In modern conditions, the planning and rationing of working capital plays a key role in ensuring the stable functioning of any business entity. This practice has existed for a long time both in Russia and abroad. Let us further consider the essence of rationing working capital. 
Relevance of the issue
The volume of sales of finished products, the profit derived from this, the cost of production are considered integral, generalizing indicators. Focusing only on them, the company cannot fully evaluate the work of its individual divisions. This is possible only by comparing the results with regulatory parameters. The presence of the latter allows you to identify all available reserves and identify areas for their subsequent use. Rationing of working capital of the enterprise makes it possible to conduct a competent financial and production policy to reduce costs.
The needs of the business entity
Rationing of working capital is a process during which the real size of assets diverted into the manufacturing sector for a certain period is established. The needs of the business entity are determined during the preparation of the financial plan.
This means that the size of the standard is not a constant. Its volume depends on the conditions of sale and supply, the number of products and its range, the forms of calculation used. Rationing of working capital of the organization is made in monetary terms. The definition of needs is based on the estimated costs of the release of goods (work, etc.) for a specific period.
Essence of the process
When determining the required indicators, the consumption of normalized elements on average per day is taken into account. By inventories its calculation is carried out according to the corresponding estimated item of production costs. So, for finished products, the cost of marketable products is taken as a basis. Calculation of work in progress is based on the initial price of gross (commodity) products. Rationing of working capital is carried out on such elements as:
- Purchased convenience foods.
- Raw materials.
- Auxiliary and basic materials.
- Accessories.
- Tara.
- Fuel.
- Wearing and low value objects.
- Spare parts.
- Incomplete production and so on.
The process involves the calculation of standards and norms. In this case, aggregate and particular indicators are determined. 
Nuance
It is quite obvious that the rationing of stocks and working capital invested in them should be connected. In the calculation, on the one hand, the volume of certain material resources in physical terms, on the other hand, the amount of expenses for them (from borrowed and own finances). In this regard, the methods of rationing the working capital of an enterprise and its reserves should have one basis. The calculation should be carried out using the same source data. Along with this, it is necessary to take into account the very specifics of rationing working capital and stocks.
Stages
Rationing of working capital includes several stages. At the first stage, the volume of stock for each element of resources is established. Normally, the rules are determined in days. They mean the length of the period that is provided by a particular type of material resource.
The norm can be set both in percentage and in monetary terms to a specific base indicator.In accordance with this, and also taking into account the consumption of material assets, the amount of assets that are necessary for the formation of inventories for each object is established.
The result is private regulations. When they are added, aggregate indicators are determined. The standards are presented in monetary terms of the planned stock of material assets, which is necessary for the stable operation of the enterprise. 
Estimated receptions
Business entities use the following basic methods of rationing working capital:
- Direct account. When using it, the volumes of assets for each element are determined.
- Coefficient method. It involves the establishment of a new indicator by amending the former. At the same time, the growth of production volume and the acceleration of turnover are taken into account.
- Analytical technique. In this case, the rationing of working capital is carried out using actual data on the value of assets for a specific period. At the same time, unnecessary and redundant information is excluded, necessary amendments are introduced.
- Economic and mathematical methods of rationing working capital.
Formulas
Working capital is rationed using the following equations.
The volume of OBS for materials, raw materials, purchased semi-finished products.
Nm = cm x D, where:
- average daily consumption - cm;
- stock rate (days) - D.
The volume of OBS to ensure work in progress. It is calculated, as a rule, to the indicator of one-day gross output.
Nnzp = (Sv x Kn x Tts) / D, where:
- costs of gross output (in rubles) - Sv;
- the duration of the planning period (in days) - D;
- coefficient of increase in spending - Kn;
- the duration of the production cycle (in days) - TC.
TC is calculated in accordance with the adopted technology for manufacturing products and loading equipment. Kn at enterprises where expenses are made evenly, is established by dividing the one-time material costs and half of the other costs by the total amount of expenditure on output.
Kn = (Cm + 0.5 x Cn) / (Cm + Cn), where:
- Cm - the amount of material costs at the beginning of the production process (price of objects received for processing) in rubles;
- Sn - the remaining expenses until the end of production (in rubles).
Specificity
The novelty of the proposed options lies in the fact that business entities are invited to ration and manage not only tangible, but also intangible assets. The latter has not been previously regulated.
Currently, an employee of a financial unit or a top manager should have information on the entire structure of working capital, including intangible ones. The latter, in particular, include capital in bank accounts, at the cash desk, accounts receivable, and so on. For example, the amount of money for a settlement account must comply with the standard established by the head of the enterprise.
It is likely that in the case of a shortage of Obs, the amount of capital cannot be higher than a certain limit, but only equal to or less than it. In the latter case, the stable functioning of the company will not be ensured. Lack of money will not allow timely payment of supplies of resources, which, in turn, are needed to ensure an uninterrupted production process.
Lack of capital will lead to overdue tax payments, employee salaries, and so on. In this situation, the company needs to take emergency measures. For example, a supply service employee made a mistake, and surplus stocks were purchased, unnecessary resources were not sold, the production volume of products decreased due to equipment breakdowns, the sales department reduced sales, etc. Having identified the reasons and analyzed them, managers must urgently accept decisions that would restore the amount of capital in the accounts.
Practical use
Despite the fact that the methods of rationing working capital were developed more than 10 years ago, they are quite applicable today, in modern market conditions. This is due to the following. Special rates for inventories are calculated based on regulatory factors. They characterize the conditions in which resources are formed. For example, the time taken to unload the received valuables, dry lumber, and so on is taken into account. In addition, the irregularity of supply by intervals and volumes is taken into account.
These factors acted earlier, in a planned economy. At the same time, it should be borne in mind that, thanks to the use of modern technology, less time is spent on preparatory operations, due to the improvement of existing economic interactions, uneven deliveries will be corrected, etc.
All these trends will lead to a decrease in the norms of inventories and working capital that are invested in them. These indicators will be adjusted all the time in accordance with one or another change. In addition to the use of norm-forming factors, there is no other option for determining the parameters. 
Unification schemes
As mentioned above, the rationing of the OS and reserves is carried out according to one system. The unification of schemes is determined by the specifics of the movement of resources. For example, it can be compared with the water in the pool. It comes through one pipe, and leaves the other, respectively. If it flows in more than it flows out, the water level will rise, and vice versa.
Stocks behave in a similar way, only the processes of income and expenditure are named differently for each category. For example, the arrival of inventories is characterized by changes in intervals and volume of supplies throughout the year. The expense is recorded on the release of resources to the workshop.
A similar situation is with inventory. Only they come to consumers. With regard to sales inventories, the receipt is characterized by changes in the intervals and volumes of receipts of finished products to the warehouse, consumption - by the corresponding indicators of shipment to customers. Thus, it is clear that only the terminology is different. In this regard, there is a fundamental possibility for the unification of standardization methods.
Important point
The specificity of standardization is expressed only when establishing the preparatory element. For example, it is necessary to take into account the time required for drying lumber, pressure testing of pipes, etc. Directly calculating this component itself is not accompanied by any difficulties. It is defined as the sum of the time intervals required to carry out preparatory operations carried out sequentially.
The calculation is carried out by the deterministic method. This is due to the fact that time information can be taken from existing technological regulations.
Insurance and current components
They are determined in accordance with the annual changes in factors that characterize the processes of income and expense. To calculate them, methods of probability theory are used. This allows, firstly, to remove from the source data information reflecting violations of the production and supply processes. Secondly, it becomes possible to take into account the stochastic nature of stock formation or the correlation factor of the material resource brand. When determining the insurance and current components, only data on the movement of the standardized element — income and expenditure during the reporting year, quarter, etc., by volume and date — are needed. 
Linking calculated indicators with the degree of reliability of collateral
For each material resource (type or brand), more than one stock rate is determined. The dependence on the reliability indicator is established. This allows you to develop an adequate inventory management strategy for each brand of resource.
This, in turn, makes it possible to optimize the material values and working capital invested in them. Reliability of collateral is the relative number of days in a year during which the company will have stocks of a certain brand of resources at the calculated limits. With a value of 100%, the company will have them all 365 days a year, and with 99.7% - 364 days.
The risk indicator that the company does not have enough for one day of stock is 0.3%. If the reliability is 99%, then the company is provided 361 days. In this case, the degree of risk is 1%. The higher the level of reliability of collateral, the more the norm should be set, and vice versa.
