Manufacturing enterprise's capital is how the cycle of turnover

Manufacturing enterprise capital cycle turnover process for:

1, procurement process: money into raw materials.

2, the production process: raw materials into semi-finished products, and then gradually processed into inventory.

3, sales process: inventory into money.

Construction of the capital movement of the enterprise to take the form of circular movement. In the cycle of capital turnover, the movement of liquid funds faster than the movement of fixed funds. Funds turnover, indicating that the utilization of funds is good, and vice versa, the effect is poor. Accelerate the movement of capital turnover, can relatively save money.

Expanded

Supply process enterprises use the liquidity obtained to buy raw materials, auxiliary materials and other labor objects, this time the monetary funds into reserve funds, and then, the raw materials into the production process, the reserve funds into the production funds.

At the same time, the wages and other costs paid in money are also converted into production funds; product completion and warehousing, become a finished product to be sold, production funds are converted into funds for finished products, in the sales process, the product will be sold out and get the payment for the sale of finished products, the funds for the conversion of funds into money.

With the continuation of production activities, liquidity is always through the supply, production, sales of the three business processes week after week in a continuous cycle, and along the monetary funds - reserve funds - production funds - finished goods funds - monetary funds of the track constantly changing the shape of its existence.