ORGANIZATIONAL AND METHODOLOGICAL SUPPORT OF ACCOUNTING AND INTERNAL CONTROL OF PRODUCTION INVENTORIES AT INDUSTRIAL ENTERPRISES

Abstract

The article substantiates organizational and methodological approaches to accounting and internal control of production inventories at industrial enterprises. It argues that in material‑intensive manufacturing and multi‑system IT environments (ERP and auxiliary subsystems), key risks arise at the interfaces «warehouse – production – accounting» due to document‑flow delays, inconsistencies in the item master, and insufficient analytical detail in inventory records. The study highlights the role of regulation and accounting policy in selecting measurement and write‑off methods, building the initial cost of inventories, and ensuring consistent treatment of material costs. It further demonstrates that effective control depends on process‑based control points, segregation of duties, and responsibility accounting. The paper synthesizes recent research and identifies unresolved practical issues: fragmented information flows, weak consumption norm‑setting, reactive controls, and limited managerial use of inventory‑count results. The purpose is to propose an integrated improvement framework that increases the managerial usefulness of inventory data and strengthens cost control. The framework includes: unification of the item master and analytical dimensions; standardized workflows and digital approvals for key inventory documents; «standard vs. actual» variance analysis by responsibility centers; risk‑oriented preventive controls across the inventory cycle; and inventory counts as feedback to adjust norms, procedures, and accountability. Practical implications relate to improving data reliability, reducing unjustified write-offs and losses, and enhancing transparency of material costs and inventory turnover in manufacturing firms. In addition, the paper outlines how exception reporting and periodic control testing can reduce manual interventions and strengthen traceability across departments. The findings are applicable for enterprises redesigning inventory governance in ERP-centric settings, where data harmonization, timely posting, and preventive controls determine the reliability of cost information.