Payments in advance are defined as value, of the finished or converted goods and services used in the production process (see ESVG).

The payments in advance differ from the investments by the fact that a Investitionsgut is used over several accounting periods in the production process and copied gradually in accordance with the wear (Bsp milk production: Milking machine), while the payment in advance is received fully into the product stored in the production process (Bsp milk production: Animal fodder).

If one counted all conversions of all enterprises simply together (in the VGR results in this the production value, one would receive a blown up sum. Thus the conversion of a grain farmer, the grain to Mueller supplies, added for the conversion of Mueller, in whom however the value of the grain appears again, and finally to the conversion of the bread factory, in which however the value of the grain and the value of the flour (including the grain grain value) appear also again. In order only too received the creation of value of one accounting period, therefore the payments in advance must be taken off from the production value.

Examples:

• Flour, which is processed by the baker
• Grain, which becomes from Mueller to flour husbands
• River, which is used in a factory
• Coal, which is referred from a steel plant.
• Bumpers of a Zuliefereres, which is inserted with the car manufacturer.
• All services for enterprise (transportation, lawyer costs etc.).

Practically to be determined the payments in advance by the example "flour "as follows:

• Supply of flour to 1 January 2004:10 000 "€
• Supply of flour to 31 December 2004:12 000 "€

• Purchases of flour during the yearly 2004:65 000 "€

Then the value of the payments in advance (here flour) computes itself for 2004 to 63,000 "€.

See also:

• circulating capital, constant capital
• in the other context: Displays

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Important VGR connections of the StBA explains

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