Material resources are a set of material values and resource potential necessary to ensure the continuous production of products, the provision of services and the performance of work under contracts. Each business entity consumes and stores a huge amount of such resources and keeps records of them by types, brands, varieties and sizes.
What refers to material resources
Material resources are one of the main items registered and analyzed in the accounting and financial accounting of the enterprise. These include various types of raw materials and fuels, materials, components, semi-finished products and energy purchased by the enterprise to support the production process. The wider the range and range of products or services provided, the wider the range and range of material resources required by the enterprise will be.
When accounting for material resources, they are grouped and combined according to homogeneous characteristic features, followed by distribution into sections and assigning an appropriate index to each of them. These indices and conventions allow you to classify all the material resources available at the enterprise and maintain a nomenclature in accordance with them, facilitating their operational accounting and constant monitoring in order to ensure a continuous production cycle. This is achieved through appropriate forecasts and calculations.
Material resource management
Material resources, their value and quantity, directly affect such an important indicator of the economic activity of an enterprise as the cost of its products. Therefore, an important functional component of the enterprise is the optimization of material resources management.
In the process of management, the planning of the parameters of material flows is carried out, which consists in planning the need for material resources. This management function includes the search for suppliers, forms and channels of material flows, determination of the optimal sizes of consignments, the timing and frequency of their delivery to the company's warehouses.
The management functions also include the organization of the acquisition of material resources - their payment and payment for their delivery from the seller to the buyer through the channels of commodity circulation. In this case, material flows must be regulated in order to meet the needs of the market. This is due to the adjustment of delivery times and the use of various forms of settlements with suppliers. Material resource management also implies constant control over the movement of material flows, while it should be carried out taking into account the deviation from the planned, which occurs both for objective and subjective reasons.
Despite the fact that economic entities are independent units, in the management system they depend on each other, since they are both partners and clients. Therefore, the management of material resources is also carried out taking into account market realities: the dependence of prices on supply and demand, and vice versa.
