Raw material (production)

In accounting , raw materials are materials that are part of the current assets in the balance sheet and become a direct component of the products during production .

General

Raw materials include as the operating and auxiliary materials to the materials . The term raw materials under commercial law is broader than the commonly used term raw materials . The raw materials under commercial law include all materials that are substantially incorporated into the product in the manufacturing process and become its main component; In contrast to the auxiliary substances, they shape the physical substance of the end 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.

species

Raw materials are the main components of a product. A distinction must be made between materials from original production and finished products from upstream production stages . It should be borne in mind that in a vertical production process, the finished products of one company can be considered raw materials by another, downstream company ( boards from a sawmill in a furniture factory).

Primary production : ores , coal , metals , wood , crude oil , gases , cotton or hides.
Articles of upstream production steps : rubber , plastics or substances of any kind.

In the automotive industry , complete structural components ( fittings ) are purchased from suppliers and used in vehicle manufacture without further processing; they are considered raw materials in automobile manufacturing.

Raw material-intensive industries are those in which the raw materials make up a high proportion of the production process or of the entire inventory, such as in the steel industry , textile industry or chemical industry . The raw material intensity results from the following business key figure :

{\ displaystyle {\ text {Raw material intensity}} \ cong {\ frac {\ text {Raw materials}} {\ text {Current assets}}} \ cdot 100 \, \%}

rating

The raw materials not used on the balance sheet date are capitalized in accordance with Section 266 (2) BI No. 1 HGB and therefore form part of the current assets as inventories. According to Section 253 (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 raw materials of the same type can be combined. The evaluation of the raw materials is also subject to the sequential consumption procedure , in which the chronological sequence between storage and production is simulated.

Individual evidence

↑ Sven Fischbach, Fundamentals of Cost Accounting , 2013, p. 34.
↑ Jakob Wolf, crash course HGB annual financial statements , 2010, p. 90.
↑ Gerhard Scherrer, accounting according to the new HGB , 2011 , p. 161.
↑ Klaus Bertram, Haufe HGB Commentary , 2009, p. 953.
↑ Klaus Bertram, Haufe HGB Commentary , 2009, p. 138.

[1] Sven Fischbach, Fundamentals of Cost Accounting , 2013, p. 34.

[2] Jakob Wolf, crash course HGB annual financial statements , 2010, p. 90.

[3] Gerhard Scherrer, accounting according to the new HGB , 2011 , p. 161.

[4] Klaus Bertram, Haufe HGB Commentary , 2009, p. 953.

[5] Klaus Bertram, Haufe HGB Commentary , 2009, p. 138.