A finished product (or finished product ) is in production management and accounting the name for a market-ready end product or product . Opposites are the semi-finished product or intermediate product .
The finished product passes through various states during a production process . The starting point is usually raw materials , consumables and supplies (RHB), which through production with a combination of repetitive factors initially have the status of a semi-finished product and finally become a finished product through final production.
Finished products can either be sold immediately or wait as inventory on their sales . The transfer of finished products from production to the finished goods store takes place at manufacturing costs . If finished products are sold from the warehouse, this is done via the goods issue . Finished products differ from semi-finished products or intermediate products in that they are ready for the market. In the case of semi-finished products or intermediate products, however, further process steps are required until a finished product is created from them.
Finished products only play a role in accounting if they are still in stock on the balance sheet date . According to para. 2 no. BI 3 HGB , finished products and goods are to be recognized on the assets side of the balance sheet under current assets . The legislature requires a balance sheet item that is separate from semi- finished products because the market value of finished products is significantly higher than the manufacturing costs of unfinished products. In the income statement, on the other hand, finished and semi-finished products are combined in the event of changes in inventory ( (2) No. 2 HGB).
Finished products fall under the scope of the Product Safety Act (ProdSG). The ProdSG applies “if products are made available on the market, exhibited or used for the first time in the course of a business activity” ( (1) ProdSG). According to No. 22 ProdSG, products are "goods, substances or preparations that have been manufactured through a manufacturing process". According to (2) ProdSG, a finished product may only be made available on the market if it does not endanger the safety and health of people when used as intended or foreseeable.
Companies with high stocks of finished products and goods that are customary in their operations are called stock-intensive companies. This includes the entire trade ( wholesale , retail ), in which the stocks make up a high proportion of the balance sheet total . High inventories for companies that do not have a high inventory level are often an indicator of sales problems that can be traced back to internal ( price policy , product range policy ) or external causes ( economic situation ).
- Verlag Dr. Th. Gabler, Gablers Wirtschaftslexikon , Volume 2, 1984, Sp. 1489
- Rebecca Julia Koch, The recall obligation of a manufacturer according to §§ 4 and 6 ProdSG , 2002, p. 77