Calculation of the need for credit funds for production. Determining the need for working capital (working capital)

20.09.2019

Andrey Yakovlev
company financial analyst
"Service-Product"
Magazine " Financial management"
No. 7-8 (85) July-August 2009

What is the company's need for working capital in the current financial fashion to reduce? An analysis of the enterprise will help answer.

Today, the "buoyancy" of an enterprise largely depends on how the work with suppliers and buyers is built, or rather, how well the company's accounts payable and accounts receivable are balanced. It is these two parameters that mainly determine the need for business debt financing, if we do not take into account all kinds of investment projects to create new and modernize existing production and trading capacities, which are currently frozen at most enterprises. And in order to determine the company's needs for borrowed money, it is better to start with an analysis of the sales structure, existing margins, the turnover period of accounts payable and accounts receivable, as well as the timing of the goods in transit and in the warehouse.

What data is required

Let's consider how the need for borrowed funds is calculated using the example of the trading company "Service-Product". The company specializes in the distribution of alcoholic and juice products, in the range of about 2000 items, of which the most popular items are about 200. Purchases are made directly from manufacturers, respectively, for each supplier the range of products supplied is unique. Like the vast majority Russian companies, Service-Product faced an acute shortage of borrowed funds due to the crisis.

Table 1 Calculation of the financial cycle of the company (days)

Counterparty name	Deferred payment provided by suppliers	Deferred payment provided to customers	Time for delivery of goods	Stock of goods in stock	Financial cycle of the company (group 3 + group 4 + group 5-group 2)
Supplier No. 1	30	35**	5	21	31
Retail	-*	30	-	-	26
networks	-	45		-	41
Supplier No. 2	45	35	0	14	4
Retail	-	30	-	-	-1
networks		45		-	14
For the company as a whole	39 (30 x 41% + 45 x 59%)***	35(35X41% + 35X59%)	2 (5 X 41% +0 X 59%)	17(21 X 41% + 14 X 59%)	15

* The indicator does not depend on where the goods will be sold - retail or wholesale to the distribution network.

** Deferred payment granted to customers is calculated using the formula (Deferred payment for retail customers X Their share in the turnover determined in purchase prices + Deferred payment for networks X Share in the turnover determined in purchase prices).

*** Elements of the financial cycle for the company as a whole are determined taking into account the shares of suppliers in the company's turnover, determined in purchase prices.

The calculation of the need for debt financing and the search for ways to reduce it began with the collection and systematization of indicators characterizing business activity (see Table 1), namely:

the duration of the deferred payment provided by the supplier (accounts payable turnover period);

the terms during which buyers pay for the goods purchased from the "Service Product" (receivables turnover period);

the time of storage of goods in the warehouse and the presence of goods in transit.

All of this information was obtained from contracts with suppliers and contractors and from management records. For example, in an effort not to lose the trust of suppliers, "Service-Product" does not allow even the slightest delay in payments. Therefore, to calculate the financial cycle of the enterprise, contractual deferrals provided by suppliers were used.

With regard to the maturity of accounts receivable by customers, the situation is different. Not all of them can boast of strict payment discipline, therefore, the terms during which buyers pay for the products supplied to them were determined as the average period of receivables turnover for the previous month.

The time spent by the goods in transit is data from the management accounting of the company. And we are talking about the terms of delivery of goods from suppliers, but the time for transportation to the client is not taken into account. This is due to the fact that the contracts under which Service-Product operates assume that the moment of delivery of the goods is the date of its shipment from the manufacturer's warehouse.

To determine the time of storage of goods in the warehouse, a twofold approach was used. For a number of suppliers, this characteristic is determined on the basis of concluded contracts. This is due to the fact that some manufacturers oblige the distributor to keep a certain volume of their products - for example, the minimum balance of goods must be at least five days of sales volume. This requirement is strictly observed in the Service-Product, however, there are no stocks exceeding the standard established by the manufacturer. For the products of other suppliers that do not impose such restrictions on the distributor, the shelf life of their products was determined as the inventory turnover period based on the previous month's statistics.

In addition to the above data, in order to calculate the need for debt financing, Service-Product needed to determine the turnover in purchase prices (the cost of goods supplied by manufacturers). Moreover, accounting data preferred a more complex approach to determining this indicator. Its essence boils down to an analysis of the structure of turnover and markups that apply to goods from different manufacturers (see Table 2). In the course of work on optimizing the financial cycle, these data will be needed to analyze how certain management initiatives will affect the financial performance of the company. Let's make a reservation right away that such a solution became possible due to the fact that trade margins are tied to suppliers, and not to specific names or categories of their goods. This is a fairly standard pricing practice for many distribution companies.

Table 2 Main indicators of the trading company for the month

Counterparty name	Share in turnover, %	Turnover, rub.	Markup, %	Gross profit, rub.*	Turnover in purchase prices, rub.	Share in turnover in purchase prices, %
Supplier No. 1	40	4 000 000	13	474308	3 525 692	41
Retail	70	2 800 000	15	365 217	2 434 783	69
networks	30	1 200 000	10	109 091	1 090 909	31
Supplier No. 2	60	6 000 000	18	934 783	5 065 217	59
Retail	70	4 200 000	20	700 000	3 500 000	69
networks	30	1 800 000	15	234 783	1 565 217	31
Total	100	10 000000	16	1409 091	8 590 909	100

* Gross profit in rubles per month = Turnover: (1 + Margin) x Margin.

Calculation of the need for debt financing

The need for debt financing can be determined as the difference between the available companies in this moment own working capital and the amount of working capital necessary to maintain the existing financial cycle.

The amount of available own working capital is calculated based on the balance sheet data using the following formula:

Own working capital \u003d Equity capital (p. 490) + Long-term liabilities (p. 590) - Non-current assets (p. 190).

Of course, ideally, you will have to draw up a management balance sheet so that the data contained in it are relevant at the time of the calculations.

And the amount of working capital required by the company can be calculated as the product of turnover in purchase prices and the company's financial cycle (reduced to 30 days), which is determined by the classical formula:

Fiscal Cycle (Days) = Customer Deferral (Days) + Delivery Deferral (Days) + Inventory Hold Time (Days) - Vendor Deferral (Days).

By the way, the logic of calculating the financial cycle of a manufacturing enterprise will be similar in many respects, with the only difference being that the time spent on production will be added to the formula, and the shelf life of stocks will need to be calculated separately for stocks finished products, semi-finished products, raw materials and materials.

Example 1

Own current assets of the trade enterprise amount to 4 million rubles. The financial cycle for the company as a whole is 15 days (see Table 1 on page 21), and the turnover in purchase prices is 8,590,909 rubles (see Table 2 on page 22). Accordingly, in order to work with suppliers and customers on the same terms, the company needs 4,295,455 rubles of working capital (8,590,909 rubles X 15 days: 30 days). Hence the need for financing to replenish working capital is 295,455 rubles (4,295,455 - 4,000,000). (On the journal's website www.fd.ru, you can download the MS Excel file, which contains all the calculations described in the article - for this you need to click on the link "Additional material" located next to the title of this article.)

Is it worth changing something in working with contractors

By itself, the calculation of the need for funding is undoubtedly useful. CFO the enterprise receives a clear reference point, in fact, this is exactly what the limit on the credit line should be, about which it is necessary to negotiate with banks. But in a crisis, when bankers are extremely wary of borrowers, getting the necessary funding is problematic. However, using the data collected in the previous steps, it is possible to develop a set of solutions that will help the company to become less dependent on bank financing and assess the risks and losses associated with them.

As a rule, such measures come down to the fact that the payment delays provided to customers are reduced, and, conversely, the terms of payment to suppliers are increased.

Example 2

Let's take the previous example. Suppose a company managed to increase the delay in payment under contracts with suppliers by 3 days and reduce the time allotted for paying for goods delivered to customers by the same amount. In addition, it turned out to reduce inventory to 14 days and get rid of the loss of time for delivery - 2 days (of course, the time for transportation will not go anywhere, but in the contract with the supplier you can specify that delivery is considered the date the goods arrive at the distributor's warehouse, and not the moment of shipment from the seller's warehouse). Then the financial cycle of the enterprise will no longer be 15 days, but only 4 days. Accordingly, the amount of working capital required for the company's operations will be RUB 1,145,455 (RUB 8,590,909 X 4 days: RUB 30). At the same time, the need for credit resources will disappear, and moreover, 2,854,545 rubles (4,000,000 - 1,145,455) can be invested.

At the same time, when calculating the future increase in cash flow, do not forget about the risk:

an increase in the number of late payments by customers;

increase in uncollectible receivables;

untimely payment for goods shipped by suppliers and the subsequent accrual of penalties;

reduction in turnover due to the lack of any demanded goods in the warehouse.

Perhaps the only difficulty and certain subjectivity in such calculations is the assessment of how the analyzed indicator will change after the optimization of the financial cycle. Most often, the entire calculation is based on expert judgments. However, in the practice of the Service-Product company, data obtained from the analysis of accumulated statistics is often used. Let us illustrate how this works in relation to the risk of an increase in bad receivables after the reduction of customer payment deferrals. In the company's practice, a situation has developed in which no more than 5 percent of the total volume of products supplied to customers remains unpaid by buyers. Oddly enough, it works here psychological factor: since they have reduced the deferred payment for me, then I will collect products from them and will not pay until they drag me to court. According to the company's statistics, a decrease in deferral to customers results in an increase in uncollectible receivables by 0.05 percent. Accordingly, planning to once again reduce the delay in payment to counterparties, the company's management assumes that the increase in the volume of non-payments will not exceed 0.05 percent. And the losses associated with such a decision can be estimated as the product of existing bad receivables by 0.05 percent. By analogy, you can act in relation to all other risks.

By the way, developing measures to optimize the need for working capital, it will be quite justified if we consider the savings and additional costs not in general, but for each specific initiative: increasing the delay in payment of debts to suppliers, reducing inventory, etc. The fact is that some decisions will be unprofitable for the enterprise, which may remain unnoticed if you calculate only "total savings from the complex shortening of the financial cycle" and "total additional losses associated with planned changes".

In the process of using ongoing investments in fixed assets (fixed capital), the enterprise feels the need for financial means for the purchase of raw materials, materials, fuel, the formation of stocks, the payment of wages, etc. All these funds represent working capital. Describing its essence, it should be noted that working capital not only transfers its value to products during the operating cycle (from the moment of purchase of raw materials, materials and other types of resources to the moment of receipt of money from the sale of products), but also includes cash and those assets which, in the normal course of business, will be converted into cash within one year from the date of the balance sheet.

The operating cycle at the enterprise consists of the following stages:

purchase of raw materials, materials and other similar valuables and payment of supplier invoices;

processing of raw materials and materials in order to obtain marketable products and remuneration of employees at the expense of available funds;

sale of finished products and presentation of payment documents to buyers;

cash receipts from customers for products sold.

Reducing the time for all stages of this cycle is of great importance in the effective management of working capital. If it is possible to pay for goods (products) after their sale, the need for working capital can be significantly less. This provision also applies to economic entities of trade and others.

Working capital, as indicated in the asset of the balance sheet, includes inventories, inventories, work in progress and finished products, prepaid expenses, receivables (accounts presented for payment), cash (in cash, on settlement bank accounts, other accounts).

Each enterprise determines the total amount of working capital and its structure according to the specified components (the share of certain types of working capital in their total amount on quarterly dates on average per year).

The most important function of working capital is to use them as assets for the production of profits. The very name of these funds (capital) testifies to the importance of their turnover (turnover). For these purposes, the value of working capital is estimated by the number of their turnovers for a certain period and is measured by the number of days when their stocks will ensure the functioning of the enterprise. So, for the purposes of analysis, planning and organization of control over the state of stocks of raw materials, materials, finished products, etc., the amount of stocks in days is calculated according to the following formula:

where Tdn is the amount of stock in days;

Мі - stocks of non-necessary (i) type of resources in natural units of measurement;

Oi is the average daily consumption of the required (i) material in the same units;

The same calculations can be performed in the valuation of stocks and average daily consumption at the same (purchase) prices.

Each company calculates the average size stocks by arithmetic mean if there are data for two dates and chronological average if there are data for three or more dates. To assess the state of inventory management, their turnover is calculated in days and times according to the following formulas:

where T 0b - turnover in days;

T p - Turnover in times;

Average stocks for a certain period in total;

About days - one-day expense in the amount for the same period.

where V real - sales volume for a certain period; - average stocks for the same period.

The calculation of the average turnover is the ratio of the cost of goods sold to the average value of stocks at the same prices. Another indicator is the number of days required for one inventory turnover: 360 days is divided by the average inventory turnover in times. Day turnover is one measure of liquidity because it expresses the rate at which inventory can be turned into cash.

The main factor determining the size of the stock is, as can be seen from the above provisions, the volume of sales. Based on the fact that sales volume is an indicator of the level of demand, using scientific methods inventory management, it was found that the increase in stocks is not linearly dependent on the volume of sales (demand), but that the volume of stocks is proportional to square root from the sales scope.

At enterprises great importance has a reasonable estimate of stocks, which is studied in connection with the movement of the Products, and the determination of their value. In practice, the cost of inventories is most often determined by the three most convenient methods - FIFO, LIFO and weighted average cost.

According to the FIFO method, when the price level increases, inventory is recorded at the price of the first batch received at the warehouse, which causes an increase in profit in the income statement compared to that which would be indicated if inventory were taken into account as part of costs at their current price.

The LIFO method involves valuing stocks at the end of the period at last purchase prices. The main goal of this method is to bring the cost of goods sold as close as possible to the last cost of their acquisition.

It is obvious from the above provisions that, at a stable price level, the estimate inventory both methods will be the same. As prices change, the results of using these methods will vary greatly.

The amount of taxes paid based on the results of activities for the period strongly depends on the accounting method. More high income, obtained using the FIFO method, is taxed as income from production activities, although it presents a fictitious profit from the use of the first received and therefore cheap batches of inventory.

The weighted average cost method eliminates cost fluctuations in inventory valuation and cost of goods sold.

The choice of inventory valuation methods affects the result of determining the cost of production and the amount of profit from its sale.

The LIFO method makes it possible to more reasonably estimate the reserves, as it more accurately reflects the existing costs. And the FIFO method establishes the best ratio of revenue and costs.

In conditions of inflation, interest in the LIFO method increases when writing off raw materials and materials to the cost of production. This method delays the effect of inflation as long as commodity prices continue to rise. It allows you to defer income tax payments, which is a real benefit.

The advantages and disadvantages of each method should be evaluated by the leaders (managers) of the enterprise and give preference to one of them. The use of different methods at the same time when calculating the above indicators or solving certain problems is not allowed.

For specific types of working capital, the one that most fully characterizes their consumption is chosen as the basic estimated indicator. So, for auxiliary materials, such an indicator is their average daily consumption, for containers - the annual (quarterly) volume of marketable products, for tools general purpose and overalls - the average annual number of employees.

The amount of cash needed by a well-managed enterprise is a safety stock that is used to cover short-term imbalances. cash flows. So, in the event of a decline in the volume of sales of finished products and maintaining the volume of purchases of raw materials, materials and other resources at the current level, it is necessary to resort to attracting additional funds. Analysis is a means of establishing the need for funds. The importance of this resource in the enterprise is judged by the fact that the lack of cash is more than another factor that influences the solution of the issue of the insolvency of the enterprise.

Currently, the need for working capital is determined on the basis of the prevailing value for the past period. This approach complicates the process of managing this important type of resource. It is necessary to put standards (private by types of working capital and generalizing by their totality) as the basis for their planned value. In market conditions, each enterprise can establish such standards. At those enterprises where the specified approach to working capital management is used, they achieve success and consider the standard as the minimum planned amount of funds for organizing the uninterrupted course of economic (production, trading) activities.

The need for material resources is determined in terms of their types for the main and non-core activities of the enterprise and their reserves necessary for normal functioning at the end of the period (month, quarter, year). The total requirement can be calculated using the following formula

where P 0 - total need;

MP ij - the need for the 1st type of materials for the release of the j-th type of product (based on the production program and the increase in work in progress);

3 i - stocks of the i-th type necessary for the normal functioning of the enterprise material resources at the end of the period.

The calculation of the entire need should be based on the norms and norms of resource consumption per unit of production and stocks.

The magnitude of the planned need for the corresponding type of material resources for the implementation of the main production program, as can be seen from the formula and logic, is determined by multiplying the consumption rate by the amount of output (volume of work performed).

The duration of funds in work in progress depends on the duration of the production cycle, the rate of growth of costs for work in progress and the number of days in the forthcoming period.

Separately, the need for resources for experimental and experimental work, for repair and maintenance needs, etc. is calculated.

The total need for working capital is determined by summing up the needs for certain types. This calculation can also be made according to the following scheme: multiply the average annual value of working capital for the reporting period by the ratio of the growth rates of volumes economic activity(trade, production, etc.) and the growth rate of the average annual value of fixed assets according to data for the last 2-3 years.

AT " methodological recommendations on the development of the financial policy of the enterprise" much attention is paid to the management of working capital ( in cash, marketable securities), receivables, payables, accruals and other short-term financing. Addressing these issues is of paramount importance. It is in this direction that the main problem of financial management is most clearly manifested: the choice between profitability and the probability of insolvency, when the value of the company's assets becomes less than its accounts payable.

It is expedient for the financial service of an enterprise to constantly monitor the sequence of terms for financing assets, choosing one of several methods that exist in practice (financing by short-term and long-term loans or mainly by one of these methods, compensation of assets by liabilities with an equal maturity - hedging).

Indicators of the movement of working capital, their ratio with other components of the capital of the enterprise are recommended by the government for study financial stability and business activity enterprises.

When assessing the working capital of an enterprise, it is necessary to comprehensively analyze the indicators of financial stability for several recent years. These data should be taken into account, like many other indicators, for assessments of the enterprise's performance and by external users of reporting, such as investors, shareholders and creditors.

It's about learning:

the ratio of borrowed and own funds. The ratio of all liabilities to equity, which must be less than 0.7. If this value exceeds 0.7, then this indicates a loss of financial stability;

coefficient of provision with own funds. The ratio of own working capital to their total value. The lower limit is -0.1. The higher this indicator (about 0.5), the better the financial condition of the enterprise;

the coefficient of maneuverability of own working capital. The ratio of own working capital to the total value equity. The normal value of this indicator is 0.2 - 0.5. The higher its value, the more opportunities for financial maneuvering.

Of great importance for each enterprise is the complete security of the need for resources with sources of coverage. In practice, a distinction is made between internal (own) and external sources covering the need. To solve this problem, the need for the import of materials from outside is calculated according to the following scheme: the entire need minus the value of own internal sources. Under them, it is necessary to conclude contracts for the purchase of materials from suppliers. Contracts should provide for an assessment of the rhythm of deliveries and measures of responsibility. To assess the rhythm of deliveries, indicators such as the standard deviation, the coefficient of uneven supply, and the coefficient of variation are used.

For rational use working resources, it is necessary to determine their minimum value, which ensures the smooth operation of the enterprise. The lack of working capital leads to downtime in production, and the surplus leads to a decrease in the efficiency of using the capital of the enterprise.

Each enterprise determines the total amount of working capital and the amount of their individual types at the beginning of each month, quarter, on average per year.

To determine the need for working capital, it is recommended to calculate their standards. Traditionally, normalized working capital includes inventories, work in progress, deferred expenses and finished products in stock.

For production stocks, the purpose of rationing is to establish the optimal balance of raw materials and materials, fuel and other material assets in warehouses from the moment of receipt of materials to transfer to production. In many industries, funds in inventories account for more than 60% of all working capital, therefore, the rationing of this element of working capital should be carried out most carefully, since the presence of unreasonably high stocks leads to a slowdown in the overall turnover of working capital of the enterprise. If the production reserves are too small, this may cause interruptions in the supply of production with raw materials, the necessary materials.

Rationing of work in progress and semi-finished products own production is important for industries with a long technological cycle.

The required amount of finished products in warehouses depends largely on the type, characteristics of the product, its permissible shelf life, transportation conditions, the availability of the necessary space, storage containers, etc.

An accurate calculation of the enterprise's need for working capital is carried out on the basis of a study of the time spent by working capital in the sphere of production and circulation according to the stages of their circulation.

The residence time of working capital in the sphere of production covers the period during which working capital is in the state of stocks and in the form of work in progress. The residence time of working capital in the sphere of circulation covers the period of their stay in the form of residues of unsold products.

Rationing of working capital- this is the rationale for the norms of individual elements of working capital, usually in days, taking into account the indicators of the production program of the enterprise.

Working capital rate (T norms) is expressed in days minimum requirement in certain types of material circulating assets, ensuring an uninterrupted production process.

Working capital ratio (OS norms)- the estimated value of the need for working capital in monetary terms, which is determined as follows:

where R d- average daily consumption of raw materials, materials, other material values, rub.

In practice, the following methods of normalization of working capital are used:

direct account (technical and economic calculations);
analytical;
coefficient.

The most accurate and reasonable calculations are obtained on the basis of the establishment of norms for individual elements of material circulating assets. direct count method.

1. Rationing of stocks of raw materials, materials, purchased semi-finished products.

To calculate the standard stocks of raw materials, materials use the planned one-day consumption of raw materials, materials for each type of product and the norms of stocks of raw materials, materials in days ( T norms stock)" which include the following items:

current (warehouse) stock ( T tech);
safety stock ( T fear),
transport stock ( T transp),
technological margin (T);
preparatory stock (T subg).

Thus, the stock rate in days is determined by the formula

current stock determined by the frequency of supplies of raw materials, materials. Its value during normalization is taken in the amount of 50% (1/2) of the average delivery interval.

Transport stock in days can be set as the difference between the time spent by raw materials, materials in transit and the time of document circulation or by dividing the average value of material assets in transit by their one-day consumption.

Technological reserve created during the preparation of materials for production, including analysis and laboratory testing. It is taken into account if it is not part of the production process. Usually the norm of this stock is 1 day.

Preparatory Stock- this is the time for acceptance, unloading, sorting, storage of raw materials, materials, laboratory analysis.

Example FOR. Calculation of stock rate in days (T standard reserve) and the norm of working capital in stocks ( OS norms reserve) on the main raw material for the production of product A.

The planned average daily consumption of raw materials is 2 tons. The price of 1 ton is 50 thousand rubles. The supply of raw materials in accordance with the contract is carried out with a frequency of 16 days. The safety stock rate is 25% of the current one. Transport stock - 2 days, technological stock - 1 day, preparatory stock - 1 day.

The stock rate of the main raw material will be

Average daily consumption of raw materials at cost

Working capital ratio in stocks of basic raw materials for product A

Similar calculations are made for each type of product, then the results are summarized and the general standard of working capital in stocks of raw materials, materials, purchased semi-finished products for the enterprise is determined.

2. Rationing of working capital in work in progress.

The working capital ratio in work in progress depends on the following factors:

1) on the volume and composition of products;
2) duration technological cycle;
3) the cost of production;
4) the nature of the increase in costs in the production process.

The volume of production directly affects the value of work in progress: the more products are produced, ceteris paribus, the greater will be the size of work in progress. A change in the composition of manufactured products affects the value of work in progress in different ways.

With an increase in the share of products with a shorter production cycle, the volume of work in progress will decrease, and vice versa.

The cost of production directly affects the size of work in progress: the lower the cost of production, the lower the volume of work in progress in monetary terms, and vice versa.

The volume of work in progress is directly proportional to the duration of the technological cycle, equal to the time from the moment of the first technological operation before acceptance of the finished product at the finished product warehouse. The reduction of inventories in work in progress contributes to the improvement of the use of working capital by reducing the duration of the technological cycle.

The standard of working capital in work in progress is calculated by the formula

where OS norms np- standard of working capital in work in progress for the planned period (quarter), rub.;

TP- marketable products valued at full cost in the planning period, rubles;

D - the number of days in the planning period, days;

^cycle- duration of the production cycle, days;

K nz- coefficient of increase in costs.

The cost escalation factor characterizes the degree of product readiness. There are two methods for calculating the coefficient. At uniform cost escalation ratio is defined as the ratio of the sum of 100% one-time initial costs and 50% incremental costs ( wage, depreciation of equipment, overheads, etc.) to the sum of one-time and incremental costs (production cost):

where W e - one-time initial costs, rub.;

W n- increasing costs, rub.

Example 3.5. Calculation of the standard of working capital in work in progress for product A with a uniform increase in costs.

The manufacturing period of product A (duration of the production cycle) is 8 days. The cost of raw materials and materials for the production of product A is 1,700 rubles, the subsequent evenly increasing costs are 1,000 rubles. The production cost of commercial products for product A in the first quarter in accordance with the cost estimate is 3600 thousand rubles.

Working capital ratio in work in progress for product A for the 1st quarter:

At uneven increase in costs to calculate the coefficient, it is necessary to study the nature of the increase in costs by stages of the production cycle. In doing so, the formula is used

where 3 i- expenses for i-th period time on an accrual basis by days of the production cycle (r = 1,2,...,p), rub.;

C - the planned cost of the product, rub.;

^cycle- duration of the production cycle, days.

Example 3.6. Calculation of the standard of working capital in work in progress with an uneven increase in costs for product B.

The cost of product B is 1000 rubles. The duration of the production cycle is 4 days. Costs on the first day - 500 rubles, on the second - 700 rubles, on the third - 800 rubles, on the fourth - 1000 rubles. The volume of marketable output of product B at cost in the first quarter is 2250 thousand rubles.

Cost escalation factor:

The standard of working capital in work in progress in the first quarter for product B:

The calculations made for each product are summarized.

When calculating the standard of working capital for work in progress, you should pay attention to the fact that the minimum stock can be expressed in one day, the maximum - in a period reflecting the duration of the production cycle.

3. Rationing of working capital in stocks of finished products.

The standard for the balance of finished products is determined as the product of the norm of working capital and the one-day output of marketable products in the coming year at the production cost

where OS normgp - the standard of working capital in stocks of finished products, rub.;

TP d- average daily volume of marketable products at production cost, rub.;

T norms gp - the rate of working capital in stocks of finished products, days.

The rate of working capital in stocks of finished products is set depending on the time required:

for the selection of certain types of products and their acquisition in a batch;
packaging and transportation of products from the warehouse of suppliers to the sender's station;
loading.

The standards are calculated by type of product, and then summed up.

Example 3 7. Calculation of the standard of working capital in stocks of finished products for product C.

The planned volume of marketable output for product C in the first quarter is 10,800 thousand rubles. Finished goods stock norm 2 days.

The standard of working capital in stocks of finished products for product C will be

4. Rationing of working capital in deferred expenses. Working capital ratio in deferred expenses ( OS norms rbp) can be determined by the formula

where R n- the amount of funds in deferred expenses at the beginning of the planning period, rubles;

R pr- expenses incurred in the planned period, rub.;

P c - expenses written off to the cost of production in the planned period, rub.

Aggregate working capital ratio is determined by summing up the standards for individual elements of working capital.

The direct counting method is associated with a large amount of calculations, therefore, the norms determined on its basis are usually used for a long time, clarifying with significant changes in the production program or technologies. More simple is analytical method, based on the analysis of working capital and the efficiency of their use in the reporting period, taking into account changes in technology and organization of production.

Example 3.8. Calculation of the standard of working capital for the quarter by the analytical method.

In the IV quarter of the reporting year, the average amount of working capital industrial enterprise amounted to 63,280 thousand rubles, including: stocks of raw materials - 58,700 thousand rubles, work in progress - 1,720 thousand rubles, finished products - 1,610 thousand rubles, deferred expenses - 1,250 thousand rubles. In the process of analysis, excess stocks in the amount of 2250 thousand rubles were identified.

In the first quarter of the coming year, in line with the growth in output, it is planned to increase raw material stocks by 8% and reduce work in progress by 330,000 rubles. by improving the technological process.

Working capital in stocks of finished products will amount to 1,450 thousand rubles in the first quarter, and 1,160 thousand rubles in deferred expenses.

The required amount (standard) of working capital in the first quarter of the planned year will be:

At coefficient method, the standard of working capital of the previous period is adjusted, taking into account the acceleration of the turnover of working capital and changes in the volume of output in the planned period.

Example 3.9. Calculation of the standard of working capital by the coefficient method.

The average annual amount of material circulating assets of the enterprise in the reporting year amounted to 50,000 thousand rubles, the turnover ratio of working capital - 9. In the planned year, the volume of marketable products will increase by 15%. The company identified opportunities to accelerate the turnover of funds invested in the formation of inventories and work in progress by 4 days.

The average circulation time of material circulating assets in the reporting year will be 40 days (360: 9), in the planned year - 36 days (40 - 4). Turnaround time decreased by 10% (change ratio 36:40 = 0.9).

The amount of working capital of the enterprise, other things unchanged, should increase in accordance with the growth in the volume of marketable products by 15% (growth factor 1.15). However, the acceleration of turnover helps to reduce the need for working capital by 10%.

The standard of material circulating assets in the planned year will be

The average amount of material circulating assets will increase in the planned year compared to the reporting year by 3.5%:

A separate type of working capital planning is the calculation of the amount of working capital of an enterprise in receivables for the coming period.

Calculation of the required amount of working capital in receivables (OS dz) carried out according to the formula

where RP d- the average daily volume of products sold according to the plan, rub.;

K s / H - the ratio of the cost and selling price of products;

T dz- time of circulation of receivables according to the plan, days.

Example 3.10. Calculation of the amount of working capital in receivables.

In the fourth quarter of the reporting year, the time of circulation of receivables is 15 days. Improving the management of receivables, application in the planning period effective systems control over its movement will speed up the time of its circulation by 3 days. The planned volume of products sold in the first quarter of the coming year will amount to 86,000 thousand rubles. The ratio of the cost and selling price of products will be equal to 0.71.

According to the plan, the average daily volume of products sold in the first quarter will be:

The circulation time of receivables in the first quarter will be:

Working capital in receivables according to the plan will be:

Compliance with the normative values of working capital at enterprises contributes to resource saving, increasing the efficiency of activities.

test questions

1. What is meant by working capital of an enterprise?
2. Describe the circulation of working capital of an industrial enterprise.
3. What is the composition of the working capital of an industrial enterprise?
4. What is meant by working capital assets?
5. What is the composition of circulating production assets?
6. What is meant by circulation funds?
7. What is the composition of circulation funds?
8. What indicators are used to assess the effectiveness of the use of working capital?
9. What factors determine the company's need for working capital?
10. What is meant by normalization of working capital?
11. What is the difference between the concepts of "norm" and "norm" of working capital?
12. How to calculate the standard of working capital in stocks of raw materials, materials for an industrial enterprise?
13. How to calculate the working capital ratio in work in progress?
14. How to calculate the working capital ratio in stocks of finished products in warehouses?

When planning the needs of an enterprise in working capital, 3 methods are used:

Analytical;

coefficient;

direct counting method.

Analytical Method involves determining the need for working capital in the amount of their average actual balances, taking into account the growth in production volume. It is used in those enterprises where funds invested in material values and costs have a large share in the total amount of working capital.

At coefficient method stocks and costs are divided into those dependent on changes in production volumes (raw materials, materials, costs of work in progress, finished products in stock) and those not dependent on it (spare parts, IBP, RBP). For the first group, the need for working capital is determined based on their size in the base year and the growth rate of production in the coming year. For the second group of working capital, the need is planned at the level of their average actual balances over a number of years.

The direct account method provides for a reasonable calculation of reserves for each element of working capital, taking into account all changes in the level of organizational and technical development of the enterprise, transportation of inventory items, and the practice of settlements between enterprises. This method is used when organizing a new enterprise and periodically clarifying the need for working capital of existing enterprises. In general, its content includes the following stages of work:

development of stock standards for certain major types of inventory items (inventory and materials) of all elements of normalized working capital, expressed in days of stock, percent, rub. etc. The reserve rate is calculated for each element of defense assets and characterizes the minimum amount of stock of goods and materials for a certain period of time, which is necessary to ensure continuity production process;

calculation of the average daily consumption of this type of goods and materials based on their consumption according to the estimate of production costs. The average daily expense is calculated as the quotient of the corresponding production costs for 90, 180, or 360 days;

determination of the standard of own working capital in monetary terms for each element of working capital and the total need of the enterprise for working capital.

Rationing of working capital is carried out in the following areas:

rationing of working capital invested in inventories;

determination of the need for working capital invested in work in progress;

normalization under the item “Expenses of future periods”;

rationing under the article “Finished products”;

regulation of work in progress.

Let's take a closer look at these areas:

1. Rationing of working capital invested in inventories.

Min. requirements for other stocks \u003d one-day consumption * stock rate in days.

One-day expense = expense in Q4 / 90 days.

In industries where production is seasonal, the standard is determined by the quarter in which there is the least need for working capital. At the same time, peak loads are covered by bank loans.

The process of normalizing working capital at an enterprise is also important because in the course of such work, the practice of supplying, placing and consuming working capital is analyzed.

The stock rate is calculated as follows:

To determine the stock rate, the calculation is carried out for that part of the raw materials, materials that make up 70-80% of the product cost. The stock rate for other stocks is the sum of several intermediate stocks, i.e. from the residence time of raw materials and materials in one state or another:

1. current/warehouse stock;

2. guarantee/insurance stock;

3. transport stock;

4. unloading, acceptance, storage of materials;

5. technological reserve / drying, cutting, selection, cleaning.

The main of these types of stocks - current/warehouse stock (I).

The purpose of the current stock is to ensure the production process between deliveries, therefore the value of the current stock is primarily determined by the intervals between deliveries. The interval between deliveries can be determined on the basis of supply contracts. If the ties are stable, then the supply contract is for 1 year, where the delivery dates are determined.

The peculiarity of calculating the current stock rate is that an enterprise can have not one, but several suppliers.

The norm of the current stock is usually taken half interval between deliveries. At the same time, the stock is maximum on the day of delivery.

where N– stock standard;

O- one day expense

H- the stock rate in days.

However, it is not always necessary to take the current stock rate equal to half the delivery interval:

1. The current stock rate should be taken equal to 100% if the company has a small number of suppliers (1-2 pieces), i.e. their deliveries do not overlap others.

2. If the delivery interval is short (5-6 days), then there is a high probability of supply failure, therefore, it is necessary to take the value of the current stock equal to the frequency of receipts, i.e. 100%.

As a rule, in the absence of supply contracts, practically established supply intervals are taken as the basis for calculating the norms of raw material reserves.

Not taken into account atypical deliveries:

excessively large;

overly small.

Delivery interval = 360 / number of receipts(if there are no deviations in the frequency and quantity of deliveries).

In this case, deliveries falling on 1 day are equated to one delivery.

Determining the need for working capital

Enterprises operating on the principles of commercial accounting must have a certain property and operational independence in order to conduct business profitably and be responsible for the decisions made. Under these conditions, it becomes extremely important to determine the needs of enterprises in their own working capital, playing leading role in the normal operation of enterprises.

The need of enterprises for their own working capital is established in the process of rationing, ᴛ.ᴇ. determination of the standard of working capital. The purpose of rationing is to determine the rational amount of working capital diverted for a certain period into the sphere of production and the sphere of circulation.

The need for own working capital for each enterprise is determined when drawing up a financial plan. The amount of own working capital depends on the volume of production, conditions of supply and sale, the range of products manufactured, and the forms of payment used.

Rationing of working capital is carried out in monetary terms. The basis for determining the need for them is the cost estimate for the production of products (works, services) for the planned period. To determine the standard, the average daily consumption of normalized elements in monetary terms is taken into account. For inventories, the average daily consumption is calculated according to the corresponding article of the cost estimate for production; for work in progress - based on the cost of gross or marketable output; for finished products - based on the production cost of commercial products.

During the normalization process, private and collective standards. The normalization process consists of several successive steps.

Initially, stock standards are developed for each element of normalized working capital. Norm - ϶ᴛᴏ relative value corresponding to the volume of the stock of each element of working capital. As a rule, the norms are set in days of stock and mean the duration of the period provided by this type of material assets. For example, the stock rate is 24 days. Therefore, stocks should be exactly as much as will be provided by production within 24 days.

The stock rate can be set as a percentage, in monetary terms, to a certain base.

The norms of working capital are developed by the financial service of the enterprise with the participation of services related to production and supply and marketing activities. Based on the rate of stock and consumption of this type of inventory, the amount of working capital necessary to create normalized reserves for each type of working capital is determined. This is how private standards are defined.

By adding private standards, the total standard is calculated.

Working capital ratio represents the monetary expression of the planned stock of inventory items, the minimum required for the normal economic activity of the enterprise.

They mainly use such methods of normalization of working capital as the method of direct counting, analytical, coefficient.

Direct Count Method essentially consists in the fact that at first the value of the advance of working capital in each element is determined, then by their summation the total amount of the standard is determined.

Analytical Method is applied in the case when in the planning period there are no significant changes in the working conditions of the enterprise compared to the previous one. In this case, the calculation of the working capital ratio is carried out on an enlarged basis, taking into account the ratio between the growth rates of production volume and the size of normalized working capital in the previous period.

At coefficient method the new standard is determined on the basis of the old one by making changes to it, taking into account the conditions of production, supply, sale of products (works, services), and settlements.

In practice, it is most expedient to use the direct counting method. The advantage of this method is its reliability, which makes it possible to make the most accurate calculations of private and aggregate standards. The private ones include the norms of working capital in production stocks: raw materials, basic and auxiliary materials, purchased semi-finished products, low-value items, spare parts; in work in progress and semi-finished products of own production; in deferred expenses; in finished products. The peculiarity of each element determines the specifics of normalization.

The standard of working capital advanced in raw materials, basic materials and purchased semi-finished products is determined by the formula:

where H is the standard of working capital in stocks of raw materials, basic materials and purchased semi-finished products;

P - average daily consumption of raw materials, materials and purchased semi-finished products;

D is the stock rate in days.

The average daily consumption for the range of raw materials consumed, basic materials and purchased semi-finished products is calculated by dividing the amount of their costs for the corresponding quarter by the number of days in the quarter.

Determining the stock rate is the most time-consuming and important part of rationing. The stock rate is set for each type or group of materials. If many types of raw materials and materials are used, then the norm is set for the main types, which occupy at least 70-80% of the total cost.

The stock rate in days for certain types of raw materials, materials and semi-finished products is set on the basis of time, which is extremely important for the creation of transport, preparatory, technological, current warehouse and insurance stocks.

Transport stock necessary in cases where the time of movement of goods in transit exceeds the time of movement of documents for its payment. In particular, the transport stock is provided in the case of payments for materials on the terms of advance payment.

The transport stock in days is defined as the difference between the number of days of cargo run and the number of days of movement and payment of documents for this cargo.

Preparatory Stock provided in connection with the costs of acceptance, unloading and storage of raw materials. It is determined on the basis of established norms or actually spent time.

Technological reserve is taken into account only for those types of raw materials and materials for which, in accordance with the production technology, preliminary preparation of production is necessary (drying, exposure of raw materials, heating, settling and other preparatory operations). Its value is calculated according to established technological standards.

Current warehouse stock designed to ensure the continuity of the production process between the supply of materials, in this regard, in the industry it is based. The size of the warehouse stock depends on the frequency and uniformity of supplies, as well as the frequency of launching raw materials and materials into production.

The basis for calculating the current warehouse stock is the average duration of the interval between two adjacent deliveries of a given type of raw materials and materials. The duration of the interval between deliveries is determined on the basis of contracts, orders, schedules or based on actual data for the past period. In cases where this type of raw materials and materials comes from several suppliers, the current stock rate is taken in the amount of 50% of the delivery interval. At enterprises where raw materials come from one supplier and the number of types of material assets used is limited, the stock rate can be taken as 100% of the delivery interval.

Safety stock is created as a reserve that guarantees an uninterrupted production process in case of violation of the contractual conditions for the supply of materials (incompleteness of the received batch, violation of the delivery time, inadequate quality of the materials received).

The value of the safety stock is accepted, as a rule, within the limits of up to 50% of the current warehouse stock. It should be even more if the enterprise is located far from suppliers of transport routes, if unique, high-quality materials are periodically consumed.

Τᴀᴋᴎᴍ ᴏϬᴩᴀᴈᴏᴍ, general norm stock in days for raw materials, basic materials and purchased semi-finished products as a whole consists of the five listed stocks.

The working capital ratio for auxiliary materials is established for two main groups. The first group includes materials consumed regularly and in large quantities. The standard is calculated in the same way as for raw materials and basic materials. The second group includes auxiliary materials that are rarely used in production and in small quantities. The standard is calculated by the analytical method based on the database for previous years.

The general norm of working capital for auxiliary materials is the sum of the norms of both groups.

The working capital ratio for fuel is calculated in the same way as for raw materials and materials. The standard for gaseous fuel and electricity is not calculated. When calculating fuel consumption, the need for fuel for production and non-production needs is taken into account. For production needs, the need is determined based on the production program and consumption rates per unit of output by workshop; for non-production - based on the volume of work performed.

The rate of working capital for containers is determined based on the method of its preparation and storage. For this reason, the calculation methods for containers in different industries are not the same.

At enterprises that use purchased containers for packaging products, the working capital rate is determined in the same way as for raw materials.

For containers of own production used for packaging finished products and included in the wholesale price, the stock rate in days is determined by the time this container is in the warehouse from the moment of its manufacture to the packaging of products in it. If the cost of containers of own production is not included in the wholesale price of finished products, but is included in the cost of gross and marketable products, the standard for it is not set, since it is taken into account in the standard for finished products.

For returnable packaging received from the supplier along with raw materials and materials, the working capital rate depends on medium duration one turn of the container from the moment of payment of the invoice for the container together with raw materials until payment of the invoice for the returned container by the supplier.

The working capital ratio for spare parts is set for each type of spare parts separately, based on the timing of their delivery and the time of use for repairs. The ratio can be calculated on the basis of standard rates per unit of the book value of fixed assets, using the analytical method based on the data of previous years.

The working capital ratio for overalls and footwear is determined on the basis of the number of employees who are entitled to them and the cost of one set. The standard for this group of working capital in the warehouse is determined by multiplying one-day consumption by the stock rate in days, including transport, current and insurance stocks.

For special equipment and devices, the standard is determined based on their set, cost and service life.

The standard of working capital in work in progress should ensure a rhythmic production process and a uniform flow of finished products to the warehouse. The standard expresses the cost of products that have been started, but not finished, at various stages of the production process. As a result of rationing, the value of the minimum reserve sufficient for the normative work of production should be calculated.

The amount of working capital advanced into work in progress is not the same for enterprises and industries. The main reasons for the differences are the features of the organization, the volume of production, the structure of products.

Rationing of working capital in work in progress is carried out by groups or types of products for each division separately. If the range of products is diverse, then the standard is calculated for the main products, which make up 70-80% of its total mass.

The standard of working capital in work in progress is determined by the formula:

H \u003d P * T * K,

where P - one-day costs for the production of products;

T is the duration of the production cycle in days;

K is the growth factor.

One-day reserves are determined by dividing the cost of producing gross (marketable) output of the corresponding quarter by 90.

The product of the duration of the production cycle and the cost escalation factor is the stock rate in days for the item ʼʼWork in progressʼʼ.

The duration of the production cycle reflects the time spent by products in work in progress from the first technological operation to the complete manufacture of products and their transfer to the warehouse.

The production cycle includes technological stock (time for processing a product), transport stock (time for transferring a product from one workplace to another and to a warehouse), working stock (the time spent by products between processing operations and insurance stock (in case of a delay in any operation) When calculating the standard, the production cycle is determined for each type of product in calendar days, taking into account the number of shifts of the enterprise per day.In enterprises that produce a wide range of products, the duration of the production cycle is determined as a weighted average.

The coefficient of increase in costs reflects the nature of their growth in work in progress by days of the production cycle.

All costs in the production process are divided into one-time and incremental. To lump sum include costs incurred at the beginning of the production cycle (costs of raw materials, base materials and purchased semi-finished products). The remaining costs are considered growing (depreciation of fixed assets, electricity costs, wages, etc.).

The cost escalation factor is determined by the ratio of the average cost of a product in work in progress to the total cost of production. The coefficient is determined in different ways for production with a uniform and uneven increase in costs.

If the main share of costs goes into production at the very beginning of the production cycle (one-time), and the remaining (increasing) costs are distributed relatively evenly throughout the production cycle (in serial production), the coefficient is calculated by the formula:

K = ––––––––––––––,

where A - costs incurred at a time at the beginning of the production cycle;

B - other costs included in the cost of production.

With an uneven increase in costs by days of the production cycle, the coefficient is determined by the formula:

(Ce * T) + (C2 * T2) + (C3 * 3) + ... ... + (0.5 * Cp * T)

K = ––––––––––––––––––––––––––––––––––––––––,

where Ce - one-time costs of the first day of the production cycle;

C2, C3, ... - costs by days of the production cycle;

T2, T3, ... - time from the moment of one-time operations to the end of the production cycle;

Cp - costs incurred evenly during the production cycle;

C - the production cost of the product;

T is the duration of the production cycle.

Costs that increase evenly (Cp) are taken into account in the calculation of the average cost of the product in half, since they are at all stages of work in progress at the same time.

The standard for the item ʼʼDeferred expensesʼʼ is calculated according to the formula:

H \u003d Ro + Rp - Rs,

where Ro - the amount of deferred expenses at the beginning of the planning period;

Rp - expenses incurred in the planning period according to the estimate;

Rs - expenses included in the cost of production of the planned period.

Finished products manufactured at the enterprise characterize the transition of working capital from the sphere of production to the sphere of circulation. This is the only standardized element of circulation funds.

The working capital ratio for finished products is calculated by the formula:

where P - one-day output of marketable products at production cost;

D is the stock rate in days.

The norms of working capital for finished products are determined separately for finished products in the warehouse and for shipped goods, for which settlement documents are being processed.

The norm for finished products in a warehouse is determined by the time of picking and accumulating products to the required size, storing products in a warehouse until shipment, packaging and labeling products, and delivering them to the station of departure and shipment.

The norm for goods shipped, for which the documents are not submitted to the bank, is determined by the established deadlines for issuing invoices and payment documents, submitting documents to the bank, and the time the amounts are credited to the company's accounts.

Τᴀᴋᴎᴍ ᴏϬᴩᴀᴈᴏᴍ, private standards are established for each element of normalized working capital. Further, by adding private standards, the total standard of working capital is determined, reflecting the general need of the enterprise for its own working capital in the planned period.

Further, it is extremely important to compare the obtained total standard with the total standard of the previous period in order to determine how the enterprise's need for total working capital changes in the planning period.

The difference between the standards is the amount of increase or decrease in the standard of working capital, which is reflected in financial plan enterprises.

Determining the need for working capital - the concept and types. Classification and features of the category "Determining the need for working capital" 2017, 2018.