Accounting for sales and business results determination at hoang phat production, trading and service company limited

MINISTRY OF FINANCE ACADEMY OF FINANCE NGUYEN THAO HIEN CQ57/21.04CL GRADUATION THESIS TOPIC: ACCOUNTING FOR SALES AND BUSINESS RESULTS DETERMINATION AT HOANG PHAT PRODUCTION TRADING AND SERVICES COMPANY LIMITED Major: Corporate Accounting Code : 21 - 19CL73403010078 Mentor: Dr Nguyen Tuan Anh HA NOI – 2022 DECLARATION I hereby declare that the thesis "Accounting for sales and business results determination at Hoang Phat Production Trading and Services Company Limited" is my own research work The data and results stated in the thesis are truthful, derived from the actual situation of the internship enterprise Thesis Author Nguyen Thao Hien i INDEX DECLARATION .i INDEX ii LIST OF ACRONYMS v LIST OF PICTURES .vi LIST OF TABLES ix INTRODUCTION 1 The urgency of the subject: The purposes of the dissertation: Research objects and scope of the dissertation .2 Research methodology The structure of the dissertation CHAPTER 1: GENERAL THEORY ON ACCOUNTING FOR SALES AND BUSINESS RESULT DETERMINATION IN A COMMERCIAL COMPANY 1.1 Importance of accounting for sales and business result determination in a commercial company 1.1.1 Definition of sales and business result determination .5 1.1.2 Characteristics and importance of sales and business result determination .6 1.1.3 Management requirements for accounting for sales and business result determination 1.2 Methods of sales and payment 10 1.2.1 Methods of sales: 10 1.2.2 Methods of payment .11 1.3 Accounting for sales and business result determination in a commercial company 12 1.3.1 Accounting for sales revenue and revenue deductions 12 1.3.2 Accounting for cost of goods sold 24 1.3.3 Accounting for business administration expenses 33 1.3.4 Accounting for financial income and financial expenses .40 1.3.5 Accounting for other income and other expenses 47 ii 1.3.6 Accounting for corporate income tax 54 1.3.7 Accounting for business result determination .56 1.4 Accounting books system and presentation on financial statements .60 1.4.1 Accounting books used in accounting for sales and business results determination 60 1.4.2 Presenting information about sales accounting and determining business results on Financial Statements 63 1.5 Accounting for revenue and business result in application with accounting software 65 1.5.1 Principles and requirements for accounting organization in terms of using accounting software 67 1.5.3 Characteristics of sales accounting and determination of business results in terms of using accounting software 69 CONCLUSION CHAPTER 71 CHAPTER 2: ACCOUNTING FOR SALES AND BUSINESS RESULT DETERMINATION IN HOANG PHAT PRODUCTION TRADING AND SERVICES COMPANY LIMITED .72 2.1 Overview about Hoang Phat Production Trading and Services Company Limited 72 2.1.1 Establishment and development of Hoang Phat Production Trading and Services Company Limited .73 2.1.2 Characteristics of production and business organization in Hoang Phat Production Trading and Services Company Limited 74 2.1.3 Characteristics of management organization in Hoang Phat Production Trading and Services Company Limited 75 2.1.4 Characteristics of accounting organization in Hoang Phat Production Trading and Services Company Limited 79 2.1.5 Accounting in Hoang Phat Production Trading And Services Company Limited in application with accounting software 84 iii 2.2 Accounting for revenue and business result in Hoang Phat Production Trading and Services Company Limited 88 2.2.1 Methods of sales and payment 88 2.2.2 Accounting for revenue 90 2.2.3 Accounting for cost of goods sold .107 2.2.4 Accounting for business administration expenses .116 2.2.5 Accounting for financial income 127 2.2.6 Accounting for other income and other expenses .134 2.2.7 Accounting for corporate income tax: .136 2.2.8 Accounting books used for business result determination 142 2.3 Some comments on accounting for sales and business result determination at Hoang Phat Production Trading And Services Company Limited .144 2.3.1 Strength .145 2.3.2 Weakness 147 CONCLUSION OF CHAPTER 149 CHAPTER 3: SOME SUGGESTIONS ON ACCOUNTING FOR REVENUE AND BUSINESS RESULT IN HOANG PHAT PRODUCTION TRADING AND SERVICES COMPANY LIMITED .150 3.1 Requirements and principles to complete accounting for revenue and business result in Hoang Phat Production Trading and Services Company Limited 150 3.2 Some suggestions for improvement of accounting for sales and business results determination in Hoang Phat Production Trading and Services Company Limited 152 3.3 Conditions for implementing the solutions 158 CONCLUSION OF CHAPTER 161 CONCLUSION .162 LIST OF DOCUMENT REFERENCES 163 iv LIST OF ACRONYMS Acronyms Normal words Acc Account CIT Corporate Income tax Co Company COGS Cost of goods sold Cr Credit Dep’t Department Dr Debit HR Human resources Ltd Limited No Number TIN Tax identification number v LIST OF PICTURES Table 1.1 Structure of account 511 – Revenue from sales and services provisions 20 Table 1.2 Structure of account 632 – Cost of goods sold in case of business applies perpetual inventory method 28 Table 1.3 Structure of account 632 – Cost of goods sold in case of business applies periodic inventory method 30 Table 1.4 Structure of account 642 – Business administration expense 38 Table 1.5 Structure of account 515 – Financial income 44 Table 1.6 Structure of account 635 – Financial expense .45 Table 1.7 Structure of account 711 – Other income 50 Table 1.8 Structure of account 811 – Other expense .51 Table 1.9 Structure of account 821 – Corporate income tax 55 Table 1.10 Structure of account 911 – Business results determination 59 Table 2.1 Summary of business administration expenses in Quarter IV/2021 at Hoang Phat 117 Table 2.2 Transferring revenue - expense to determine business results at the end of December 2021 140 Table 2.3 Income Statement in 2021 143 vi LIST OF TABLES Picture 1.1 Accounting diagram for revenue recognition in case of cash sale or credit sale without interest on late payment 21 Picture 1.2 Accounting diagram for revenue recognition in case of credit sale with interest payment, installment sale 21 Picture 1.3 Accounting diagram for revenue recognition in case of dissimilar exchange goods .21 Picture 1.4 Accounting diagram for revenue recognition in case of goods sent on consignment 22 Picture 1.5 Accounting diagram for revenue recognition in case of cash sale with cash discount 22 Picture 1.6 Accounting diagram for revenue recognition in case of credit sale with cash discount 22 Picture 1.7 Accounting diagram for revenue recognition for goods processing activities at the processing enterprises 23 Picture 1.8 Accounting diagram for revenue recognition in case of the enterprise calculates vat by the direct method 23 Picture 1.9 Accounting diagram for revenue deductions recognition 24 Picture 1.10 Accounting diagram for transferring net revenue at the end of the period 24 Picture 1.11 Accounting diagram for cost of goods sold for business applying perpetual inventory method 31 Picture 1.12 Accounting diagram for cost of goods sold for business applying periodical inventory method 32 Picture 1.13 Accounting diagram for business administration expense 39 Picture 1.14 Accounting diagram for financial income and financial expense .46 Picture 1.15 Accounting diagram for other income 52 Picture 1.16 Accounting diagram for other expense .53 Picture 1.17 Accounting diagram for corporate income tax 56 Picture 1.18 Accounting diagram for business results determination 60 vii Picture 2.1 Organization chart of the management apparatus at Hoang Phat .75 Picture 2.2 Organization chart of accounting apparatus at Hoang Phat .79 Picture 2.3 The main screen interface of fast accounting software .83 Picture 2.4 The process of processing, systematizing, and recording accounting books in terms of using software .87 Picture 2.5 The accounting process of the company in terms of using accounting software 87 Picture 2.6 Sales module screen of fast accounting software 94 Picture 2.7 VAT invoice no AA/21E 0000262 .95 Picture 2.8 Revenue recognition screen for invoice code AA/21E0000262 on accounting software 98 Picture 2.9 VAT invoice code 1C21THP/115 99 Picture 2.10 Revenue recognition screen for invoice code 1c21thp/115 on accounting software 101 Picture 2.11 VAT invoice number HP/20E-0036973 was received from the customer to receive goods returned 102 Picture 2.12 Sales returned receipt note 103 Picture 2.13 Sales returned recognition screen on accounting software 105 Picture 2.14 Ledger of accounts 511 106 Picture 2.15 Ledger of accounts 521 106 Picture 2.16 Details book of account 511 107 Picture 2.17 Details book of account 521 107 Picture 2.18 Inventory module screen 110 Picture 2.19 Accounting software screen for recording sales revenue and cost of goods sold for invoice code AA/21E0000262 .111 Picture 2.20 Goods dispatch note for sales invoice code AA/21E0000262 112 Picture 2.21 Goods dispatch note for sales invoice code 1C21THP/115 114 Picture 2.22 Ledger of account 632 .116 Picture 2.23 Details book of account 632 116 viii Picture 2.24 Invoice code VN/21E0000300 for accounting for business administration expense 120 Picture 2.25 Cash, deposits, loans module screen on fast accounting 121 Picture 2.26 Payment note code 526 for accounting for business administration expense 122 Picture 2.27 Payment note screen number 526 for business administration expense on accounting software 123 Picture 2.28 Salary, bonuses and allowances calculation sheet for october 2021 124 Picture 2.29 Accounting screen for transferring salary to business administration expenses account on accounting software 125 Picture 2.30 Ledger of account 642 .126 Picture 2.31 Details book of account 642 126 Picture 2.32 Accounting screen for recording financial income 129 Picture 2.33 Credit note of the transaction recorded financial income 130 Picture 2.34 Accounting screen for recording financial expense 132 Picture 2.35 Ledger of account 515 .132 Picture 2.36 Ledger of accounts 635 133 Picture 2.37 Details book of account 515 133 Picture 2.38 Details book of account 635 133 Picture 2.39 Documents circulation and process of making accounting entries for other income and other expense at hoang phat 135 Picture 2.40 General module screen of fast accounting 137 Picture 2.41 Accounting screen for recording transactions related to corporate income tax expense .138 Picture 2.42 Ledger of account 821 .139 Picture 2.43 Details book of account 821 139 Picture 2.44 Accounting software screen for all of the transferring entries to account 911 at the end of december 2021 .141 Picture 2.45 Ledger of account 911 .142