Vorprodukten

Vorprodukten, in German typically written Vorprodukte, are materials or components that have undergone partial processing but are not yet finished products. They occupy an intermediate position in the production chain between raw materials (Rohstoffe) and finished goods (Endprodukte). Vorprodukte can be partly completed components, subassemblies, or semi-finished goods that serve as inputs for subsequent production steps. They are commonly encountered in manufacturing environments that practice modular or batch production and in supply chains that rely on sequential processing.

Examples include steel billets or rolled sheets used to manufacture car parts, partially assembled consumer electronics, pre-formed dough pieces that require shaping and baking, or chemical intermediates used to synthesize final compounds.

Valuation and inventory: Vorprodukten are carried on the balance sheet as inventory and are typically valued at cost, using methods such as standard costing or actual costing. In cost accounting, the allocation of material, labor, and overhead up to the current stage determines their recorded value. When the next processing step is completed, Vorprodukte become finished goods; if market conditions deteriorate, they may be assessed for net realizable value.

Management and planning: Managing Vorprodukte requires visibility across production lines and reliable Bills of Materials and routings to determine what intermediate goods are needed and when. Effective control helps minimize stocking costs and reduce production delays.

Economic role: Treating intermediate goods separately enables specialization, better capacity utilization, and more accurate measurement of productivity and process efficiency.