Abstract

The aim of the article. The aim of the article is to develop a process model of exchange controls as controlling tool that is able to increase the transparency of information flows, reduce paper-based and the risk of mistakes in the calculations and, consequently, allows minimization of losses due to penalties imposed by public authorities for violation of the legal requirements of currency controls. The results of the analysis. This paper highlights the weaknesses of information exchange that traditionally accompanies the process of exchange controls at Ukrainian machine-building enterprises such as opacity and complexity of information flows, a significant amount of duplicate data flow, low use of computer capabilities while performing calculations, lack of clear division of responsibilities and, as a result, frequent mistakes. Mistakes cause violation of the terms of foreign exchange payments, which entails the payment of penalties imposed by state regulatory agencies. The author has developed schemes of information flow and business process of exchange controls that describe model of exchange controls, which is traditionally used in the workplace. In order to improve the efficiency of the exchange process at domestic machine-building enterprises authors propose an alternative model of the process based on the use of a single integrated electronic database. Its advantages are the simplification, transparency, information flow, reduce workflow between departments and divisions, reduction the number of employees involved in this process, a clear division of responsibilities, minimization the risk of mistakes in the calculations. Effects of the proposed process model of exchange controls, in the author`s opinion, will reduce costs associated with this process through prevention of fines, penalties and other sanctions by limiting public bodies, improve understanding and confidence in dealing with the servicing bank and foreign contractors. It could be expected that this results in multiplier economic effect. Conclusions and directions of further researches. Thus, necessary condition for the effectiveness and efficiency of maintenance of exchange controls at machine-building enterprises is the development and use of a single integrated electronic information system as controlling tool. It is the center of information exchange between structural units and can eliminate the weaknesses and problems that exist at enterprises and associated with currency calculations, which in turn have a positive impact on the effectiveness of foreign trade enterprises. It is advisable to develop a methodical basis of calculating the economic efficiency of the project of the application of controlling to the process of exchange controls on domestic machine-building enterprises in further studies.  

Keywords: currency controls, controlling, business-process, document flow, information management

JEL Classification: M10, M31, O16.

Cite as: Kryvoruchko, L. (2013). Methodical recommendations on regulation of business process currency control at machine-building enterprise engaged in foreign economic activity. Marketing and Management of Innovations, 4, 199-207. https://doi.org/10.21272/mmi.2013.4-19

This work is licensed under a Creative Commons Attribution 4.0 International License

References

1. Biriukova, O.V., & Popova, I.V. (n.d.). Sushchnost valiutnoho kontrolia i puti yeho sovershenstvovaniia v Ukrainie [The essence of exchange controls and ways of its improvement in Ukraine]. archive.nbuv.gov.ua. Retrieved from http://archive.nbuv.gov.ua/portal/ soc_gum/fkd/2012_1/part1/50.pdf [in Ukrainian].
2. Zakon Ukrainy «Pro poriadok zdіisnennia rozrakhunkіv v іnozemnіi valiutі» [The Law of Ukraine «On the order of payment in foreign currency»]. (n.d.). zakon1.rada.gov.ua. Retrieved from http://zakon1.rada.gov.ua/laws/show/185/94-%D0%B2%D1%80 [in Ukrainian].
3. Dekret Kabіnetu Mіnіstrіv Ukrainy «Pro systemu valiutnoho rehuliuvannia і valiutnoho kontroliu» [Decree of the Cabinet of Ministers of Ukraine «On Currency Regulation and Currency Control»]. (n.d.). zakon2.rada.gov.ua. Retrieved from http://zakon2.rada.gov.ua/laws/show/15-93 [in Ukrainian].
4. Denisenko, L.O., & Shatska, S.Ye. (2012). Kontseptualnі zasady klasyfіkatsіi bіznes-protsesіv, yak osnovy formuvannia bіznes-systemy orhanіzatsіi. [Concept of classification of business processes as the basis for the formation of a business management system]. Elektronne naukove fakhove vydannia «Efektyvna Ekonomіka» – Electronic scientific specialized edition «Effective Economy», 11. Retrieved from http://www.economy.nayka.com.ua/?op=1&z=1558 [in Ukrainian].
5. Koval, H.V., & Osadcha, H.H. (n.d.). Valiutne rehuliuvannia ta kontrol [Currency regulation and control]. dspace.nuft.edu.ua. Retrieved from http://dspace.nuft.edu.ua/jspui/bitstream/123456789/ 3881/1/3.pdf [in Ukrainian].
6. Koval, L.V., & Pavliuk, D.Ye. (n.d.). Problemy ta napriamky vdoskonalennia zakonodavstva Ukrainy v sferі zovnіshnoekonomіchnykh vіdnosyn. [Problems and areas of improvement of legislation of Ukraine in the sphere of external relations]. rusnauka.com. Retrieved from http://www.rusnauka.com/5_SWMN_2012/Economics/15_101303.doc.htm [in Ukrainian].
7. Sirotiuk, A.M. (2011). Problemy zakonodavchoho rehuliuvannia zovnіshnoekonomіchnoi dіialnostі v Ukrainі. [The legislative regulation of foreign economic activity in Ukraine]. Іnnovatsіina Eкоnоmіка – Innovative Economy, 4, 309-312. Retrieved from http://archive.nbuv.gov.ua/portal/Soc_Gum/inek/2011_4/309.pdf [in Ukrainian].
8. Sytnyk, H.V. (2012). Іdentyfіkatsіia bіznes-protsesіv pіdpriiemstva torhіvlі v kontekstі pobudovy fіnansovoho planuvannia na osnovі protsesnoho pіdkhodu [Identification of business processes of trade enterprise in the context ofdevelopment of financial plans based on the process approach]. Stalyi Rozvytok Ekonomіky – Sustainable Economic Development, 7, 311-320. Retrieved from http://archive.nbuv.gov.ua/portal/soc_gum/sre/2012_7/311.pdf [in Ukrainian].
9. Shevchyk, O.S. (2012). Poniattia ta osoblyvostі valiutnoho kontroliu. [Concept and features of the currency control]. Elektronne naukove fahove vydannia «Forum Prava» – Electronic scientific specialized edition «Law Forum», 2, 763-768. Retrieved from http://archive.nbuv.gov.ua/e-journals/FP/2011-2/11socovk.pdf [in Ukrainian].
10. Shkola, V.Yu., Hermanchuk, І.V. & Peresadko, H.O. (2012). Zovnіshnoekonomіchna dіialnіst v Ukrainі: problemy ta perspektyvy rozvytku [Economic activity in Ukraine: problems and prospects]. O.V.Prokopenko (Eds.). Mіzhnarodna stratehіia ekonomіchnoho rozvytku rehіonu –  International strategy of economic region development: Proceedings of the ІІІ International Scientific and Practical Conference. (pp.136-138). Sumy: SumSU. Retrieved from http://essuir.sumdu.edu.ua/ bitstream/123456789/29820/1/Shkola%20V.Yu.Zovnishnoekonomichna%20diialnist.pdf [in Ukrainian].