4 ACCOUNTING FOR SALE REVENUE AND BUSINESS RESULTS IN HOA PHAT DUNG QUAT STEELS JOINT STOCK COMPANY

MINISTRY OF FINANCE ACADEMY OF FINANCE  NGUYEN TIEN DUNG BACHELOR THESIS TOPIC: ACCOUNTING FOR SALE REVENUE AND BUSINESS RESULTS IN HOA PHAT DUNG QUAT STEELS JOINT STOCK COMPANY MAJOR : ACCOUNTING CODE : 21 MENTOR : PHD BUI THI HANG HANOI – 2020 MINISTRY OF FINANCE ACADEMY OF FINANCE  NGUYEN TIEN DUNG Class: CQ54/21.CL01 BACHELOR THESIS TOPIC: ACCOUNTING FOR SALE REVENUE AND BUSINESS RESULTS IN HOA PHAT DUNG QUAT STEELS JOINT STOCK COMPANY MAJOR : ACCOUNTING CODE : 21 MENTOR : PHD BUI THI HANG HANOI – 2020 TABLE OF CONTENTS LIST OF DIAGRAM LIST OF APPENDIX FOREWORD The urgency of the research study In the process of development of a socialist-oriented market economy, integrating with the World economy, With the activities of various economic sectors, every business needs to be dynamic, creative in business, capture everything faster, and learn incessantly Enterprises are responsible for preserving business capital and the goal is to maximize profits In order to so, businesses must promote goods consumption business because it will help businesses to earn income to offset the costs and expand their business So in each business, sale is an extremely important stage and the proper organization of sales accounting is essential to help businesses have sufficient and timely information to help leaders make right decision related to business Accountants will make recommendations, approvals and appropriate solutions for directors or leaders in the management and development of businesses in the current or long term future Being aware of the importance of revenue accounting, applying the theory learned at the school along with the practical experience gained from accounting work at Hoa Phat Dung Quat Steels Joint Stock Company, I selected the topic "Revenue accounting and business results determination at Hoa Phat Dung Quat Steels Joint Stock Company" to research and write a graduation thesis Subject and scope of the research  Subject: Revenue accounting and business result determination at Hoa Phat Dung Quat Steels Joint Stock Company  Scope: Theories and practices related to Revenue accounting and business result determination at Hoa Phat Dung Quat Steels Joint Stock Company Purpose and meaning of the research of the topic  General purpose: To help students dive into practical knowledge and gain more experience Assessing the current situation of sales accounting and determining business results of Hoa Phat Dung Quat Steels Joint Stock Company will recognize the outstanding advantages and disadvantages in the accounting systems Since then, propose solutions to overcome and improve the quality of revenue accounting and determine business results, contribute to good management and accelerate the consumption process to bring high efficiency to the company  Detail purpose: - Summarizing the theoretical issues of sales accounting and - determining business results Find out and assess the current situation of the accounting work, - accounting and sales and determine business results Analyze the advantages as well as exist in the accounting of sales - and determine business results Proposing some key solutions to improve the quality of the company's accounting work Research Methodology - Collecting primary documents: asking and consulting directly with accountants and other employees at Hoa Phat Dung Quat Steel Joint Stock Company Besides, researching research issues through consulting with instructors and accounting experts - Collecting secondary materials: conducting research on theoretical issues through reference to textbooks, reference books, articles, magazines, theses, theses on sales accounting topics and determine business results Collect secondary documents on the situation by observation methods, research on vouchers, accounting records and financial statements of Hoa Phat Dung Quat Steels Joint Stock Company in 2019 - Synthesizing and processing collected documents as evidence for the research results: using descriptive statistical methods, qualitative analysis and comparison between the actual situation and theoretical basis or accounting regime, to infer, induce and present research results Conclusion In addition to the introduction, list and conclusion, the thesis consists of chapters CHAPTER 1: GENERAL THEORY ON ACCOUNTING FOR REVENUE AND BUSINESS RESULT CHAPTER 2: ACCOUNTING FOR REVENUE AND BUSINESS RESULT IN Hoa Phat Dung Quat Steel , JSC CHAPTER 3: SOME OPINIONS AND SUGGESTIONS FORIMPROVEMENT OF ACCOUNTING FOR REVENUE AND BUSINESS RESULT IN HOA PHAT DUNG QUAT STEEL., JSC Although I have tried to understand and receive the enthusiastic help of the instructor and the accounting department, I have somewhat grasped the actual situation of the accounting work and determined the results sales at the company But due to the limited level of reasoning and practical access time, my thesis cannot avoid shortcomings I look forward to receiving the comments of teachers to improve my writing Thank you sincerely! 10 CONCLUSION OF CHAPTER In chapter 2, she presented the situation of sales accounting and business performance determination at Hoa Phat Dung Quat Steel Joint Stock Company, and he also mentioned the advantages, limitations and principles The reason for the limitation is the accounting accounting and the business results at the company Next, I would like to present suggestions to overcome the limitations mentioned, wish to contribute to further improve the general accounting and sales accounting and identify Sales results in particular of the company 124 CHAPTER 3: SOME OPINIONS AND SUGGESTIONS FORIMPROVEMENT OF ACCOUNTING FOR REVENUE AND BUSINESS RESULT IN HOA PHAT DUNG QUAT STEEL., JSC 3.1.Some suggestions for improvement of accounting for salary and payroll related compensation in Hoa Phat Dung Quat Steel., JSC 3.1.1 Requirements of accomplishing the sales and determining business results  The important of improvement Business activities of enterprises in the current open economic era provide businesses with many opportunities but also many challenges The fierce competition environment not only within the country but also in the international market requires each business to find out effective and legal ways to business, helping businesses stand firm and increasingly develop Accordingly, product consumption accounting is an important issue that businesses are constantly concerned about and perfect every day in the process of their existence and development Therefore, only when this accounting practice is performed well can the enterprise have strict control over the results of its production and business processes, good management of its assets and decision making Accurate and timely In line with the trend of economic development, accounting in general and accounting for product consumption in particular must be more and more complete to ensure the higher and higher quality of accounting information to serve the needs of managers Requests and requirements of the organizations concerned In fact, organizing the accounting of product consumption and determining the consumption results at the Company, besides the achievements, this part of the accounting plan still has limitations that the 125 Company has the ability to improve and refund In order to meet the requirements of the management Therefore, perfecting this accounting practice is indispensable  Principles of improvement and completion To thoroughly grasp the principles of compliance with the issued accounting regimes such as accounting standards, guiding circulars, account systems, accounting book forms and systems promulgated by the Ministry of Finance - Ensuring appropriate principles, this is an important principle in the organization of accounting work at the enterprise Therefore, perfecting the accounting of product consumption should respect this principle The recording of revenues and expenses must be consistent with each other And flexibly and creatively apply to the specific operation situation of the enterprise so that it does not violate the law and ensures accuracy and convenience in the application process - Ensuring the economical and efficient accounting The completion of accounting of product consumption and determination of consumption results must help accountants handle the preservation and preservation of accounting vouchers while ensuring the high accuracy and timeliness of accounting information while improving the efficiency of directors, managing the activities of the business - Make sure to ask for a complete and accurate information promptly The completion of accounting work must focus on equipping equipment and facilities with technical devices to calculate, record and process information quickly, timely, accurately and completely to step by step improve High efficient accounting work - Must be consistent with the company's business characteristics 126 The economy of our country today is a multi-sector economy, each enterprise has its own production and business characteristics and management requirements The State issues policies and general regulations for all businesses, businesses must know how to apply flexibly, in accordance with the conditions and characteristics of their businesses The appropriate application also needs to ensure the consistency of the assessment method, the use of vouchers, accounts as well as the reporting system - Must ensure adequate and timely provision of information for corporate governance This is an indispensable requirement in sales accounting and determining sales results As we all know, accounting is the science of acquiring, processing and providing information to serve the management requirements of business executives, so the completion of accounting must meet the requirements The demand for information is timely, accurate and appropriate to help decision making achieve optimal results - The completion of accounting work must ensure efficiency and feasibility The organization of accounting work must ensure the principle of thrift and efficiency The purpose of businesses is to maximize profits In order to achieve this goal, along with the continuous increase in revenue, businesses need to take effective measures to lower the possible cost, this is an indispensable requirement for businesses in the country Market economy In addition, perfecting the accounting work must be feasible, not wasting time, effort and money so that businesses can take advantage of business opportunities  Orientation of completion 127 To complete the sales accounting and determine the business results in particular and the whole accounting system in general, the following requirements must be met: + Improve the accounting of sales and determine business results on the basis of respect for financial institutions and respect for the accounting regime The organization of accounting of sales accounting and determination of business results must comply with certain principles to ensure compliance with the provisions of Vietnam's accounting regime + Completing the accounting of sales and determining business results must be based on the decisions of the Ministry of Finance on the method of implementation, the system of vouchers, accounting books, account system and reporting regime fox + Improve the accounting of sales and determine the business results must be based on consistent with the characteristics of business management, characteristics of the organization of accounting work to bring the highest efficiency + Accomplishing the accounting of sales and determining business results means better than the role of providing accounting information for internal management as well as those who are interested in financial situation key of the company, respond to information in a complete, accurate and timely manner + Accomplishing must be sensitive, honest, in accordance with market rules on the basis of saving time and costs 128 3.1.2 Some suggestion for managerial accounting  Accounting management Each finished product has a unique profit, these profits will affect the overall profit of the Company to different degrees When the structure of production and business items changes in the entire product structure, the corresponding changes in the Company's profits and vice versa Therefore, the Company needs an accounting department to analyze and reflect information about all business activities, helping managers to run the Company most effectively, to make accurate and timely decisions to increase profits for the Company For example: selecting the optimal product demand, choosing the method of reducing prices, selling prices And especially the Company needs to focus on preparing management reports to serve the executives timely decisions are beneficial to the Company To meet the purpose and requirements above, accountants not only have high professional qualifications and also must be knowledgeable about corporate governance Doing well the accounting management will facilitate accounting activities of consumption of products and determine more and more complete consumption results Therefore, thanks to the analysis table that accounting has given, it will help administrators to give timely, right solutions, have the best production plans, set consumption norms, and have the corrective measures together with technical departments to reduce the amount of consumption possible, help reduce production costs to be able to compete strongly in the domestic market as well as overseas markets, increase the position of Company  Payment discount Currently, the Company uses account 635 to record payment discounts for customers but in fact, the Company does not make discount payments to 129 customers so to encourage customers to pay goods after purchasing If the goods are quickly sold, the company should give us a sales discount so that the discount can be determined to be greater than the bank rate The specific provisions on sales discounts will affect the psychology of customers, encourage them to pay debts quickly reduce the stagnation of capital due to long appropriation, quickly increase capital turnover , promote production and development Although the company's debt recovery is relatively good, the company has no bad debt However, the collection of customers can still be better if the company applies payment discounts to customers In terms of payment depending on each contract, the partner commits to pay the company within how many days usually from to months With the situation of inflation, rising prices, the currency devaluation as well as the demand for business capital, businesses need to recover capital as soon as possible The company should not ignore any business plan that can work The company should make payment discounts for customers who pay before the due date This can encourage customers to pay debt early, quickly recover capital for businesses To make payment discount, the company needs to specify the payment discount in the economic contract By implementing a payment discount the company will encourage customers to make early payments, the company recovers its capital and continues to invest in business that will bring higher profits to the company However, the discount rate must match both the company and the customer The discount rate must be greater than the bank rate to encourage customers to pay debt early 130 When performing the accounting discount payment, the accounting is as follows: Debit in Account 111,112: Amount actually collected Debit Acc 635: Payment discount Credit Acc 131: Receivables from customers  Sale discount The company should have more policies to reduce sales prices for poor quality products, wrong specifications after selling and invoicing customers to encourage customers to accept buying at lower prices and not return sales to increase sales and sales during the period Create long term relationships with customers The company should made discount for prepaid customer Although the company's debt recovery is relatively good, the company has no bad debt However, the collection of customers can still be better if the company applies payment discounts to customers In terms of payment depending on each contract, the partner commits to pay the company within how many days usually from to months With the situation of inflation, rising prices, the currency devaluation as well as the demand for business capital, businesses need to recover capital as soon as possible The company should not ignore any business plan that can work The company should make payment discounts for customers who pay before the due date This can encourage customers to pay debt early, quickly recover capital for businesses To make payment discount, the company needs to specify the payment discount in the economic contract a payment discount the company will encourage By implementing customers to make early payments , the company recovers its capital and continues to invest in business that will bring higher profits to the company However, the discount rate must match 131 both the company and the customer The discount rate must be greater than the customers to pay debt early When having a sale discount, the accountant shall account: Dr Acc 5213: Reducing the sale price of goods Cr Acc 131: Receivables from customers Sales rebate is a sales deduction, at the end of the carry forward period Dr 511: Sales of goods Cr Acc 5213: Reducing the sale price of goods For example: Company “Công ty trách nhiệm hữu hạn Long Sơn” is one of the patrons of the company in trading of concrete and cement The company should made a discount for the company to maintained a good relationship and encourage customer made an early payment On November 20Th company made a cement trading for Long Song Limitted company with the amount of 495.653.400 VNĐ The company should make a discount about 5% for the price There will be a contract about the discount amount, the contract should be authorized by a competent person Then following the contract accountant will make a discount invoice 132 STT Comodity and services Units Numbers Cost per unit Total (VND) Hạt xỉ lò cao Kg 1.652.178 300.000 495.653.400 Trade discount 10% (following contract number… date…) 24.782.670 Total 470.870.730 VAT 10% 47.087.073 Payment amount 517.795.803  Improvement in administration expense and selling expense to increase profit In order to save sales cost, business management cost according to the Company, the company should be more flexible in the way of product consumption, can allow the sale and sale of products at the factory in combination with strict monitoring Such consumption will help the Company save a cost in transporting products from the factory to the warehouse, storage costs, product warehouse management On the other hand, the Company will seize many opportunities to sell products  The provision for doubtful debts: The company should make provision for doubtful debts to avoid the risk of debt, to ensure capital turnover The enterprise must anticipate the likely loss level or the overdue debt age of the debts and conduct a provision for each of the bad debts, together with evidences proving that bad debts are stated on The level of appropriation according to the Circular 133/2016 / TT-BTC issued on 08/26/2016 of the Ministry of Finance: - Debts which are overdue from months to year, deduct 30% 133 - Debts which are overdue for more than year to years, deducting 50% - Debts which are overdue for a period of between over years and years, deduct 70% - Debts which are overdue for more than years, 100% deducted • Structure of Account 2293 Debit side: - Reversing the difference between the number of provision required to set up in this period less than the amount of reserve already set up in the previous period which has not been used up; - Offsetting the part of the already set up amount of irrecoverable debts to be written off Credit: - Appropriation of provision for doubtful debts at the time of preparation of the financial statements Credit balance: Amount of provision for devaluation of existing inventories at the end of the period • Method of accounting: - When preparing a financial statement, the receivable debts are classified as doubtful debts if the provision for doubtful debts is higher than the provision for doubtful debts the accounting establishment in the previous accounting period that has not used up, the accountant shall make additional deduction to record the difference, record: Debit Account 6422- Additional deductible amounts Credit Account 2293- Additional deductible amounts - If the provision for doubtful debts which is required to be made in this accounting period is smaller than the allowance for doubtful debts already 134 set up in the previous accounting period which has not been used up, the accountant shall refund the difference, record: Debit Account 2293: Refunded money amount Credit Account 6422- Refund amount - For doubtful debts when determining that they cannot be recovered, the accountant shall write off the debt in accordance with current provisions of law, record: Debit Account 2293 - If a provision has been made Debit Account 6422 - The remaining amount has not been set up Cr Account131/138 - For doubtful debts which have been written off but later recovered, the accountant shall, based on the actual value of the recovered debt, record: Dr 111,112: Actual amount recovered Cr 711: Actual amount recovered  Process of documents Consumption business sometimes has not been reflected in a timely manner due to the sale of goods at the warehouse and the accounting at two different locations The factory accountant only makes an invoice then has to transfer all the documents to the accounting department at the company to account that the rotation of documents is sometimes delayed on schedule, which is inevitable Therefore, the Company needs to have the accountant of the factory and its branches regularly update the documents as quickly as possible, regularly send people to the factory to monitor the record and bookkeeping Having so, the accounting of product consumption and determination of new consumption results ensures accuracy and timeliness In addition, it is necessary to supplement a number of documents to 135 complete the strictest control in the process of document rotation in the sales process to avoid the occurrence of loss and theft Detail of improvement in process of documents At the end of each day, Accountants at factory input all accounting information to accounting software, than scan all documents such as: Invoice, Dispatch note, … to computers and send to head office in Ha Noi In the past, Accountant transfer documents at the end of each year, however some documents could be lost or not be transfer to head office in Ha Noi As a result, transaction could not be met the quality requirement of Accounting Standard and the expense, income occurred in the period should be reduced and not be recognized as revenue, expense For example The document related to revenue, income, expense transcation above, occured on 20-11-2019, however, all documents are scaned and transfered to Head Office on 30-11-2019 The transactions were recorned completedly but, there is a risk that some document might not be scaned and transfered to Head office As a resulted, income, revenue, expense might be recuded Solution: whenever, accountant receive any accounting documents, they have to scan immediately whole document After scan any document, staff should put one red stick on that documents to point out that document was scan After that, accountants transfer those documents to Head Office to Ha Noi to gather all document At the end of each day, accountant review all documents to detect any documents not have red stick, and check to ensure that whether document have been transfer to Head office or not 136 CONCLUSION Revenue accounting is one of the most important parts of the accounting management of commodity selling businesses The most important thing for a business is the revenue achieved and the cost spent to get that revenue, so the accounting of revenue and cost is a very important task in the management of a business Good management and planning to the consumption of goods is important in achieving the goal of survival and strong growth in the Vietnamese market today For accounting, determining the full, accurate, timely and correct results is the most positive and effective measure, contributing to accelerating the process of capital return and determining business results After an internship at Hoa Phat Dung Quat Steels Joint Stock Company, being familiar with the sales accounting work with the knowledge that I have been studying, I noticed the company's accounting system has contributed to effective management and business activities of the Company However, in order for accounting in general and sales accounting in particular to become an effective economic management tool requires the Company to find effective measures suitable to the change of the market to get the fastest and most accurate decisions while organizing an increasingly perfect accounting 137 LIST OF REFERENCES Financial Accounting Textbook - Financial Publishing House 2013 Prof Dr Ngo The Chi and Assoc Prof Dr Truong Thi Thuy are coauthors Circular 200/2014 / TT-BTC guiding the accounting regime issued on December 22, 2014 by the Ministry of Finance Vietnam accounting standards system issued by the Ministry of Finance References at Hoa Phat Dung Quat Joint Stock Company: - Business profile - Balance sheet and income statement for 2019 - Actual situation arising at the company 138 ... accounting work at Hoa Phat Dung Quat Steels Joint Stock Company, I selected the topic "Revenue accounting and business results determination at Hoa Phat Dung Quat Steels Joint Stock Company" 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FOR REVENUE AND BUSINESS RESULT IN Hoa Phat Dung Quat Steel , JSC CHAPTER 3: SOME OPINIONS AND SUGGESTIONS FORIMPROVEMENT OF ACCOUNTING FOR REVENUE AND BUSINESS RESULT IN HOA PHAT DUNG QUAT STEEL.,... students dive into practical knowledge and gain more experience Assessing the current situation of sales accounting and determining business results of Hoa Phat Dung Quat Steels Joint Stock Company