Accounting for sales at general motors vietnam company

NATIONAL ECONOMICS UNIVERSITY CENTER FOR ADVANCED EDUCATIONAL PROGRAM hợ p ***************************** tổ ng BACHELOR’S THESIS IN ACCOUNTING cá o th ực tậ p ACCOUNTING FOR SALES AT GENERAL MOTORS VIETNAM COMPANY Bá o Student’s name: Le Hong Van Class: Advanced Accounting 54B Intake: 54 Internship guide: Ms Tran Thi Viet Instructor: Tran Manh Dung, PhD, Hà Nội, 2016 CPA Table of Contents ACKNOWLEDGEMENTS ABBVEVIATION PREFACE CHAPTER 1: INTRODUCTION .5 1.1 The Rationale of the Thesis 1.2 Research Objective .6 1.3 Research Methodology .6 1.4 Research Dimesion .7 hợ p CHAPTER 2: THEORETICAL FRAMEWORK OF ACCOUNTING FOR SALES ng 2.1 The Nature of Selling Goods tổ 2.1.1 Sales Definition .8 tậ p 2.1.2 Methods of Selling Goods .8 2.2 Accounting for Sales 10 ực 2.2.1 The Responsibilities of Accounting for Sales 10 th 2.2.2 Requirements of Accounting for Sales 11 cá o 2.2.3 Sales Definition In Accounting 11 2.2.4 Accounting Documents Deployed 12 Bá o 2.2.5 Recording Process 12 2.2.6 Accounting Entries 15 2.5 Accounting for Selling Expense 19 CHAPTER 3: THE CURRENT SITUATIONS OF ACCOUNTING FOR SALES AT GENERAL MOTORS VIETNAM COMPANY .21 3.1 Features of GMV Company 21 3.1.1 Overview of GMV Company 21 3.1.2 List of Products 21 3.1.3 Features of Business Operation 21 3.1.4 Model of Sales 22 Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 3.1.5 Organization of Sales Management .23 3.1.6 Characteristics of Firm’s Finance Activities 24 3.2 Accounting for Revenue at General Motors Vietnam .28 3.2.1 Accounting Documents and Procedures 28 3.2.2 Procedures of Accounting for Sales .35 3.3 Accounting for cost of goods sold 40 3.3.1 Accounting Documents and Procedures 41 3.3.2 Procedure of accounting for cost of goods sold .42 3.4 Accounting for Selling Expense 47 p 3.4.1 Accounting Documents 47 hợ 3.4.2 Procedure of accounting for selling expense 48 ng CHAPTER 4: SOME RECOMMENDATION FOR ACCOUTING FOR SALES AT GENERAL MOTORS VIETNAM COMPANY .51 tổ 4.1 Advantages of the General Management and Accounting Management at tậ p General Motors Vietnam Company 51 ực 4.2 Assessment of Accounting Organization for Sales 53 4.2.1 Strengths .53 th 4.2.2 Weaknesses .53 cá o 4.3 Recommendations to Improve Accounting for Sales 54 Bá o REFERENCES 57 Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced ACKNOWLEDGEMENTS Prima facie, I would like to thank all those people making this thesis possible and a memorable experience for me First of all, I place my very sincere gratitude to my supervisor, Tran Manh Dung, PhD for the continuous support for my research, for his patience, motivation, enthusiasm, and immense knowledge His guidance helped me in all the time of research and writing of my bachelor thesis p Besides my advisor, I would like to thank the Human Resource and Finance Department of General Motors Vietnam for offering me the three-month internship opportunity and leading me working on diverse exiting projects ng hợ I am also thankful to my friends in National Economics University: Mai Ly and Kim Chi for being my teammates, for their gentle reminders about the deadline of each state of the thesis’s process tậ p tổ I acknowledge my gratitude to my best friends, Quynh Anh and Huyen My, who also are my classmates, for the stimulating discussions, for the sleepless nights we had been working together before presentations or examinations, and for all the fun we had had in the last four years Bá o cá o th ực Last but not least, I also wish to thank my family: my parents, for giving birth to me at the first place and supporting me spiritually throughout my life Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced hợ ng After Sales Department Complete Built Up Completely Knock Down Cost of Goods Sold Financial Planning & Analysis General Motors Vietnam Global Purchase and Supply Chain Purchase Order Systems Applications and Products Special Consumption Tax Sales and Marketing Department Small and Medium Enterprise Value-Added Tax Vehicle Identification Number Work-In-Progress Bá o cá o th ực tậ p tổ AS : CBU : CKD : COGS: FP&A: GMV : GPSC: PO : SAP : SCT : SM : SME : VAT : VIN : WIP : p ABBVEVIATION Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced PREFACE p tổ ng hợ p In recent years, along with the sufficient growth of the market economy as well as new technologies and innovations, more and more startups have been established and lessened the market shares of large companies with the price strategies Therefore, it is the hard time for large corporations to overcome and in order to operate smoothly and profitably as before, they need to have an accurate policy and appropriate long-term strategies Consequently, the accounting department plays an important role more than ever According to the information provided by accountants, managers will make management decisions that related to the success or failure of the company In the current market economy, heavy industry plays an important role in the development of Vietnam and substantially facilities Vietnamese economy in integrating into the global economy Open market not only provided Vietnam with great opportunities such as the foreign investment and the launching of so many international corporations in our country but also raised challenges to the reliability, integrity and publicity of financial statements and also put multinational entities into some typical hardship To solve those problems, it is necessary to educate young generation of the importance of accounting and accounting system of company in an appropriate method o th ực tậ With the enthusiastic supports of the Finance Department in GMV and the instruction of my supervisor PhD, CPA Tran Manh Dung, I had chance to get access to real working environment and considerable knowledge of the accounting system and application of accounting theory obtained at university into treating real transactions in the normal operation The thesis contains: cá Chapter 1: INTRODUCTION Bá o Chapter 2: THEORITICAL FRAMEWORK OF ACCOUNTING FOR SALES Chapter 3: CURRENT SITUATIONS OF ACCOUNTING FOR SALES AT GENERAL MOTORS VIETNAM COMPANY Chapter 4: DISCUSSION AND SUGGESTIONS FOR IMPROVING ACCOUNTING FOR SALES AT GENERAL MOTORS VIETNAM COMPANY Due to the limited knowledge and lack of real experiences, my thesis may contain some mistakes and limitation However, through the work I hereby hope to get the valuable comments and advice to make a better preparation for the future career Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced TABLE OF FIGURE Figure 1.1: Secondary Data Collection Figure 1.2: Primary Data Collection Figure 2.1: GMV’s wholesale financing process Table 2.1: Recognition of cash sale and credit sale 13 Figure 2.2: Accounting for revenue of products and services consisting VAT, SCT, Environment tax 16 Figure 3.1: GMV’s wholesale financing process .22 Figure 3.2: Diagram of the structure of General Motors Vietnam .23 hợ p Figure 3.4: Recording process in accounting software .27 Figure 3.5: Car dispatched note 31 ng Figure 3.6: VAT invoice for selling car .32 tổ Figure 3.7: Spare Part Dispatched Note .33 p Figure 3.8: VAT invoice for selling spare parts 34 tậ Figure 3.9: The formula of documental transposition 35 ực Figure 3.10: Detailed book- Car 36 Figure 3.11: Detailed book – Spare Parts 37 th Figure 3.12: Journal voucher No 511-01 38 cá o Figure 3.13: Journal voucher No 511-04 38 Figure 3.14: Register of journal voucher 39 Bá o Figure 3.15: General ledger – Account 511 .40 Figure 3.16: The procedure for COGS .43 Figure 3.17: Detailed book – Account 6321 (Tire) 44 Figure 3.18: Journal voucher – Account 632 (No 01) .45 Figure 3.19: General ledger – Account 632 .46 Figure 3.20: Detailed book – Account 641 49 Figure 3.21: Journal voucher – Account 641 .49 Figure 3.22: General ledger – Account 641 .50 Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced CHAPTER 1: INTRODUCTION 1.1 The Rationale of the Thesis tậ p tổ ng hợ p As the aforementioned information, a substantial period of time has passed since the Vietnamese government shifted to an open-door policy and started to aspire to foreign direct investment Penetrating into a new market like Vietnam provided global entities with both pros and cons Taking advantages of the new market, the cheaper manufacturing resources such as labor force and raw materials, international corporation in Vietnam also take the some difficulties due to the competition of other global companies as well as local manufacturing SMEs and the variety of consuming options These challenges predisposed the desire of some effective and appropriate strategies for them to attract clients Especially in Vietnam where automobile products usually purchased by people from the middle class and above, whom having a substantial knowledge in a wide range of fields such as financial information, the quality of product … before deciding make payment, the success of companies depends on the relationships inside and outside the entities Therefore, each interaction matters and each company in the industry keeps trying to prove the quality of goods and services by many manners that contain the positive income recognized transparently in the financial statements Bá o cá o th ực The definition of sales, which is getting beyond the basic one defining sales as the exchange of a commodity for money, currently is considered as a pivotal dimension of a business Not only is it pondered as a manner to conduct social reproduction, but it also is reckoned as the meeting of demand for goods which helps manufacturers to plan the production volume and consumption in the ongoing operation In the viewpoint of businessman, increase in sales means the raise of the rotation of capital and profits for the business entity A great performance of a company normally goes along with the improvement of living standards of its workforce In addition, accounting in the era of economics globalization is required to become a vital efficient method aiding organizations to take a look at their financial situation wholly Therefore, accounting in general and sales accounting in particular play a momentous role more than ever Nevertheless, sales accounting in many enterprises is merely deployed for tax declaration without analysis of selling factors and the usage of data on sales accounting is not really effective The research containing indicators of sales activities will raise the awareness of companies about the status of sales activities and provide the necessary information for people running business to evaluate the pros and cons existing within sales department Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced Thank to these above reasons and along with the kindly guidance of my supervisor PhD, CPA Tran Manh Dung, I have finally chosen the research topic “Improving the Accounting for Sales at General Motors Vietnam Company” 1.2 Research Objective This study has two main objectives The first one is to evaluate the current situation of accounting for sales in GMV and the second is to reflect both advantages and disadvantages of sales accounting within the company and then at the end of the study, I hereby hope that the conclusion and recommendation of my work might solve some difficulties which GMV is facing efficiently 1.3 Research Methodology hợ p To the research, variable methods of collecting data were applied Generally, I focused on two main types of data being primary and secondary data The process of collecting was taken place as below: Bá o cá o th ực tậ p tổ ng - Secondary data was gathered first on account of its availableness Two sources of secondary data deployed in this thesis were internal and external one Internal sources used in my research was the documents within the company such as the invoice requests, invoice, Z-option sheets used for posting on SAP …I also picked up the information from financial statements and other related documents whilst the main source of external data came from the legal documents, internet and so on Figure 1.1: Secondary Data Collection Internal sources Internal sources Secondary data Invoice requests Invoices Z-options Financial statements Invoice requests Invoices Z-options Financial statements Secondary data External sources External sources Legal documents Newspapers Internet Ohers Legal documents Newspapers Internet Ohers After collecting the secondary data, primary data was collected This data are collected through the analyzing process In this study, I employed the method of observation and interview During the internship period, I had many Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced opportunities to get knowledge from observing the work of sales accountants as well as accounting computer system Besides, I decided to make some interviews directly and indirectly in addition via emails, telephone and internet Figure 1.2: Primary Data Collection From Interview hợ p Primary data tổ ng From Observation ực tậ p After the collecting procedure, the data processing was performed The process included analysis, comparison and synthesis to reflect and assess the accounting for sales in GMV th 1.4 Research Dimesion Bá o cá o This research was taken place within GMV during my internship period The data collected and analyzed in the report were in the accounting books for sales of 2015 In addition, the report will focus on analyzing Accounting for sales, especially in three main parts: Sales Revenue accounting, Costs of goods sold accounting and selling expense accounting Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 43 Figure 3.16: The procedure for COGS Inventory dispatched note Journal Voucher Subsidiary Ledger for COGS General Ledger Explication: Daily recording: p Periodically recording: ng hợ Collating information: ực tậ p tổ • Based on the VAT invoice, goods dispatched note and related documents; the accountant enters invoices into accounting computer software The machine will automatically transfer detailed data to the subsidiary ledger of COGS in every item, General Ledger of COGS At the end of the period, when calculating the cost of goods sold during the period, the accountant will complete detailed data on the subsidiary ledger of COGS Bá o cá o th From the voucher generated, the accountant set the journal voucher, and then the registration of journal voucher, then the general ledger of accounts 632, 156, etc Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 44 Figure 3.17: Detailed book – Account 6321 (Tire) DETAILED BOOK From date 01/04/2015 to 30/04/2015 Account 6321 – Cost of Gold Sold Unit: dong … Bá ng 156 Tire sales 156 … Closing cost of goods sold Total arising number Ending balance … 911 Amount Debit Credit p hợ Ref Accou nt G 156 156 tổ p Tire sales tậ 00193 00193 00194 … F Beginning Balance Tire sales c C o 01/04/20 15 01/04/20 15 04/04/20 15 … 30/04/20 15 No th ự A Description cá o Date Voucher Contra ct B 700,000 11,200,00 39,200,00 … 1,031,938,0 00 1,031,938,0 1,031,938,0 00 00 - Based on the inventory dispatched note, accountant makes journal voucher for cost of goods sold as follows: Supervisor: Tran Manh Dung, PhD, CPA Le Hong Van – Advanced Accounting 54B 45 Figure 3.18: Journal voucher – Account 632 (No 01) JOURNAL VOUCHER No: 632-01 Date 30/04/2015 No Account Debit Credit 632 156 Cost of goods sold Total Total Notes 700,000 700,000 - Accompanied with 01 original documents Chief accountant Director (Sign, full name) (Sign, full name) (Sign, full name) hợ p Preparer o cá o th ực tậ p tổ ng At the end of the month, accountant sets the General Ledger for Cost of goods sold Bá Detail Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 46 Figure 3.19: General ledger – Account 632 GENERAL LEDGER From 01/04/2014 to 30/01/2015 Account 632 – Cost of goods sold Date to entry Voucher No Ref Account Description Date Amount Debit Credit Beginning balance Closing Cost of goods sold 911 hợ 156 2,629,393,664 tậ 30/04 Cost of goods sold ng 31/01 tổ 6320114 2,629,393,664 p 30/04 p Arising number 2,629,393,664 o th ực 2,629,393,664 Hanoi, day…month….year… Chief accountant (Sign, name ) (Sign, name ) Bá o cá Preparer Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 47 3.4 Accounting for Selling Expense 3.4.1 Accounting Documents Definition and recognition Selling expense in commercial company is a qualitative criterion to evaluate the effectiveness of business processes on business, especially in today's economy Selling expense in the company is generated during the movement of goods from the first stage of receiving goods to consumption They are the expenses related to the consumption incurred in the process of consumption goods such as wages and salary, the expense of transportation, warehousing, delivery, electrical, water, telephone and other expenses • Payable to employee tổ • The cost of warehousing, transportation ng Selling expenses of GMV Company include: hợ p To determine the business results as well provided information timely for the corporate governance of the Board of Directors, the Accounting for selling expense is essential tậ p • The cost of equipment, furniture, stationery • Warranty costs th • External service expenses ực • Depreciation and amortization expense cá o • Other expenses * Document used: Bá o • VAT invoice of seller • Note of payment • Debit Note • Goods Dispatching Note • Spreadsheets and depreciation allocated • Payroll and payroll’s contribution • Other relevant documents  Account to used Account 641 - Selling expenses At the company, costs incurred in the process of consumption goods such as marketing costs, advertising, warranty, installation, office expenses and payroll Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 48 for the managers not divided into three categories as procurement costs, cost of sales, management cost The company uses account 641 – Selling expenses +/ Recording account 641: Debit: The costs incurred related to the sale of products, goods and services Credit: Closing selling expense to account 911 – income summary 3.4.2 Procedure of accounting for selling expense p When expenses related to sales incurred, first the accountant classifies them to the Vouchers and books and then records to the general books according to chronology ( registration of journal voucher ) and recorded by the items ( general ledger ) The elaboration of journal voucher can be held periodically times for each type of services, or weekly, monthly, following the list of related selling vouchers tổ ng hợ For selling expenses and items related to selling expenses, the company records vouchers on record each month to avoid repeated record The accountant writes to the registration of journal voucher and general ledger related to account 641 Bá o cá o th ực tậ p According to the VAT Invoice and related documents, the accountant creates the detailed book Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 49 Figure 3.20: Detailed book – Account 641 DETAILED BOOK From date 01/04/2015 to 30/04/2015 Account 641 – Selling expense Unit: dong Electricity Depreciation - Fix asset Depreciation Tools Payroll Closing selling expenses Total arising amount Ending balance 30/04 30/04 30/04 10,230,455 98,500,000 153 75,680,000 334 911 2,000,000,000 Credit p F Debit hợ C Amount 20,184,410,45 - ng No Ref Accoun t G 111 214 tổ Description 20,184,410,455 - Hanoi, day…month….year… Chief accountant (Sign, name ) p Voucher Date Contrac t A B 05/04 001345 30/04 ực tậ Preparer (Sign, name ) No Bá o cá o th In accordance with the VAT Invoice and related documents, the accountant set the Journal Voucher Figure 3.21: Journal voucher – Account 641 JOURNAL VOUCHER No: 641-0214 Date 30/04/2015 Detail Depreciation - Fix asset Depreciation - Tools Payroll Account Debit Credit 641 214 641 153 641 334 Total Note 98,500,000 75,680,000 2,000,000,000 20,174,180,000 At the end of the month, accountant sets the General Ledger for Selling expense Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 50 Figure 3.22: General ledger – Account 641 GENERAL LEDGER From 01/01/2014 to 31/01/2014 Account 641 – Selling expense Date to entry Voucher No Description Date Amount Ref Account Debit Credit Beginning balance 05/04 30/0 111 30/04 Depreciation Fix asset 214 30/0 30/04 Depreciation Tools 01/0 30/04 Payroll tổ 334 2,000,000,000 p 75,680,000 tậ ực th o 98,500,000 153 911 cá o Closing selling expense Bá 10,230,455 ng Electricity hợ 30/0 p Arising number Total arising amount Ending Balance Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B 20,184,410,455 20,184,410,455 20,184,410,455 - - Le Hong Van – Advanced 51 CHAPTER 4: SOME RECOMMENDATION FOR ACCOUTING FOR SALES AT GENERAL MOTORS VIETNAM COMPANY To retain and develop the business in long-term, the company is always looking for effective administration method to approve its situation That be determined by the business presentation of the company To undertake this goal, in addition to cost savings, the company has to increase its revenue in a methodical way It is an excellent way to achieve business objectives and enhanced status and prestige in the market tậ p tổ ng hợ p However, in order to expedite the sales progression requirements from the selling process to standardize the liability, recognize the income summary, corporate governance needs to achieve information about the expenditures and outcomes on sales activities At that time, the company sets procedures to increase revenue, decrease unnecessary costs, exploiting the prospective essential of the business The economic news is not only determined by qualitative approaches, but also by the quantitative techniques calculating based on the revenue, outgoings actually incurred on books Considering this perception, general accounting, sale accounting authorized an obligatory role for toughening the corporate governance o cá o th ực Consequently, it can be stated that the quality of accounting information have significantly affected to the decision of the administrator Moreover, the actual accounting work in the business has some inaccuracy, making some difficulty for the management of the business and the State authorities Therefore, the completeness in general accounting system, complete sales accounting and income summary in particular is the business requirements, task objective and strategic significance for the development of business Bá 4.1 Advantages of the General Management and Accounting Management at General Motors Vietnam Company After more than 25 years of development, GMV has some significant achievements in its operating field, specifically achieved positive results in terms of profit and reputation created in the marketplace After have certain results in the field of activity of the company, specifically achieved positive results in terms of profit and reputation created in the marketplace 4.1.1 Strength To achieve the good results, the administrative department should have built an effective and independent system as follows: Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 52 Building environmental factors in workplace - The director has an ethics behavior and good performance as the exemplary for staff to follow -The company has a unified system documents to regulate the recruitment, training, employee evaluation, promotion, payrolls and allowances to encourage people to work with integrity and efficiency -The company has used the job description specified quality requirements and knowledge of employees for each position in the organization Company employees regularly circulated staffs in the sensitive positions, concern to protect the profit of the people working in the company About control procedures hợ p Rights, responsibilities and obligations in three areas: licensing and approval of financial matters, accounting and inventory procedures are clearly demarcated ng The company issued the text specifies who has the right and is authorized to wholly or partly finance certain issues p tổ The Company has some measures to prevent senior leaders use funds or assets for personal purposes tậ About the accounting system th ực The company held the voucher system, using the right accounting system and forms issued by the Finance Ministry The system of company accounts reflect all economic transactions arising o cá o Due to fact that computers are used in accounting, several computer issues may happen For this reason, several measures to prevent and control these issues should be available as following: Bá - The accounting staffs must follow the process and the instruction: in order to prevent the computers from virus, if unnecessary, connecting USB and disk are not permitted - The accounting staffs also need to be trained to have a professional knowledge about computers and informatics to handle common issues in computers The company should have plans of train and enhance the skills of accounting staffs Then the use of human resources should be planned in the optimal way according to the business situation of company In addition, the work specialization can also improve the effectiveness of accounting in general and the business results in particular Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 53 The company needs to develop internal audit system to monitor timely, difficult to assess the contribution of each component in the achievement of the company 4.2 Assessment of Accounting Organization for Sales hợ p Through practice and learn the current status of accounting at General Motors Vietnam in December 2015, it was found that the company's accounting system is well-organized, the accountants have qualified professional, update changes in financial regulations promulgated by the State, and apply flexibility in the practice of the company Accounting for sales constantly being improved in order to fully reflect and meet the increasing requirements of the management to detect and timely exploitation of the potential the company, strengthen and promote Accounting regime When studying the status of Accounting for sales at GMV Company in 2015 showed some advantages and disadvantages requiring for improvement following: ng 4.2.1 Strengths tổ + The Company applies Accounting Journal Voucher method which is wellsuited to the characteristics of oil trading company ực tậ p + The Company has Sales Department that directly responsible for implementing the sales process as well as has qualified accounting tracking sales activities cá o th + Regarding the Accounting for sales, it is well- organized to meet the needs of the senior management administrator There is a clear division of accounting work to facilitate better management, evaluating each business segment in a transparent manner, help the senior manage and make decision more correctly and accurately Bá o + The company always fully complies with the policy and financial accounting regulations of the State The accountants open ledger reasonably, reflects the situation of goods sold fully and accurately Specifically to serve the accounting management, the company has equipped a modern computer system The accounting works is assisted by SAP software system, making the up-to-date bookkeeping and others Although the system is pretty tight managed, accounting department and especially for sales accounting also exists some problems to consider and correct 4.2.2 Weaknesses I hereby list three main weaknesses of the accounting for sales in GMV company as below: Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 54 First of all, the company currently maintain a question that how to make sure that all invoices are posted in SAP? Secondly, vouchers are not on time update forwarder by stages between staff, storekeepers due to that the computer skill of the new accountant being in charge of recognizing revenue is not professional Due to work on the accounting software system, there is a case of data loss because of viruses Moreover, when there are errors in the software, the accounting department delays the work Last but not least, GMV now is facing with another difficulty being the invoices for car sometimes are not posted on time because the two copies for keeping initially hold by sales department Normally, accountants frequently need to ask sale representatives to hand back the invoices hợ About making sure of all invoices are posted: p 4.3 Recommendations to Improve Accounting for Sales p tổ ng - The company need to have an invoice control system that classify the invoice into some categories such as posted and not posted yet, cancelled invoices to avoid duplicated posted documents tậ About on – time update between staffs: th ực - The accounting department should create some straining courses about SAP and computer skills for all related newbies cá o About keeping invoice cars: Bá o - Chief accountant must require the sales representative just take the red copy of the invoice, not all of three copies in order to make sure that the invoices for car is kept by billing and account receivable accountants to enhance the posting of document +/ Discounting The company should take into account trade discount policy With the use of policy, the company may have more customers, as consequence, sales revenue will increase significantly When using commercial discounts, the accountant uses account 521 to record the transaction Account 521 - Commercial discounts Recording account 521: Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 55 Debit: Trade discounts accepted to pay for customers Credit: At the end of the accounting period, accountant post the account 521 trade discount to account 511 to determine the revenue Account 521 has no balance Account 521 includes: Account 5211 - Discounted goods Account 5212 - Discounting finish products Account 5213 - Discounted Services p Before putting the trade discount policy into action, in general, the company has to define and establish specifically it for a certain commercial domain Besides, the allowance policy should be used hợ +/ Debt collection procedure Bá o cá o th ực tậ p tổ ng The company should have a reconcilable committee, to control debt recovery plan reasonable and timely Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 56 CONCLUSION p In terms of integration and economic recovery after the current crisis, the target of maintaining and strengthening its position of enterprises in the market is not easy A business that wants to survive and stand on the market must business effectively, balance revenues and expenditures to ensure profitable, continues to confirm the position of enterprises and improve business efficiency Therefore the company has to have reasonable sales policy along with the continuously improving business efficiency along with constantly improving the quality of goods and services In that strategy, Accountants play a very important role, as an effective tool in management service, providing necessary information for decision making Thus, the reasonable Accounting organization, especially for sales Accounting and income summary has significant meaning for the survival and development of enterprises ng hợ Completing the Accounting process for sales and income summary in the enterprise will contribute to improve the Accounting process of the company, help save unnecessary costs while ensuring accurate, timely Accounting reports th ực tậ p tổ With a desire to contribute a little bit effort to the improvement of the sales activities, along with extensive research to find out the actual work at the company and receiving guidance of staffs in the Accounting department, particularly the enthusiastic guidance of PhD Tran Manh Dung, CPA to complete the thesis “Improving Accounting for Sales at General Motors Vietnam Company” Bá o cá o However, since I have not much time to practice as well as limitations on practical knowledge, the issues raised in the thesis not have high level of generality, the resolution is not completely perfect and thorough inevitably mistakes I wish to receive the comments from the teachers, as well as staffs in General Motors Vietnam Company to be further improved Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced 57 REFERENCES Vietnamese Bộ Tài (2013), Chế độ kế tốn doanh nghiệp Nhà xuất Lao động Đặng Thị Loan (2013), Giáo trình Kế tốn tài doanh nghiệp Nhà xuất Đại học Kinh tế quốc dân Thông tư 200/2014/TT-BTC English Kieso Weygandt Warfield (14th edition), Intermediate Accounting John Wiley & Sons Inc Bá o cá o th ực tậ p tổ ng hợ p Circular 200/2014/TT-BTC – English Version Supervisor: Tran Manh Dung, PhD, CPA Accounting 54B Le Hong Van – Advanced