At each operating enterprise, material stocks, finished products, and working personnel are constantly being transferred. To denote a certain sequence of actions, such a concept as “business process” is used.
general information
First, let's deal with the terminology of the business process. This phrase is used to denote the supply, procurement, production, sales, which complement and continue, are interconnected and are objects of accounting. Between certain types of property (as well as sources of its formation), interactions occur through operations. What is their value? They, in turn, are used to characterize certain actions that cause changes in the sources of education, location and composition of property. Transactions may affect both assets and liabilities, individually or together.
How are the organization's business processes?
During financial and production activities, a circuit of funds. This goes in this order:
- Supply (procurement). At this stage, purchased inventory items that are necessary to meet economic and production needs. Here the value of the prepared (acquired) resources is formed. The financial statements indicate their initial price and reflect calculations with contractors and suppliers.
- Production. At this stage, the release of products, the execution of work, the provision of services. Any organization bears certain costs for the creation of the finished product. In this case, the formation of cost. The reporting provides information on the costs of production, and also calculates its cost.
- Sale. This includes the costs associated with the sale. At this stage, the total cost of sales is formed. Also, financial results are calculated in the financial statements, interaction with customers, customers, and the budget is displayed. The end result of the cycle is revenue.
A little about accounting for business processes
In accounting documents, to get an idea of the state of affairs, such a concept as a financial result (loss or profit) is used. How is he considered? To do this, find the difference between the sale value (revenue) and the full actual price necessary to receive the goods. Also, the sale of fixed assets and other assets may affect the financial result. In the first case, the residual value of the funds, as well as expenses that were incurred during the implementation, are deducted from the proceeds. In the case of other assets, the result is determined as the difference between the selling price and the book value. Expenses are taken from it, which are associated with their implementation. The accounting report should always show only completed business transactions, as well as completed events.
Other consideration
It should be noted that other financial and business processes are distinguished. So, can be considered the repair of fixed assets, capital construction and other similar activities. But here you need to be attentive to the main content. For even in these cases, the basis is always the supply, production and marketing. Consider a small example. It is necessary to build the building of the production workshop and start manufacturing certain products on it.Initially, materials, equipment (supply) are transported, a foundation pit is pulled out, a foundation is poured, walls, a roof are erected, all the necessary equipment is installed, workers (production) are involved, the process of creating goods that is transferred to the sales department (sales) is started. Moreover, they are interconnected, are a logical continuation and addition and act as an object of accounting.
About specifications
Here we have a certain business process of the enterprise. What can we tell about him and with what help? Characterize it through a business transaction, which has certain characteristics and indicators. What are they? Attributes are used to distinguish quality operations. They also allow them to be grouped together on a common basis. As an example of signs, you can cite the time and / or place of operations, their serial number, various material elements (prices, rates). Indicators are used to reflect the quantitative characteristics in labor, monetary and in-kind meters. At the same time, household assets / business processes can be successfully considered both individually and together. For example, feature classification is optional if the examiner is interested in how many liters of fluid were released at all.
About working with data
The business processes of the organization are certain recorded facts, therefore, after them there is always some evidence. If we summarize all the available information, we can understand that accounting allows you to have a complete picture of the continuous movement of funds during the course of processes. Each fact and operation is an expression of a specific economic or legal relationship. What does it mean? When a certain change in the indicators of the economy occurs, the volume and structure of the subject's obligations to various individuals and legal entities (enterprises, organizations, employees, workers, and so on) change. With economic relations, there are no questions. And what is the legal side? It is characterized by administrative orders on the vesting of the right to carry out certain business operations. In addition, contractual obligations, deadlines, provisions and instructions, compliance with labor laws, orders and instructions are of interest.
Work principles
What else do you need to know in order to understand what the business process is? To answer this question, one can turn to four basic principles that economic theory uses to describe the object of consideration:
- Economic activity. This implies a specific form of focused work to accomplish the task. From this it follows that the business process should focus on the achievement of certain indicators for a specific date.
- The need to consciously direct everything towards achieving the goals agreed in advance. If this is not done, you should ask about the need for such actions. To achieve the agreed objectives, it is necessary to coordinate the situation, dynamically participating in it and showing a creative approach. It largely depends on the quality of the organizational structure management system.
- The scope of the business process is formed by all the real-life events at the enterprise, which are aimed at the implementation of work and the implementation on the market of the results of the enterprise. But with a more careful analysis, you should always rely on the three phases that were discussed earlier.
- Modern conditions make it possible to display commodity processes in financial flows. This is convenient, but you must be careful, because there are factors that can distort information.To avoid this, additionally allocate investment, release, inflow and outflow of capital.
Conclusion
That was considered in general terms, what constitutes an economic process. Of course, no theory can replace practice. The best opportunity to understand and understand what constitutes an economic process is to participate in it. This can be done in some third-party organization or to organize your own enterprise and learn the practice for the benefit of yourself.