intership report major advanced accounting pico joint stock company

I had the opportunity to apply specialized theoreticalknowledge in the field to each specific situation in a business and this will help me alot when entering a job in the future.The int

NATIONAL ECONOMICS UNIVERSITYADVANCED EDUCATIONAL PROGRAMS

INTERSHIP REPORT Major: Advanced Accounting

PICO JOINT STOCK COMPANY

Vu Thi Van Ha

HANOI, 2021

NATIONAL ECONOMICS UNIVERSITYADVANCED EDUCATIONAL PROGRAMS

INTERSHIP REPORT PICO JOINT STOCK COMPANY

Student: Vu Thi Van HaMajor: Accounting

Class: Advanced Accounting 60Student’s ID: 11181412

Supervisor: PhD Doan Thanh Nga

Second of all, I am very appreciated to the support of Mr Nguyen Ngoc Thoan- Accountant of Pico Joint Stock Company I have a chance to practice in Pico’saccounting department thanks to him and he also teaches the real things ofaccounting for me Furthermore, I would like to thank the Accounting Departmentof Pico Joint Stock Company for helping me collect all the needed data and analyzeuseful information to prepare this internship report.

Finally, I would also like to thank my parents and friends, who helped me tocomplete this report in the limited time.

Best regards,Vu Thi Van Ha

Table of Contents

INTRODUCTION 1

CHAPTER 1: OVERVIEW OF TECHNICAL – ECONOMIC MANAGEMENT AND ORGANIZATIONAL STRUCTURE ABOUT PICO JOINT STOCK COMPANY 2

1.1 HISTORYOFTHE ESTABLISHMENTAND DEVELOPMENTOF PICO JOINT STOCK COMPANY 2

1.2 FEATURESOFBUSINESSOPERATIONS 4

1.2.1 Functions and Responsibilities 4

1.2.2 Main business activities 5

1.2.3 Features of sales process 6

1.3 ORGANIZATIONALSTRUCTURE 7

1.3.1 Organization structure model 7

1.3.2 The functions and responsibilities of each department 9

1.4 FINANCIAL POSITIONAND FINANCIAL PERFORMANCEOFTHE PICO JOINT STOCK COMPANY 12

CHAPTER 2: AN INTRODUCTION TO ACCOUNTING ORGANIZATION AND SYSTEM APPLIED IN PICO JOINT STOCK COMPANY 15

2.1 STRUCTUREOFACCOUNTINGORGANIZATION 15

2.2 FEATURESOF ACCOUNTING SYSTEM 18

2.2.1 General Accounting Policies 18

2.2.2 Features of Accounting Documents 20

2.2.3 Features of Chart of Accounts 20

2.2.4 Features of Accounting Books 21

2.2.5 Features of Accounting Reports 23

2.3 FEATURESOFSOMEKEYACCOUNTINGCYCLESIN PICO JOINT STOCK COMPANY 24

2.3.1 Features of Accounting for Purchase of goods 24

2.3.2 Features of Accounting for Fixed asset 26

2.3.3 Features of Accounting for Cash 28

CHAPTER 3 : EVALUATION ACCOUNTING ORGANIZATION AND SYSTEM IN PICO JOINT STOCK COMPANY 32

3.1 EVALUATIONOFACCOUNTINGORGANIZATION 32

3.1.1 Advantages of accounting organization 32

3.1.2 Disadvantages of accounting organization 32

3.2 EVALUATIONOFACCOUNTINGSYSTEM 33

STATUTORY DECLARATION

I hereby declare that the internship report at Pico Joint Stock Company is anindependent research work under the guidance of the instructor, Dr Doan ThanhNga, and has not been copied by any other person The content of the internshipreport is the product that I have made efforts to research during my studies at theschool as well as the internship at Pico Joint Stock Company The data and resultspresented in the report are completely honest, I would like to take full responsibilityand discipline of the university if there is a problem.

Hanoi, November 2021 Vu Thi Van Ha

LIST OF ABBREVIATIONS

LIST OF FIGURE

FIGURE 1 1 THEPROCESSOFSALESIN PICO (SOURCE: PICO JSC) 6

FIGURE 1 2 PICO JSC'S ORGANIZATIONAL STRUCTURE 8

FIGURE 1 3 FINANCIAL PERFORMANCEIN PICO JSC 13

YFIGURE 2 1 THEACCOUNTINGORGANIZATIONSTRUCTUREOF PICO (SOURCE: PICO JSC) 15FIGURE 2 2 THEPROCESSOFRECORDINGACCOUNTINGBOOKSINTHE GENERAL JOURNAL 22

FIGURE 2 3 THEPROCESSOFCOMPUTERACCOUNTING 23

FIGURE 2 4 ENTRIESRELATEDTO PURCHASEOFGOODSTRANSACTIONS 25

FIGURE 2 5 PURCHASEOF GOODS ACCOUNTING PROCESS 26

FIGURE 2 6 ENTRIESRELATEDTO FIXED ASSET 27

FIGURE 2 7 FIXED ASSET ACCOUNTING PROCESS 28

FIGURE 2 8 ENTRIESRELATEDTO CASH 30

FIGURE 2 9 CASH ACCOUNTING PROCESS 31

TABLE 1.1 FINANCIALSITUATIONANDFINANCIALPERFORMANCEOF PICO JSC (UNIT: VND) 12

In every business, the accounting department is a very important part of thecompany's organizational and management apparatus, this department controls allfinancial transactions of the company, synthesizes, processes and checks allinformation on business performance in the enterprise Based on the informationprovided by the accounting department, the board of directors can make the rightideas and decisions for the next development direction of the business Internship atPico Joint Stock Company partly helped me gain practical experience when workingin the accounting department I had the opportunity to apply specialized theoreticalknowledge in the field to each specific situation in a business and this will help me alot when entering a job in the future.

The internship report consists of three main chapters:

CHAPTER 1: OVERVIEW OF TECHNICAL – ECONOMIC MANAGEMENT ANDORGANIZATIONAL STRUCTURE ABOUT PICO JOINT STOCK COMPANY

CHAPTER 2: AN INTRODUCTION TO ACCOUNTING ORGANIZATION ANDSYSTEM APPLIED IN PICO JOINT STOCK COMPANY

CHAPTER 3 : EVALUATION ACCOUNTING ORGANIZATION AND SYSTEM INPICO JOINT STOCK COMPANY

With a short internship period and limited professional knowledge, my reportstill has many shortcomings, I hope to be able to receive the assessment andsuggestions of the instructor – PhD Doan Thanh Nga and the staff of the accountingdepartment at Pico Joint Stock Company to be able to better complete accountingactivities in the future.

CHAPTER 1: OVERVIEW OF TECHNICAL – ECONOMICMANAGEMENT AND ORGANIZATIONAL STRUCTURE

ABOUT PICO JOINT STOCK COMPANY

1.1 History of the Establishment and Development of Pico Joint Stock Company

- Trading in electronic, telecommunications, informatics, computer, office products.- Producing and trading in construction materials, iron and steel for theconstruction industry, furniture and exterior.

- Agent for buying and selling, consigning goods.- Office rental service.

- Construction, repair, construction of civil works, traffic, irrigation, infrastructure.- Installation of interior and exterior decoration

Charter capital: 6.750.000.000 VND

Stage 2:

Business registration: 25/08/2006

Company name: NANO ELECTRONIC, JSC

Head office address: 229 Tay Son Street, Dong Da, Ha Noi

Business:

- Producing, trading, installing and repairing machinery, components andequipment for the electricity, electronics, refrigeration, computer,telecommunications, office, and household goods industries.

- Trading in electronic, telecommunications, informatics, computer, office products.- Producing and trading in construction materials, iron and steel for theconstruction industry, furniture and exterior.

- Agent for buying and selling, consigning goods.- Office rental service.

- Construction, repair, construction of civil works, traffic, irrigation, infrastructure.- Installation of interior and exterior decoration

- Commercial advertising and advertising-related services

Charter capital: 10.000.000.000 VNĐ

07/02/2007: The company changed its name to PICO ELECTRONIC, JSC

20/09/2007: The company also developed more business in the field of preschool

education with the address and the amount of charter capital unchanged.

11/04/2008: The company changed its name again to PICO JOINT STOCK

29/04/2008: In the fourth change, the company opened new line which is Import

and export of business products.

07/10/2008: The company changes in business location

- Business address 1: 76 Nguyen Trai street, Thuong Dinh, Thanh Xuan, Ha Noi(established 07/2007)

- Business address 2: 35 Hai Ba Trung street, Trang Tien, Hoan Kiem, Ha Noi(established 04/2008)

- Business address 3: 173 Xuan Thuy street, Cau Giay (established 10/2010)- Business address 4: 324 Tay Son (established 07/2011)

Since then, the company has established 19 more electrical supermarkets Aftermore than a decade of establishment and development, from the initial figure of justaround 10 billion VND, the company's charter capital by the end of 2020 hasreached more than 200 billion VND.

The period 2011-2015 was the golden age of Pico with sales growing 60-70% peryear This is the basis for Pico to conduct the "south march" into the "fertile" marketof Ho Chi Minh City Currently, Pico is maintaining a system of 24 electronicssupermarkets in the North, including 13 in Hanoi, which is one of the largestelectronics supermarket chains in the country.

- 2009-2020, top 500 largest enterprises in Vietnam.

- In the period of 2013-2018, the Company was in the top 500 leading retailers inAsia Pacific.

- Top 50 Vietnamese enterprises the best in 2019

1.2 Features of business operations

1.2.1 Functions and Responsibilities

- The current market economy is undergoing rapid changes along with thesignificant development of technology and techniques in the era of the Internet Forthat reason, the trade industry has been making considerable efforts to renovate itsoperation direction and integrate into the competitive mechanism in the market.PICO Joint Stock Company conducts business in products that are allowed to becirculated in the territory of Vietnam The company's purchase is mainly in the formof intermittent purchase and sale, in addition, a small amount of goods is importedin the form of consignment, receiving agents, with the goal of increasing sales,seeking profits and having a better serve consumer needs.

- The company performs the function of goods circulation in the process oforganizing and moving goods from the place of production to the place ofconsumption The company buys goods from manufacturers and traders and thensells them to consumers Through the operation, it will bring profits, improve thecompany's benefits, and have financial resources to ensure the effective operation ofthe company.

- The company organizes the implementation of the business plan for electrical and

time, the company also needs to regularly renew equipment, repair, upgrade andreplace damaged and obsolete equipment to better serve customers.

- In addition to commercial business activities, the company needs to fulfill itsobligations to the government, strictly comply with the current policies andeconomic management regime The company needs to properly complete the legalprocedures and related commitments in the business contract

- PICO JSC also has to do research and implement measures to improve the quality ofbusiness goods Since then, the company could expand markets and contribute togovernment budget revenue, develop the company's business Strictly implement theregime of management of assets, finance, labor and salary.

- Advance coordinating according to labor, training to improve professionalqualifications, cultural behavior in the profession for each employee, doing well inprotecting labor safety, and creating a better working environment.

1.2.2 Main business activities

PICO Joint Stock Company operates mainly in the form of retail Throughtheir supermarket system, they bring orders from suppliers to consumers Besidesretail activities, Pico also has a number of other businesses such as:

- Producing, trading, installing and repairing machinery, components andequipment for the electricity, electronics, refrigeration, computer,telecommunications, office, and household goods industries.

- Trading in electronic, telecommunications, informatics, computer, office products.- Producing and trading in construction materials, iron and steel for theconstruction industry, furniture and exterior.

- Agent for buying and selling, consigning goods.- Office rental service.

- Construction, repair, construction of civil works, traffic, irrigation, infrastructure.

- Installation of interior and exterior decoration

- Commercial advertising and advertising-related services

Currently, Pico is operating in 6 main lines of business: electronics,refrigeration, home appliances, telecommunications, digital and finally IT Theproducts that Pico sells are all technology products These products are imported bythe company from reputable suppliers and manufacturers They are all tested beforebeing sold to customers.

1.2.3 Features of sales process

Pico company is a chain of retail electronics supermarkets, so it belongs tothe category of commercial enterprises Pico Company uses Enterprise ResourcePlanning (ERP) cloud software to easily manage business processes and relateddata within an organization The company's sales process and data entry to ERP issummarized in the diagram below:

The salesperson records the information (Sales slip)

The staff determines the shipping team, makes the shipping command Cashier makes sales invoice (yellow, pink), collect deposit

Warehouse accountant enters staff code, makes Goods delivery note

Stocker receives Goods delivery note, stock out

Staffs deliver, install, collect money; customers sign in shipping command

Cashier collects money, print receipt slip

Customers transport goods by themselves

(1) Goods that have not actually been reduced in stock; increase the number of sold

goods that have not been issued; Record customer prepayment

(2) Update shipping information

(3) Goods reduce at the stock; increase the number of goods in transit

(4) Decrease the number of goods in transit; automatically record revenue, cost of

goods sold, In case the customer refuses to purchase, the recorded transaction is canceled, the data changed in (1) and (2) will be restored.

Sales invoice – pink: Keep by customerSales invoice – yellow: Keep by cashier

Shipping command: The shipping staff receives the shipping command from the

goods coordinator and transfers them to the warehouse accountant.

Goods delivery note: The shipping staff receives the goods delivery note from the

warehouse accountant and transfers to storekeeper in order to take the goods.

1.3 Organizational structure

1.3.1 Organization structure model

Pico Joint Stock Company is managed in the form of blocks Accordingly, thehead of the company is the board of directors, followed by the board of generaldirectors and the assistant director's board Block of departments and operationblock will coordinate and support each other in work; at the same time, they receivedirect instructions from the Board of Directors The organizational model of theapparatus is illustrated in the following diagram:

Board of General Directors Board of

Management

Chief Operation

Officer

Business centers(Electronics supermarkets)Assistant

Board

Customer care center

Dispatch, delivery and installation centers

Warehouse & goods control department

Accounting department

Administrative department

Human resource department

Research & Development department

Figure 1 2 Pico JSC's Organizational Structure

1.3.2 The functions and responsibilities of each department

- Implement program and plan activities of theBoard of Management;

- Prepare the program, documents and content toserve the meeting in the company; convene andchair meetings of the Board of Management;

- The Chairman organizes the adoption of theResolution;

- Having the right to supervise the process oforganizing the implementation of resolutions ofthe Board of management;

- Being the chairperson and executive officer of theGeneral Meeting of Shareholders, the meeting ofthe Board of management;

- To exercise other rights and perform otherobligations in accordance with this Law and thecompany's charter.

2Board of GeneralDirectors

who manages and is primarily responsible for theproduction and business activities of the company,has the highest decision-making power in thecompany, is the legal representative of thecompany and is responsible to the Board ofmanagement The functions and tasks of board ofgeneral directors:

- Make decisions about the company's businessactivities: develop, implement and execute businessstrategies to speed up the operation process andincrease profits for the company; Organizing,implementing, and monitoring the implementationof strategies to ensure the best financialperformance and reduce costs for the company.- Performing the task of strategic advisor to theChairman, helping the Chairman to have the mostaccurate view of the operating market and makepredictions about the company's future.

- Building and managing the company'sorganizational structure: responsible forappointing or dismissing, and transferring jobs forpositions in the company from senior managementto employees within the scope of the companyadministration.

- Building and maintaining cooperativerelationships with customers and partners.

Directly instruct the business centers and operatingdepartments; implementing business plans andmaking sure they work

is responsible for making accounting statistics,sending the final settlement report every quarterand taking responsibility for the truthfulness of the

- Implement the accounting and statisticalreporting regime according to state regulations

- Perform reception work, receive guests;Administrative work, clerical work, advising theBoard of Directors on making the organizationalstructure, operating the company's activities;- Construct regulations, regulations and processesfor the company; maintaining discipline, laborrules, performing office administration;

- Ensure physical foundations for trading andbusiness activities; perform the work of protectingand cleaning the working environment.

Constructing and implementing human resourceplans:

- Recruiting, training employees;

- Management and assessment of human resources;implement regimes, policies and ensure the rightsof employees

policies, thereby making plans and product

of the company The business unit receives, collectsand processes information about products, marketsand prices at home and abroad to determinebusiness plans for each item and each market.

- Carry out marketing activities from internal andexternal communication activities of the company;perform decoration, design company context aswell as at business locations, company events; - Directly deploying important PR events, tradepromotion, advertising.

InformationTechnologydepartment (IT)

- Manage the company's ERP software system,ensure the good operation of information networkequipment and manage the general informationsystem.

Check and ensure the quality of goods and productsin the course of business; Handle customercomplaints when there is feedback on productdefects.

control department

Responsible for preparing goods, coordinating theflow of goods within the company, regulating goodsand managing the company's warehouses

Evaluate service activities provided to customers;perform the functions of customer care, productconsulting, handling questions, complaints,warranty.

1.4 Financial Position and Financial Performance of the Pico Joint Stock Company

Table 1.1 Financial situation and financial performance of Pico JSC (Unit: VND)

Items

Profit after taxes 8.082.308.399(35.166.424.703)(28.230.613.476)

As can be seen in the table that the total assets of Pico company havedecreased significantly over time in 3 years 2018, 2019 and 2020 In which, theamount of current asset can be seen most clearly in 2020 has more than halved fromthe previous two years, from about 752 billion to about 345 billion; Meanwhile, thelong-term asset has decreased but not significantly, only down to approximately 663billion VND On the other hand, liabilities in the last 3 years have also decreased Inmore detail, the current liabilities have halved from approximately 707 billion(2018) to nearly 344 billion (2020) From this people can see the movement in thecurrent ratio: one can see that current assets are sufficient to cover Pico's currentliabilities, however low and tend to fluctuate from 1.06 (end of 2018) to 0.99 (end of2019) and slightly increased to 1.00 (end of 2020) With the ratio at approximately1, the company has not encountered any serious crisis but its liquidity is also nothealthy.

The next factor considered is owner's equity The owner's equity of Pico Joint

2 0 1 82 0 1 92 0 2 0

F inanc ial Pe rformanc e in Pic o JS C

Figure 1 3 Financial Performance in Pico JSC

In 2018, Pico achieves net revenue of over 2 billion vnd and the profit aftertaxes with over 8 billion vnd However, the company's net revenue has been on adownward trend in 2019 and has a sharp decline in 2020 This is partly due to thecomplicated effects of the Covid-19 epidemic in Vietnam At the beginning of 2020,the epidemic situation in some countries around the world became difficult tocontrol, the government requested to suspend flights and close the country,including Vietnam The Vietnamese government has issued notices advising peopleto limit leaving their homes and business activities are only allowed to operate whennecessary That is one of the main reasons why the company's revenue tends to dropsharply because the company's main activity is retailing electronic products Thus,within only 2 years, the company's net revenue has decreased by nearly 700 billionVND to about 1460 billion VND in 2020

In addition, people can easily see that Pico's profit after tax is not much left in2018 with more than 8 billion However, in 2019 and 2020, the company did notearn a net profit from business activities and profit after tax reached approximately-35 billion VND and -28 billion VND In 2019, this was caused by a decrease infinancial income while some expenses increased rapidly, such as financing costs;Enterprise Cost Management In 2020, these costs were overcome and reduced

significantly by the company, however, net revenue from sales and service provisionas well as revenue from financial activities decreased sharply, leading to thecompany's profit after tax company is still at approximately -28 billion VND Thus,with efforts to overcome costs, the company is gradually finding ways to generateprofits in the coming years.

Chief Executive Officer Deputy General Director (Chief Accountant)

Deputy Accountant

Tax AccountingGeneral AccountingLiabilities Accounting

Bank AccountingBranch Accounting

Treasurer Warehouse AccountingHead of Accounting Warehouse

Payroll Accounting

CHAPTER 2: AN INTRODUCTION TO ACCOUNTINGORGANIZATION AND SYSTEM APPLIED IN PICO JOINT

STOCK COMPANY

2.1 Structure of accounting organization

Figure 2 1 The accounting organization structure of Pico (Source: Pico JSC)

Pico Joint Stock Company applies a centralized accounting system This formonly organizes a central accounting department, all accounting tasks such asclassification of documents, checking of initial documents, accounting terms,detailed generalization, and reporting are done focus here The affiliated divisionsonly organize the recording and input of initial data, and make necessary records toserve the direction of the person in charge of the affiliated unit.

This form of centralized accounting is quite suitable for the medium size ofPico company, capable of ensuring quick and timely circulation of documents forproduction and business departments This reality also ensures the concentration,consistency and rigor in directing the accounting work, helping the unit to checkand direct production in a timely manner, to specialize in staff, to reduce the payroll,to facilitate for effective application of ERP management software Below is adetailed description of the functions of each part in Pico:

Chief Accountant: The chief accountant is the head responsible for and directs the

financial activities of the accounting department in the company, supervises thesettlement, revenue and expenditure, organizes the activities of asset inventory andensure all figures in accounting activities are accurate This person has the functionof advising the Board of Directors of the company on the direction, measures andregulations on financial management; implement the company's financial plans andmanage the accounting work effectively, thriftily, in accordance with currentregulations and accounting regimes.

Deputy Accountant: Support the Head of Accounting Department in managing and

operating the activities of the accounting department On behalf of the Head of the

provisions of law and accounting regime Provide information, data and reports tothe Head of Accounting Department At the same time, organize, store and preservebooks, vouchers, records, documents related to accounting work in a scientific andreasonable manner, creating favorable conditions in case of necessity.

Tax Accountant: In charge of tax calculation and declaration issues in the business.

At the same time, accounting is an obligation of a company or enterprise to thestate Tax accounting helps the state manage a multi-sector economy; responsiblefor declaring and paying license fees The work of tax accountant takes placecontinuously and seamlessly throughout the business and operation process of thecompany The busiest time falls at the end of the tax filing and payment period.

General Accountant: who is responsible for recording, reflecting and making

general statistics on figures and data on accounts, accounting books and financialstatements according to the enterprise's value criteria; Prepare annual financialstatements including: Balance Sheet (or Statement of Financial Position), IncomeStatement, Statement of Cash Flows, Notes to Financial Statements, Balance SheetNo account generated.

Liabilities Accountant: is an accounting position in charge of accounting for debts

that the business must collect/repay.

Bank Accountant: is a person who collects, records, processes and analyzes

economic and financial transactions, and at the same time provides necessaryinformation for the management of monetary activities at a bank, and providesinformation for organizations and individuals as prescribed by law.

Payroll Accountant: is an employee in charge of salary accounting based on factors

such as timesheets, work tracking sheets, overtime slips, labor contracts, contractcontracts to make payroll, pay wages and social insurance regimes for employees.

Branch Accountant: Responsible for recording and processing transactions

according to each assigned branch, from which to send the aggregated results to thehead office.

Treasurer: is the person who controls all revenue and expenditure activities arising

in the enterprise such as checking receipts and payments, signing for confirmation,handing over copies, advances, etc The treasurer manages and stores all otherrelevant papers in this process; Responsible for monitoring and inventorying allcash in the safe; At the same time, this employee is also obliged to detect counterfeitmoney, ensure the quality of the money so as not to cause damage to the company.Daily, perform and fully record information of payment transactions using cashaccording to the payment process of the enterprise; Final check on the legality andreasonableness of the documents before exporting and importing the fund.

Warehouse Accountant: is a person who works at the warehouse of goods and

materials The main responsibility of the warehouse accountant is to keep track ofthe details of goods in the warehouse, make invoices and documents and compareinvoices and documents with actual data to avoid loss for the business Warehouseaccountants can also perform some other tasks such as making inventory reports,proposing solutions to improve the efficiency of warehouse operations, comparingdata with debt accounting and cost accounting

2.2 Features of Accounting System

2.2.1 General Accounting Policies

Pico Joint Stock Company applies the Vietnamese corporate accountingsystem issued in accordance with the Circular No 200/2014/TT-BTC datedDecember 22, 2014, the Vietnamese accounting standards issued by the Ministry ofFinance and the amended and supplemented documents and implementationinstructions are enclosed The financial statements are prepared and presented inaccordance with current Vietnamese accounting standards and corporateaccounting regime.