IMPROVING ACCOUNTING FOR SALES AND INCOME SUMMARY AT FITMAX VIETNAN JOINT STOCK COMPANY

National Economics University NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS BACHELOR THESIS Major: Accounting Topic: IMPROVING ACCOUNTING FOR SALES AND INCOME SUMMARY AT FITMAX VIETNAN JOINT STOCK COMPANY NGUYỄN ĐƯC CƯỜNG HANOI, 2020 National Economics University Table of Contents LIST OF TABLE LIST OF FIGURE LIST OF DIAGRAM INTRUDUCTION .1 CHAPTER FEATURES OF SALES, ORGANIZING AND MANAGING SALES AND INCOME SUMMARY AT FITMAX VIETNAM JOINT STOCK COMPANY 1.1 Feature of Sales 1.1.1 LIST OF GOODS 1.1.2 MARKET SHARE 1.2 Sales methods 1.2.2 FOR RETAIL 1.2.3 PAYMENT METHODS 1.3 Management for sales 1.3.1 THE ROLE OF SALES ACCOUNTING AND DETERMINING SALES RESULTS 1.3.2 REQUIREMENTS OF SALES ACCOUNTING AND DETERMINATION OF SALES RESULTS .7 1.3.3 SALES ACCOUNTING TASKS AND DETERMINATION OF SALES RESULTS CHAPTER 10 ACCOUNTING FOR SALES AND INCOME SUMMARY FITMAX VIETNAM JOINT STOCK COMPANY 10 2.1 Accounting for sale 10 National Economics University 2.1.1 ACCOUNTING DOCUMENTS AND PROCEDURES 10 2.1.2 ACCOUNTING OF REVENUE IN DETAILS .14 2.1.3 GENERAL ACCOUNTING FOR SALES 17 2.2 Accounting for cost of goods sold 30 2.2.1 ACCOUNTING DOCUMENTS AND PROCEDURES 30 2.2.2 DETAILED ACCOUNTING OF COST OF GOODS SOLD 33 2.2.3.GENERAL ACCOUNTING FOR COST OF GOODS SOLD .39 2.3 Accounting for Selling and Administrative Expenses 44 2.3.1 ACCOUNTING DOCUMENTS AND PROCEDURES 44 2.3.2 DETAILED ACCOUNTING OF SELLING AND ADMINISTRATIVE EXPENSES 50 2.3.3 GENERAL ACCOUNTING FOR SELLING AND ADMINISTRATIVE EXPENSES 52 2.4 Income Summary 54 CHAPTER 56 IMPROVING ACCOUNTING FOR SALES AND INCOME SUMMARY FITMAX VIETNAM JOINT STOCK COMPANY .56 3.1 Assessment the current accounting for Sales and Income Summary 56 3.1.1 STRENGTHS 56 3.1.2 WEAKNESSES 58 3.2 Recommendations to improve the accounting for Sales and Income Summary .59 3.2.1 SALE MANAGEMENT 59 CONCLUDE 66 LIST OF REFERENCES 67 National Economics University LIST OF TABLE Table 1:VAT invoice No 198 11 Table 2: Sales details book 15 Table 3: Summary of revenue .16 Table 4: Diary of vouchers No 19 Table 5: Ledger ACCOUNT 511 20 Table 6: Ledger ACCOUNT 5212 21 Table 7: Returned goods import note 23 Table 8: Receipt .25 Table 9: Payment details book with buyer 26 Table 10: Summary of payments with buyers .27 Table 11: Schedule 11 28 Table 12: Delivery receipt .31 Table 13: Summary of goods export .39 Table 14: Schedule No 40 Table 15: Ledger ACCOUNT 156 42 Table 16: Ledger ACCOUNT 632 43 Table 17: Salary distribution and social insurance 46 Table 18: VAT invoice 47 Table 19: Payment slip 48 Table 20: Detailed book ACCOUNT 641 .50 Table 21: Detailed book ACCOUNT 642 .51 Table 22: Ledger ACCOUNT 641 53 Table 23: Ledger of Account 911 55 National Economics University LIST OF FIGURE Figure 1: Notice of credit with BIDV 12 Figure 2: Ledger of Account 131 29 National Economics University LIST OF DIAGRAM Diagram 1: Order of making and circulating vouchers and documents at the Company .13 Diagram 2: Order of bookkeeping for Sales revenue accounting 14 Diagram 3: Book entry cost of cost of goods sold 32 Diagram 4: Order of booking of Cost of sales 45 Diagram 5: Accounting order in the form of a general journal .63 Diagram 6: Summary of sales details 64 National Economics University INTRUDUCTION Vietnam's economy is now a multi-component commodity economy, operating under the market mechanism, with the macro management and regulation of the State In that economy, businesses are required to independently conduct business accounting Each business must have a specific economic strategy, proper policies and strict management of their business operations The State's policies have been promoting and creating conditions for businesses to develop During this period, trade and business activities were expanded and strongly developed, especially as Vietnam was integrating with the regional and world economy, contributing positively to domestic production activities in terms of both quantity and quality of goods, expanding trade relations in the country and in the international market Any business, operating under any method, determine the ultimate goal is to be profitable, that is, income from production and business activities must be greater than the total cost Therefore, businesses must always promote their strengths, constantly improve the quality, productivity and business efficiency To accomplish that goal, the general accounting and sales accounting must perform its functions and duties well Sales accounting is an integral part of commercial businesses It reflects and monitors the consumption process of the goods, thereby helping the business leaders to make the right and timely decision Being aware of the importance of sales accounting and determining sales results, through the fact-finding time of Fit Max Vietnam Joint Stock Company, with the help of the company leadership, the Staff of Accounting Department, with the enthusiastic guidance of the instructor, I chose the topic "Sales accounting and determination of sales results at Fit Max Vietnam Joint Stock Company" National Economics University Within the scope of a specialized internship, I would like to present the most basic issues of sales accounting and determine sales results at the Company, and would like to raise some ideas to complete One more step of sales accounting and determination of sales results contributes to the better management I would like to express my sincere thanks to the leadership of the company, the officers and employees of the Accounting Department, and the instructor Mr.Tran Van Thuan for helping me complete this specialized internship topic Thematic content includes chapters: Chapter 1: Features of sales, organizing and managing sales and imcome summary at FitMax Vietnam Joint Stock Company Chapter 2: Accounting for sales and income summary at Fit Max Vietnam Joint Stock Company Chapter 3: Improving accounting for sales and income summary at Fit Max Vietnam Joint Stock Company CHAPTER National Economics University FEATURES OF SALES, ORGANIZING AND MANAGING SALES AND INCOME SUMMARY AT FITMAX VIETNAM JOINT STOCK COMPANY 1.1 Feature of Sales 1.1.1 List of goods Fit Max Joint Stock Company is a company specializing in trading fashion clothes of all kinds Some typical products the company is doing business today are: - Sport accessories Wrist Wrap Training Pants Training Shirt The Company's products are very diverse and many types with different values The company's products are diverse, high quality and reasonably priced to meet customer needs Product quality and brand reputation are the leading motto of Fit Max Joint Stock Company In response to the trust of our customers, our staff always aim to constantly produce products: "the best product quality maximum coverage to the market - take care of taking care of consumers' hands - reaching a wide output from urban to rural areas - serving consumers first and foremost - profitability of enterprises is secondary ” 1.1.2 Market share Currently, the company has developed chain stores across the country such as Hai Phong, Da Nang, Thanh Hoa, Ho Chi Minh City, Quang Binh In the Hanoi market, the company has developed active locations Very effective at: + Gymmax - 43 Khuong Thuong - Hanoi + Gymmax - 44 Doan Ke Thien - Hanoi National Economics University + Gymmax - 24 Nguyen Khang - Hanoi + Gymmax - 110 Trieu Khuc - Hanoi It can be said that the company's store system has been working very well, serving the needs of consumers, the company is constantly expanding the market of activities to bring the Company's goods closer to the people and businesses 1.2 Sales methods The sale of goods is the way in which enterprises transfer ownership of goods to customers and collect money or the right to collect money from the quantity of goods sold The trading of goods by commercial enterprises can be done through two meansc: wholesale and retail In particular, wholesale is the sale of goods to production and business units to continue the process of goods movement and retail is the sale of goods to consumers, ending the process of goods flow Wholesale and retail goods can take many different ways 1.2.1 For wholesale There are two methods of sales: warehouse sales and direct delivery sales * Method of selling goods through warehouse According to this method, goods purchased are stored in stock then sold out The method of selling goods through the warehouse has two forms of delivery and receipt a) Method of receiving goods: In this form, the buyer will receive the goods at the seller 's warehouse or to a place agreed upon by the two parties under the contract, but usually by the seller b) Method of delivery: In this form, the seller will transfer the goods to the buyer's warehouse or to a place specified by the buyer for delivery * Shipping method National Econimics University 2.4 Income Summary In order to determine the company's sales results, the accountant uses the relevant documents and ledgers of accounts The accounting of the company's sales results is made at the end of the month after transferring revenue and expenses in the period To monitor and record sales results, accountants use Account 911 "Business Results" From Vouchers Diary No we write to the debit side Ledger Account 911 The sales results in December 2019 are determined as follows: + Net revenue = Sales - Deductions = 3,136,318,000 - = 3,136,318,000 VND + Gross profit = Net sales - Cost of goods sold = 3,136,318,000 - 2,073,450,000 = 1,062,868,000 VND + Results from sales activities = Gross profit - Selling expenses - Administrative expenses = 1,062,868,000 -153,924,000 - 292,453,000 = 616,491,000 VND + CIT payable in December 2019: 616,491,000 x 20% = 123,298,200 VND + Profit after tax: 616,491,000 - 123,298,200 = 493,192,800 55 National Econimics University Table 23: Ledger of Account 911 Unit: Fit Max Vietnam Joint Stock Company Model No.: S05 - DN Address: 2/ 18 - Alley 89 Thai Ha - Dong Da - Hanoi Balance at the beginning of the year Debit Credit Issued by Circular 200/2014 LEDGER ACCOUNT 911 (For Diary form - Document) Year: 2019 Unit: VND Credit to accounts, corresponding to this account According to VOUCHER DIARY No Credit Account 632 According to VOUCHER DIARY No Credit in Account 641 According to VOUCHER DIARY No Credit in Account 642 According to VOUCHER DIARY No Credit in Account 821 According to VOUCHER DIARY No Credit in Account 421 Total arising Debit Total incurred Credit Balance at the end of the month January Februar y March December Addition 2,073,450,00 153,924,000 292,453,000 154,122,750 462,368,250 3,136,318,00 3,136,318,00 Debit Credit Bookkeeper December 31, 2019 Chief Accountant 56 National Econimics University (Sign, full name) (Sign, full name) 57 National Econimics University CHAPTER IMPROVING ACCOUNTING FOR SALES AND INCOME SUMMARY FITMAX VIETNAM JOINT STOCK COMPANY 3.1 Assessment the current accounting for Sales and Income Summary 3.1.1 Strengths - About the organization of initial accounting: It is very appropriate for the Company to carry out the accounting of inventories on a regular basis, the accountants can monitor and reflect on a regular and continuous basis the movements of goods The company calculates the inventory price according to the first in first out method The accounting and declaration of VAT is done accurately, clearly and strictly The company always correctly and fully calculates the payable VAT amount into the State budget At the same time, the forms for designing VAT declaration forms are in compliance with the current regulations and updated according to the changes of the Ministry of Finance That makes tax authorities convenient to check and track The accountant must check carefully before printing the report and submitting the monthly VAT declaration to the Tax Department - Organizing the system of vouchers and accounting accounts: Every day, when economic transactions arise, the relevant accounting department reflects on the accounting vouchers and proceeds to input data into the machine The original documents used by the Company to record the arising sales operations such as: Receipt, VAT invoice, delivery bill, are all made completely, exactly on time, with a confirmation signature of relevant 58 National Econimics University departments, in accordance with the financial regulations In addition, the process of handling and order of document rotation is scientifically and logically organized by the accounting department, avoiding overlapping, which helps to record the sales process and sales results quickly Document retention is taken care of properly At the end of the financial year, accountants print all kinds of accounting books from the accounting software, ask for signatures of related persons, affix the stamps and make a bound book Original vouchers for each financial year such as: VAT invoices, receipts, payment notes, delivery bills, all accounting books are kept at the same time to mark the year to avoid misplaced and mixed documents of the years - Accounting order: The method of accounting for sales operations at the Company is strictly based on accounting principles according to accounting standards For many years, the Company has always tried to promote the strength gained and overcome the shortcomings to enhance the brand in the market To get information quickly and accurately about revenues and expenses, accounting for revenue and expenses and determining business results must be quick and accurate Although the number of accountants is small, the company's accountants are always enthusiastic, trying at work, helping each other in general accounting and revenue, cost accounting, determining the results Regarding the accounting of sales and determination of sales results at the Company: Compliance with the Vietnamese enterprise accounting regime Accordingly, revenues and expenses are accounted for strictly in the economic content and ensure the basic principles of accounting such as accrual basis, prudent principle 59 National Econimics University The accounting vouchers for accounting of revenues, expenses, and business results are fully and properly gathered The accounting vouchers are concentrated in the accounting department to help the cost accounting and determine business results are favorable The accounting account system reflects revenues, expenses, and determines whether the company's business results are opened in details in accordance with the accounting conditions at the company It is perfectly reasonable to separate sales expense and enterprise management expenses according to arising expenses That is also the basis for making a Management Accounting Report advising the Company Director about the business plan, managing the cost of each type of goods so that it is reasonable 3.1.2 Weaknesses In parallel with the advantages, the achieved results in the organization of operation of the accounting profession of sales, the sales accounting profession still has limitations and disadvantages and shortcomings that need to be overcome, and improve in order to further improve the efficiency and advantages of the accounting business operations in the course of business operations of the Company The problems and shortcomings that the Company encountered were: - About the organization of initial accounting: There are many cases where invoices and vouchers are transferred slowly to the accounting department, which affects the accounting progress of accounting departments related to the arising economic operations - About using ACCOUNT Accounting for opening accounts of grades and is not really reasonable, so the detailed management of each content is not very scientific 60 National Econimics University The company does not open the detailed account of Account 156, but adds both the purchase value and the purchase cost to Account 156 So it is difficult to determine what is the purchase price, what is the purchase cost 3.2 Recommendations to improve the accounting for Sales and Income Summary 3.2.1 Sale management - The company should take measures to reduce the redundant paperwork that will save time, costs and increase labor productivity - Must comply with the current financial and accounting regimes It is required to ensure the consistency among financial indicators, consistency on the system of accounting vouchers, accounting accounts, accounting books and accounting reports - There must be a close coordination between the ministriesn in the Company - Provide complete, timely and reliable information about supermarket sales activities for leaders 3.2.2 Uses os accounts - Complete the user account Currently, the company uses a unified account system but the opening of second and third grade accounts is not reasonable Therefore, in order to ensure the good accounting of revenue, the company accountant should open a detailed account according to each content of the revenues and expenditures so that it is convenient for monitoring and checking - Open account level for account 156: Account 1561 - Purchase value Account 1562 - Cost of purchasing goods 61 National Econimics University At the end of the period, record the distribution of purchase costs for that goods in the period by the following formula: Merchandise purchasing expenses Purchasing at the beginning of Purchasing + expenses = the period Purchase value of allocated to goods left at the goods sold + beginning of the expenses incurred in the period Purchase value of goods sold in the Purchase x value of goods sold in the period period period Doing so will ensure the management accountant has a basis for analysis to help the Company's leadership to see the business trends in the future, to invest in which markets, which products to achieve highest business efficiency Weighted average method: The actual capital value of goods Delivery is based on quantity goods warehousing and average unit price, according to the following formula: Actual cost of inventory Average unit price = Quantity of = merchandise x Weighted average unit price out Actual cost of capital goods beginning of the period + The actual capital value imported in the period Amount goods beginning of the period + Quantity goods during the period 3.2.3 Accounting vouchers and accounting vouchers flow The original documents when being transferred to the company's office need to be classified separately arranged by category, each content for the monitoring and reconciliation of data to enter the related tables and records 62 National Econimics University Fit Max Joint Stock Company should stipulate the amount of document circulation time for parts according to the importance and importance of documents to ensure faster document rotation time to help the activities of the Company goes better The company can use more samples of sales invoices cum delivery bills so it will be more convenient in the process of using, checking and comparing documents In the VAT invoice, there is sufficient information about quantity and amount At Fit Max Joint Stock Company currently using machine accounting, the use of sales invoices cum delivery notes will be more convenient because the information has both been fully recorded and disinfected documents At that time, the accountant will enter the sales invoice into the shipping invoice in the computer 3.2.4 Accounting books in detail - At present, Fit Max Vietnam Joint Stock Company is applying the journal-document according to the Company, so the Company should change the accounting form to the General Journal using machine accounting so it will be simpler in the accounting process and compliance in the conditions that the Company applies machine accounting 3.2.5 General accounting books - The Company should apply the General Journal accounting form because: o General journal accounting form has the following advantages: o Simple book form, the record is simple and easy to facilitate the comparison of economic transactions 63 National Econimics University o Ensure uniformity and accuracy in manual accounting and machine accounting Convenient for accounting labor division * Form of general journal accounting includes the following main types of books:  General journal and Special diary book  Cash book, bank book  Ledger  Detailed accounting books and cards * Order of accounting in the form of General Journal 64 National Econimics University Diagram 5: Accounting order in the form of a general journal ORIGINAL DOCUMENTS Special diary GENERAL JOURNAL LEDGER BOOK DETAILS GENERAL DETAILS BALANCE SHEET AMOUNTS ARISING FINANCIAL REPORT Note: Record daily: Record at the end of the month, or periodically: Collation and examination relations: 3.2.6 Finacial reporting - Detailed book of sales details and cost of accounting book of the Company can now add the criteria of the previous period so that the Company can easily compare and facilitate the comments and assessments At the same time, revise the template of the Summary of detailed sales book to make it consistent with the columns: Sales revenue, sales deduction, net revenue, cost of goods sold so that users can have general information suitable and necessary types of products and goods 65 National Econimics University Diagram 6: Summary of sales details SUMMARY OF SALES DETAILS March 2018 Calculation unit: VND No first Name of consumed products Austria Sales Reduce sales Net sales Cost of goods sold Gross profit Previous period revenue Difference Episode ………… … Addition 3.2.7 Conditions to implement proposed solutions - The growing science and technology plays an important role in many industries and fields, one of which is accounting Computers will help accountants provide information accurately, quickly, save labor, save costs for businesses much more effectively than manual accounting, needing to go through many types of books Books and notes are sometimes duplicated, confused, difficult to modify, apply machine technology to avoid many mistakes, save time and store information becomes light and convenient - Currently at Fit Max Vietnam Joint Stock Company, the accounting department is equipped with computers, printers, accountants who use computers only in making the final settlement reports, up the asset summary, reports consumption, tables of NVL help accounting work at the company better Due to the high workload, the application of computers in accounting is essential - saving time and labor Therefore, the company should install software programs for its 66 National Econimics University accounting work Currently, there are many software on the market such as Fast, Effect, E-Asplus3.0 Depending on the type of company, the company will install the software so that the management is effective Best - Above are some recommendations around the issue of perfecting accounting in general, sales accounting and determining sales results in particular of Fit Max Joint Stock Company It is expected that it will contribute a small part to the increasingly improving accounting accounting at the company, promoting strengthening the supervisory function of accounting for production to achieve high economic efficiency 67 National Econimics University CONCLUSION Sales accounting and determination of sales results are both theoretical and practical With the function of providing information and checking, controlling production and business activities of enterprises, sales accounting and determining sales results, it is really an effective tool for reflection and supervision situation of goods fluctuation and consumption process of enterprises Therefore, perfecting the accounting in general, sales accounting and determining sales results in particular is an indispensable Especially in the economic environment where transformation and consumption of goods have become a top concern, the organization of accounting of sales and determination of sales results requires more and more complete improvement During my internship at Fit Max Vietnam Joint Stock Company, I realized that the Company organized and gradually organized sales management and accounting and determined sales results in order, contributing to improving the efficiency of management activities as well as for production and business activities of the Company Due to the fact that the practice and practical time is not long, the level of reasoning and practice is limited so this topic cannot avoid mistakes I look forward to the comments of the teachers and teachers in the department Through this, I would like to express my sincere thanks to the instructor, Mr Tran Van Thuan and the accounting staff of Fit Max Vietnam Joint Stock Company for their enthusiastic assistance in completing this specialized internship Thank you sincerely ! Hanoi, May 2020 68 National Econimics University LIST OF REFERENCES The Financial (2014), Circular 200/2014/TT-BTC 22/12/2014 FitMax Viet Nam Joint Stock Company’s document and accounting book ... Features of sales, organizing and managing sales and imcome summary at FitMax Vietnam Joint Stock Company Chapter 2: Accounting for sales and income summary at Fit Max Vietnam Joint Stock Company. .. 3: Improving accounting for sales and income summary at Fit Max Vietnam Joint Stock Company CHAPTER National Economics University FEATURES OF SALES, ORGANIZING AND MANAGING SALES AND INCOME SUMMARY. .. GENERAL ACCOUNTING FOR SELLING AND ADMINISTRATIVE EXPENSES 52 2.4 Income Summary 54 CHAPTER 56 IMPROVING ACCOUNTING FOR SALES AND INCOME SUMMARY FITMAX VIETNAM JOINT STOCK