5 SALES ACCOUNTING AND DETERMINING BUSINESS RESULTS IN VINATECH MECHANICAL TELECOMMUNICATION CO , LTD

MINISTRY OF FINANCE ACADEMY OF FINANCE STUDENT: HOANG THI VAN ANH GROUP: CQ55/51.06 GRADUATION THESIS TOPIC SALES ACCOUNTING AND DETERMINING BUSINESS RESULTS IN VINATECH MECHANICAL TELECOMMUNICATION CO., LTD Major Student code Supervisor : English for Finance and Accounting : 17522202010165 : MA TRUONG THI MINH HANH Hanoi – 2021 DECLARATION I hereby declare that this thesis is a result of original work accomplished by me under the guidance of M.A Truong Thi Minh Hanh I confirm that the work submitted is my own, except where work which has formed part of jointly-authored publications has been included My contribution and those of the other authors to this work have been explicitly indicated below Hanoi, May 25th,2020 Student Hoang Thi Van Anh ACKNOWLEDGEMENTS I would like to thank my teacher, MA Truong Thi Minh Hanh, because without herhearty support, all these lines would not have been written To Mr Ta Huy Khoi, director TELECOMMUNICATION CO., LTD helped me complete the of VINATECH MECHANICAL for his enthusiasm cooperation, which internship at VINATECH MECHANICAL TELECOMMUNICATION CO., LTD smoothly To Mr Hoang Van Tuan and Mrs Nguyen Thi Minh Anh, who teach me a wealth of specialized knowledge about Accounting activities at VINATECH MECHANICAL TELECOMMUNICATION CO., LTD To all the respondents who kindly dedicated part of their time to complete the questionnaires and interview ABSTRACT In the modern economic world, especially when the number of bankrupt enterprises is rising, accounting for sales and business results has become more and more important to every company in general, and Mechanical Telecommucication in particular Therefore, I choose the topic "SALES ACCOUNTING AND DETERMINING BUSINESS RESULTS IN VINATECH MECHANICAL TELECOMMUNICATION CO., LTD" for my graduation thesis It will point out the importance of having an effective accounting department for sales and business results The main content is reflected in three chapters The first chapter is about the literature review for every company, mainly showing what accounts are involved in calculating business results, its definitions and accounting entries In chapter 2, by taking a scenario in VINATECH MECHANICAL TELECOMMUNICATION CO., LTD , the thesis focuses in a real accounting practice for sales and business results From that, chapter shows the company's strengths and weaknesses and suggests some solutions to improve the current accounting system in VINATECH MECHANICAL TELECOMMUNICATION CO., LTD In conclusion, the thesis has already been complete in comparison with proposed objectives and targets in the introduction TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENTS ii ABSTRACT iii TABLE OF CONTENTS .iv LIST OF FIGURES AND TABLES .vi INTRODUCTION CHAPTER I: LITERATURE REVIEW 1.1 General overview of sales accounting and determining business results 1.1.1 The concept of sales accounting and determining business results 1.1.2 The role and duties of sales accounting and determining business results .4 1.2 Definition of accounting and determining business results .5 1.2.1 The general principles and accounting standards that govern sales accounting and determining business results .5 1.2.2 Detailed accounting for researching objects 1.2.2.1 Cost of goods sold accounting 1.2.2.2 Sales revenue accounting 12 1.2.2.3 Accounting for revenue deductions 15 1.2.2.4 Cost accounting 18 1.2.2.5 : Determining business result .21 1.2.3 Books for sales accounting and Income summary .21 CHAPTER II: THE STUDY 23 2.1 The formation and development of Vinatech Telecommunication Mechanical Company Limited 23 2.1.1 The process of formation and development of Vinatech Telecommunication Mechanical Co., Ltd 23 2.1.2 Characteristics of Business Organization .25 2.1.3 Characteristics of organization and management at Vinatech Telecommunication Mechanical Company Limited 27 2.1.4 Characteristics of the accounting organization in the company 29 2.1.4.1 Characteristics of accounting system 29 2.1.4.2 Accounting policy at Vinatech Telecommunication Mechanical Company Limited 30 2.2 The actual situation of sales accounting and Income summary at Vinatech Telecommunication Mechanical Company Limited 31 2.2.1 The actual situation of revenue accounting 31 2.2.2.Current situation of general & administration expense accounting 35 2.2.3 Current situation of goods sold accounting 38 Recording method 39 2.2.4 Income summary accounting .40 2.3 Evaluating the current situation 42 CHAPTER III: RECOMMENDATIONS 45 3.1 Requirements, development principles 45 3.2 Development of sales accounting and income summary at Vinatech Telecommunication Mechanical Company Limited 46 CONCLUSIONS 50 REFERENCES 51 APPENDIX 52 LIST OF FIGURES AND TABLES Diagram 1.1 Accounting the cost of goods sold 11 Diagram 1.2 Accounting the cost of goods sold 12 Diagram 1.3 Sales revenue accounting and provision of service 14 Diagram 1.4 Sales revenue accounting of agencies 15 Diagram 1.5.Sales return accounting .17 Diagram 1.6 Accounting the derived expenses which are related to sales return 17 Diagram 1.7 Devaluation of sale accounting 18 Diagram 1.8 Selling expenses accounting 19 Diagram General & administration expenses accounting 20 Diagram 10 Characteristics of Vinatech Company .27 Diagram 11 Accounting System 30 Figure VAT Invoice 33 Figure 2.VAT Invoice 34 Table LABOR QUALIFICATION 26 Table Subsidiary ledger of revenue 35 INTRODUCTION Rationable of the study In a market economy, businesses that want to survive and develop must-have business plans with economic efficiency To stand firm and thrive in fierce competition conditions, businesses must grasp and satisfy the psychology and needs of consumers with high-quality products, low prices, stylish fashion designs, rich and diverse in types To so, businesses must supervise all processes from purchasing to consumer goods to ensure the safety and fast speed of capital turnover, maintain prestige with customers, fulfill obligations to the House Improve the material and spiritual life of officials and employees, enterprises ensure profits to accumulate and expand production and business development Moreover, consumer demand in the current market requires businesses to generate profitable revenue, businesses must produce what the market needs, not what they have, and set for themselves I have the question "What to produce for whom, how to produce, and how much output? To achieve profit goals: To achieve high profitability and safety in production and business activities, the company must conduct synchronous management measures, in which accounting is an important and indispensable tool to manage economic activities, check the use and management of assets and goods to ensure dynamism Creativity, autonomy in production and business, calculation and determination of the efficiency of each production and business activity as a basis for mapping business strategies Therefore, in addition to general management measures, the rational organization of sales accounting is essential to help businesses have timely and accurate information to make correct business decisions Business enterprises with high economic efficiency are the basis of enterprises that can survive and grow steadily in a vibrant and fiercely competitive market economy Recognizing the importance of sales accounting using the theory learned at the school combined with the reality obtained from the accounting work at Vinatech Mechanical and Telecommunication Limited Liability Company, I chose the topic : “Sales accounting and determining business results at Vinatech Mechanical and Telecommunication Company " to research and transfer to your own Aims of the study The study is aimed at:  Systematize some theoretical bases for sales accounting in commercial enterprises  Assessing the current situation of sales accounting and determining business results at Vinatech Mechanical and Telecommunications Co., Ltd  Propose some ideas to improve sales accounting and determine business results at Vinatech Telecommunication Engineering Co., Ltd.3 Scope of the study Scope of the study The study focuses on theoretical and practical issues of sales accounting and determining business results at Vinatech Mechanical and Telecommunication Company at 4th quarter of 2020 and suggestions to improve this activity Based on these issues, the researchers will was done with the following questions: Question 1: How effective is sales accounting and determining business results activities at Vinatech Mechanical and Telecommunications Co., Ltd currently? Question 2: What should be done to improve sales accounting and determining business results activities at ILT? Methods of the study To answer the research question, the researcher uses the following data collection: To analyze in a timely manner the sales situation of the Company; need to approach the Sales Department, the Accounting Department to collect data, synthesize information, compare actual data and clarify the research problem Also refer to Circulars and Decisions of the Ministry of Finance for more information and analysis documents In addition, using the document research method : During the internship, I did research through books, newspapers, the Internet, and consult the dissertations of the previous siblings working on sales accounting At the same time, collect documents related to sales operations in the last months of 2020 at Vinatech Telecommunication Mechanical Co., Ltd + Documents and related account books + Financial statements for the year 2020 Organization of the study Besides the INTRODUCTIONS, CONTENTS, CONCLUSION, REFERENCES, AND APPENDICES, the research paper is divided into chapters:: CHAPTER 1: LITERATURE REVIEW , basic theoretical knowledge about sales and identifying business results accounting in enterprises CHAPTER : THE STUDY , current situation of sales and identifying business results accounting in Vinatech mechanical telecommunication Co., LTD CHAPTER : RECOMMENDATIONS , president about sales and identifying business results accounting in Vinatech mechanical telecommunication Co., LTD 39 Example: March 30: Deliver sets of ODF cabinet Delivery price of sets of ODF cabinet = x 55,000,000 = 440,000,000 dongs Recording method Example: Reflecting cost of goods sold According to PXK No 000235 on March 10, 2021, the Company delivered the goods to Delta Telecom Company, the total value which calculated by the weighted average method of 440,000,000 dongs At the end of the month, the computer will automatically calculate the delivery price, the accountant shall record the value of the delivered goods, Accountant shall record: Debit ACCOUNT 632: 440,000,000 dongs Credit ACCOUNT 155: 440,000,000 dongs 40 Unit: Vinatech Telecommunication Mechanical Company Limited Address: Luu Xa Hamlet, Quat Dong Commune, Thuong Tin District ISSUE VOUCHER March 30, 2020 No 765 Debit ACCOUNT 632 Credit ACCOUNT 155 Consignee: Nguyen Van Son Reasons for delivery: Vinatech Company Delivery from: Company No Brand name, specification of goods ODF cabinet Quantity Unit Set Reques Actual t delivery 8 Unit price Amount 55,000,000 Total Total (In words): Four hundred and forty million dongs./ 440,000,000 440,000,000 Original documents attached No.: 01 VAT Invoice March 30, 2020 Made by Consignee Signature, Full name) (Signature, Full name) Warehouse keeper (Signature, Full name) Chief accountant Director (Signature, Full name) (Signature, Full name, Seal) 2.2.4 Income summary accounting a.Applied account - ACCOUNT 911: Income summary - ACCOUNT 421: Undistributed profit after tax : + 4211: Undistributed profit after tax in the previous year + 4212: Undistributed profit after tax in current year 41 b Recording procedures The recording of sales revenue is implemented automatically via the automatic entry posting which is installed in the software At the end of the month, the accountant just needs to implement the posting operation on the computer to get the profit results of the business in the period Posting according to each month and the end of the year, posting the total results GENERAL VOUCHER March 30, 2021 No.: 48/040 Type: Posting entry Explanation: Posting sales revenue and Instruments & tools Generated Account Description Debit Credit 511 Sales revenue and Instruments & 621,955,360 911 tools Income summary 621.955.360 Total 621,955,360 621,955,360 Made by Director Chief accountant (Signature, Full name) (Signature, Full name, Seal) (Signature, Full name) 42 2.3 Evaluating the current situation Advantages + The company has recorded revenue for each specific product Monitoring business fluctuations Especially, the company also consigned goods to avoid leftover situation For the organization of accounting department + The company's accounting department is organized by a centralized model which is suitable to its business conditions and independent accounting and at the same time facilitates accountants to carefully check and supervise business activities in the effective manner The team of accountant is well-trained, qualified and assigned by each accounting tasks in accordance with their ability and professional qualifications Thus, the accounting task is highly effective, reducing many mistakes For book vouchers and circulation of vouchers + The original set of vouchers and accounting books are in compliance with the accounting regime The accounting book system in the form of a General Journal is suitable to the scale of the company's operations + The organization of the accounting book system and the circulation of books and vouchers is relatively rational in compliance with the principles of the current accounting regime and in accordance with the capabilities and qualifications of the company's staff, is suitable to business characteristics, convenient management The company has a further plan for voucher circulation which are classified and systemized according to the profession, chronological order before archiving Apply the accounting regime + The company currently applies the Circular No 200/2014/TT-BTC dated December 22, 2014 which was adopted the Minister of Finance, thus, company have updated the new accounting regime The voucher circulation is implemented promptly and conveniently Sales vouchers are made in accordance with the sales model which facilitate company business 43 + The content and recording method for each type of vouchers, the company has instructed to facilitate accounting tasks Using computer for accounting + Accounting software makes the accounting of the Company more convenient and prompt and efficient in implementation and management and it helps company in cost saving compared to the traditional way + Almost posting steps are implemented by a computer, thus, the results are usually accurate + Information and data are up-to-date, with a flexible data processing order on the computer, improving professional operations For recording method + The revenue recognition and posting cost price generally is implemented in accordance with regulations The sales accountant has guaranteed the consistency in the calculation method of economic characteristics between the accountant and the sales department The account system + The account system is very important in the entire accounting program, it was built on the account system which was adopted by the Ministry of Finance and detailed by the enterprises' needs - Disadvantages: + The company has not adopted any policy of price deflation or promotion to customers, thus, the company still has many competitors in terms of price, quality, model + The company has not paid much attention to customer services + The long-term debt of the customer In recent years, although company gave many efforts in the accounting organization in general and in the recording and sales tasks in particular, the company cannot avoid its weakness that need to be enhanced and continued fulfilling procedures to improve efficiency of its business and accounting tasks 44 Firstly, because of human resources problems in the company's accounting system, accountants have to a lot of work which is exceeded in a similar company at its size and its business nature This characteristic put a great pressure on the company's accounting tasks Secondly, the company gathers invoices and vouchers at the end of the month to record in the book, thus, it easily leads to mistakes in the entry process, may not guarantee to carefully monitor the sales situation and accurate and timely reflection of sales revenue, sales deductions, cost of goods sold and expenses related to the sales, waste of time and effort of the accountants Thirdly, the company has not adopted a commercial discount policy for customers with high value contracts Company needs to supplement the sales policy so that it can improve the consumption Lastly, sales accountants not use detailed accounts which are applicable to all types of products in the company, thus, it is difficult to monitor the situation of revenue and cost price in each type in order to see what kind of effective business to expand the scale of that product Moreover, the company has not recorded in detail the accounts receivable from customers for each customer, therefore, the management of debts has not been checked strictly 45 CHAPTER III: RECOMMENDATIONS Based on the results from THE STUDY, the chapter will summarize the findings and propose some possible solutions This chapter will also give a conclusion for the whole study 3.1 Requirements, development principles Selling is the last and most important step in a business capital rotation of companies Therefore, sales accounting has become an effective tool to reflect the business situation of the Company In order to improve sales accounting, it is necessary to offer a number of solutions Solutions must be based on sa requirements:  Compliance requirement Compliance is the top requirement in the process of perfecting sales accounting at the company The complete solutions must ensure accounting standards, accounting regimes, accounting law and related guiding circulars  Matching requirement The solutions to perfecting the billboard sales accounting, besides complying with the accounting regime, must also be consistent with the business characteristics and management level of the business This is considered a necessary requirement for businesses in general and companies in particular because if the solutions are not suitable for businesses, it is not feasible and feasible  Unification requirement The solution to perfecting the billboard sales accounting must ensure the consistency in accordance with the State's regulations and between the accounting departments of the company from the account used, the accounting method, the book form , in terms of name, accordingly, the sales accountant at the company will become synchronous and easy to check and compare data  Accurate and prompt requirement 46 As we all know, accounting is an important tool to help managers make appropriate decisions for the business situation of the business For businesses, sales are considered an important and decisive step for the existence and development of enterprises Therefore, the sales accountant must ensure that the data provided is realistic and accurate Moreover, the manager always wants accounting data and reports to be provided in a timely manner for better decision-making On those points of view, the completion of sales accounting in general and billboard sales accounting in particular at the company must ensure accurate and timely requirements  Savings and efficiency requirement Any business operating on the principle of profit with the ultimate goal is to save costs and achieve the highest profit Therefore, perfecting sales accounting must also save costs Furthermore, the proposed solutions must be effective The effect here is understood as perfecting sales accounting, helping accountants handle work more smoothly and economically, the recording of vouchers and accounting books must be complete, efficient and timely Efficiency is also understood that the cost that businesses spend to improve must be commensurate with the efficiency that it brings 3.2 Development of sales accounting and income summary at Vinatech Telecommunication Mechanical Company Limited Based on the learned knowledge, learn about accounting regulations, standards, accounting regimes promulgated by the Ministry of Finance and through the process of internship and research on accounting and sales of billboards at the Company Vinatech Telecommunication Mechanical Co., Ltd, I would like to offer some solutions to perfect the sales accounting of the company as follows:  The first solution: Improve the accounting organization Currently, the company has an accountant who handles many jobs The concurrent multiple positions in the job will not work closely, not in detail, creating great pressure for the accountant to easily lead to mistakes Therefore, I would like to propose to the company to recruit an experienced accountant to manage and 47 monitor the company's debts, to avoid loss of debt and prevent other companies from taking over capital use of the business  The second solution: Recording in accounting books Because the company gathers documents to register at the end of the month, making the workload of the accountant more likely to lead to errors, confusion in the bookmaking process, not ensuring close monitoring of the sales situation, not guaranteeing guarantee to accurately and promptly reflect sales revenue, sales deductions, cost of goods sold and expenses related to the sale Therefore, the accountants should not allow the entry to be entered at the end of the month, but whenever transactions arise, they should always enter  The third solution: Accounting vouchers The accountant should not let the end of the month collect and check documents, but when the profession arises, the accountant must gather all vouchers and check the validity and completeness of vouchers following that profession When it does not guarantee the validity, it is not allowed to register, but must be improved before entering the book  The fourth solution: Make the commercial discount The company should have more preferential policies for regular customers or large customers At the end of the quarter, the company should aggregate the value of client contracts to determine which client is the biggest for a suitable incentive or for a large contract that can reward the contract signer or the person who introduces the contract a certain commission rate depending on the contract value In the current strongly competitive market economic conditions, the implementation of reasonable and flexible incentives in sales will be a very useful tool to attract customers and increase consumption goods, contributing to increase profits for businesses Revenue accounting: Debit Account 1111, 1121, 131: Total amount receivable Credit Account 5112: The sales revenue with the discounts Credit Account 3331: Output VAT 48 Cost price accounting: Debit Account 632: Cost of goods sold Credit Account 155: The value of finished products which were delivered  Fifth solution: Apply accounts Kế tốn Cơng ty cần mở thêm tài khoản chi tiết cho mặt hàng cụ thể, để tiện cho việc theo dõi phản ánh doanh thu, giá vốn hàng bán khoản phải thu khách hàng  Sixth solution: Need to improve the recording of cash receipt For customers with postpay payment, instead of reflecting through account 111 as before, now it should be directly reflected through the customer's accounts receivable More stars than the sales situation as well as customer liabilities to help the company leaders orient to use their capital effectively Previously, the accountant recorded Reflecting cost of goods sold Debit Account 632 Credit Account 155 Reflecting revenue Debit Account 111 Credit Account 511 Credit Account 333 Currently, the accountant records the deferred payment as follows: Debit Account 111 Debit Account 131 Credit Account 511 Credit Account 333 In addition, the company needs to promote marketing policies on the mass media, diversify means of sale such as sales through agents, installment sale At the end of the accounting period, a debt analysis table should be made to evaluate the deferred payment sales process 49  Seventh solution: It is necessary to recognize revenue in accordance with accounting standards of Vietnam and comply with the accounting law  Eighth solution: The company should make the sales reports and detailed income summary for each products, group of customers Công ty cần tổ chức phân loại chứng từ nhập thông tin đầu vào(chứng từ kế toán) đảm bảo yếu tố đầu ( báo cáo bán hàng) Như giúp nhà quản trị DN có thơng tin đánh giá thị trường tìm kiếm thị trường, xác định kết kinh doanh đưa định kinh doanh đắn, kịp thời  Ninth solution: Recording goods discounts and revenue deductions In a market economy, sales have become an art of how selling to attract customers is an urgent need for every business So companies should offer discounts to customers Early discounts and bulk purchases The company will account as follows: The company shall record as follows: Debit Account 635 Credit Account 111,112 Credit Account 131 For commercial discounts, if customers buy in high volume, the company shall record as follows: Debit Account 521 Debit Account 333 Credit Account 111,112,131 At the end of the period, posting to calculate revenue Debit Account 511 Credit Account 521 50 CONCLUSIONS In order to complete the sales accounting at Vinatech Telecommunication Mechanical Co., Ltd., for the solutions mentioned above to be implemented, it is required that the accounting department as well as the business management department need to implement shows the following: • First of all, the enterprise management department needs to better manage all aspects of the company's internal affairs, there should be reasonable policies in the management of human resources, to have remuneration policies for employees employees in the company so that they are dedicated to their work, there are policies to foster and supplement professional skills for employees Investing in office equipment for the company's employees to have a better working environment, speed up the working speed, and bring higher work efficiency • Accountants who are chief accountants and accountants must see the importance of sales accounting in order to focus more on perfecting sales accounting for billboards at the company Must clearly understand the knowledge specified in accounting regimes, standards and legal documents related to sales accounting, overcome difficulties in accounting as well as complete documents regularly update the latest information and regulations of the Ministry of Finance to adjust accordingly Accountants have to constantly learn, improve their professional skills, research into in-depth sales accounting, absorb achievements, with the above conditions, the solutions given will be implemented and the accounting and sales of billboards at Vinatech will be completed soon 51 REFERENCES Burnham and Juras “Sales and Leases: A Problem-based Approach- Burnham Juras” Henry Dauderis , “Introduction to Financial Accounting ” Roger H Hermanson , “Accounting Principles A Business Perspective ” Ministry of Finance (2013), “’26 Vietnamese Accounting Standards Fidelito Soriano (2019 ) , “Sales, Agency and Credit Transactions” Louis Rogers , “Skills For Business Studies Intermediate” Dr Doan Xuan Tien (2014), ''Textbook of Accounting Principles'' Circular 200/2014/TT-BTC dated 22/12/2014 of the Ministry of Finance Corporate accounting regime according to Circular 200/2014/TT-BTC dated 22/12/2014 of BTC - Statistical Publishing House 10 Financial accounting textbook for commercial enterprises - Academy of Finance 11 Financial Accounting - Academy of Finance 12 Circular 138/2011/TT-BTC 13 Documents of Viatech Telecommunications Mechanical Co., Ltd 14 Website : http://danketoan.com/ 15 Website : https://www.thongtincongty.com/company/3f8d9bf2-cong-ty- tnhh-co-khi-vien-thong-vinatech/ 16 Website : https://www.investopedia.com/terms/a/accounting.asp 17 Website : http://ketoanthienung.net/he-thong-tai-khoan-ke-toan-theo- thong-tu-200-moi-nhat.htm 52 53 APPENDIX At any time during your participation, you have the right to withdraw from the interview, without having to give a reason All the recordings will be stored and organized by code with no access to your personal information Thus, confidentiality and anonymity are assured There is no right or wrong answer, the success of this study depends on that your answers are as truthful as possible regarding services quality at Vinatech Telecommunication Mechanical Company Limited Thanks you very much for your valuable support! ... of sales accounting and determining business results 1.1.1 The concept of sales accounting and determining business results 1.1.2 The role and duties of sales accounting and determining business. .. sale accounting and determining business results in the international economy 1.1 General overview of sales accounting and determining business results 1.1.1 The concept of sales accounting and determining. .. business results .4 1.2 Definition of accounting and determining business results .5 1.2.1 The general principles and accounting standards that govern sales accounting and determining business results