That refers to material resources


Material resources are one of the main items recorded and analysed in accounting and financial accounting in the company. These include various kinds of raw materials and fuels, materials, components, semi-finished products and energy purchased by company to ensure the production process. The wider the range and the range of products or services, the greater will be the nomenclature and the range of necessary consumed material resources.

When considering material resources, they are grouped and aggregated according to homogeneous characteristics with subsequent distribution into sections and assigning each of them to the appropriate index. These indexes and symbols allow us to classify all the existing material resources and conducted in accordance with the nomenclature that facilitates their efficient management and constant monitoring to ensure continuous production cycle. This is achieved through relevant projections and calculations.

Material management


Material resources, their value and quantity, have a direct impact on an important indicator of economic activity of enterprises, as the cost of the manufactured products. Therefore, an important functional component of activity of the enterprise is to optimize materials management.

In the process of management is the planning parameters of the material flow, which is in the planning needs for material resources. In this function of management includes sourcing, forms and channels of material flow, to determine the optimal size of shipments, timing and frequency of their delivery to the warehouses of the enterprise.

In management functions also include the organisation of acquisition of material resources – payment and payment delivery from the seller to the buyer through the channels of commodity circulation. The material flow thus must be adjusted so that they meet the needs of the market. This is due to the adjustment of the terms of delivery and use of various forms of accounts payable. Material management involves continuous control over the movement of material flow, it needs to be sensitive to deviations from the planned, which is both the objective and subjective reasons.

With all that economic agents are independent, in the control system they are independent from each other because they are both partners and customers. Therefore, material management is also tailored to market realities based on prices from supply and demand, and Vice versa.