2 ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULTS AT PDF REFRIGERATION ENGINEERING JOINT STOCK COMPANY

STUDENT: TRAN NHAT MAICLASS: CQ55/21CL.02

I hereby declare that this is my own research project, the figures and resultsstated in the graduation thesis are honestly derived from the actual situation of theinternship unit.

Graduate thesis author

Trần Nhật Mai

1.1.2 Concept and meaning of sales and determine business result 5

1.1.3 Method of sales and payment in businesses 8

1.2 Financial accounting for sales and determining business results in the business 10

1.2.1 Financial accounting for sales and service provision 10

1.2.2 Financial accounting for sales deductions 13

1.2.3 Financial accounting for cost of goods sold 15

1.2.4 Financial accounting for financial income and financial expenses 19

1.2.5 Financial accounting for selling expenses and General & administrationexpenses 22

1.2.6 Financial accounting for other income and other expenses 26

1.2.7 Financial accounting for corporate income tax expense 29

1.2.8 Financial accounting for determining business results 31

1.3 Accounting books and accounting reports for use in financial accounting forsales and determining business results 33

1.3.1 Accounting books used in financial accounting for sales and determining

business results 33

1.3.2 Presented information on the financial accounting for sales and determiningbusiness results on accounting reports 34

1.4 Management accounting for sales and determining business result 36

1.4.1 Concept of management accounting for sales and business results 36

1.4.2 Content of management accounting for sales and business results 36

1.4.3 The organization for management accounting for sales and business results.38CONCLUSION CHAPTER 1: 40

CHAPTER 2:FINANCIAL ACCOUNTING FOR SALES AND DETERMININGBUSINESS RESULTS IN PDF REFRIGERATION ENGINEERING JOINTSTOCK COMPANY 41

2.1 Overview of PDF Refrigeration Engineering Joint Stock Company 41

2.1.1 The process of formation and development of the company 41

2.1.2 Features of production and business organization of the company 42

2.1.3 Organize management apparatus at the company 43

2.1.4 Characteristics of the organization of the accounting work at the company 45

2.2 Accounting status of sales and determine business results at PDF RefrigerationEngineering Joint Stock Company 52

2.2.1 Characteristics of sales activities and determine business results at PDFRefrigeration Engineering Joint Stock Company 52

2.2.2 Sales procedures and vouchers used in sales accounting at PDF RefrigerationEngineering Joint Stock Company 54

2.2.3 Financial accounting for sale and determining business results at PDFRefrigeration Engineering Joint Stock Company 68

2.3 Comment on Financial accounting for sales and determining business results atPDF Refrigeration Engineering Joint Stock Company 100

2.3.1 General comments about the accounting at the Company 100

2.3.2 Comment on sales accounting and determine business results at the Company 1032.3.3 Comment on Management accounting at the Company 105CONCLUSION CHAPTER 2 106CHAPTER 3 SOME COMMENTS TO IMPROVE ACCOUNTING FOR SALESAND DETERMINING BUSINESS RESULTS AT PDF REFRIGERATIONENGINEERING JOINT STOCK COMPANY 1073.1 Development orientation of PDF Refrigeration Engineering Joint StockCompany 1073.2 Requirements and principles of perfecting accounting for sales and determiningbusiness results at PDF Refrigeration Engineering Joint Stock Company 1083.2.1 Requirements of perfecting 1083.2.2 Principle of perfection 1093.3 Some ideas to improve accounting for sales and determine business results atPDF Refrigeration Engineering Joint Stock Company 1103.3.1 Opinion 1: Apply discounts and rebates to promote sales activities 1103.3.2 Opinion 2: Make allocated cost of sales, cost of business management foreach commodity 1123.3.3 Opinion 3: Make Provision for bad receivable debts 1143.3.4 Some other issues that need attention 1183.4 Some ideas to improve Management Accounting for sales and determiningbusiness results at PDF Refrigeration Engineering Joint Stock Company 119CONCLUSION CHAPTER 3 120GENERAL CONCLUDE 121

LIST OF CHARTS

Chart 1: Sales accounting order 12

Chart 2: Accounting order of sales deductions 15

Chart 3: Cost of goods sold accounting order according to regular declarationmethod 18

Chart 4: Accounting order of financial income and financial expenses 21

Chart 5: Financial accounting for Selling expenses and administrative expensesprocedures 25

Chart 6: Accounting for other income sequences: 28

Chart 7: Accounting for orther expenses order: Explain diagram: 29

Chart 8: Accounting for corporate income tax order 30

Chart 9: Accounting order to determine business results 32

Chart 10: Business process 43

Chart 11 Organizational chart management apparatus of the company 44

Chart 12 Organizational structure of the accounting apparatus 46

LIST OF DOCUMENTS

Document 01: Economic contract 55

Document 02: Form of wholesale VAT invoice 59

Document 03: Wholesale stock release note 61

Document 04: Detailed retail list of goods 64

Document 05: Retail release note 65

Documents 06: Retail receipts 66

Document 07: Retail VAT invoice 67

SAMPLE TABLE

Sample table 01: Record the payment details for each customer object 70

Sample table 02: Record the ledger of accounts receivable from customers 71

Sample table 03: Ledger Account 511 - Sales of goods and services 72

Sample table 04: List of goods warehouse receipt 76

Sample table 05: Report Import, export, inventory 77

Sample table 06: The list of goods delivery bills 78

Sample table 07: Ledger Account 632 - Cost of goods sold 80

Sample table 08: Ledger Account 515 - Revenue from financial activities 83

Sample table 09: Payment 87

Sample table 10: Ledger of account 641 - Selling expenses 89

Sample table 11: Ledger of accounts 642 - General and administrative expenses 91

Sample table 12: Account ledger 911 - Determine business results 96

Sample table 13: General journal 98

LIST OF ABBREVIATIONS

PREAMBLE1 The urgency of the research topic

With the continuous advancement of human society, the market demand hasincreased significantly The market economy is creating both opportunities andchallenges for businesses in general and commercial enterprises in particular whenentering the market To be able to survive and develop, each business must find asuitable direction, grasp opportunities and create efficiency in the process ofproduction and business activities and commercial enterprises are not out of thatrule.

Commercial business activity which is a special economic activity, it serves asthe circulation of goods, bring products to consumers The scope of commercialbusiness is very wide, it includes both domestic trade and international trade And inthe current period, commercial activity is constantly evolving and expanding,contributing significantly to the overall development of each national economy.

However, with the complicated changes of the world economy in general andthe economy of Vietnam in particular have been set for the commercial enterprise ofthe challenges that must be overcome, and one of the challenges that is competition.Competition is both a challenge but also a driving force for development Abusiness that sells goods, increases revenue and makes a profitable business meanthat the enterprise has enough competitiveness in the market That is why theconsumption of goods plays a very important role in the production and businessdevelopment strategy of each commercial enterprise, ensuring that the enterpriseexists and stands firmly in the market.

Recognizing that importance, accounting with the function of reflecting,monitoring and providing useful information for commercial enterprise economicdecisions needs to be well organized and managed, especially in sales accounting tocontribute to the practical efficiency of the business of commercial enterprises.Recognize the importance of this accounting, combined with equipped knowledge

in the process of studying at the school and actually gathered from accounting workat the company, with the enthusiastic guidance of teachers in the faculty and theenthusiastic help of the leaders of the company and the staff accountant, I have

researched and selected in-depth topics “Accounting for sales and determiningbusiness results at PDF Refrigeration Engineering Joint Stock Company”.

2 Research purposes.

The purpose of researching the topic: to find out the actual situation of the

sales accounting organization and to determine the business results at the company.Through research, we will see the advantages and disadvantages that need to bepromoted and the shortcomings that need remedial measures, propose timelysuggestions to improve the organization of accounting for sales and determinebusiness results of the company.

3 Research subject and scope.

Research subject: Organization of accounting sales and determine business

results in PDF Refrigeration Engineering Joint Stock Company

Scope:

+ Content : The topic focuses on researching the current situation of theorganization of sales accounting and determining business results at PDFRefrigeration Engineering Joint Stock Company in the financial accountingperspective Theoretical research on the basis of accounting standards andaccounting regimes.

+ About space: Research at PDF Refrigeration Engineering Joint StockCompany, address Number 12 - Lot 7; Urban Xuan Phuong Residence, Trinh VanBo Street, Xuan Phuong Ward, Nam Tu Liem District, Hanoi City, Vietnam

+ Time : Research theoretical issues and document survey current situation atPDF Company in the period 2020

4 Research Methods

The topic uses the methods of Collecting primary and secondaryinformation sources from the school and PDF Refrigeration Engineering Joint StockCompany, combined with the method of dialectical materialism:

- Dialectic method: Consider the dialectical relationships of the accountingobjects that consume products in a specific time or space.

- Methods of investigation, statistics, synthesis and analysis to provideaccounting models for product consumption in specific conditions.

5 Structure of the thesis

In addition to the introduction and conclusion, the topic also includes three chapters:

Chapter 1: General theory of sales accounting and determination of business results in commercial enterprises.

Chapter 2: Accounting of sales and determination of business results at PDF Refrigeration Engineering Joint Stock Company.

Chapter 3: Some ideas to perfect the sales accounting and determine business results at PDF Refrigeration Engineering Joint Stock Company.

CHAPTER 1: GENERAL THEORETICAL ISSUES FOR SALES ANDDETERMINING BUSINESS RESULTS IN COMMERCIAL

1.1.1.1 Features of the commercial business activity

Commercial business activity means the implementation of one or morecommercial acts of traders giving rise to rights and obligations between traders orbetween related traders, including the purchase and sale of goods, the supply ofcommercial services and trade promotion activities for profit or socio-economicpolicy implementation.

* Trading activities have the following characteristics:

- Activities: economic activity is basically the circulation of goods (goodscirculation is a combination of activities in the process of buying, selling,exchanging and storing goods).

- Regarding goods: goods in commercial business include materials andproducts of material and non-material form that enterprises buy for the purpose ofsale.

- Regarding the mode of goods circulation: commercial business has two mainforms of circulation: wholesale and retail.

- Regarding business organizations: can follow many different models such aswholesale organizations, retail, general business companies, brokerage companies,trade promotion companies,

- Regarding the movement of goods: the movement of goods is not the same,depending on the source of goods and the industry (domestic goods, import-export

goods, ) Therefore, the purchasing costs and the time for the goods to be movedalso vary between types.

1.1.1.2 Influence of commercial business characteristics on sales and determining business results.

With the special characteristics and functions of the commercial industry asabove, it will affect the accounting in general and the sales accounting anddetermine the business results in particular Each business has its ownorganizational models of trading different types of goods Each type of goods has amode of movement as well as a different movement This variety makes salesaccounting and performance determination more complicated Therefore, the salesaccounting and business result determination must be more complete, overcomingthe shortcomings to become more complete and meet the needs of commercialbusiness activities in the best way.

1.1.2 Concept and meaning of sales and determine business result1.1.2.1 Sales

Sales are the transfer of ownership of goods associated with most of the interests and risks held to the customer, paid or accepted by the customer This process helps businesses convert capital in goods into monetary capital or capital in payment This is the last stage in the production and business process in each

* The sales process can be divided into two phases:

- Phase 1: Based on economic contracts signed to deliver goods to customers.- Phase 2: Customers pay or accept payments (through invoices, )

Enterprises have or will collect money, enough to offset the costs to produce or have available and profitable products.

1.1.2.2 Determining the business results of the commercial enterprise.

Determining business results is the calculation and comparison between theexpenses spent and the revenue received in the period If the revenue is greater thanthe cost, the result is profit and vice versa, if the revenue is less than the cost, the

result is a loss Determining business results is usually conducted at the end of abusiness period, usually at the end of a month, quarter or year, depending on thecharacteristics of the business and the management requirements of each business.

1.1.2.3 Management requirements for sales and determination of businessresults.

Sales management and determining business results of the business is a realrequirement, it comes from the goals of the business In particular, managing thesales process and determining the sales results is one of the key and importantrequirements of the business If an enterprise manages well the selling stage, it canensure the target of fulfilling the consumption plan and accurately assessing itsproduction and business efficiency So the problem posed for each business is:

- Manage the plan and implementation of the consumption plan for eachperiod, each customer, each economic activity.

- Quality control, design improvement and product branding are the goalsfor the sustainable development of the business.

- Manage to monitor each method of sale, each customer, the paymentsituation of the customer, request payment in the right form, on time to avoidloss, loss and congestion of capital Enterprises must choose the form of productconsumption for each unit, each market, each customer in order to speed up theconsumption process, and at the same time, conduct market exploration,research, and expansion of wholesale relations sold at home and abroad.

- Strictly manage capital of finished products for consumption, closelymonitor selling expenses, business management costs, and check the legality,reasonableness of the data, and distributed to consumers, ensuring thatdetermining the exact consumption is reasonable.

- For the accounting consumption must closely held, science ensuresdetermining the final outcome of the process of consumption, reflect andsupervise the implementation of obligations to the state fully and promptly time.

1.1.2.4 The role and duties of sales and determining business results.

Looking at the scope of businesses that consume finished products or sellproducts is the decisive factor to the success or failure of the business Consumptionshows the competitiveness and reputation of the business in the market It is thebasis for evaluating the organization's ability to effectively manage production andbusiness activities On the other hand, it also indirectly reflects the level oforganization of the supply, production as well as the storage and preservation offinished products.

Across the entire economy, selling has a special role, it is both a condition forsocial reproduction and a bridge between producers and consumers, reflecting themeeting between supply and demand for goods, thereby driving production,consumption and solvency.

For a business, increasing the sales process quickly increases the turnover ofcapital, saves capital and directly increases the profitability of the business Fromthere, it will improve the life and income of the employees in the enterprise andfulfill their obligations to the state.

In business, accounting is an important tool to manage production andconsumption, through data of general accounting, sales accounting and in particularto determine sales results in particular for businesses and businesses the authorityto assess an enterprise's level of fulfillment in terms of production, cost,consumption and profit.

To really be a tool for the management, accounting and sales results process,must perform well, fully the following tasks:

+ Organize monitoring, accurately, fully and promptly monitoring theexisting situation and the fluctuation of each product.

+ Reflected and recorded in full, timely and accurate revenues, salesdeductions and the cost of each activity in the business.

Reflect and calculate the exact outcome of each activity and supervision onthe implementation of obligations to the state.

Providing accounting information serving the preparation of financialstatements and periodic analysis of economic activities related to the sales process,determination and distribution of results The sales accounting and sales resultsdetermination must always be linked.

1.1.3 Method of sales and payment in businesses1.1.3.1 The method of sales

The sale of goods in enterprises can be carried out by the followingmethods:

* Wholesale method:

Wholesale is the sale of products of an enterprise to other businesses, stores,agents In large quantities for units to continue to sell to other organizations or toserve other purposes to economic needs Wholesale of goods is usually done by twoforms:

- The form of wholesale through warehouse: goods are sold to customers fromthe enterprise's stockpile and are done in two ways:

+ Form of direct selling: is a form of sale where the enterprise delivers goodsand delivers them directly to customers at a warehouse or a place of direct storageof the enterprise Goods are considered to be selling and forming sales when thecustomer receives enough goods and signs the invoice to confirm the goods.Vouchers used: sale invoice or VAT invoice, delivery slip made by the seller.

+ Form of shipment: in this form, periodically based on economic contract anddelivery plan, the company sends goods to customers and delivers them at the placesigned in the contract (station, port , the customer's warehouse, ).

The goods sent are still owned by the seller Only when the customer noticesto receive the goods and accepts to pay or pay for the goods immediately, then thegoods transfer of ownership is determined to be sales and the business is recognizedas sales Shipping costs are borne by the enterprise or the buyer, depending on thecontract signed between the two parties Use vouchers: sale invoices or VATinvoices, invoices cum stock invoice issued by the enterprise.

- Direct wholesale is a form of sale in which the seller buys goods from asupplier to sell to customers, the goods do not go through the seller's warehouse.This form also includes many small forms:

+ Wholesale hand delivery (direct wholesale): Commercial enterprises buy

goods from the supplier for direct delivery to the buyer authorized by the buyer toreceive the goods directly at the place agreed by the two parties pros Goods areconsidered to have been sold when the buyer has fully received the goods andsigned the receipt on the sale vouchers of the enterprise, and the payment dependson the signed contract between the two parties.

+ Shipping wholesale directly in the form of shipping: Commercial enterprises

buy goods from the supplier and ship them to sell directly to buyers by means oftransport or outsource Goods sent for sale still belong to the enterprise When thebuyer confirms that they have received the goods or accepts the payment, then itwill be determined that they are consumed Shipping costs depending on eachsigned contract can be borne by the seller or the buyer.

* Retail method:

It is the last stage of transportation of goods from the manufacturing sector tothe consumer sector At this stage, the goods end of circulation, the full value andvalue of use can be realized Retailers often sell with small volumes and stableprices Usually includes:

- Direct cash sales: sales are completed directly with customers.

pay money, sellers deliver goods to customers.

- Selling by agent mode: Selling businesses sign contracts with agents,

deliver goods to these establishments for sale and pay commissions for selling them.

- Sales by installment or deferred payment: Sales businesses only collect a

part of the customer's money, the rest will be paid by installments and must bear acertain amount of interest

There are also other forms of selling such as selling online, on television

1.1.3.2 Methods of payment

* Instant payment by cash, bank deposit

Under this method, when the buyer receives the goods from the business, hewill immediately pay the business in cash or in bank deposit This method is oftenused in the case of buyers who are small customers who buy small quantities orhave immediate payment ability at the time of delivery.

* Selling and calculating interest

Under this method, the buyer pays money after receiving the goods for acertain period of time agreed by both parties, at the end of which time the buyerwill have to pay all the purchased value plus an amount fee is the interest from thisdelay.

* Sale installment

The installment payment method is essentially a lending method that, sincethe corner and interest payment periods are the same, the amount of each paymentperiod is the same, the interest is calculated on the principal balance and the actualnumber of days of the repayment term.

1.2 Financial accounting for sales and determining business results in thebusiness.

1.2.1 Financial accounting for sales and service provision.1.2.1.1 The concept of revenue.

Revenue is the total value of economic benefits earned by an enterprise in the accounting period, arising from normal business and production activities of an enterprise, contributing to increase equity capital.

Turnover arising from a transaction or event is determined by an agreement between the enterprise and the purchaser or asset user It is determined by the fair value of the proceeds or to be obtained after deduction of trade discounts, sales rebates and the amount of sales returned.

Sales of goods are recognized when all five (5) of the following conditions are satisfied at the same time:

+ The enterprise has transferred most of the risks and benefits associatedwith the ownership of products or goods to the buyer;

+ The enterprise no longer holds the right to manage the goods as the goods owner or the right to control the goods;

+ The revenue is determined with relative certainty;

+ The enterprise has received or will gain economic benefits from the sale;Costs related to sales transactions can be determined

- This account has class 2 accounts as follows:+ Account 5111- Revenue of goods

+ Account 5112- Revenue of semi-finished products+ Account 5113 - Service revenue

+ Account 5114 - Revenue from price subsidies

+ Account 5117 - Revenue from real estate investment+ Account 5118 - Other revenue.

- Account 3331: VAT payable This account applies generally to VAT payersaccording to the tax credit method and those to pay VAT according to the directmethod.

- Account 3387: Unearned revenue This account is used to recordprepayments for asset lease, investment property lease; the difference between the

Acc 3387(4)

installment or deferred sale price and the spot price; interests received beforemaking loans or buying debt instruments; the selling price difference is greater thanthe residual value of the fixed asset sold and then leased under the finance leasemethod; the difference in selling price is greater than the fair value of the fixedasset sold and then leased under the operating lease mode; Other deferred incomefrom contributing capital to joint ventures to establish a co-control base whosecapital contribution value is assessed to be greater than the actual value ofmaterials, products or goods or the residual value of fixed assets to be contributedcapital

- Other related accounts (Account 111,112,131,…).

1.2.1.4 Accounting sequence:

If the enterprise pays VAT by the deduction method, the revenue from the sale of goods and services is recognized as the tax-exclusive selling price of such goods or services.

If an enterprise pays VAT by the direct method, Sales of goods and services are recognized as the total payment price of such goods or services.

Chart 1: Sales accounting order

Explanation of the diagrams:

(1) Turnover when selling directly to customers or internal units, when theagent accepts payment, the immediate selling price of the installment sale or the fairvalue of the materials or goods exchanged

(2a) Unrealized revenue (total payment price) upon receipt of rent inadvance from fixed assets or investment property leasing.

(2b) Periodically calculate and carry forward revenue from operating lease offixed assets or investment property leasing in the accounting period.

(3) Products or goods used for donation or salary payment (Internalconsumption is recognized as the normal selling price of the product)

(4) Transfer of sales deductions: sales rebates, sales returns, trade discounts,excise tax, and export tax.

(5) At the end of the period of determining payable VAT amount

(6) At the end of the period, net revenue is transferred to determine businessresults.

1.2.2 Financial accounting for sales deductions.1.2.2.1 Content of sales deductions.

Sales deductions such as trade discounts, sales rebates, sales returned, VATpayable under the direct method, and excise tax, and export tax Revenuedeductions are the basis for calculating net sales and business results in theaccounting period Revenue deductions must be reflected, tracked in detail andseparately on the appropriate accounts to provide information for the accountant toprepare the financial statements.

- Trade discount: Is the difference in the selling price which is smaller thanthe listed price discounted by the enterprise for the buyer because the buyer hasbought products or goods in large volume under the agreement on trade discount.stated in the purchase and sale economic contracts or purchase and salecommitments.

- Sales of returned goods: Is the number of products and goods that theenterprise has determined to be consumed, has recorded revenue but is returned by

the customer due to violation of the conditions committed in the business contract.economic or under warranty policy such as: Poor quality goods, wrongspecifications

- Sales discount: is the amount that the business (the seller) deducts to thebuyer in special cases because the goods sold are of poor quality, improperspecifications or on time as stated in the contract .

- Some taxes such as: VAT according to the direct method, Specialconsumption tax, Export tax.

1.3.2.2 Vouchers and accounts used:

- Vouchers used: warehouse receipts of goods sold are returned; Record ofdiscount agreement; Sales invoices returned; Payment note, bank debt notice; Taxpayment documents,

Chart 2: Accounting order of sales deductions

Taxes payable reduce sales

Direct VAT, excise tax, import and export duties

Acc 131,111,112 Acc 521

Trade discounts, End of period, transferred Sales discounts, sales returns to calculate net revenue

Acc 3331

Reduce output VAT

1.2.3 Financial accounting for cost of goods sold.

1.2.3.1 The method of determining the cost of goods sold

For goods, the cost of goods sold includes the purchase value of the goodsfor sale plus (+) the purchase cost of the goods for sale For a finished product, thecost of goods sold is the cost of the finished product sold in the period.

- The purchase value of goods for sale and the cost of the finished product for saleare determined by one of the following three methods:

+ The actual nominal method: The purchase value of the goods, the cost ofthe finished product is valued in a single unit or lot and remains the same from thetime of import to the time of use When the shipment is released, the actual unitprice of that shipment will be calculated.

+ First-in-first-out method: Assuming which batch of goods or finishedproducts are imported first, they will ship first and take the actual price of thatimport as the price of goods and finished products out of stock.

+ Weighted average unit price: The method of calculating the average unitprice after each importation According to this method, only the weighted average

unit price of circulating goods at the end of the period is calculated and then the

cost value is calculated of goods, finished products out of stock.

Each method has different advantages and disadvantages, depending on thespecific conditions of the business to choose the appropriate method.

- Purchase cost of goods for sale in the period is calculated by the followingformula:

Purchasingexpenses ofgoods for sale

during theperiod

Purchase costsof inventory atthe beginning

of the period+

Purchase costsof goodspurchasedduring the

period ×

Purchasevalue ofgoods sold

for theperiod

(1.4)Purchase value

of goodsshipped during

the period+

Purchase valueof endinginventory

1.2.3.2 Vouchers and accounts used.

- Use vouchers: Warehouse receipt, delivery note; Summary of export and

import; Price allocation table; Delivery note cum internal transport; Delivery noteof warehouse for sale to agent,

- User account:

+ Mainly using account 632 - Cost of goods sold.

If accounting for inventories according to the regular accounting method,Account 632 reflects the cost of products, goods and services sold during theperiod; Unallocated cost of raw materials and labor and fixed overheads areincluded in cost of goods sold during the period; Loss or loss of inventory afterdeduction of indemnity caused by personal liability; Costs of construction and

processing of fixed assets in excess of normal levels shall not be included in thehistorical cost of tangible fixed assets that are self-constructed or self-completed;The amount of the provision for devaluation in inventories (the difference betweenthe provision for devaluation of inventories in this year is greater than the provisionmade in the previous year that has not been used up)

If accounting for inventories according to the periodic inventory method, Account632 reflects the cost of finished products in stock, which have not yet beendetermined for consumption at the beginning of the period (for manufacturingenterprises); Actual total production cost of the finished product (regardless ofwhether the product is stocked or not) (for manufacturing enterprises); The cost ofgoods sold for sale in the period (to commercial enterprises); The amount of theprovision for devaluation of inventories (the difference between the allowancemade in this year is greater than the amount created in the previous year that has notbeen used up).

In addition, this account is also used to record expenses related to real estatebusiness activities such as depreciation costs, repair costs, and rental costs ofinvestment property by operating lease (in small cases), cost of liquidation, sale ofinvestment property

1.2.3.3 Accounting order

Acc 157(1)

Acc 2249

Chart 3: Cost of goods sold accounting order according to regular declarationmethod

Explanation of the scheme:

(1) Export goods and finished products for direct sale(2) Exporting goods and finished products for sale

(3) When the item is sent for sale, it is determined to be sold(4) Depreciation of rental investment property

(5) Cost of goods or finished goods sold and returned for storage(6) Excessive production costs are not included in inventory value(7) Appropriation provision for impairment of inventories

(8) Reversal of provision for devaluation of inventories

(9) At the end of the closing period, transfer cost of goods sold to account911

- For enterprises that account for inventory according to the periodicinventory method

1.2.4 Financial accounting for financial income and financial expenses.1.2.4.1 Content of financial income and financial expenses

- Financial income is the total value of economic benefits derived frombusiness activity or business financing of capital in the accounting period Financialincome arising from the enterprise's interests, royalties, dividends and distributedprofits is recognized only when both (2) of the following conditions are satisfiedsimultaneously:

+ Have the ability to benefit from such transactions + The revenue can be determined reliably.

- Revenue from financial activities includes: Interest (deposit interest, loaninterest, interest on sales on deferred payment, installment sale); Interest from sale,transfer of financial instruments, joint venture investments in joint control business,associate investment, subsidiary investment; Dividends and distributed profits;Interest difference due to foreign currency trading, foreign currency exchange ratedifference interest; Payment discount is enjoyed by purchase of materials, goods,services, fixed assets; Other income related to financial activities.

- Financial expenses are expenses related to capital activities, financialinvestment activities and financial transactions of the enterprise Expenses forfinancial activities include: Expenses related to investment in financial instruments;investment in joint ventures, associates, investment in subsidiaries (expenses forholding, liquidating, transferring investments, losses in investment ); Expensesrelated to capital lending, foreign currency trading; Interest expense business capitalis not capitalized, payment discounts when selling goods, providing services,employment services; Loss difference when buying and selling foreign currencies,

foreign currency exchange rate difference loss; Provisioning discounted short-termfinancial investments, long-term.

1.2.4.2 Accounting vouchers and accounts used.

- Use vouchers: Deposit interest slip, loan interest calculation slip, receipt note,payment note, Debit note, Credit note,

- Account used: Accountants mainly use accounts:

+ Account 515 - Revenue from financial activities.+ Account 635 - Financial expenses

+ Besides, there are other related accounts: 111, 112, 3387, 121, 221,

1.2.4.3: The order of accounting for financial income and financial expenses

Acc 515Acc 111,112, Acc 635

(2b)Acc 3387

Acc 112, 121, 221, 222, 228,

Acc 413(2a)

Acc 229Acc 333

Acc 911

(5b)(6a)

(2a): Transfer unrealized revenue to account 515 from sales interest ondeferred payment or installment payment

(3a): Profits are divided from investing activities and left to invest

(4a): Net exchange rate difference (FX gain> 0) when revaluation ofmonetary items denominated in foreign currencies at the end of the year

(5a): VAT calculated by the direct method payable (if any)

(6a): At the end of the term, transfer financial income to account 911

(1b): Expenses for holding and selling foreign currencies and financialinstruments; expenses for financial investment activities not included in contributedcapital (if any); loss in financial investment activities (if loss is not deducted fromcontributed capital); loss of foreign currency exchange rate difference; interestexpenses for business loans are not capitalized; discount payment to customers;

(2b): Loss when selling foreign currencies, financial instruments; losseswhen selling, liquidating, or transferring financial investments; Expenses forinvestment activities (if included in capital), losses in investment activities arecalculated in contributed capital.

(3b): Net exchange rate difference (FX gain <0) when revaluation ofmonetary items denominated in foreign currencies at the end of the year

(4b): Provision for devaluation for financial investments

(5): Reversal of allowance for diminution in value for financial investments(6b): Transfer financial expenses to 911 account.

1.2.5 Financial accounting for selling expenses and General &administration expenses.

1.2.5.1 Content of Selling expenses and General & administration expenses

- Selling expenses are all costs incurred in connection with the sale of goods,goods and provision of services The contents of selling expenses include thefollowing factors: Cost of employees, cost of packaging materials, cost of goods,depreciation of fixed assets, cost of product warranty, costs of services purchasedfrom outside, expenses In addition to the production and business activities and

management requirements of each industry, each unit that accounts 641 "sellingexpenses" can open some additional costs.

- General and administrative expenses are all expenses related to productionand business management, administrative management and a number of otheraccounts of the general nature of the enterprise General and administrativeexpenses include management personnel costs, material management costs, officesupplies, fixed assets, taxes, fees and charges, contingency costs, and service costs.buy from outside, cost in other dollars

1.2.5.2 Voucher used

- Use Vouchers: Delivery slip, spreadsheet and salary allocation, VAT invoice,sales invoice, receipt, payment slip, Debit note, Credit note, advance paymentstatement and other other relevant documents

+ TK6413 - Costs of tools and supplies

+ TK6414 - Depreciation expense of fixed assets+ TK6415 - Warranty costs

+ TK6417 - Expenses for services purchased from outside+ TK6418 - Other cash expenses

- Account 642 - Enterprise administrative expenses Account 642 has 8 level 2accounts:

+ TK641 - Management staff expenses+ TK642 - Cost of management materials+ TK6423 - Office expenses

+ TK6424 - Depreciation expense of fixed assets+ TK6425 - Taxes, fees and charges

Acc 334, 338Acc 641, 642Acc 111, 112

(9)Acc 152,153,242

(3): Depreciation of fixed assets in the sales department, fixed assets sharedby the entire enterprise

(4): Charges for services purchased from outside, other monetary costs for thesale process, for corporate management and deductible input VAT (if any)

(5): Establishment for doubtful debts, allowance for loss of jobs, andprovision for payables.

(6): Reversal of provision for doubtful debts, provision for loss of jobs,provision for payables.

(7): Decreases in selling and administrative expenses actually incurred in theperiod

(8): Accreditation of overhaul costs of fixed assets in the sales department,overhaul costs of fixed assets shared by the whole enterprise

(9): Transfer selling expenses and administrative expenses to Account 911

1.2.6 Financial accounting for other income and other expenses.1.2.6.1 Content of other income and other expenses.

- Other income means the income generated from activities other than normalbusiness activities of an enterprise, including: Income from sale or liquidation offixed assets; Residual value or selling price or fair value of fixed assets sold for sub-lease under financial or operating lease mode; Fines collected by customers, otherentities violating economic contracts; Collection of bad debts which have beenwritten off; Taxes exempt from corporate income tax by the State; Receivables fromunidentifiable liabilities; Bonuses of customers related to the sale of goods, productsand services are not included in the revenue (if any); Incomes from gifts of moneyand kind of individuals and organizations increase enterprises; Business earningsfrom previous years omitted or forgotten to bookkeeping now discovered,

- Other costs are the costs of activities other than production and businessactivities that generate revenue of the enterprise These are losses due to events ortransactions different from the normal business activities of the enterprise, including:Expenses for liquidation, sale of fixed assets; Residual value of fixed assets to be

liquidated or sold (normal); Residual value or selling price of fixed assets sold forsublease under the financial or operating lease mode; Fines for breaching economiccontracts; Tax penalties, tax arrears; Expenses due to incorrect or omitted entries inaccounting books; Other costs

Acc 3331

Acc 911

Acc 711

Acc 111, 112, 152, 211, Acc 111, 112, 1388(4)

Acc 331, 338(2)

Chart 6: Accounting for other income sequences:

Explain diagram:

(1): Reflecting the proceeds from the liquidation or sale of fixed assets; The proceeds of fines, compensation for breaches of economic contracts by other entities; Proceeds from bad debts written off,

(2): Reflect liabilities of unidentified owner, other income

(3): Reflect the amount of money or kind given away; Other income such as bonuses, neglected, omitted income from the previous year,

(4): VAT payable on other incomes calculated by the direct method (if any)(5) At the end of the term, transfer other income to determine the results.

Acc 111, 112, 152,

Acc 911

Acc 111, 112, 152,

(2): Residual value of the fixed asset to be liquidated or sold.

(3): The fines for breach of contract, fines, retrospective payment of taxes(4): At the end of the term, the other expenses are transferred to determine the results

There are also a number of other income and expense operations related to equity investments in joint ventures.

1.2.7 Financial accounting for corporate income tax expense.

- Account used: Mainly use account 821 - corporate income tax expense + Account 821 is detailed into 2 level 2 accounts:

+ Account 8211 - Current corporate income tax expense;+ Account 8212 - Deferred corporate income tax expense.+ Other related accounts: Account 3334, 243, 374, - Accounting order:

Acc 347(3a)

(2b): Reversal of deferred tax assets(3a): Deferred income tax payable arises.(3b): Refund of deferred income tax liabilities.(4): Transfer of current income tax expense:

(4a): The difference between the arising debt is greater than the arisingamount Cr 8211

(4b): The difference in the arising amount is greater than the arising amountof Dr 8211

(5): Carry-over of deferred income tax expense:

(5a): The difference between the arising debt is greater than the arisingamount Cr 8212

(5b): The difference in the arising amount is greater than the arising amountof Debit of Account 8212

1.2.8 Financial accounting for determining business results.

- Formula to determine business results:+ Business results before tax (1):

(1) = (2) - (3) + (4) - (5) - (6) - (7) + (8) - (9) (1.5)In which:

(2) – Net revenue from sales and provision of services(3) - Cost of goods sold

(4) - Revenue from financial activities(5) - Financial expenses

Business results before

tax - Corporate income tax (1.6) - Account use: Mainly used accounts:

+ Account 911 - Determine business results Account 911 is used to identifyand reflect the results of business operations and other activities of the enterprise inan annual accounting period.

+ Account 421 - Undistributed profits Account 421 reflects business resultsand the situation of distribution and handling of business results of the enterprise.

+ Other related accounts: Account 511, 632, 641, 642,

- Accounting order