Auxiliary material (production)
In production and accounting , auxiliary materials are materials that become a direct component of the products during the production process and that are included in the balance sheet as current assets .
Auxiliary materials, like raw and operating materials, belong to the materials . In commercial law, auxiliary materials include all materials that are substantially incorporated into the product in the manufacturing process; However, in contrast to raw materials, they do not shape the physical substance of the end product. In contrast to raw materials, they only form a subordinate part of the finished product. While raw and auxiliary materials become essential components of the end product, operating materials are consumed when they are ready for operation or during production.
As a subtype of materials, auxiliary materials are a production factor , a so-called repetition factor , which is constantly consumed in production and must be procured anew for further production. In contrast to raw materials, auxiliary materials only play a subordinate role in terms of quantity and value in the end product.
Auxiliaries form only insignificant secondary components of a product and only have an auxiliary function. It is not always easy to distinguish them from raw materials; the decisive factor is their low proportion in terms of quantity and value in the end product. Auxiliary materials are regularly part of the finished products from upstream production stages . It should be remembered that in a vertical production process the finished products of one company can be used as auxiliary materials by another, downstream company; for example screws for iron processing at an automobile manufacturer .
The auxiliary materials include
- solid excipients : screws , nails , welding wires , rubber , plastics or fabrics . Also, any type packaging material , which is essential for the saleability of the product contained, and in the selling price (for example in foodstuffs , beverages ), one of the excipients.
- Liquid auxiliaries : preservatives , adhesives , colorings or the large group of additives .
Auxiliaries include in the cost accounting Although the direct costs , but are often used as so-called spurious overheads recorded. The reason is that an exact allocation of the auxiliary materials to the products would require a high administrative effort. However, considering them as overhead costs violates the principle of causal allocation.
The auxiliary materials not used on the balance sheet date are capitalized in accordance with (2) BI No. 1 HGB and therefore form part of the current assets as inventories. According to (4) of the German Commercial Code (HGB), this is subject to the strict lower value principle , in which the acquisition costs or the lower stock exchange or market price are used as a basis for the valuation . An assessment using the fixed value method is possible if similar auxiliary materials can be combined. The evaluation of the auxiliary materials is also subject to the consumption sequence process, in which the time sequence between storage and production is fictitious. Even in smaller companies, especially in a craft business, the semi-finished work and auxiliary materials - as well as semi-finished goods and auxiliary materials in a manufacturing company - must always be recorded by means of an inventory on the balance sheet dates . Records are to be made about this, which enable a review of both the complete recordings and the assessment.
- Sven Fischbach, Fundamentals of Cost Accounting , 2013, p. 34.
- Peter Ulmer, HGB-Bilanzrecht , 2002, p. 689.
- Sudhir Mitter / Oliver Stegmann, Produktionswirtschaft , 1994, p. 28
- Jakob Wolf, crash course HGB annual financial statements , 2010, p. 90.
- Gerhard Scherrer, accounting according to HGB , 2011, p. 161.
- Peter Ulmer, HGB-Bilanzrecht , 2002, p. 554.
- Klaus Bertram, Haufe HGB Commentary , 2009, p. 138.
- BFHE 117, 224 = BStBl. 1976 II, p. 210.