprise in ongoing or stopped technological processes and are not yet ready for transfer to other divisions of the enterprise are intra-shop work in progress (IWIP).
In-shop work in progress together with semi-finished products constitute complete work in progress (WP), i.e.
NP = PF + VCNP (1.2)
Gross output (GP) is the cost of all products produced and work performed, including work in progress.
Gross output includes:
1) finished products (products) produced during the reporting period by all divisions of a legal entity (both from their own raw materials and materials, and from the customer’s raw materials and materials), intended for external sales, transfer to their capital construction and their non-industrial divisions, enrollment in the composition of its own fixed assets, as well as distributions to its employees as wages;
2) semi-finished products of their output, sold during the reporting period to the outside, to their capital construction and to their non-industrial divisions, regardless of whether they were produced in the reporting period or earlier;
3) work (services) of an industrial nature, performed under orders from outside, for its own capital construction and for its non-industrial divisions, as well as work on the modernization and reconstruction of its own equipment;
4) work on the manufacture of products (products) with a long production cycle, the production of which was not completed in the reporting period.
There is a distinction between gross net production and gross gross production: in the first, in-shop work in progress is not included, in the second it is included. The corresponding formulas for calculating gross net production (GP net) and gross gross production (GP gross) are as follows:
VP net = GP + (PF 2 - PF 1) + PFS + IPRS (1.3)
VP gross = GP + (NP 2 - NP 1) + PFS + IPRS (1.4)
where PF 2 is the amount of balances at the end of the period;
PF 1 - the amount of balances at the beginning of the period.
The values in brackets can be both positive and negative, since in certain periods there can be both an increase and a decrease in the balances of semi-finished products and work in progress.
From the definition of marketable products as the sum of finished products and semi-finished products sold externally, it also follows that
VP net = TP + (PF 2 - PF 1) (1.5)
Gross turnover is the total cost of all types of products of an enterprise, which are intended for sale externally and for internal consumption, as well as the cost of industrial work for its divisions and for other consumers. A distinction is made between net gross turnover (without intra-shop work in progress) and gross gross turnover (taking into account intra-shop work in progress). The corresponding calculation formulas are:
VO net = VP net + PFP (1.6)
VO gross = VP gross + PFP (1.7)
Gross turnover is equal to gross output if all workshops and divisions of the enterprise operate independently of each other, i.e. produce products directly intended for sale and do not transfer their products to other departments for processing.
Since, when calculating the value of gross turnover, each semi-finished product is included in the calculation several times (as many times as the product containing it is transferred to another workshop or division), this indicator has very limited significance, being only an indicator of the length of the production cycle in comparison with the production cycle of similar enterprises.
Intra-production turnover is the cost of finished products or semi-finished products and industrial works that are consumed within the enterprise.
Sold products - products paid for by the buyer or sales organization are considered. Its volume is calculated as the cost of finished products and semi-finished products of own production, intended for delivery according to the plan and subject to payment by the customer, spare parts of all types and purposes, consumer goods, work performed and services provided, sold in accordance with business agreements with consumers of products or through its own sales network.
Net production is the cost of the enterprise's products minus all material costs and depreciation of the main enterprise.
Thus, the basis for developing ways to increase production volumes and sales of products is a system of certain indicators that characterize the activities of the enterprise in producing products.
Figure 1.1 illustrates indicators characterizing the volume of production and sales of products.
Figure 1.1 - Indicators characterizing the volume of production and sales of products at the enterprise
1.2 Basic information about the volume of production and sales of products
The volume of production and the volume of product sales are interdependent indicators. In conditions of limited production capabilities and unlimited demand, the volume of production comes first. But as the market becomes saturated and competition intensifies, it is not production that determines sales volume, but, on the contrary, the possible sales volume is the basis for developing a production program. An enterprise must produce only those goods and in such volumes that it can actually sell.
The main task of industrial enterprises is to most fully meet the demand of the population with high-quality products. The growth rate of production volume and sales of products, improving its quality directly affect the amount of costs, profits and profitability of the enterprise. Therefore, the analysis of these indicators is important. Its main tasks:
- determination of the influence of factors on changes in the values of these indicators;
- identifying ways to increase production and sales of products;
Sources of information for analyzing production and sales of products are the enterprise’s business plan, operational plans and schedules, reporting form No. 1-p (annual) “Product Report”, form No. 1-p (quarterly) “Quarterly reporting of an industrial enterprise ( association) on the release of certain types of products in the assortment", form No. 1-p (monthly) "Urgent reporting of an industrial enterprise (association) on products", form No. 2 "Profit and loss statement", statement No. 16 "Movement of finished products, their shipment and sale."
The main task of a comprehensive targeted study of the volume of production and sales of products is to determine the competitive position of the enterprise and its ability to flexibly maneuver resources when market conditions change. This general task is realized by solving the following particular problems:
- assessing the degree of fulfillment of contractual deliveries of products;
- assessing the impact of the structure of products;
- assessment of production capacity, product quality, rhythm of production;
- establishing the reasons for the decline in production facilities and irregular production;
- quantitative assessment of reserves for growth in output and sales of products.
The purpose of analyzing the volume of production and sales of products is to find ways to increase sales volumes compared to competitors, expand market share with maximum use of production capacity and, as a result, increase the profit of the enterprise.
The volume of industrial production can be expressed in natural, conditionally natural and cost measures. The main indicators of production volume are commodity, gross and sold products.
The volume of product sales is determined either by shipment of products to customers or by payment (revenue). Can be expressed in comparable, planned and current prices. In a market economy, this indicator becomes of paramount importance. Sales of products are the link between production and the consumer. The volume of production depends on how the products are sold and the demand for them in the market.
Product production is assessed using natural and conditionally natural indicators, in units of labor intensity and cost. The volume of production is characterized by gross and net products, output - by finished and commercial products, sales - by shipped and sold commercial products.
The plan for the release (manufacturing) of products (by types and volumes) in the coming periods constitutes the production program of the enterprise. Based on planning timeframes, a distinction is made between strategic and operational production programs.
The study of production volumes is carried out in a certain range of business activity, i.e. within the limits min - max representing the relevant series. The analysis can be carried out not only within the limits of absolute min - max, but also within the limits of constant fixed costs.
The relevant series consists of the minimum permissible, maximum permissible, optimal and actual volumes of production and sales of products.
The minimum acceptable (break-even) sales volume is the volume at which equality of income and costs is achieved under the current production conditions and product prices.
The maximum volume ensures maximum utilization of production factors.
The optimal volume of sales is considered to be the one that ensures maximum profit under current production conditions in a certain price range. The optimization problem is more theoretical than practical, however, the optimal volume when planning production is the guideline whose knowledge is necessary.
The growth of production of products (works and services) in value terms is one of the general indicators of the economic efficiency of production. The expansion of production occurs, first of all, due to the better use of technology and materials, and increased labor productivity.
Analysis of the structure of commercial products. Uneven implementation of the plan for individual types of products leads to a change in its structure, i.e. the ratio of individual products, in general, to their output. Fulfilling the plan according to the structure means preserving the planned ratios of its individual types in the actual output of products.
The structure of products is determined by calculating the share of each type of product as a percentage of the total volume of products in monetary terms.
In the process of analysis, it is necessary to study changes not only in the volume of production of commercial products, but also in the volume of their sales, on which the financial position and solvency of the enterprise depend.
Sales of products is the final stage of the production and economic activity of the enterprise. Products are considered sold from the moment funds are received in the supplier's bank account. To determine the implementation of the plan for the volume of product sales, wholesale prices of the enterprise are used.
To ensure more complete satisfaction of the needs of the population, it is necessary that the enterprise fulfills the plan not only for the total volume of products, but also for the range and nomenclature.
Nomenclature - a list of product names and their codes established for the corresponding types of products in the All-Union Classifier of Industrial Products (OKPP), operating in the CIS. Assortment - a list of product names indicating its production volume for each type. It can be full, group and intra-group. Analysis of plan implementation by product range is based on a comparison of actual and planned production output for products that are included in the main list.
Sources of information for analyzing the production program of an enterprise are plans for the economic and social development of the enterprise, operational plans - schedules, reporting form 1-p "Enterprise Product Report".
1.2.1 Main directions and information support for studying the volume of production
The volume of production is the most important area of economic analysis. This is explained by the fact that the cost, profit, profitability, turnover of funds, solvency of the enterprise and other indicators characterizing the efficiency of the enterprise depend on the volume of production, composition, assortment, quality of manufactured and sold products, and the rhythm of production.
Data sources for analysis:
1) enterprise passport;
2) planned task;
3) operational, statistical and accounting information.
Analysis of various product categories is carried out in terms of compliance of the achieved results with their planned levels. In a market economy, the implementation of the plan does not play the role that it played in the conditions of centralized planning, therefore, such an analysis is of primary importance only for internal control procedures at the enterprise itself, management accounting and evaluation of the performance of production managers.
Carrying out such an analysis is a rather labor-intensive process. It requires generalization of large volumes of information, and with the growth of production size, the volume of information increases at a high speed. Therefore, when deciding on the need to conduct a complete analysis of product categories at an enterprise, management must understand that this will require a significant investment of working time, not only of special analytical service employees, but also of production managers. In any case, you should first decide whether the result will justify such costs.
Analysis of product production over a certain period of time can be performed both in physical and monetary terms. In physical terms, the products produced are valued in tons, meters, pieces, etc. units. In monetary terms, production volume is estimated in rubles or other currencies. Since the issue of monetary valuation of a product at different stages of production is quite controversial, the natural expression is most often used to analyze product output. There are, however, certain subtleties in using natural units. Since different brands, varieties and varieties of products require different technological processes, time, labor and materials for their production, it is incorrect to compare and summarize the output of different (even related) types of products. In addition, it significantly affects the commercial result and quality of manufactured products. Therefore, to make correct conclusions about the quantity of products produced, it is necessary to find a way to take into account differences in technology and quality. This is done by converting the results into conventional units - conventional tons, conventional pieces, etc. recalculation is carried out by multiplying natural units by coefficients established for each grade and variety, based primarily on the duration of the technological process in relation to the costs of various resources for the manufacture of an equivalent product.
The introduction of conventional units of output sometimes leads to the fact that the picture of the implementation of planned or budgetary tasks turns out to be completely different than when using natural units.
It is clear, however, that it is possible to establish conventional units for comparison of natural indicators only for related products. If products are heterogeneous, comparisons of natural indicators are meaningless. In this case, the only measure of output becomes monetary units.
The growth in product output, both in kind and in monetary terms, is evidence of the successful operation of the enterprise and its good prospects. However, the monetary valuation of manufactured products is fraught with danger: during periods of rapid price growth (namely, price growth, or inflation, is one of the main factors characterizing the economic situation in Russia over the last decade), an increase in output in monetary terms may not be evidence of real growth enterprises, if this increase does not keep pace with the rate of inflation.
In analyzing the volume of production and sales of products, a number of coefficients are used that characterize the production activities of both the enterprise as a whole and its individual divisions.
As a characteristic of the length of the production cycle, the indicator of intra-factory turnover is used:
To ext. - manager rev. = VP/VO (1.8)
Its value is equal to one if there is no intra-plant turnover between different divisions of the enterprise, i.e. transfer of semi-finished products from one technological process to another.
An indicator of the share of marketable products in the volume of gross output is the marketability coefficient:
Who in. = TP/VP (1.9)
The equality of this indicator to one indicates either the absence of unfinished in-shop production and semi-finished products at the analyzed enterprise, or that their balances at the end of the period did not change compared to its beginning.
To analyze the composition of commercial products, the readiness coefficient is used:
To goth. = GP/TP (1.10)
Like the two previous coefficients, its value can range from 0 to 1, showing the share of finished products in the total output of the enterprise. If the value of this coefficient steadily decreases over several periods, this indicates that the share of semi-finished products and other products other than the main one of the enterprise in the total volume of marketable products is increasing. Consumers are less and less interested in the finished products of the enterprise, and the greatest demand is for those types of output that were previously considered by-products or auxiliary. In this case, the management of the enterprise should think about changing the structure of the products produced, and maybe even repurposing production.
Another indicator characterizing product output, and in fact the market activity of an enterprise, is the sales ratio:
K real. = RP/TP, (1.11)
where RP is the sold products of the enterprise, i.e. products that found their buyer during the analyzed period of time. Its volume is calculated according to financial statements as sales volume for the corresponding period.
1.2.2 Main directions for studying the volume of product sales
The volume of product sales is the final result of the activity of an enterprise as a production complex; revenue analysis is carried out both for the enterprise as a whole and in the context of its structural divisions or types of products, as well as for its separate economic units conducting independent production activities (workshops, branches). Of course, such an analysis makes sense only if it is possible to isolate the revenue of a specific division from the financial flows of the entire enterprise, and also if the amount of this revenue is significant for the enterprise as a whole. As with the analysis of product production volume, revenue analysis will require a significant investment of time by employees of both analytical services and line departments. Therefore, it can be considered justified only to the extent that it provides useful information for determining the prospects of the enterprise and its individual divisions.
Analysis of sales volume is of great importance for enterprises with a divisional organizational structure. A comparative analysis of the revenue of various divisions can provide more substantiated conclusions regarding the performance of branches or workshops than an analysis of profit, contribution and other indicators of financial performance.
In the case when an enterprise produces complex, unique or very expensive products, fulfilling a limited number of large orders during a quarter or year. For such enterprises, it is quite difficult to talk about the dynamics of product sales, since revenue does not represent a constant flow, and the fulfillment of each order makes a significant contribution to the total sales volume.
The tool for analyzing the financial and economic activities of an economic entity is accounting reporting. And the first thing you should find out when starting to analyze sales is the principle of revenue registration. In Russian accounting practice, there are two main ways of recording revenue - sales are recognized at the time of payment or at the time of shipment of products. Using these two methods has its pros and cons. Since standard business practice in market conditions provides for the provision of deferred payments to buyers and consumers, the choice of method for reflecting revenue will affect its dynamics. This influence will be especially noticeable in those enterprises where the flow of cash receipts is heterogeneous, revenue arrives in large amounts, at unequal (and most often, indefinite) intervals. It is clear that the sales schedules accounted for payment and shipment, when deferments are granted to buyers, will be shifted relative to each other in time for a period equal to the duration of these deferrals. Very often, enterprises adhere to a specific policy, identical for almost all buyers, regarding payment for shipped products. If such a practice is adopted at an enterprise that produces standard mass products, then the gap between shipment and payment in the normal state of affairs at the enterprise should be approximately equal to the duration of the usual delay. An increase in this gap indicates that buyers of the company's products do not comply with contractual relations and delay payment for the products received. In this case, the financial management of the enterprise should pay more attention to working with debtors and more carefully monitor the implementation of contracts, applying, if necessary, penalties to guilty debtors.
If we compare the dynamics of production and sales of products, it is obvious that even if revenue from shipment is recognized, there will be an incomplete coincidence between the schedules. In the vast majority of enterprises, some period of time passes between production and shipment to consumers: for the chemical industry, due to the characteristics of the product itself, it is long and can be calculated in months. If the accounting policy of the enterprise provides for the recognition of revenue on payment, then the gap between production and sales becomes even greater.
1.3 Factors influencing changes in the volume of production and sales of products
1.3.1 Production capacity
The determining factor in production volume is the amount of power. It reflects the potential capabilities of enterprises and workshops for production. Determining the value of production capacity occupies a leading place in identifying ways to increase production volumes.
Production capacity is the maximum possible output of products provided for the corresponding period (decade, month, quarter, year) in a given nomenclature and assortment, taking into account the optimal use of available equipment and production space, progressive technology, advanced organization of production and labor.
The economic justification of production capacity is the most important tool for planning industrial production. In other words, this is a potential opportunity for gross industrial output.
The production capacity of an enterprise depends on the following factors: the quantity and quality of existing equipment; the maximum possible productivity of each piece of equipment and the throughput of areas per unit of time; accepted operating mode (shift, duration of one shift, intermittent, continuous production, etc.); nomenclature and range of products, labor intensity of manufactured products; proportionality (connectivity) of production areas of individual workshops, sections, units, groups of equipment; level of intra-factory and inter-factory specialization and cooperation; level of organization of labor and production.
When forming production capacity, the influence of such factors as nomenclature, assortment, quality of products, the stock of main technological equipment, the average age of the equipment and the effective annual fund of its operating time in the established mode, the level of contingency of the fleet, the size of production areas, etc. are taken into account.
The degree of satisfaction of market demand, which can vary in volume, nomenclature and assortment, depends on production capacity, therefore production capacity must provide for the flexibility of all technological operations, i.e. the ability to timely restructure the production process depending on the growth of product competitiveness, changes in volume, nomenclature and assortment.
Production capacity is calculated for the entire list of nomenclature and range of products. In conditions of multi-product production, when manufactured products are characterized by hundreds of product names, each of which differs not only in purpose or design features, but also in manufacturing technology, the entire range of manufactured products is grouped and a representative product is selected.
To calculate production capacity, you must have the following initial data:
Planned working time fund for one piece of equipment;
Number of cars;
Equipment performance;
Labor intensity of the production program;
Achieved percentage of fulfillment of production standards.
The production capacity of the leading divisions is determined by formula 1.12.
PM = n Nm F, (1.12)
where PM is the production capacity of the department (workshop, site);
n - number of units of the same leading equipment, units;
Nm - hourly technical power of a piece of equipment, units;
F - equipment operating time fund, hours.
In the short run, production capacity is constant. In the long term, it can be reduced by removing physically and morally obsolete, redundant machinery, equipment and space from production, or increased by technical re-equipment of production, reconstruction and expansion of the enterprise. In this regard, when justifying the production program by production capacity, the following are calculated:
Input power;
Output power;
Average annual production capacity.
Input production capacity is the capacity at the beginning of the reporting or planning period.
Output production capacity is the capacity of the enterprise at the end of the reporting or planning period. In this case, the output power of the previous period is the input power of the subsequent period. Output power is calculated using the formula:
PMout = PMin + PMm + PMr + PMns - PMout, (1.13)
where PMout is the output production capacity;
PMvkh - input production capacity;
PMm - increase in production capacity due to technical re-equipment of production;
PMR - increase in production capacity due to reconstruction of the enterprise;
PMns - increase in production capacity due to expansion (new construction) of the enterprise;
PMvyb - retiring production capacity.
Since the input and output of capacities occurs throughout the entire planned period, it becomes necessary to calculate the average annual production capacity. It is determined by the formula:
PMs = PMin + U PMiinput tid / 12 - U PMjout. tjd / 12, (1.14)
where PMs is the average annual production capacity;
PMiinput - input i-th production capacity;
tid - the number of months per year during which the i-th power will operate;
PMjvyv - output j-th production capacity;
tjд is the number of months in a year during which the jth output power will not operate.
The given methodology for determining the average annual capacity is applicable in cases where the enterprise development plan provides for a specific month for the commissioning of new production capacities. If the current plan for capital construction or organizational and technical measures provides for the commissioning of capacities not by months, but by quarters, then when calculating the average annual capacity it is considered that they will be commissioned in the middle of the planned quarters.
Indicators characterizing the level of utilization of production capacity include the capacity utilization factor, determined as follows:
where V f(pl.) is the actual (or planned) volume of production,
produced per year in natural units of measurement.
For a deeper analysis of the reasons for deviations in power use, it is advisable to determine the coefficients of intensive, extensive and integral use of leading equipment. The coefficients are determined as follows:
where K int is the coefficient of intensive use of equipment;
N f(pl.) - actual (planned) productivity of the leading unit
equipment per unit of time, t/hour;
N t.o. - technically justified productivity, t/hour.
where K ex is the coefficient of extensive use of leading equipment;
T f(pl.) - actual (planned) time of use of leading equipment, hour.
K int = K int H K ex, (1.18)
where K int is the integral utilization factor of the leading equipment.
It is important to determine the reserve for the use of production capacity, which is calculated as follows:
R m = 1 - K int (1.19)
If the calculation is correct, the following equality must be maintained:
1 - K m = R m (1.20)
1.3.2 Fulfillment of contractual deliveries of products
The degree of fulfillment of contractual deliveries (K d.p.) of products is determined by the final indicator, reflecting the ratio of the cost of actual revenue to the cost of contractual obligations (K d). This indicator can be determined by the formula:
where Tf is the actual volume of marketable products delivered according to
contracts, in natural units of measurement;
T d - volume of supplies of commercial products under contracts, in natural units of measurement;
C f, C d - respectively, actual prices and prices,
established when signing contracts, rub./unit.
The value of this indicator is influenced by two factors - physical volume and deviations in prices, if the contracts provide for their subsequent adjustment. Therefore, it is necessary to measure the influence of each of these factors.
The index method can be used to identify individual factors. Accordingly, in order to determine the impact on the amount of revenue as a result of deviations in the physical volume of fulfilled obligations from accepted ones, it is necessary to calculate at base prices both the volume of accepted obligations and the actual volume.
where is the coefficient of fulfillment of obligations in terms of physical volume.
To determine the degree of influence of price deviations, the actual volume of supplies for the reporting period is estimated at base prices and at the actual prices of its value calculated at base prices, we obtain the price change coefficient ().
The influence of factors of physical volume and prices in quantitative terms is achieved by calculating the difference between the numerator and denominator in the corresponding formulas.
The enterprise must also take into account the timeliness of fulfillment of delivery obligations, the purpose of which is to identify the amount of obligations that are overdue and the reasons for failure to meet delivery deadlines. The importance of this is that in addition to untimely receipt of revenue, failure to meet delivery deadlines entails the payment of fines, penalties and penalties, which subsequently negatively affects the performance indicators of the enterprise.
1.3.3 Structure of products
The nomenclature represents a list of names of manufactured products.
Assortment - a set of varieties of products of the same name, differing in technical and economic indicators.
The assortment formation system includes the following main points:
Determining current and future customer needs;
Assessment of the level of competitiveness of manufactured products;
Studying the life cycle of products and the introduction of new advanced types of products and the withdrawal of obsolete products;
Assessing the economic efficiency and degree of risk of changes in the product range.
Much attention should be paid to the implementation of the assortment plan, as this contributes to the most efficient and rational use of labor, raw materials, and financial resources available to the enterprise.
The assortment plan fulfillment coefficient (K a) will be:
Particular attention must be paid to the structure of the products produced. A change in structure is a structural shift. The impact of structural changes on the volume of production is determined by multiplying the difference in the level of plan implementation in cost and physical terms by the planned output in value terms.
VP str = (K st - K n) Ch VP p (1.25)
Instead of the plan fulfillment coefficient in physical terms, the plan fulfillment coefficient in terms of labor intensity can be used.
If an enterprise has a higher percentage of growth in product volume in value terms, this means that it produces less labor-intensive, but more expensive products. Because of this, production output increases.
If there is a higher growth in production volume in physical terms, this means that more labor-intensive, but cheaper and less profitable products are being produced. As a result, the volume of production decreases.
1.3.4 Rhythm of production
Rhythm - uniform production of products in accordance with the schedule in the volume and assortment provided for by the plan.
Rhythm is a qualitative indicator characterizing the work of an enterprise. Good rhythm ensures more complete use of production capacities, labor and material resources.
Irregular work leads to a decrease in product quality, increased labor costs, payment of fines for short deliveries and other losses.
There are direct indicators for assessing rhythmicity, which include:
Rhythmicity coefficient (Кр):
where? In pl - the total value of planned tasks in the planning period;
B is the total overfulfillment of planned targets for the analyzed period.
The coefficient of variation (Kv), defined as the ratio of the standard deviation from the planned target for a day (ten-day, month, quarter) to the average daily (average ten-day, average monthly, average quarterly) planned production output. The calculation is performed using formula 1.27:
where is the square deviation from the average ten-day target;
n - number of periods;
Planned mid-ten-day production output.
Indirect indicators of rhythm are the presence of additional payments for overtime work, payment for downtime due to the fault of the enterprise, losses from defects, payment of fines for underdelivery and late shipment of products, etc.
Arrhythmia coefficient is the sum of positive and negative deviations of the plan implementation coefficients by period. The higher this indicator, the worse the rhythm of the enterprise.
The arrhythmia of product production affects all economic indicators: the quality of products decreases, the volume of work in progress and excess balances of finished products in warehouses increase, the turnover of the enterprise's working capital slows down.
For unfulfilled deliveries of products, the enterprise pays fines, revenues are not received on time, the wage fund is overspent, the cost of production increases, and profits fall.
The causes of rhythm disturbances can be external and internal.
External: lack of energy resources, etc.
Internal: low level of production organization, production control, difficult financial situation.
Negative consequences entail not only underfulfillment or untimely fulfillment of planned tasks, but in some cases overfulfillment. Therefore, it is advisable to take into account both negative deviations from the plan and positive ones when assessing rhythm.
1.3.5 Product quality at the enterprise
The most important indicator of the enterprise's activity is product quality. Improving quality helps to increase demand for products and increase profits not only due to sales volume, but also due to higher prices.
Product quality is one of the main factors contributing to the growth of product sales.
This is the main indicator of the competitiveness of products and enterprises.
However, as a rule, improving product quality requires additional costs and increases the cost per unit of production. The growth in output due to quality is reflected through cost, price, profit and is the object of economic analysis.
Product quality is regulated and established by a quality certificate.
It affects the volume of output and sales in value terms because it provides grounds for higher prices and increased demand for higher quality products. Distinguish between and analyze work quality and product quality. Figure 1.2 shows their influence on the volume of production.
The impact of product quality on the performance indicators of the enterprise is assessed using quality indicators.
Product quality is a set of product properties that determine its suitability to meet certain needs in accordance with its purpose.
Figure 1.2 - Relationship between quality and volume of production
A quantitative characteristic of one or more product properties that make up its quality is called a quality indicator. There are general, individual and indirect indicators of product quality. Quality indicators characterize the parametric, consumer, technological, design properties of the product, the level of its standardization and unification, reliability and durability.
The main quality indicators are general indicators, individual indicators and indirect indicators.
1) General indicators, i.e. independent of its type and purpose:
Share of certified products;
The share of products that meet international standards;
Share of products manufactured for export.
2) Individual indicators characterizing the properties of products:
Utility;
Reliability;
Manufacturability;
Aesthetics.
3) Indirect indicators:
Fines for low-quality products;
The volume of rejected products and the proportion of defects;
Marriage losses.
During the analysis, the dynamics of these indicators are studied and the reasons for changes in quality indicators are clarified. At enterprises producing products of different grades, the average grade coefficient is calculated according to plan and actually by dividing the actual volume of products produced in value terms by the output of products at the price of 1 grade.
K grade = ?Q i Х p i / ? Q i Х p 1 (1.28)
As a result of changes occurring in the quality of products, average prices for products change. It is necessary to calculate them according to plan, in fact, and find their impact on the performance of the enterprise.
P = ? Q i Х p i / ?Q i (1.30)
TP = (P fact - P plan) H Q fact (1.31)
P = (P fact - P plan) H K (1.32)
P = (P fact - P plan) C K - (C fact - C plan) C K, (1.33)
where K is the quantity of products sold;
C is the cost per unit of production.
An indirect indicator of quality is losses from defects.
A production defect is considered to be a product that, in terms of its technical or quality characteristics, does not meet the standard of a given type of product and is not capable of performing the functions provided for this product. Products can be recognized as defective at any stage of production, and the detected defect can be produced either at this or any previous operation of the production cycle.
Marriage analysis is carried out in the following areas:
1) according to the method of use - for defective and irreparable defects. If the product, after modification, can be used in the capacity for which it was originally intended, the defect is considered correctable. Otherwise, there are several possible ways to use it:
As a preparation for other products in the same production;
As a material for main production;
For external sales;
2) for workshops and operations separately - those who discovered the defect and those responsible for its production;
3) by product;
4) for reasons of origin of the marriage. There can be many reasons, for example:
Low-quality raw materials and materials;
Incorrectly executed drawings and other technical documentation;
Inappropriate equipment and tools;
Ineffective organization of production and management;
Lack of proper control at previous stages of production;
5) according to defective characteristics.
Analysis of defects at an enterprise has two main goals: the first of them is to identify the causes of defects and their further elimination. The second important goal of such an analysis is to identify those responsible for the fact that some of the enterprise’s products did not meet the standards. From this point of view, defect analysis is part of monitoring the performance of all employees of the enterprise.
It should, however, be remembered that the fact of marriage itself should not be a reason or reason for taking specific sanctions against the employee or department in which the marriage occurred. Without an analysis of the reasons for the defects, such sanctions will have the opposite effect, leading not to an increase in quality, but, on the contrary, to a decrease in quality and attempts by workers to hide the shortcomings they have discovered. Indeed, often the same type of marriage can be caused by different reasons or a combination of these reasons. For example, the product may not correspond to the declared properties due to the fact that the operator did not follow the technological scheme for production of the product, or perhaps because the raw materials turned out to be of poor quality, and the supply department is to blame for this. In any case, the management of an enterprise where regular quality control and defect analysis is carried out must understand that the value of the analysis lies only in the conclusions that are drawn on its basis, but one should be very careful about the conclusions.
The culmination of analytical procedures in this part of production analysis should be the development of measures to eliminate the causes of defects and prevent their occurrence in the future. Otherwise, this rather labor-intensive section of the analysis will have very little value.
1.3.6 Use of labor resources
At the enterprises of the chemical complex there are production facilities in which the volume of output is directly related to the number of main production workers, the time worked by each worker, and the level of labor productivity.
Such industries include the production of consumer goods, the production of plastic and rubber products, and others.
The main indicators characterizing the volume of production are:
Average number of workers, people. (Ch p);
Average number of days worked by one worker, days per year (D);
Average number of hours worked by one worker, hours per day (T);
Average output per man-hour worked, rub./man-hour (P).
The dependence of the volume of production on labor factors can be mathematically expressed as follows:
Similar documents
Development of measures to improve production indicators and sales of products at Electric Machine Building Plant LLC. The influence of production volume and product sales on profit. Reserves for increasing production indicators.
course work, added 07/02/2013
Analysis of the financial and economic activities of JSC "Plant TochLit". Measures to increase profitability: reducing the cost of manufactured products and increasing the production volume of profitable products and reducing the production volume of unprofitable products.
thesis, added 09/06/2015
Methodological tools for economic analysis of financial and economic activities. Dynamics of product sales volumes and commodity production. Factor analysis profits and profitability. Efficiency of the financial and economic activities of the company.
course work, added 01/21/2013
Analysis of the volume of output and sales of products, the use of fixed production assets and labor resources, production costs, profits and profitability of production, financial stability, solvency and liquidity of the enterprise.
practice report, added 05/05/2016
Goals and objectives of analyzing the volume of production and sales of products. Analysis of the dynamics and implementation of the plan for the production and sale of products, the quality of manufactured products, the rhythm of the enterprise, factors and reserves for increasing production volume.
course work, added 09/17/2010
Analysis of production and sales of products, their cost. Assessment of the use of labor, material resources of the enterprise, fixed production assets. Factors that increase production volume as a result of more efficient use.
course work, added 12/02/2011
Organizational and technical characteristics of the workshop. Analysis of production volume and product quality, use of fixed production assets, labor resources and their payment. Cost of production, profit indicators and profitability of production.
course work, added 04/24/2012
Information support and a system of indicators for analyzing production and sales of products using the example of the Livensky KHP PC. Economic assessment of production and economic activities. Factors and reserves for increasing production and sales of products.
course work, added 08/07/2011
Concept, objectives and provision of analysis of production and sales of products. System of production indicators. Analysis of the dynamics and implementation of the production and sales plan, factors influencing the implementation of the production program.
course work, added 06/15/2014
Study of the structure and capital productivity of the enterprise's main production assets. Analysis of production volumes and sales of products, calculation of their cost. Determination of profit, profitability and solvency. Diagnosis of the probability of bankruptcy.
Sales of products according to the main range are approved by a higher organization to production enterprises in physical and value terms, including quality indicators (see Product quality). Quantitative targets for the sale of products are established on the basis of the corresponding material balances developed by planning bodies and ministries. To assess the quality of products sold, the following is determined: the volume and share of products, the quality of which is at the level of the best domestic and foreign products of the corresponding type; volume and specific gravity of products certified by the State Quality Mark; grade indicators, etc.
The planned volume of Product Sales includes the cost of finished products and semi-finished products of own production intended for delivery to consumers and payable in the planned period, as well as work of an industrial nature, including major repairs of their equipment and vehicles, sales of products to their capital construction and non-industrial enterprises located on enterprise balance sheet. When determining the planned volume of Product Sales, changes in balances are also taken into account: unsold products at the beginning and end of the planned period; finished products in warehouse; goods shipped but not paid for, etc. The volume of sales of products does not include revenue from non-industrial activities of the enterprise (construction, housing and communal services, auxiliary agricultural enterprises).
Volume Sales of products are calculated, as a rule, using the factory method, i.e., the cost of finished products and semi-finished products planned for sale does not include that part of them that enters intra-factory circulation and is used for the enterprise’s own needs. To determine the volume of sales of products in production associations, plants and firms consisting of several plants and factories that do not have an independent balance sheet, intra-factory turnover is excluded from the total volume of sales of products of all enterprises included in this association. Total volume Sales of products in an industry are defined as the sum of the volumes of products sold by all its constituent enterprises.
Planned volume Sales of products are determined at the wholesale prices of enterprises adopted in the plan (excluding turnover tax), taking into account the surcharges and discounts established in the price lists, and in some cases - at constant prices used to calculate the volume of marketable products.
The actual volume of product sales is determined by:
a) in prices actually in force in the reporting period (to determine the amount of actual profit from sales);
b) in the wholesale prices of enterprises adopted in the plan (to assess the implementation of the plan and the rate of production growth in comparable prices and to determine the size of economic incentive funds in accordance with the level of implementation of the plan).
In national economic practice, products are considered sold after payment for them is received from the buyer or customer to the current account or to the special loan account of the supplier company. When making calculations by offsetting mutual requirements, products are considered sold after the results of the offset are reflected in the accounts of the supplier company. Products sold for capital construction are accounted for in the sales account as the bank pays for them from the corresponding capital investment financing accounts. Other works of an industrial nature are included in the scope of Sales of products from the day the enterprise reflects the cost of these works on the sales account.
The main directions for increasing the volume of sales of products: production of higher quality products that are in high demand among consumers; increase in the number of products produced; improving the work of supply, sales and financial services of enterprises; improvement of credit and settlement relations; economically sound pricing policy (see articles Price and Pricing).
Volume Sales of products as the most important economic indicator is established for enterprises in accordance with the decisions of the September Plenum of the CPSU Central Committee. The indicator Sales of products differs significantly from the indicator of gross output previously approved for enterprises (see Gross output of an industrial enterprise). It allows for more effective use of commodity-money relations in justifying the plans of industrial enterprises, the pace and proportions of development of industries, helps improve the quality of products, encourages planning bodies, economic organizations and enterprises to study the national economic needs and demand of the population. The enterprise's fulfillment and overfulfillment of the state plan for the sale of products directly affects the profitability and the amount of deductions from profits to the enterprise's economic incentive funds.
Production and sales of products
The success or failure of an economic entity depends on how thoroughly the level, nature, structure of demand and trends in its change are studied and determined. The results of market research are used as the basis for the development of business strategy and product range. They determine the pace of renewal of products (works, services), technical improvement of production, and the need for material, labor and financial resources. When planning production volume and determining production capacity, an economic entity determines what products, in what volume it will produce, where, when and at what prices it will sell. The final financial results and financial stability depend on this.The essence of production activity is the creation of economic benefits necessary to satisfy the diverse needs of society. In a market economy, production is carried out by those economic entities that are willing and able to adopt the most efficient organization and production technology, since they provide them with the greatest profit.
Resources go to those industries and enterprises whose products are in demand. The market system deprives unprofitable industries and business entities of rare resources. Business entities produce goods as long as sales make a profit, until the demand for these goods is satisfied. How many and what goods to produce, at what prices to sell them, where to invest capital - this is determined by the mechanism of supply and demand, the rate of profit, the price of shares, currencies, and loan interest.
The growth rate of production volume and product sales, quality improvement directly affects the amount of costs, profits and profitability. The activities of business entities should be aimed at producing and selling the maximum amount of high-quality products at minimal costs. Therefore, analysis of the volume of production and sales of products is important.
The purpose of analyzing production and sales of products is to identify the most effective ways to increase production volume and improve its quality, to find internal reserves for increasing production volume.
The main objectives of analyzing the volume of production and sales of products at enterprises are:
– assessment of dynamics according to the main indicators of the volume of structure and quality of products;
– checking the balance and optimality of business plans, planned indicators, their intensity and reality;
– identifying the degree of quantitative influence of factors on changes in the volume of production and sales of products;
– identification of on-farm reserves for increased production and sales of products;
– development of measures to use on-farm reserves to increase the growth rate of products, improve the range and quality.
The objects of this direction of analysis are:
– volume of production and sales of products;
– product range and structure;
– product quality;
– rhythm of production.
In the process of analyzing production and sales of products, the reasons inhibiting production growth should be revealed, namely:
– shortcomings in the organization of production and labor;
– irrational use of material, labor and monetary resources;
– product defects.
Sources of information for analyzing production and sales of products are the unified statistical reporting form No. 1-P, form No. 1-P (quarterly) “Quarterly reporting of an industrial enterprise (association) on the production of certain types of products in the range”, form No. 2 “Profit statement and losses”, statement No. 16 “Movement of finished products, their shipment and sale”, business plan, operational schedules, etc.
Revenue from product sales
The point of any production is to generate income. Revenue from product sales is funds received into the organization’s current account for products sold to consumers, work performed or services provided.Revenue is not only the main source of income for an enterprise, but also the means to reimburse all its costs. Revenue from the sale of goods, works, and services is the main indicator of the economic activity of an enterprise. In each sector of the economy, sales revenue has its own more specific definition.
For example, for an industrial enterprise, revenue will be the amount of marketable products sold; for a construction organization, this will be the volume of work performed in value terms; for a trading enterprise, revenue will be turnover, etc.
An enterprise can receive revenue not only as a result of its core activities, but also from non-operating operations: rental of vacant premises, income from ongoing transactions with securities, sale of retired fixed assets, etc. Revenue provides the enterprise with funds to pay off debts, for the purchase of raw materials, payments wages and deductions of taxes and payments to various funds and budgets. Revenue is therefore only partly income. First, all necessary payments are made from the proceeds, and only then can we talk about income.
An important point for the enterprise is the timely receipt of revenue. This is of great importance because it is with the receipt of revenue that the cycle of the enterprise’s activities ends. Receipt of revenue allows the enterprise to restore the funds spent on production and create conditions for the start of a new production cycle. In addition, revenue is the main and regular source of funds for the enterprise.
The financial stability of the enterprise, the amount of profit received, the timeliness of settlements with banks, tax authorities and the budget, various funds, as well as with suppliers and with its own employees depend on the timeliness of receipt of revenue. Late receipt of funds leads to the enterprise’s failure to fulfill its obligations, and, therefore, to fines, sanctions and loss of profit, up to and including the shutdown of production.
For tax reporting of an enterprise, there are two options for determining sales revenue:
According to the terms of payment for shipped products, i.e. after receipt of payment for goods in the form of cash at the cash desk or non-cash funds to the enterprise’s bank account (cash method);
according to the timing of shipment of products and presentation of the relevant settlement documents to the buyer (accrual method).
The cash method is used mainly for small businesses; all others must adhere to the accrual method, taking into account revenue after shipment of products. According to the accrual method, revenue is calculated for the financial statements of the enterprise.
When calculating sales revenue upon shipment of products (performance of work, services), tax obligations arise at the same moment, regardless of when the company receives money from customers. This may lead to a shortage of financial resources for the enterprise. The fact of shipped, although not paid for, products will constitute a declaration of profit and will entail the need to pay various taxes and payments.
An enterprise can specifically allocate funds before taxes and create a reserve for doubtful debts (meaning unsecured debt from customers with expired payments).
One of the main factors influencing the amount of revenue is the pricing process. The price of a product will be largely determined by the market, based on the balance of supply and demand. The price for the company's products is formed through calculation in such a way as to ensure compensation for the costs incurred and to make a profit. If the product price calculated in this way turns out to be higher than the market price, the enterprise must reduce costs for this type of product or abandon its production.
There are other methods for setting prices for products, but making calculations is necessary, since the price must always compensate for the costs. In some cases, for example, when designing prices for expensive products, the price formation function is entrusted to special consulting firms.
Among other factors that directly affect the amount of revenue from the sale of products, works, and services, one can note such as the volume and speed of production, assortment, quality, rhythm of shipment, timing of document flow and fulfillment of contractual obligations. The financial services of the organization plan revenue from product sales promptly or for the upcoming period of time: quarter, year. This is necessary for the subsequent determination of profit.
Operational revenue planning ensures the timely receipt of actual amounts of revenue to the enterprise account. Annual planning is effective only in a stable economic situation. If economic conditions are unstable, annual planning will be difficult. Calculations of total revenue for the coming period include: revenue from sales of products and semi-finished products of own production, revenue from work performed and services of various nature.
Revenue from product sales is calculated based on the volume of products sold in current prices, excluding value added tax, excise taxes and trade discounts. Exported products are accounted for without export tariffs. Revenue from services provided and work performed depends on their volume, prices and tariffs.
Revenue planning can be done by two methods: The direct counting method consists of determining sales revenue (Vyr) as the product of price (P) without adding taxes and the volume of products sold (Pp) in physical terms:
Vyr = Рп x Ц
The calculation method involves calculating planned revenue (Exp) using the formula:
Vyr = Onach + T – Windows, where
Onach – balances of finished products at the beginning of the period under review,
T – volume of planned product output in a given period in physical terms,
Windows – product balances at the end of the period (unsold).
Revenue is calculated in predicted average sales prices, balances at the beginning of the period are taken in prices of the previous period, planned output is taken in planned prices. Product balances at the end of the period are calculated based on the average daily cost of products and inventory standards at the end of the period in days.
Inventories are expressed in two dimensions: total and days of turnover. The amount of inventory is the value expression of unsold products (services, works).
The inventory indicator in days is the number of days for which there is a stock of commercial products and is determined by the formula:
TK dn = Amount of TK / Average daily sales revenue
The development of any type of budget begins with forecasting the sales volume of products (works, services), which requires an analysis of internal information and information about the external environment. Projections for other indicators, such as production costs, will primarily depend on projected sales levels.
After developing a sales forecast, a schedule of cash receipts from sales and a plan for repaying receivables are drawn up.
A forecast of production costs and a cash payment schedule are drawn up. Based on the data obtained, a cash flow budget for the enterprise and a budget for income and expenses are developed.
Product sales volume
To calculate the volume of product sales for individual types of products using the balance sheet method:Analyze the capabilities of the enterprise, based on the planned production program for the calendar year and the expected product balances at the beginning of the year.
From total number of these resources, subtract the volume of products going for processing and used by the enterprise itself for further processing, and carryover reserves remaining at the beginning of the next year following the plan.
Calculate the expected volume of product sales before the end of the annual reporting period, when product balances at the beginning of the planned year have not yet been determined. The economic justification for calculating the volume of sales of goods is provided only when the indicator of the volume of manufactured products is established correctly, and is determined based on the production program of the enterprise.
Calculate the carryover balances of finished products at the end of the planning period in accordance with the standards that determine the duration of the sales cycle for a particular enterprise. Calculating the volume of product sales becomes much simpler at those enterprises that do not use their own products for their own consumption.
Calculation of the volume of product sales is an important factor in accounting for the total number of economic instruments, the totality of which contributes to the successful economic and financial activity of an enterprise in the modern conditions of the new planning system. Together with this calculation, you should also use such tools as accounting for the implementation of the product sales plan, monitoring the progress of product sales, indicator of products sold, etc.
Calculate last year's amount of money received and divide it by the number of sales made (all issued invoices, orders, contacts). If you don’t know these numbers because you’ve just started selling, ask those who have experience in this field and have been working in it for several years. If such data is not available, proceed with your own calculations. The analysis should be carried out as funds accumulate.
Look at the resulting average sales volume. If this indicator is above the required level, then you will need fewer clients, and if it is below average, then look for more clients. Accordingly, based on these figures, calculate the required volume of sales, which should be of the appropriate size.
Conduct an analysis of your customers after finding out the average sales volume. Potential for your development will be those clients who currently do not cost you that much. Calculate the time you spend servicing them. If you wish, you can transfer clients to other terms of transactions, as well as at any time replace any client and begin searching for a more promising one. All this allows you to regulate the number of products or services sold.
Get all the data about your hourly deals and daily sales volume. This will be an excellent indicator of professionalism by which you can judge your abilities and your working style. Compare this indicator with competing organizations. If your sales figures are at least a little higher, then you are a good seller, and your sales volume is calculated correctly, and if it is lower, analyze your bottlenecks and weaknesses before choosing a different business strategy. If any business you start has the same sales numbers, then it's all about you and no one else.
Product sales costs
Costs of selling goods are the costs of bringing goods from production to consumers, expressed in monetary terms. Sales costs represent socially necessary labor costs that ensure that trade fulfills its functions and tasks.Sales costs are characterized by amount and level. Their level in retail trade is determined as a percentage of retail turnover. The level of sales costs is an important qualitative indicator of trading activity. This indicator is used to judge, on the one hand, the amount of costs per 1 thousand rubles. trade turnover, on the other - about the share of trade expenses in the retail price, and on the third - about the efficiency of using material, labor and financial resources. The optimal level of expenses corresponds to the best way using limited resources to achieve the goal - ensuring competitiveness.
Expenses for the sale of goods are conventionally divided into net and additional. Net expenses are the costs of organizing the purchase and sale process, maintaining administrative and management personnel, accounting and reporting costs. Additional costs are due to the continuation of the production process in trade (packaging, packing), the transformation of the production range into a commercial one.
There are explicit and implicit costs. Explicit (accounting) expenses are expenses associated with the use of attracted material, financial and labor resources, which are fully reflected in accounting and, according to the law, are included in the cost intensity of product sales.
They share:
For material costs (the cost of goods, raw materials, materials used for packaging, storage, ensuring a normal trade and technological process; the amount of wear and tear of low-value and fast-wearing items; the cost of work and services provided by other organizations of this organization, fuel of all types, etc.);
- labor costs;
- contributions for social needs and other deductions;
- depreciation of fixed assets;
- other costs.
Implicit costs are costs associated with the use of resources owned by the organization itself. Implicit costs include payments that the organization could receive if it used its resources more profitably (lost opportunity costs), normal profits that keep the entrepreneur in his chosen industry.
Sales costs in the domestic economy are classified by types and items of expenditure, branches of economic activity, and goods. The nomenclature of expenditure items, uniform for the entire sphere of circulation, includes 15 items.
Firstly, this division helps to solve the problem of regulating weight and profit growth based on a relative reduction in costs with an increase in sales revenue. Secondly, this classification makes it possible to determine the cost recovery, that is, the margin of financial strength of the organization. Thirdly, the allocation of fixed costs makes it possible to use the marginal income method (gross income minus variable costs) to determine the size of the trade markup.
Fixed expenses do not depend on changes in activity volumes, variable costs change in proportion to the increase (decrease) in activity volumes.
Product classification is associated with differences in cost levels caused by unequal cost intensity of goods. The basis for product classification is the amount of expenses per 1 thousand rubles. trade turnover. This classification is very relevant when justifying trade markups for certain product groups and goods.
Analysis of sales costs is aimed at identifying opportunities to improve the efficiency of a trade organization through a more rational use of labor, material and financial resources in the process of carrying out acts of purchase and sale of goods and organizing trade services to consumers.
The task of a complete analysis of implementation costs is to determine:
Dynamics and degree of implementation of the expenditure plan general level and individual expense items;
- the size and rate of change in the actual (expected) level of expenses compared to the planned level and over time;
- the amount of savings or cost overruns (by the overall level of expenses and individual items);
- changes in the size of the influence of the main factors on the deviation of actual costs from planned ones;
- the level of costs for the sale of certain types of goods;
- differences compared to competitors' costs.
Based on the results of the analysis, an explanatory note is drawn up containing specific recommendations for managing costs and eliminating irrational current costs in trade.
Absolute deviation (savings or overexpenditure) is the difference between the actual and planned amount of expenses (or over time).
The change in the level of sales costs is calculated as the deviation of the actual level from the plan or data from the previous period.
The rate of change in the level of sales costs is determined by the ratio of the size of the change in their level to the base level, expressed as a percentage. The rate of change shows by what percentage the level of sales costs has changed in relation to the base level, if the latter is taken as 100%.
Relative savings (overspend) are determined by multiplying the size of the change in the level of sales costs by actual retail turnover and dividing the product by 100.
The cost-return indicator is calculated by the ratio of turnover to the amount of sales costs.
When analyzing the composition and structure of trade expenses, an assessment of the implementation of the plan and the dynamics of items of semi-variable expenses should be given according to their level. At the same time, semi-fixed costs are studied primarily based on absolute data.
The most difficult stage of analyzing expenses in trade is the quantitative calculation of the factors influencing their dynamics.
To measure the impact of the degree of plan implementation or turnover dynamics on sales costs, base costs are recalculated to actual turnover. For variable expense items, it is believed that as the retail turnover plan is exceeded, their amounts increase proportionally, and the level remains unchanged - the base level. The recalculated base amount of conditionally variable expenses is determined by multiplying the actual volume of trade turnover by their base level and dividing the resulting product by 100.
The recalculated base level of conditionally fixed expenses is determined by the ratio of their base amount to the actual turnover and multiplying the resulting product by 100.
The effect of changes in the volume of trade turnover on the amount of conditionally variable expenses is determined as the difference between their recalculated and basic amounts, and on the level of conditionally fixed expenses - as the difference between their recalculated and basic levels.
To calculate the impact of prices on the level of expenses, it is necessary to have data on indices of prices for goods, indices of transport costs, rental rates, utility tariffs, official salaries, tariffs and interest rates for the use of bank loans. Then the level of expenses for individual items is recalculated into comparable prices and tariffs. The difference between the levels of sales costs in current and comparable prices is the influence of the price factor.
The main task of projected calculations of costs for the sale of goods for the future is to determine the optimal level of costs at which it is possible to increase sales volumes and profits without reducing the high quality of customer service.
Sales of finished products
Shipment and release of finished products are carried out by the warehouse on the basis of invoice orders, which consist of two documents: an order to the warehouse and an invoice for release. The order to the warehouse is issued in accordance with the terms of the contract with the buyers, indicating the name of the buyer, the quantity and range of products, and the shipment period. The basis for issuing an invoice for the release of finished products at the warehouse is an order from the head of the organization or a person authorized by him, as well as an agreement with the buyer (customer).Based on invoices for the release of finished products and other similar primary documents, the organization (usually the sales department) issues invoices in the established form in two copies, the first of which is sent (transferred) to the buyer no later than 5 days from the date of shipment of the product (goods). , and the second remains with the supplier organization for reflection in the sales book and calculation of value added tax.
Upon shipment railroad station issues a waybill, which accompanies the cargo on the way, and the sender is issued a receipt for the railway waybill. The railway waybill data is recorded in the invoice and payment documents, which are submitted to the bank or transferred to the buyer.
The accounting policies of the organization must reflect the methods used by the organization to evaluate finished products when they are released into production and other disposals.
In accordance with clause 16 of PBU 5/01, the following methods for assessing finished products upon disposal are established:
At the cost of each unit;
at average cost;
at the cost of the first acquisition of inventories (FIFO method).
An organization can use various methods for valuing finished products, but for each group (type) of inventory during the reporting year, only one valuation method should be used.
Clause 18 of PBU 5/01 clarifies the procedure for valuing inventories at average cost. In accordance with this paragraph, the assessment of finished products at average cost is carried out for each group (type) of inventory by dividing the total cost of the group (type) of inventory by their quantity, consisting respectively of the cost price and the amount of balance at the beginning of the month and the inventory received during the given month.
Sales and other disposals of finished products are reflected in the credit of account 43 “Finished products” and the debit of accounts 90 “Sales”, 76 “Settlements with various debtors and creditors”, etc. This correspondence shows the sale of products as planned, indicating the actual cost at the end of the financial year by additional posting or the “red reversal” method for the amount of the difference between the planned and actual costs.
If revenue from the sale of shipped products cannot be recognized in accounting for a certain time (for example, when exporting products), then until the revenue is recognized, these products are recorded in account 45 “Goods shipped.”
Account 45 “Goods shipped” is lawfully used to account for shipped goods (products) in the following cases:
To account for goods shipped under an exchange agreement before its execution, i.e., receipt of counter goods. According to Art. 569 of the Civil Code of the Russian Federation, an exchange agreement is considered fulfilled after both parties fulfill their obligations to supply goods. Consequently, goods shipped under an exchange agreement are accounted for in account 45 before the transfer of ownership;
to account for goods shipped by the principal under a commission agreement or other intermediary agreement. In accordance with Art. 996 of the Civil Code of the Russian Federation, ownership passes to the buyer from the principal according to the commission agent’s message about the shipment to the buyer. Until this moment, the goods of the principal are accounted for as own funds in account 45. The balance of account 45 of the commission agent reflects the cost of goods transferred to the commission agent, but not yet sold, since goods transferred to the commission remain the property of the principal until they are actually sold to customers;
to account for goods shipped under purchase and sale (supply) agreements with a special procedure for the transfer of ownership. According to Art. 223 of the Civil Code of the Russian Federation, the right of ownership of the acquirer of a thing under a contract arises from the moment of its transfer, unless otherwise provided by law or contract. Therefore, if the contract provides for a different procedure for the transfer of ownership (for example, upon payment for goods), goods shipped but not paid, being the property of the supplier, must be recorded on the supplier’s balance sheet in account 45 until the buyer pays for these goods, i.e. i.e. until the ownership rights are transferred to the buyer.
When customers are presented with payment documents for shipped products, the products recorded on account 45 are written off to account 90, subaccount 2 “Cost of sales”.
Account 45 “Goods shipped” also takes into account products and goods transferred to other organizations under a commission agreement, since when selling products through an intermediary under a commission agreement, the ownership of the product does not pass to the intermediary.
When products and goods are released, they are written off from the credit of account 43 “Finished products” to the debit of account 45 “Goods shipped”. When a commission agent’s report on the sale of products and goods transferred to him is received, they are written off from the credit of account 45 “Goods shipped” to the debit of account 90 “Sales”, subaccount 2 “Cost of sales”, with simultaneous reflection in the debit of account 62 “Settlements with buyers and customers” and credit account 90 “Sales”, subaccount 1 “Revenue”.
Analytical accounting for account 45 “Goods shipped” is carried out by location and individual types of shipped products (goods).
Correct accounting and evaluation of finished products in organizations are important for determining the value of the financial result generated on the synthetic account 90 “Sales”. When accounting for sales revenue, the shipment method (accrual basis) is currently used.
At the same time, according to PBU 9/99, the criteria under which sales revenue is recognized should be strictly adhered to:
The organization's right to receive this revenue;
the amount of revenue can be determined;
confidence that the economic benefits of the organization will increase as a result of a particular transaction;
ownership of the product has passed from the organization to the buyer;
the expenses that have been or will be incurred in connection with this operation can be determined.
If at least one of the above conditions is not met in relation to cash and other assets received by the organization as payment for sold finished products, then the organization's accounting records accounts payable, not revenue.
The revenue indicator from product sales is interpreted in accordance with current legislation as follows:
In accounting, this is the amount for which the buyer is presented with payment documents for payment for shipped products;
in taxation - this is the amount of money received for shipped products, performed work (services), or the amount for which the buyer was presented with documents for payment;
according to Art. 40 of the Tax Code of the Russian Federation, for tax purposes, the price of goods indicated by the parties to the transaction is accepted. The same article stipulates that tax authorities have the right, in certain cases, to control the correct application of prices by the parties.
When organizing production cost accounting, expenses associated with the operation of the organization's own transport (transport department costs) are, as a rule, taken into account in the auxiliary production account.
Part of these expenses associated with the performance of work on transporting finished products, payable by buyers in addition to the price of finished products, is written off from the credit of the auxiliary production account to the debit of the selling expenses account.
The organization's costs associated with the shipment and sale of products and taken into account as part of the full cost of production are called commercial expenses.
Expenses associated with the sale of products, goods, works and services are recorded in account 44 “Sales expenses”.
In organizations engaged in industrial and other production activities, the following expenses can be reflected on account 44:
For packaging and packaging of products in finished product warehouses;
for delivery of products to the departure station (pier), loading into wagons, ships, cars and other vehicles;
commission fees (deductions) paid to sales and other intermediary organizations;
on the maintenance of premises for storing products at places of sale and remuneration of sellers in organizations engaged in agricultural production;
for advertising;
for entertainment expenses;
The procedure for distributing transportation costs between the seller and the buyer depends on how much these costs are taken into account in the price of the product. In the so-called basic terms of delivery, the parties indicate the place where the seller must deliver the products at his own expense. In these cases, the price of the product is said to be fixed ex-locally.
When setting selling prices, it is indicated ex-franco, i.e. at whose expense the costs of delivering products from the supplier to the buyer are paid:
Ex-warehouse of the supplier, when all the costs associated with the shipment (cost of loading and unloading at the warehouse, at the departure station, cost of transportation to the departure station, railway tariff, water freight), the supplier includes in the invoice to the buyer, and the buyer pays all these costs above the cost of production;
free-departure station, when the supplier covers the costs of shipment to the departure station from sales proceeds, and the cost of loading into vehicles at the departure station and the cost of transportation to the destination station is included by the supplier in the invoice to the buyer as a separate amount in addition to the cost of the product;
free-wagon-departure station, when the supplier covers from the sales proceeds all costs of shipment to the departure station and loading of products into the wagon, and in the invoice to the buyer includes in a separate amount only the cost of the railway tariff from the departure station to the destination station;
ex-station of destination, when the supplier covers all costs for shipping products to the destination station from sales proceeds, and all other costs associated with delivering products from the destination station to the buyer’s warehouse are reimbursed by the buyer;
ex-warehouse of the buyer, when the supplier bears all costs for shipment of products at his own expense and, in addition, pays at his own expense for loading and unloading costs at the destination station, transportation of products to the buyer’s warehouse and loading and unloading operations at the buyer’s warehouse.
The use of a specific type of ex-price is provided for in the supply agreement.
Expenses for the transportation of finished products made by third-party organizations and persons are recorded as a debit to the credit account of the corresponding cash accounts or accountable amounts, including the paid amounts of value added tax on them.
Expenses subject to reimbursement by buyers of finished products are written off from the above settlement account with a debit to the account for settlements with buyers, including the amount of value added tax due (paid) to a third-party transport organization. This amount of value added tax is presented to the buyer of the product for payment.
Recently, advance payment for supplied products has been widely used. Please note that in accordance with the chart of accounts, the amounts of advances received are recorded in account 62 “Settlements with buyers and customers”.
When pre-paying for a delivery, the amounts of received payments are reflected in accounting until the moment of shipment of the products as accounts payable and are recorded in the accounting entry debit of account 51 “Settlement accounts”, credit of account 62, sub-account “Settlements for advances received”.
After the products are shipped, an entry is made in the accounting records as a debit to the subaccount “Settlements for advances received” and a credit to account 62 “Settlements with buyers and customers.”
The organization can use part of the finished product for its own needs, including for capital construction, for service industries and farms, and for other economic needs. Such material assets are credited at their actual production cost to the debit of the corresponding accounts for accounting for material assets (depending on their further purpose) from the credit of account 43 “Finished products”.
Analysis of product sales
The methodology for analyzing product sales includes:1) determining the level of implementation of the product sales plan and assessing its dynamics;
2) identification and measurement of factors influencing changes in sales revenue;
3) assessment of the fulfillment of contractual obligations.
Analysis of the implementation of the plan for product sales is carried out by comparing the actual level with the planned one. To assess the dynamics of sales revenue in conditions of inflation, it is necessary to determine the reality of the amount of this monetary income, “cleared” of inflationary influence. To solve this problem, it is necessary to divide the nominal amount reflected in the statements by the inflation index. Thus, we obtain the value of the indicator in comparable prices. Having data for a number of reporting periods, it is possible to calculate the basic and valuable growth and growth rates, as well as the average annual growth and sales growth rates. Next, the influence of prices and physical volume of sales on the dynamics of sales revenue is assessed.
When analyzing factors influencing changes in sales revenue, the structure of products sold is examined. The share of the main (core) products of the enterprise and the products of non-industrial farms is determined. If the share of the former is low, this indicates the need to switch to the production of new products or repurpose the enterprise.
Assessment of the influence of factors on changes in sales volume compared to the plan or any period is carried out using the balance sheet linkage method.
For comparison, all model factors are recalculated in selling prices. Since in accounting, finished (commodity) and shipped products are shown at cost, to convert them into base prices, a conversion factor is used, established as the ratio of revenue from sales of products at selling prices to the cost of products sold.
After determining the increment of the listed factors, the analyst must establish the reasons that caused their dynamics.
At least three groups of reasons should be considered:
Production-related (determine road accidents);
- related to sales (determined by AGP);
- related to effective demand (determined by ATO).
Analysis of the fulfillment of contractual obligations must be organized in the context of individual contracts, types of products, and delivery dates. At the same time, an assessment is made of the fulfillment of obligations under the contract on an accrual basis from the beginning of the year.
To analyze the fulfillment of contractual obligations for the year as a whole, an analytical table of the following form is compiled for the enterprise.
From Table 4.10 it can be seen that only in December of the reporting year the contractual obligations plan was fulfilled 100%, and in general for the year, products under contracts were under-delivered in the amount of 3,500 thousand rubles, or by 2.6%.
In the process of analysis, the reasons for non-fulfillment of contractual obligations are clarified, which can be either dependent on the enterprise (discrepancy between the volume of output and the volume of supplies, low rhythm of production, etc.) and independent of it (failure to supply material and technical resources, disruptions in transport provision, etc.).
Product sales accounting
The sale of finished products allows the enterprise to fulfill its obligations to the state budget for taxes, to the bank for loans, to workers and employees, suppliers and other creditors and to reimburse the costs of production - all this explains the importance of accounting for product sales.When products (works or services) are released to the buyer, but not paid for by him, they are considered shipped. The moment of sale of the shipped products is the date of crediting the payment from the buyer to the current account or the date of shipment (delivery) of the products to the buyer.
Products are sold in accordance with concluded contracts or through free sale through retail trade.
Products (works, services) are sold at the following prices:
– free selling prices and tariffs increased by the amount of VAT;
– state regulated wholesale prices and tariffs, increased by the amount of VAT (products of the fuel and energy complex and services for industrial and technical purposes);
- for the sale of goods to the population and the provision of services to them - at state regulated retail prices (minus, in appropriate cases, trade discounts, as well as discounts for sales and wholesale) and tariffs, including VAT.
Settlements for inter-republican supplies of goods (works, services) with states that have signed the Agreement on the Economic Community are carried out at prices and tariffs increased by the amount of VAT.
Until the moment of sale, shipped products are recorded on active account 45 “Goods shipped”, which reflects:
– actual production cost of shipped products;
– list price of the container paid by the buyer;
– transport costs reimbursed by the buyer.
The debit of account 45 reflects the amounts payable by customers, and the credit reflects the amounts paid. The account balance reflects the debt of buyers to pay for products, packaging and reimbursement of supplier expenses.
Sold products, work, services are accounted for in account 46 “Sales of products (work, services)”. Its peculiarity is the reflection on debit and credit of the same volume of products sold in different estimates. The debit shows the costs of the enterprise for the production and sale of products: the actual production cost of products sold and commercial expenses, which in total amount to the total actual cost of products sold; the amount of value added tax and excise taxes; list price of the container.
The credit of account 46 reflects revenue from sales of products. Excess of debit turnover is a loss, excess of credit turnover is profit. Account 46 has no balance and is closed monthly in correspondence with account 80.
The procedure for accounting for product sales depends on whether the buyer makes advance payment for the products.
If products are sold without prepayment, then accounting transactions are recorded in the following sequence:
– reflects the list price of the container, paid by the buyer in addition to the cost of the product;
– revenue received from sales;
– the cost of the packaging is written off;
– the buyer reimbursed transportation costs;
So, the procedure for synthetic accounting of product sales depends on the method of accounting for product sales for taxation. Enterprises can determine revenue from the sale of products for taxation at the moment of payment for shipped products, work performed and services rendered, or at the moment the products are shipped and payment documents are presented to the buyer. As noted, in accounting, products are considered sold at the time of their shipment - ownership of the products passes to the buyer. Therefore, with both methods of selling products for taxation, finished products shipped or presented to customers at sales prices (including VAT and excise taxes) are reflected in the debit of account 62 “Settlements with buyers and customers” and the credit of account 46 “Sales of products (works, services)”. At the same time, the cost of products shipped or presented to the buyer is written off to the debit of account 46 “Sales of products (works, services)” from the credit of account 40 “Finished products”. From the amount of revenue of organizations, value added tax and excise tax are calculated (according to the established list of goods).
If the sale is “by shipment”, the amount of accrued VAT is reflected in the debit of account 46 and the credit of account 68 “Calculations with the budget”. This posting reflects the organization's debt to the budget for VAT, which is then repaid by transferring funds to the budget (debit account 68, credit cash accounts).
When selling “on payment”, the organization’s debt to the budget for VAT arises after the buyer pays for the product. Therefore, after shipment of products, enterprises reflect the amount of VAT on sold products in the debit of account 46 and the credit of account 76 “Settlements with various debtors and creditors.” Received payments for sold products are reflected in the debit of account 51 “Current account” and other accounts from the credit of account 62 “Settlements with buyers and customers”.
When payments are received, organizations using the “on payment” sales method reflect the VAT debt to the budget:
D-account 76 “Settlements with various debtors and creditors”;
Set of accounts 68 “Calculations with the budget.”
Repayment of debt to the budget for VAT is formalized by the following posting:
D-t account 68 “Calculations with the budget”;
Set of accounts 51 “Current account”, 52 “Currency account”, etc.
In cases where the supply agreement stipulates a different moment of transfer of the right of ownership, use and disposal of shipped products and the risk of accidental death from the organization to the buyer, account 45 “Goods shipped” is used to account for such shipped products. When shipping products in such cases, they are written off from the credit of account 40 “Finished products” to the debit of account 45 “Goods shipped”. After receiving notice of the transfer of ownership and disposal of the shipped products to the buyer, the supplier writes them off from the credit of account 45 “Goods shipped” to the debit of account 46 “Sales of products (works, services)”. At the same time, the cost of products at the selling price (including VAT and excise taxes) is reflected in the credit of account 46 and the debit of account 62 “Settlements with buyers and customers”. The amount of VAT calculated on the products sold is reflected in the debit of account 46, depending on the sales method used by the organization on the credit of accounts 68 or 76. When using account 76, after payment for the sold products, the accrued amount of VAT is written off from the debit of account 76 to the credit of account 68.
Finished products and goods transferred to other enterprises for sale on commission and other similar basis are also reflected in account 45 “Goods shipped”. When released, they are written off from the credit of accounts 40 “Finished Products” and 41 “Goods” to the debit of account 45 “Goods Shipped”. When notification of the sale of transferred products and goods is received, they are written off from the credit of account 45 “Goods shipped” to the debit of account 46 “Sales of products (works, services)” with reflection in the debit of account 62 “Settlements with buyers and customers” and the credit of account 46 “ Sales of products (works, services).”
The cost of work and services provided is written off at actual or standard (planned) cost from the credit of account 20 “Main production” or 37 “Release of products (work, services)” to the debit of account 46 “Sales of products (work, services)” as invoices are presented for work and services performed.
At the same time, the amount of revenue is reflected in the credit of account 46 “Sales of products (works, services)” and the debit of account 62 “Settlements with buyers and customers”.
Recently, advance payment of finished products has been widely used, in which the supplier issues an invoice and sends it to the buyer. Having received this document, the buyer transfers the payment amount for the products to the supplier using a payment order.
When paying in advance, the amount of received payments is reflected in accounting until the moment of shipment of the products as accounts payable and is recorded as an accounting entry:
D-account 51 “Current account”;
After the product has been shipped, it is considered sold and is written off to the debit of account 62 from the credit of account 46 “Sales of products (works, services).”
In accounting, transactions are recorded in the following sequence:
– finished products are capitalized at actual cost;
– an advance (prepayment) has been received from the buyer;
– products were shipped to the buyer at actual cost;
– reflects the list price of the container, paid by the buyer in addition to the cost of the product;
– transport costs reimbursed by the buyer are reflected;
– the advance payment previously received from the buyer is offset;
– sold products are written off at actual cost;
– the list price of the container is written off;
– transportation costs are reimbursed by the buyer;
– the amounts of excise taxes and VAT on products sold are reflected;
– business expenses are written off;
– the result of the implementation is written off.
In cases where the prepayment is in the form of an advance payment and is not directly related to a specific invoice, received payments are reflected in the credit of account 64 “Settlements for advances received.”
The buyer may refuse to pay for products shipped to him if the goods were sent incorrectly, with a delay in delivery, low quality products, or for other reasons.
Then the supplier’s accounting department makes reverse entries for the shipment of products:
D-t account 40 “Finished products”;
Set of accounts 46 “Sales of products (works, services)”;
Set of accounts 62 “Settlements with buyers and customers.”
With any method of accounting for sales of products, enterprises pay VAT and excise taxes. Objects of VAT taxation are turnover from the sale of goods (works, services) and goods imported into the territory of the Russian Federation.
The calculated amount of VAT on products sold is recorded using the following accounting entry:
D-t account 46 “Sales of products (works, services)”;
Account set 68 “Calculations with the budget”, subaccount “Calculations for value added tax”.
Excise taxes are levied on sales of excisable goods of own production, including their sales to CIS member states.
To determine taxable turnover, the cost of excisable goods is taken, calculated on the basis of:
Free selling prices including the amount of excise tax;
- regulated prices (less trade discounts), reduced by VAT at an estimated rate of 16.67%.
Settlements with the budget for excise taxes are taken into account on account 68 “Settlements with the budget”, subaccount “Settlements for excise taxes”. For the amount of the excise tax in the revenue, account 46 “Sales of products (works, services)” is debited and account 68, subaccount “Calculations for excise taxes” is credited. The transfer of excise tax is reflected in the debit of account 68, subaccount “Calculations for excise duties”, and the credit of account 51 “Current account”.
When using account 36 “Completed stages of work in progress,” accounting has some features. Organizations that perform long-term work (construction, scientific, design, etc.) can recognize the implementation of work and services as a whole for work completed and delivered to the customer or for individual stages of work performed.
In the first option, accounting for product sales is carried out using one of the above methods for accounting for sales of products (works, services). In the second, calculations are made for completed stages or complexes that have independent significance, or the organization is advanced by the customer until the work is completed in the amount of the contract price.
In the second option, account 36 “Completed stages for work in progress” is used. The debit of this account takes into account the cost of work completed by the organization, accepted in the prescribed manner and reflected on the credit of account 46. At the same time, the costs of completed and accepted stages of work are written off from the credit of account 20 to the debit of account 46. The amounts of received payment are reflected in the debit of cash accounts with credit account 64 “Settlements on advances received.”
After completion of all the work, the cost of the stages paid by the customer is written off from account 36 to the debit of account 62 “Settlements with buyers and customers”. The cost of fully completed work, recorded on account 62, is written off to the amount of advances received in the debit of account 64 and to the amount received in the final settlement in the debit of cash accounting accounts.
Cost of sales of products
Cost of products sold - English. Cost of Goods Sold (COGS) also known as English. Cost of Sales is the total direct costs incurred in the production process of a product. They include the cost of materials used in the production process of the finished product, as well as the cost of labor required for its direct production. For example, direct costs include the wages of workers who directly produce products on the production line. At the same time, the wages of workers performing maintenance on this production line are already considered indirect costs. At the same time, the cost of products sold does not include any indirect costs, for example, costs of marketing, accounting or shipping.For any business, it is important to know the exact cost of goods sold, as this helps to identify the types of products that are profitable. By subtracting the cost of products sold from the revenue from their sales, you can determine the gross profit (English: Gross Profit) for each type of product, as well as for the company as a whole. The company's net profit, in turn, is determined by subtracting the cost of goods sold and indirect costs from sales revenue.
Let's look at the mechanism of influence of the above costs on profit using a simple example. Let's say a manufacturer of building materials received sales revenue in the amount of CU 375,000 in the fourth quarter. The amount of direct costs (cost of materials and labor costs for personnel directly involved in production) for this period amounted to 250,000 USD, and indirect costs amounted to 80,000 USD. In this case, the gross profit is 125,000 USD. (375,000 - 250,000), and the net profit is 45,000 USD. (375000 – 250000 – 80000). The cost of products sold in this case is direct costs and amounts to 250,000 USD.
Since the cost of goods sold depends on a number of external factors, such as, for example, the cost of materials used in the production of products, it can vary significantly. For example, a sharp increase in oil prices leads to an increase in prices for gasoline and other petroleum products. Higher prices, in turn, can lead to a drop in demand, which will be reflected in a decrease in sales volume, thereby reducing the net profit of gasoline and petroleum products sellers. Likewise, such a price increase would reduce the cost of products sold, since the physical volume of its sales would decrease. If a company's revenues and expenses decline at the same time, this will not necessarily lead to losses unless the rate of decline in revenues significantly outpaces the rate of decline in expenses.
Similarly, a company whose sales volumes are increasing, which is accompanied by an increase in the cost of goods sold, will not necessarily make additional profits. Ideally, a company should strive to increase its profits by maintaining or reducing its cost of goods sold.
Organization of product sales
Sales channels. The most important part of the entrepreneurial activity of agricultural enterprises of various organizational and legal forms should be the search and selection of the most effective channels for selling products. The point is not only to produce the products the consumer needs, but also to sell them profitably, and in return to purchase the necessary means of production and material resources.The following channels for the sale of marketable products by agricultural producers predominate: sales to the state, enterprises and organizations, consumer cooperation, on the collective farm market, farm workers and the population living on its territory.
When selling products to the state, it acts as a guaranteed wholesale buyer in relation to agricultural producers and accepts products from them at guaranteed prices.
Two levels have been established for the formation and placement of orders for the purchase and sale of agricultural products, raw materials and food: for federal government needs and regional government needs. The volume of the federal fund of agricultural products is determined by the Government of the Russian Federation and is formed through purchases on a contract basis in commodity production zones on the territory of the Russian Federation, and, if necessary, beyond its borders. Volumes regional funds determined by the relevant authorities executive power. They are formed through the purchase of products on a contract basis from their manufacturers, both within the administrative boundaries of the region and beyond.
Orders for the purchase and supply of products for government needs are formed and placed at enterprises through the conclusion of government contracts. The subject of contractual relations are the terms of delivery of products, their volume, assortment, quality parameters, delivery times, economic standards, incentives and sanctions.
The state contract contains effective economic incentives that encourage agricultural producers to enter into contractual relations with the customer. These include: a price system, ensuring guaranteed sales of products, their acceptance directly at the point of production with subsequent centralized removal by transport of producers, assistance in the technical re-equipment of processing shops and ancillary industries, etc. In order to economically stimulate suppliers of agricultural products for government needs they may be provided with income tax benefits, targeted grants and subsidies, as well as allocations from the state budget necessary to ensure an increase in product supplies. The types, amounts and procedure for providing economic and other benefits are established by the legislative and executive authorities of the Russian Federation or its constituent entities when approving a specific target program or upon the proposal of the relevant government authorities.
Of interest is the experience of developing contractual relations in the sale of agricultural products accumulated in foreign countries. On the basis of contractual relations, the activities of various enterprises in the food supply chain are coordinated, which reduces the degree of risk in the production and marketing of products and allows reducing production costs. In particular, contractual relations between wholesale trading companies and processing enterprises, on the one hand, and farmers, on the other, have become widely developed. The former act as integrators: in accordance with concluded agreements, they supply farmers with the necessary means of production (usually on credit) and buy their products. Contracts often establish production technology that ensures the required level of quality and provide for monitoring its compliance.
Of particular interest is the experience of concluding contracts (agreements) of the so-called full integration. In accordance with them, the integrator leases means of production to farmers, remaining their owner, and has complete control over the production process. Nai greater distribution Such contracts were received for the production of vegetables, broilers, eggs, and fattening pigs.
The principle of freedom to choose channels for selling products implies that agricultural producers must receive all the necessary information about the volume and range of purchases of products for government needs, their quality and delivery times, taking into account market conditions. At the same time, prices for purchased products, benefits and incentives, if they are established, are announced. If it is necessary to limit the production and purchase of certain types of products, appropriate quotas may be communicated.
At the same time, in order to monitor the situation on the food market, it is necessary that agricultural enterprises, peasant (farm) farms and other agricultural producers provide information about their intentions (their plans) for selling products through different channels.
It can be predicted that as market relations develop, an increasing part of commercial agricultural products for food and industrial purposes, including the part that is currently sold for government needs under contracts, will be sold through market structures. The most important of them will be agricultural commodity exchanges: here agricultural producers will be able to carry out transactions with large quantities of goods and at the same time enter into contracts for the purchase of necessary means of production. In this regard, interrepublican, interregional and regional year-round exchanges for the sale of grain and its processed products, sugar, potatoes and fruits and vegetables are promising.
Promising channels for the sale of agricultural products include local wholesale markets, including wholesale fairs, auctions, and sales exhibitions. The purpose of participation of commodity producers in such markets is not only to sell or purchase goods, but also to study the demand for the goods they produce.
Mutual supplies of products between agricultural enterprises will remain a major channel for the sale of agricultural products for the foreseeable future. For example, livestock breeding enterprises supply heifers and bull calves to specialized enterprises for targeted rearing or fattening; in turn, the latter raise replacement young stock and return heifers of a certain stage of pregnancy or first-calf cows of a certain stage of lactation to breeding enterprises. Such mutual supply may also apply to crop products (seeds, feed, raw materials for processing).
Economic relations between agricultural enterprises for the mutual supply of products are carried out on a contractual basis. The contracts stipulate the volume and timing of delivery, quality indicators of products, payment procedures, and sanctions for violation of contractual obligations.
Another important channel for the sale of agricultural products is commission trade through consumer cooperation. Consumer cooperation buys potatoes, vegetables, fruits, meat, milk, eggs and other products from agricultural enterprises, peasant (farm) farms and households and uses them primarily to supply the local population. At the same time, it (within its capabilities) organizes counter-sales of feed, fertilizers and other goods for industrial, cultural and household purposes to farmers and the population.
The relationship between the parties on commission trade in agricultural products is formalized by a commission agreement.
The sale of products by agricultural enterprises under direct economic contracts to trade and public catering enterprises has become widespread. This channel makes it possible to eliminate transshipment operations, speed up the delivery of fresh products to consumers, reduce losses during transportation and in the distribution network, and better preserve quality. As a result, the products cost the consumer less than when they are delivered to stores and catering establishments through urban supply bases. However, this sales channel increases the transportation costs of agricultural producers, since stores and catering establishments take only small quantities of products at a time. In addition, for some types of products (milk, etc.), a mandatory condition for sales through direct connections is industrial processing. The sale of products becomes significantly more complicated, since agricultural enterprises interact simultaneously with a large number buyers.
A fairly large channel for the sale of agricultural products is trade on the collective farm market. The peculiarity of this channel is that it brings the product manufacturer into direct contact with the consumer, which makes it possible to study consumer demand. The expansion of trade on the collective farm market is currently hampered by the unsatisfactory organization of delivery of products to farmers and households, as well as by extremely insufficient market funds of industrial products (mixed feed, mechanization tools for working on personal plots) for counter-sale.
Sales within agricultural enterprises for public catering and for sale to employees (including for wages) are a permanent sales channel. The volume of sales through this channel depends on the specific conditions of the enterprise (the level of development of the public catering network, the capabilities and level of development of households, etc.). Typically, agricultural enterprises do not set a goal in this case to obtain maximum profit and sell products at prices close to cost (products sold for public catering and preschool institutions are subsidized by the state). This channel has more social significance and pursues the goal of securing and retaining the workforce in the enterprise.
When choosing promising channels for the sale of agricultural products, the following organizational factors must be taken into account: possible sales volume, product quality, market prices, sales costs, demand for products and the degree of its satisfaction. They also take into account the presence of storage facilities, refrigerators, and processing shops at the agricultural enterprise, which expand the possibilities for selling products in fresh and processed forms.
The starting point for the economic assessment of existing and potential sales channels is the calculation of the amount of profit per unit of products sold. To do this, the amount of product losses during the sales process is subtracted from the proceeds from sales of products. From the remaining amount, the costs of production and sales of products are subtracted and the amount of profit (loss) is determined. When selling products for government needs, the costs of delivering them to places of sale are not taken into account, since they are reimbursed to the enterprise by procurement organizations. However, in cases where the costs of an agricultural enterprise for the delivery of products exceed the level subject to reimbursement, the estimated profit must be reduced by the amount of this excess.
When calculating the amount of profit from the sale of agricultural products of consumer cooperation, it is necessary to take into account that the sales price and the procedure for reimbursement of costs for delivery of products are regulated by the contract.
When selling products on the collective farm market, the price is set taking into account the prevailing supply and demand. The costs of selling products through this channel include the costs of loading, transportation and unloading, and sales (payment of salespeople, rental of warehouse space, etc.). Product losses during transportation, storage and during sale must also be taken into account.
An organizational and economic assessment of channels for selling agricultural products allows not only to make an informed decision regarding their choice, but also to justify proposals for increasing profits from sales. Thus, agricultural enterprises that do not have specialized transport, storage facilities, processing shops, sorting points, etc., may come to the conclusion that their acquisition or construction is advisable. To do this, the expected profit from the sale of products in one way or another is compared with the costs of developing new capacities.
The development of market relations in the agricultural sector makes it possible and necessary to improve procurement activities and the formation of its diverse forms. Along with the state trade and procurement system and consumer cooperation, cooperative and private enterprises, as well as persons conducting individual trade and purchasing activities, participate in the purchase of products from agricultural enterprises and especially from peasant (farm) farms. This improves local supply and creates and expands competition.
Large agricultural enterprises often act as intermediaries in the sale of products produced by peasant (farm) farms and households. On a contractual basis, they buy livestock and other products from farmers and households and sell them primarily for local supply at cooperative trade prices. In this case, the contracts provide for the supply of young animals to farmers and farms for fattening, feed, as well as the performance of work on cultivating crops (plowing, etc.) and production services (agrochemical, veterinary, etc.).
Methods for selling agricultural products differ depending on the place of their acceptance and the conditions of transportation to places of processing (storage).
Most agricultural enterprises deliver products to places of sale using their own transport. This makes it necessary to maintain additional vehicles and labor at enterprises. The costs of delivering products to processing plants often significantly exceed the tariffs for road transportation, which are used by the suppliers (up to 30-50%).
Center pickup has become widespread. Its essence is that products are accepted at production sites by weight, without determining quality parameters, after which they are exported by transport of procurement and processing enterprises. With a good organization of central pickup, for example, milk, delivery schedules to dairy industry enterprises are more clearly observed, which creates the opportunity to improve the quality of products and expand their range. This method allows agricultural enterprises to eliminate unreimbursable costs for transporting products (the difference between the actual costs of agricultural enterprises and payments by processing industry enterprises for the delivery of products at established tariffs), payments for high quality products increase, and quantitative and qualitative losses during transportation are reduced.
At the same time, this method of implementation does not eliminate such serious shortcomings as violation of the technology of storage and processing of products and the associated quantitative and qualitative losses. During central pick-up, harvesters and processors are not responsible for losses.
A continuous, clear rhythm in organizing centers for the export of agricultural products, regardless of weather, technical and other conditions, is an indispensable condition for the transition to this form of interconnection.
As the most acceptable way in modern conditions to establish connections between agricultural, procurement and processing enterprises, the acceptance of products directly from agricultural producers with subsequent delivery for processing (or to the distribution network) by specialized transport of processing enterprises (procurers) is becoming increasingly widespread. At the same time, product losses and transportation costs of agricultural enterprises are reduced, and specialized transport is used more fully.
Reception, for example, of milk at production sites can significantly improve the quality of products. This is due, firstly, to the fact that the time gap between production, processing and consumption of products is being reduced; secondly, a more objective assessment of quality is ensured, since controversial issues in most cases are resolved on the spot; thirdly, the obligations of the parties regarding the timing of acceptance of products at production sites and delivery to processing plants, compliance with quantitative and qualitative parameters are being introduced into practice, which ultimately makes it possible to better regulate its progress through the associated stages of production.
For peasant (farmer) households and households, the acceptance of products on site with removal by transport of processing enterprises (procurers) is most profitable.
Reception at farms and complexes of livestock and poultry with removal by transport of meat processing (or motor transport) enterprises is common. Agricultural enterprises prepare poultry and livestock for delivery according to a pre-agreed schedule, and meat processing plants receive them directly at the farms. This ensures savings in transport costs, clear organization of transportation and a rhythmic supply of raw materials to the meat processing plant, allows you to sharply reduce the time required for pre-slaughter housing of animals and 10 times the loss of live weight during the sales process, and obtain high-quality food products.
The use of specialized vehicles is especially effective for centralized transportation of livestock: in comparison with adapted vehicles, this allows reducing losses to 4.5 kg of live weight per head of large cattle. cattle. At the same time, delivery of livestock by specialized vehicles with a carrying capacity of 5-7 tons over a distance of 100 km costs 30%, and pigs - 26% cheaper than by vehicles with a carrying capacity of 2.5-3.5 tons.
When organizing centralized transportation of livestock and poultry after acceptance at production sites, it is important to determine the permissible radius of transportation.
The practice of handing over and accepting livestock and paying for accepted animals based on the weight and quality of meat received after slaughter has become widespread. This method of implementation helps to increase the interest of agricultural enterprises in improving the meat qualities of livestock prepared for sale, and preventing disputes related to the determination of the weight and fatness of animals.
In this case, the following procedure for delivery and acceptance of livestock is adopted:
The driver of a meat processing plant or a specialized automobile enterprise (receiver) receives livestock directly at the agricultural enterprise according to the number of heads, checks the correctness of filling out the accompanying documents, and delivers it to the meat processing plant;
- workers of the meat processing plant, under the control of representatives of enterprises that deliver livestock, carry out slaughter, processing and weighing of carcasses, their quality assessment, on the basis of which payment is made for livestock received for slaughter.
Obviously, for agricultural enterprises that have good conditions for selling livestock, it is preferable to pay meat processing enterprises for the final product, since they are financially interested in increasing the yield of meat. However, in order to monitor the sales process and resolve possible conflicts between livestock distributors and meat processing enterprises, it is advisable to weigh animals both when dispatched from agricultural enterprises and when received at meat processing plants.
At the same time, when transporting livestock from remote enterprises, live weight may decrease not only due to a decrease in the contents of the digestive tract, but also due to the loss of useful products (meat, fat) through no fault of the suppliers. Therefore, when livestock is held at pre-slaughter sites through no fault of the delivery people and untimely slaughter, meat processing plants must pay agricultural enterprises based on the actual weight of the livestock.
In some regions of Russia and the CIS countries, experience has been accumulated in the acceptance of certain types of crop products at production sites with subsequent removal by transport of the harvesters. Thus, for the beet-growing regions of Russia, the experience of organizing sugar beet export centers in the Cherkasy region of Ukraine is of interest. Here, each beet receiving point, taking into account its capacity, is assigned several specialized agricultural enterprises (loading points).
For the most efficient use of vehicles during transportation, loading and transport teams have been created, which include heavy-duty vehicles, road trains and high-performance loaders. Such teams work primarily at agricultural enterprises with significant sugar beet crops (600-900 hectares). Most of the detachments are interfarm and are not assigned to individual agricultural enterprises. This is due to the fact that with unsatisfactory organization of harvesting and transport work, vehicles brought in for the harvest period are often idle due to lack of cargo, while at other enterprises its removal is hampered due to the lack of vehicles.
During center pick-up, each trucking company is assigned a specific beet sowing zone. The convoy is divided into several teams, which, if necessary, transfer vehicles from one enterprise to another.
Delivery enterprises, sugar factories and motor transport enterprises enter into tripartite agreements with each other for the harvesting period:
Beet growers undertake to comply with the approved digging schedule and minimize root contamination;
- transport workers - release the required number of cars onto the line; plant - do not allow them to stand idle under unloading.
This option for organizing the delivery of sugar beets from the field to the plant has undoubted advantages over the traditional one, which does not provide for the concentration of available technical means. The need for vehicles is reduced by 20%; the daily remains of dug up but not transported beets are reduced by 3-4 times, which helps prevent a decrease in its quality; vehicle downtime for loading and unloading is reduced, their daily output increases by 2 times; due to timely removal, the roots are not allowed to wither, which creates conditions for long-term storage in piles, maintaining good technological properties and reducing waste during storage (from 3.1 to 2.2%).
In suburban areas of the country with large areas of vegetable crops and potatoes, they also organize the acceptance of products at production sites with centralized removal by transport of procurement organizations.
Product sales activities
Analysis of the activities of organizations begins with studying the volume of production and sales of products (works, services). At the same time, special attention is paid to the analysis of production and sales of products, since the main goal of any organization is not just the production of goods, but also their sale.Analysis of production volumes and sales of products is the most important aspect of the functioning of the organization. Costs, profits, profitability, competitiveness and market activity directly depend on the volume, assortment, and quality of manufactured sold products.
The objectives of the analysis may be the following:
Assessment of the results of production and economic activities to summarize the results of the work and justify its stimulation;
- analysis of production and sales of products in order to promptly influence the progress of the production process;
- analysis of the implementation of the production program for forecasting possible results.
Therefore, the analysis of the work of industrial organizations begins with a study of output indicators, which involves the following stages:
Analysis of the formation and implementation of the production program;
- analysis of production volume;
- analysis of the product range;
- analysis of product structure;
- analysis of product quality;
- analysis of production rhythm;
- analysis of the fulfillment of contractual obligations and product sales.
Product production is assessed using natural and conditionally natural indicators, in units of labor intensity and cost. The volume of production in industry is characterized by gross and net products, output - by finished and commercial products, the volume of sales - by sold commercial products. The most important indicators of the volume of products, works and services are: in construction - commercial construction products, the volume of construction and installation work; in transport – freight turnover; in trade – trade turnover.
The volume of work performed in an organization is determined by its labor intensity, i.e. the amount of labor expended. The total volume of production in value terms is characterized by gross output, which depends not only on labor intensity, but also on the material intensity and profitability of the manufactured products.
It is necessary to use all the meters that help identify the impact various factors on the results of production activities. Using various meters (standard hours, standard wages, standard cost of processing, etc.), the implementation of the plan for the labor intensity of products is determined, which in many cases better characterizes the actual volume of work performed than the full cost indicators.
Standard labor units of measurement are used to analyze the implementation of the plan for production volume, mainly in cases where, in conditions of multi-product production, it is impossible to use natural units of measurement.
The use of product labor intensity indicators to evaluate the results of production activities allows us to clarify these results and identify the influence of side factors on the indicators of production volume and output. At the same time, measuring products in labor intensity units also has disadvantages associated with the content of the meters themselves.
Let's consider the main indicators characterizing the production and sales of products.
The cost indicators of the production program reflect the volume of products (services) produced in cost measures.
Main cost indicators:
GP (gross output);
- TP (commercial products);
- RP (sold products).
Gross output is the entire volume of products produced at an enterprise for a certain period of time (month, quarter, year), regardless of the degree of its readiness. Gross output characterizes the total volume of work of the organization. It includes both finished and unfinished technological processing products, the so-called work in progress.
Work in progress is the cost of unfinished products at all stages of the production process from the first technological operation to the acceptance of products by the technical control service of the organization. The formation of work in progress is necessary to organize the continuous movement of the product through technological operations.
Gross output is determined by the formula:
VP=TP±DNP±DPF=TP+(NPK-NPN)+(PFK-PFN),
where DNP is the change in work in progress balances, rub.
NPK – work in progress at the end of the period, rub.
NPI – work in progress at the beginning of the period, rub.
DPF – change in the balance of semi-finished products, rub.
PFC – amount of remaining semi-finished products at the end of the period, rub.
NPN – amount of remaining semi-finished products at the beginning of the period, rub.
Elemental composition of gross output:
1. Ready-to-consume products produced during the reporting period of time by all industrial production workshops of the enterprise.
2. The cost of semi-finished products of own production, sold externally in the reporting period, i.e. supply of products to organizations, construction sites, as well as supply for non-industrial and non-production needs of your enterprise.
3. The cost of products from by-product and auxiliary workshops sold externally in the reporting period.
4. Cost of industrial work outsourced.
5. Changes in the cost of leftover semi-finished products of own production and products of by-products and auxiliary workshops.
6. Change in the value of work in progress balances.
If some of the finished products are made from customer materials, then when calculating the gross output, the cost of raw materials and supplies is not excluded from the cost of the finished products.
Commodity products represent the cost (full production cost plus the amount of profit included in the selling price) of all types of finished products, industrial work and services produced over a certain period of time and intended for outsourcing.
The following elements of gross output are not included in commercial output:
1. Change in the cost of leftover semi-finished products of own production and products of by-products and auxiliary workshops.
2. Change in the value of work in progress balances.
3. The cost of raw materials and materials of the customer, if they are not paid by the manufacturer.
Means of product sales
Wholesale trade is the activity of selling goods (services) to those market entities that purchase it (them) for the purpose of resale or professional use.Consequently, both retail trade enterprises and industrial enterprises, and artisans, and other large consumers (catering enterprises, government agencies, etc.)
Such activity is inherent in both the manufacturer and resellers located at subsequent levels of the distribution channel - “before retailers.”
Resellers for whom this activity is the main activity are called “wholesalers.”
Retail trade is any activity of selling goods (services) directly to end consumers for their personal non-commercial use.
Buyers are individuals or groups of people; Moreover, it does not matter at all how the product is sold (by mail, by telephone, through vending machines or through personal sales) and in what exact place it is sold (in the sales area, at the buyer’s home or on the street).
This type of activity is common to both retailers and individuals. Resellers whose primary activity is this are called “retailers.”
There are a great many intermediaries in modern trade relations.
However, they can be divided into several types based on their independence (independence from the manufacturer):
1) distribution bodies of the manufacturer (department, sometimes - enterprise management, traveling salesmen, sales branches);
2) actual resellers and distribution partners:
- resellers include wholesale and retail organizations that develop an independent distribution policy and a set of measures for its implementation, independent of the manufacturer. They acquire ownership of the goods and then act at their own discretion;
- sales partners include persons who are legally and economically independent and who perform a “supporting” function (agents, brokers, brokers, forwarders, sales representatives, commission agents). They, as a rule, do not acquire ownership of the goods, but only “align” the interests of producers and entities interested in purchasing the goods.
Types of product sales
Distribution channels for goods or products mean a chain of companies or individuals involved in their movement from manufacturer to consumer. Channels are characterized by the number of links involved in the process, as well as how functions are distributed between them.The chain itself consists of the manufacturer, intermediaries and the final consumer. Intermediaries are not agents or sellers. But they are a full-fledged part of the process. The channels themselves are a structure whose purpose is to sell products.
The main division involves two categories:
1. Straight. The manufacturer independently, without intermediaries, solves the problems of selling its products. For example, through a network of own stores.
2. Indirect. A number of intermediaries are involved in the distribution process, that is, the chains can be long or short. Short ones are those highways where only one intermediary is involved. Long - more than one.
Indirect sales
Indirect types of distribution channels are usually divided into:
1. Single-level. Involves the participation of one intermediary in the process of selling goods. In industrial markets, this is a broker or sales agent; in consumer markets, this is a retailer.
2. Two-level. Here there are two intermediaries between the producer and the consumer. In industrial markets it is a dealer and distributor, in consumer markets it is a wholesaler and retailer.
3. Three-level. In this case, the company's products pass through three intermediaries. These can be: a seller of large wholesale quantities, a seller of small wholesale quantities and a retail seller.
When a manufacturing company chooses the type of sales of products via the highway, it must be remembered that it must be optimal for a specific product, since all of the above have their own advantages and disadvantages.
Direct movement of goods has an extremely limited number of target markets, and also involves the accumulation of products in warehouses.
In addition, in this case the manufacturer will independently solve problems of product support after the sale. This requires financial investment and the availability of resources.
An indirect or indirect distribution channel involves a complete lack of contact between the manufacturer and the consumer. But they significantly increase the number of target markets, reach large-scale consumer audiences, increase sales volumes, thus increasing the manufacturer’s profit.
Chain organization
Product sales lines can be organized in different ways, so distribution channels are managed using various mechanisms:
The traditional classical scheme involves the presence of a manufacturer, several wholesalers and several retailers. Each individual link in the channel, in its own interests, tries to get maximum profit, even to the detriment of the entire structure.
Vertical marketing system. This scheme consists of a manufacturer and several intermediaries who act together as a single entity. There are subtypes of vertical marketing: corporate (production and distribution are under the same ownership), contractual (individual enterprises, based on contracts, coordinate their actions so that the system has the highest commercial results) and managed (production and distribution are coordinated not by the owner, but by the most large-scale enterprise).
Horizontal marketing system. Several separate enterprises create a single company for joint implementation products.
Multichannel marketing system. The manufacturer uses several different distribution options simultaneously and manages the channels independently.
The specificity of distribution channels is that once a choice has been made, it will be extremely difficult for the manufacturer to change anything.
Therefore, before making a choice in favor of one or another implementation chain, it is necessary to analyze a number of factors:
Analysis of the profitability of a certain highway for goods;
analysis of product markets;
level of correspondence of the channel to the target audience of consumers;
the ability to control the flow of goods;
level of competition;
share of the maximum possible profit;
minimal costs of resources and money;
estimated sales volumes;
the opportunity to expand sales markets and attract new customers.
Factors may be different; they depend on the specifics of the industry in which the manufacturer operates. But the listed provisions play a significant role in the effectiveness of the chosen product distribution scheme. The selection strategy is simple: the highway is selected, which, based on a combination of factors, is the most efficient.
Sales channels
IN modern Russia indirect or indirect distribution channels are a reality. Even simply due to the large-scale territory of the state, which is difficult to develop alone.
When choosing one channel or another, and there are many of them today, the following factors must be taken into account:
Level of knowledge and skills in the distribution of goods from producer to consumer, mastery of strategies for a specific market;
the amount of knowledge about the conditions of a particular market where the goods are expected to be sold;
availability of financial resources that are necessary in the field of product sales;
availability of the necessary resources (material base) that are necessary in the field of product sales.
The main functions of intermediaries in the distribution chain:
1. External logistics. A set of measures to ensure the availability of goods for the buyer.
2. External marketing. Collection of marketing information, in particular about the desires and needs of the target audience. Promoting a product on the market through promotions, advertising, etc. Working with the target audience to convince them of the necessity and importance of this product.
3. External service. A set of activities aimed at gaining a product’s reputation, maintaining and increasing it.
Manufacturers choosing a distribution channel for their products (including intermediary organizations) need to understand one simple thing: to coordinate not on minimizing the costs associated with organizing and maintaining a specific distribution channel, but on how consumers perceive this intermediary: they trust, contact, prefer his. Thus, the reputation of the intermediary plays an important role in the effectiveness of the distribution channel. This factor must be taken into account at the beginning of creating a product distribution chain.
Result of product sales
Financial result is the final economic result of the economic activity of an enterprise, expressed in the form of profit (income) or loss.Balance sheet profit (loss) - consists of profit (loss) from sales, interest payable minus payable income on shares and from participation in joint activities, other income minus other expenses.
Profit (loss) from sales is determined on account 90 “Sales” and written off to account 99 “Profits and losses”.
Active-passive account 90 “Sales” is intended to summarize information on income and expenses associated with the organization’s normal activities, as well as to determine the financial result for them.
Subaccount 90-1 “Revenue” takes into account receipts of assets recognized as revenue.
Subaccount 90-2 “Cost of sales” takes into account the cost of sales for which revenue is recognized.
Subaccount 90-3 “Value added tax” takes into account the amount of value added tax due from the buyer (customer).
Subaccount 90-9 “Profit/loss from sales” is intended to identify the financial result (profit or loss) from sales for the reporting month.
Entries for subaccounts 90-1, 90-2, 90-3, 90-4 “Excise taxes” are made cumulatively during the reporting year. A monthly comparison of the total debit turnover in subaccounts 90-2, 90-3, 90-4 and credit turnover in subaccount 90-1 determines the financial result (profit or loss) from sales for the reporting month. This financial result is written off monthly (with final turnover) from subaccount 90-9 to account 99 “Profits and losses”. Thus, the synthetic account 90 does not have a balance at the reporting date.
At the end of the reporting year, all subaccounts opened to account 90 “Sales” (except for subaccount 90-9) are closed with internal entries to subaccount 90-9 “Profit/loss from sales”.
Analytical accounting for account 90 is organized for each type of goods sold, products, work performed, services provided, etc. In addition, analytical accounting can be maintained by sales regions and other areas necessary for managing the organization.
The scope of entrepreneurial activity is the sale of goods, products, performance of work, provision of services, and income from this activity is recognized as revenue from the sale of products and goods, receipts associated with the performance of work, provision of services, i.e. income from ordinary activities.
In particular, this is the proceeds from the sale of:
1. Finished products and semi-finished products of our own production.
2. Works and services of an industrial and non-industrial nature.
3. Purchased products (purchased for completion).
4. Construction, installation, design and survey, geological exploration, R&D.
5. Products.
6. Services for the transportation of goods and passengers, communication services.
7. Forwarding and loading and unloading operations.
For certain types of transactions, organizations can determine independently whether the proceeds from them are revenue or whether they belong to other income.
These types of operations include:
Provision by organizations for a fee for temporary use (temporary possession and use) of their assets under a lease agreement;
- provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property;
- participation in the authorized capital of other organizations.
The amount of revenue from the sale of goods, products, performance of work, provision of services, etc. is reflected in accounting at the time of its recognition.
Revenue is recognized in accounting if the following conditions exist:
A) the enterprise has the right to receive this revenue arising from a specific agreement or confirmed in another appropriate manner;
b) the amount of revenue can be determined;
c) there is confidence that as a result of a specific transaction there will be an increase in the economic benefits of the enterprise (this confidence exists in the case when the enterprise received an asset as payment or there is no uncertainty regarding the receipt of the asset);
d) the right of ownership (possession, use and disposal) of the product (goods) has passed from the enterprise to the buyer or the work has been accepted by the customer (service provided);
e) the expenses that have been incurred or will be incurred in connection with this operation can be determined.
If at least one of the above conditions is not met in relation to cash and other assets received in payment, then accounts payable are recognized in accounting, not revenue.
At the time of recognition of revenue, the following entries are made in accounting:
The amount of cost of goods, products, works, services sold related to the recognized amount of revenue is written off:
D 90 K 20, 23, 41, 43, 45.
In the event that, in accordance with the accounting policy, administrative and commercial expenses are recognized in the cost of sold products, goods, works, services in full in the reporting year of their recognition as expenses for ordinary activities, they are subject to write-off as semi-fixed:
D 90 K 26, 44.
At the same time, the accounting reflects the amount of taxes and fees, the payment obligations of which arise for the enterprise at the time of recognition of sales revenue (VAT, excise taxes):
D 90 K 68, 76.
Product sales process
The product sales process can be divided into four periods:The first period actually comes down to concluding contracts for the supply of products. The second includes drawing up a plan for the sale of products and the balance of unsold products in the warehouse of the enterprise's sales department.
In the third sales period, products are shipped to consumers. This period is important when assessing the fulfillment of obligations to sell products, taking into account the enterprise’s compliance with the terms of signed supply contracts.
The implementation process ends with the fourth period, which is characterized by the receipt of money in the bank account of the supplier company.
The implementation process is influenced by many factors, including the following:
Established delivery dates for products;
increasing production output due to growth and improved use of production capacities and fixed assets;
labor productivity;
commissioning of new facilities and equipment;
ensuring uniform loading of production units;
increasing serial production;
number of working days in each quarter;
seasonality and work shifts;
seasonality of product sales;
the possibility of disposal of fixed assets, as well as the shutdown of individual workshops for various production, technical or organizational reasons;
discontinuation of obsolete, unprofitable products that do not find consumers.
Income from product sales
The production process ends with the delivery of products to the consumer. Sales of products (T - D") is the final stage of the enterprise's capital circulation (D - T... V... T" - D"), which is its important indicator. The movement of goods and funds creates the basis of economic relations between producers, suppliers, intermediaries and buyers.For a manufacturing enterprise, the sale of products is evidence that it meets the needs of customers and public demand in terms of consumer properties, quality and range.
Thus, the result of the sale of products takes monetary form - the form of proceeds from the sale of manufactured goods, which should go to the current account of the enterprise. Revenue minus taxes is business income, and is a source of reimbursement of funds spent on the production of products and the formation of cash funds and financial reserves of the enterprise. As a result of using the proceeds, qualitatively different components of the created value are separated from it.
The cost of manufactured products (work performed, services provided) can be expressed through the selling price. In this case, sales are also called the corresponding accounting account, as well as a certain legal parameter: sales is the process of transferring ownership rights for sold products, goods and services on a paid or gratuitous basis. The sale of products means not only the sale of manufactured goods that have a natural material form, but also the performance of work and the provision of services.
Proceeds from the sale of products (works, services) are the funds received to the company's current account for products shipped to the buyer. According to international standards, the moment of sale is considered “upon shipment”.
Enterprises can use one of two methods for accounting for revenue, and, accordingly, planning it, depending on what is considered the moment of sale of products - receipt of money to the current account (at the enterprise's cash desk) for products shipped to the buyer or shipment of products and presentation of payment documents to the buyer .
In the first case, if revenue is planned upon receipt of money to the current account (at the enterprise's cash desk), the balances of unsold products at the beginning of the planning period include the following elements:
Finished products in warehouse;
goods shipped for which payment was not due;
goods shipped but not paid for on time by the buyer;
goods in safe custody of buyers.
Cash in rubles received by an enterprise as a result of the mandatory sale of foreign currency earnings is credited to its current account.
The proceeds received into the company's current account are immediately used to pay bills from suppliers of raw materials, materials, components, semi-finished products, spare parts, fuel, and energy. From the proceeds, taxes are deducted to the budget, deductions to extra-budgetary funds, wages are paid on time, depreciation of fixed production assets is reimbursed, expenses provided for in the financial plan and not included in the cost of production are financed.
Product sales cost
Sold products characterize the cost of the volume of products that entered the market in a given period and are payable by consumers.The cost of products sold is defined as the cost of finished products intended for delivery and payable in the planning period, semi-finished products of own production and industrial work intended for external sales (including major “repairs of one’s own equipment and vehicles, carried out by industrial production personnel), as well as the cost of selling products and performing work for its capital construction and other non-industrial enterprises on the balance sheet of the enterprise.
Cash receipts associated with the disposal of fixed assets, tangible current and intangible assets, the sale value of foreign currency assets, securities are not included in the proceeds from the sale of products, but are considered as income or losses and are taken into account when determining the total (balance sheet) profit.
The volume of products sold is calculated based on current prices without value added tax, excise taxes, trade and sales discounts (for exported products - without export tariffs). Products sold for industrial works and services, semi-finished products of own production are determined on the basis of factory contract prices and tariffs.
The volume of products sold (RP) according to the plan is determined by the formula:
RP = He + TP – Ok,
where TP is the volume of marketable products according to the plan;
He and Ok are the balances of unsold products at the beginning and end of the planning period.
The balance of unsold products at the beginning of the year includes:
Finished products in the warehouse, including shipped goods, the documents for which have not been transferred to the bank;
shipped goods for which payment was not due;
shipped goods not paid for on time by the buyer;
goods in safe custody of the buyer.
At the end of the year, the balance of unsold products is taken into account only for finished products in the warehouse and shipped goods for which payment has not yet arrived.
All components of sold products are calculated in selling prices: balances at the beginning of the year - in current prices of the period preceding the planned one; marketable products and balances of unsold products at the end of the period - in prices of the planned year.
In accounting, products shipped and delivered by the customer on site and products sold are distinguished, while the moment of sale is considered to be the receipt of funds into the supplier’s bank account. An enterprise can choose one of the accounting policy options: determine profit either by the difference between the cost and the cost of shipped products (i.e., until the customer actually pays for them), or only after the customer pays for physically shipped products. The company does not have the right to change its accounting policy during the year.
Based on the volume of products sold, its total cost and profit from sales are calculated.
A number of enterprises plan and evaluate activities based on net production, which is determined by subtracting material costs and the amount of depreciation of fixed assets from marketable products, which in market conditions corresponds to the concept of “gross income.”
Product sales plan
The enterprise's product sales plan establishes the volume and structure of supplies of manufactured products, as well as the planned amount of revenue and profit from product sales.The main sources for drawing up a product sales plan are:
Order portfolio and supply agreements concluded on this basis;
- data on product inventories in the enterprise’s warehouses at the beginning and end of the planning year;
- wholesale prices and cost of products to be sold;
- timing of development of new types of products;
- measures to improve production efficiency;
- calculations for the development and use of production capacities;
- planned technical and economic norms and standards for the previous year.
When planning the sale of products, they proceed, first of all, from the need for products that are the subject of specialization of the enterprise. The scale of demand is compared with the available production capacity. As a result of this comparison, the need for expansion or reconstruction of the enterprise and the possible scale of production and sales of products are determined.
To determine the volume of production and sales of products, natural and cost measures are used. Natural meters can only be used when producing homogeneous products. Cost indicators usually include indicators of commercial output and gross output. These indicators are determined in wholesale prices. Commercial products are products that are outsourced and not consumed within the enterprise. Gross output characterizes the volume of all products produced at the enterprise. It consists of marketable products, changes in work in progress balances, semi-finished products and tools of own production at the beginning and end of the planning period.
Work in progress refers to products that have not yet been manufactured and are at different stages of the production process from the launch of materials into production for the first operation to the delivery of finished products and their inclusion in commercial products. Determining the size of work in progress is of great importance for the enterprise: its overestimation entails additional non-production costs; causes a slowdown in the turnover of working capital, and understatement disrupts the rhythmic flow of production and leads to downtime. The calculation of work in progress is carried out differently depending on the type of production.
The gross output indicator is used to determine the dynamics of production volume, the number of main workers, labor productivity and wage funds, drawing up a logistics plan and production cost estimates. The volume of commercial products does not fully reflect the actual state of the specified technical and economic indicators.
In case of significant changes in the structure of manufactured products or changes in the volume of cooperative supplies, the gross turnover indicator can be used to justify the volume of production, which, unlike gross output, accurately determines the volume of production activity of the enterprise. Gross turnover includes the cost of gross output produced by the main, auxiliary and service departments of the enterprise, and the cost of services and work of an industrial nature, regardless of their purpose. Gross turnover is equal to the sum of the gross output of all departments of the enterprise and exceeds the gross output of the enterprise by intra-factory turnover. Intra-factory turnover includes: the cost of own production, the cost of used tools and all types of energy generated in-house, services of factory transport and repair shops, etc. The calculation of gross and intra-factory turnover is made on the basis of identifying the needs of each workshop for the products and services of other workshops, including auxiliary and service workshops.
Product sales market
Every entrepreneur, before starting his own business, asks himself one of the main questions: “Where will I look for clients?”, “Who can become my client?” and “What does a potential buyer require from my product?” Books on marketing help answer these questions, providing tools for analyzing the market, calculating the elasticity of demand, determining product costs, and much more.A product sales market is an economic space where sellers present their goods and services, and buyers have the opportunity to familiarize themselves with what is presented and pay for what they need. In other words, this is a place (store, showroom, market, online platform, exhibition, etc.) where the seller sells the goods to the buyer.
Product market direction
So, you already know what you will produce, what qualities the product (service) will have, what kind of service it will provide and other aspects related to business processes in the company.
Now determine whether you will sell goods (services):
1. to the final buyer (direction B to C or business for clients; direction HoReCa goods and services for food and hotel business)
2. distributors (B to B direction or business to business).
Depending on how you answer the question, you will be able to choose the optimal platforms for posting information about products. This way, end buyers of goods are more likely to want to visit the store in order to see and test your product.
Information about some products or services can be successfully placed on the resources of Internet sites. The main feature of this placement is the intuitive design of the site and the sufficiency of information to make a choice.
In this case, the product sales scheme will be as follows:
MANUFACTURER > BUYER (shortest chain). The manufacturer can sell its goods in small batches or work on individual orders.
The situation is completely different if you produce services and goods for the B to B market. In this case, your customers will consider not only the goods, but also the services that you offer, and they will also be interested in the system of discounts when purchasing in large quantities goods, terms of delivery, payment.
In this case, your clients can be both large stores, where the range of goods sold exceeds thousands of items, and private entrepreneurs at fairs.
This interaction can be described by the following diagram:
MANUFACTURER > STORE > BUYER or
MANUFACTURER > INTERMEDIARY > STORE > BUYER.
The longer the chain from MANUFACTURER to BUYER, the higher the cost of the product for the final buyer, since each link in the chain wants to make a profit from the products sold, therefore, its own costs are added to the purchase price of the product, which automatically increases the purchase price of the product for the next buyer.
Working according to this scheme, the MANUFACTURER must have sufficient production capacity to produce the product in batches.
Industry affiliation of the product
A market sector is a part of production that differs in the type of products produced. Russia has adopted a classifier of types of economic activities (OKVED), products and services. This classifier is developed by the Ministry of Economy, the Committee for Standardization, Metrology and Certification and put into effect by the State Standard of Russia.
The classifier presents products and services by sections, subsections, groups, and types.
So the classifier presents to our attention the following product sections:
Agricultural, hunting and forestry products;
Fishery products and services;
Mining and quarrying products and services;
Manufacturing industry products and services;
Electricity, gas and water supply;
Services in wholesale and retail trade, services for maintenance and repair of cars, household appliances and personal items;
Hotel and restaurant services;
Transport, warehousing and communication services;
Financial intermediation services;
Services related to real estate, rental, research and commercial activities;
Services in the field of public administration and defense, compulsory social insurance services;
Educational services;
Health and social services;
Other communal, social and personal services;
Services for maintaining private households with hired services;
Services provided by extraterritorial organizations and bodies.
Market level
The market is determined by the product or service being sold, so the products are:
1. Economy class - goods of medium and low quality at a low price. Household goods. Produced in large batches. Sold through economy class chain stores such as Pyaterochka, Kopeika, Avoska, etc.
2. Middle class - have an average level of quality and are affordable for a wide range of consumers. Products are produced in large quantities and are designed for buyers who pay attention to the price-quality combination. They are sold through retail outlets, shops, etc.
3. Premium class – good quality products at above average prices. Sales are carried out through multi-brand stores, other stores for which certain requirements are imposed (convenient location, parking, status, etc.). Buyers of such goods want, first of all, to emphasize their status and importance in society.
4. Luxury - high quality goods at a high price. Products are produced in small batches. Such products are sold in branded stores that emphasize the philosophy and spirit of the brand. Such goods include cars, clothing, jewelry, houses, apartments, healthcare services, cosmetology, legal services, etc.
5. Deluxe class - unique products of the highest quality, produced in limited quantities, occupy a high price segment. Only very wealthy citizens can become consumers of such goods. Such goods include works of art, cars, yachts, etc.
Geography of the sales market
Previously, in the manager’s office there was a map of Russia, where flags marked the cities with which the company interacts. The more flags on the map, the greater the geographic market coverage of a given company.
The geography of the sales market is the topological location of the points of sale of your goods and services.
You can sell your goods and services in the following areas:
1. cities (villages, hamlets) where you produce your goods or services (“where you were born, you fit in”);
2. several cities;
3. region;
4. countries;
5. other countries (international trade, export of goods and services).
The wider the distribution area of goods and services, the greater the role played by transportation costs and logistics (the science of delivering and storing cargo) in the cost of goods.
International trade involves the development of contracts taking into account the laws of the country where your counterparty is located. In this regard, you will either need an international lawyer or the services of a law firm.
Market size
The market volume is expressed in rubles and is calculated by summing up sales for the year by all companies of the same type of goods. It is difficult to independently determine the market volume; therefore, it is common to use the services of analytical companies. Another source of data can be the ROSSTAT statistical data website, which displays data both for the whole of Russia and for large cities.
The market is divided between players (market participants who sell similar products). Participation in the market is usually reflected as a percentage, taking the entire market for these goods as 100%.
Depending on the volume of the market occupied, leadership in the area is determined.
Sales of a unit of production
The planned cost per unit of production is determined by calculation.There are the following methods for calculating products:
Direct calculation;
apportionment;
eliminating the cost of by-products;
summation of production costs;
normative method;
combined method.
Direct calculation method. All production costs taken into account under costing items are divided by the number of units of output.
Method of proportional distribution. Production costs are distributed among individual types of products in proportion to the economically justified base. The choice of base depends on the characteristics of production and products.
A method for eliminating the cost of by-products. The products obtained in the main production are divided into main and by-products. No calculation is made for the cost of by-products, and the cost of by-products at predetermined prices is excluded from the total cost of the main production. By-products can be valued at sales prices or at purchase prices for raw materials and supplies.
A method for summing up production costs. The unit cost of production is determined by summing up the production costs for individual parts of the product or its manufacturing processes.
The normative method is an integral part of the normative cost accounting method and is based on the use of calculation of the normative cost per unit of production and taking into account deviations from norms and standards.
The combined method is used when one of the above methods cannot be used. It is a combination of several methods;
2) cost based on the completeness of inclusion of expenses:
Workshop;
production (general plant);
full (production + auxiliary production + service production and facilities).
When calculating the price of commercial products, it would be more correct to use the full cost price, since it takes into account all expenses incurred by the organization;
3) cost based on production volume:
Units of production;
the entire production volume.
When calculating the price of commercial products, as a rule, the unit of production indicator is used.
Production costs can be divided into the following types:
By impact on the cost of the final product: direct and indirect;
in relation to production capacity utilization: variable and constant;
in relation to the production process: production and non-production;
by consistency in time: constant in time and episodic in time;
by type of cost accounting: actual and standard (costing);
by divisional proximity to manufactured products: production and non-production.
Direct and indirect costs. The composition of direct and indirect costs depends on the technological process and the range of products.
In production, direct costs include material assets, semi-finished products and spare parts, losses from defects, electricity, depreciation of fixed production assets, basic and additional wages of production workers, social insurance contributions from these wages.
The remaining costs are defined as indirect.
A specific list of cost items is established by the organization independently and approved in the accounting policies of the organization.
Depending on the calculation method established in the organization, the cost may include direct and indirect costs - the full cost. The cost price can only consist of direct costs. Indirect expenses at the end of each month are completely written off against the financial results from the sale of products (works, services) - incomplete cost.
Fixed and variable costs. Fixed costs include depreciation, maintenance personnel, insurance, advertising, loan payments, etc.
Fixed costs do not depend on changes in output and exist even when the firm does not produce anything.
Variable costs include the cost of raw materials, materials, fuel, payment of production workers, etc. Variable costs change in proportion to changes in the volume of production.
Proximity to manufactured products. Production costs are costs directly related to the production of goods (works, services). Such expenses include basic expenses, expenses of auxiliary production, general production and general business expenses.
Basic expenses are expenses directly related to the production of products (works, services).
Auxiliary production is energy facilities that serve production with types of energy (electricity, steam, gas, air), transport facilities that serve production, repair shops, container shops, workshops for the production of tools, dies, spare parts, refrigerators, etc. Auxiliary production is intended to perform work (provide services) for the needs of the main (or servicing) production or for third parties.
General production costs are the costs of maintaining, organizing and managing production (main, auxiliary, servicing). These include:
Expenses for the maintenance and operation of machinery and equipment;
depreciation charges and costs for repairs of property used in production;
costs for heating, lighting and maintenance of premises;
rent for premises;
remuneration of workers engaged in production maintenance;
other expenses similar in purpose.
General expenses are expenses not directly related to the production process. These include:
Administrative and management expenses;
maintenance of general business personnel;
depreciation charges and expenses for repairs of fixed assets for management and general economic purposes;
rent for general business premises;
expenses for payment of information, auditing, consulting, etc. services;
other administrative expenses similar in purpose.
Non-production expenses are expenses not related to production, for example, expenses of service industries and farms, landscaping of the territory.
Service industries include: housing and communal services, consumer service workshops, subsidiary agriculture, canteens and buffets; children's preschool institutions, rest homes, sanatoriums and other health, cultural and educational institutions that are on the balance sheet of the organization.
Service industries and farms are intended to perform work (provide services) for the needs of the main (or auxiliary) production, for the non-production needs of the organization (dormitories, canteens) or for third-party organizations.
