NHẬN XÉT CỦA ĐƠN VỊ THỰC TẬP Họ và tên SV thực tập: Phan Thị Kim Lài MSSV: K184050675 Lớp: K18405CA Trường Đại học kinh tế - Luật Đã thực tập tại: Công ty TNHH Grant Thornton Việt Nam –
OVERVIEW ABOUT V&S SOURCING CO., LTD VIETNAM
General introduction about V&S Sourcing limited company
- Business name: V&S Sourcing limited company Vietnam
- Abbreviation: V&S Sourcing Co Ltd VN
- Main operation: Manage and operate its supply chain to produce products suitable for consumers
- Tax authority: District 3 Tax Department
- Name of the legal representative: Mr Nguyen The Son
- Office location: 14th Floor, HM Town Building, 412 Nguyen Thi Minh Khai Street, Ward 05, District 3, Ho Chi Minh City, Vietnam
- Year of operation in Vietnam: June 30, 2015
- Main business products: clothes, furniture, medical products, and nuts
- Main industries: wholesale of fabrics, ready-made goods, footwear, wholesale of agricultural machinery, equipment and spare parts, wholesale of materials, other installation equipment in construction, wholesale of food
1.1.2 History of formation and development
V&S Sourcing Co., Ltd was established in 2015 under the business license issued by the
Department of Planning and Investment of Ho Chi Minh City
Originally a small business focused on supplying essential items like food, equipment, and tools, the company has significantly expanded its offerings Today, it serves nearly 20 different industries, including wholesale fabrics, ready-made goods, footwear, agricultural machinery, equipment and spare parts, construction materials, and food products.
Driven by sustainable development and continuous efforts, the company has diversified its distribution to include a wide range of products, catering to various consumer needs both domestically and internationally, with a growing presence in markets such as the USA, UK, and EU.
- 2015-2017: Established V&S Co., Ltd located in District 3, Ho Chi Minh City
From 2017 to 2018, the company focused on enhancing its retail model for food and consumer goods, establishing a strong reputation for delivering products to customers swiftly This period also marked efforts to attract overseas clients and expand its market presence in American and European countries.
- 2019: Deploying medical equipment and other electronic products such as refrigerators and washing machines to supply in bulk
- 2020-present: With the orientation and continuous development, the company has brought peace of mind to customers when choosing a company to buy products
V&S Sourcing fosters a welcoming and professional work environment, prioritizing people and emphasizing integrity and carefulness in its operations This commitment not only attracts top talent but also enables the company to retain a skilled and experienced workforce through its comprehensive benefits.
Organization management apparatus
Figure 1: Organizational chart of management 1.2.2 Functions and duties of the management apparatus
The Board of Directors serves as the highest authority within a company's management structure, representing all employees and holding ultimate decision-making power They oversee all company activities and are legally accountable for fulfilling their assigned rights and responsibilities.
HR Department Information technology department
10 accordance with regulations as well as the business results of the company The director is the person who directly leads and directs business activities and organizes the personnel apparatus
The accounting department is responsible for organizing and overseeing all accounting activities within the company, ensuring a consistent accounting system through task assignment and professional direction for accountants It is crucial for the department to verify calculations, maintain accurate records, and promptly reflect available data Additionally, the accounting department has the authority to request timely documentation from divisions regarding the use of assets, materials, and capital necessary for effective accounting operations Furthermore, it plays a vital role in storing and preserving all accounting documents.
Control the payment of money to the bank in accordance with regulations
Check vouchers, invoices at supermarkets, control cash funds
Check and control expenses in the payment business arising from departments to be reasonable and in accordance with the regulations of the Board of Directors
- Business department: Assume the part of advancing and circulating the items and administrations of the business to purchasers by applying various strategies
+ Fabricate and foster client base Keep up with and foster existing client connections
+ Exploration and carry out the way to deal with target and clients
+ Foster methodologies for item presentation and market extension market to draw in the consideration of clients
+ Plan and execute business activities and computations also make covers the expense of items and administrations, to have a reason for marking contracts with clients
+ Propose advertising techniques just as answers for further develop business execution, market advancement arranging and item research
The sales department focuses on consulting customers about product features and tools, guiding them on effective usage, and recommending complementary products and accessories tailored to their needs Additionally, they provide assistance with the installation of utility programs and software, ensuring a seamless experience for customers.
The Delivery Department is tasked with overseeing the operations of the Delivery and Receiving Department to fulfill the Company's requirements This includes organizing and delegating responsibilities to each team and employee based on their roles and capabilities Additionally, the department provides guidance to delivery personnel on managing delivery documentation and maintaining accurate reports for the delivery team.
The consulting department, led by the head of consulting management, is responsible for providing guidance to customers through its team of counselors Additionally, this department plays a crucial role in disseminating new circulars and decrees throughout the entire company, ensuring that all employees are informed of important updates and regulations.
- Marketing department: Search for customers, provide information about the services of
Eastern audit limited company, perform transactions and customer care
+ HR department: Recruiting, implementing labor policies, planning and implementing strategies to maintain and develop resources in order to build a strong team, accomplish goals quickly and effectively
The Information Technology Department is responsible for advising, organizing, implementing, and managing the entire IT system, which encompasses network management and IT application systems for research and administrative functions Additionally, it develops strategic IT orientations and plans to enhance the company's operations at each stage of its development.
Organizational characteristics of accounting work
1.3.1 Chart of the company's accounting system
Figure 2: Chart of the company's accounting system
The treasurer is responsible for collecting, recording, processing, and examining economic transactions based on original documents, ensuring accurate accounting records and summarizing the company's financial performance They prepare financial statements periodically—monthly, quarterly, and annually—in compliance with regulations, and submit these to management and regulatory bodies Additionally, the treasurer monitors the company's revenues and expenditures to maintain financial stability.
General accounting involves reviewing reports from the general accountant, overseeing the maintenance of financial records, reconciling detailed accounts, and collecting and assessing data from detailed accountants This role is crucial for identifying errors and generating month-end reports for the chief accountant.
Treasurer accounting General Accounting payment accounting Cost Accounts payable Receivable accounting Fixed asset accounting accounting Tax
+ Accounting payment : Responsible for accounting and recording expenses and making receipts and payments for departments and supermarkets when required Make payments to service providers through the banking system
Cost accounting involves the verification and allocation of costs by the cost accountant, based on the accounting vouchers processed by the payment accountant This process includes checking expenses against established criteria and making necessary advance deductions as required.
Accounts Payable involves reviewing and verifying the accuracy of warehouse documents related to business goods from both the warehouse and purchasing departments This process ensures timely payment to suppliers and includes conducting monthly reconciliations of debts with supplier grants.
+ Receivable Accounting : Combined with accounts payable, processing and collecting debts as well as commissions from suppliers of goods and services for the company
+ Fixed Asset Accounting : Manage, check the use, and allocate depreciation of the company's assets
+ Tax accounting : Keep track of payables and obligations to the state, update tax laws
New for enterprises to strictly comply with regulations, inspect and conduct input and output tax declaration for the company
1.3.2 Organization of accounting document system
+ Table pay wages (form 02- LĐTL)
+ Certificate of leave to enjoy social insurance (form C03-BH)
+ List of employees entitled to social insurance benefits (form C04-BH)
+ Bonus payout table (form 05- LĐTL)
+ Delivery note cum internal shipping (form 03-VT-3LL)
+ Remaining materials report at the end of the period (form 07-VT)
+ Goods delivery note sent to the agent for sale (form 04- XKĐL-3LL)
+ VAT invoice (form 01/GTKT- 3LL, 01/GTKT- 2LN)
+ Sales invoice (form 02/GTTT -3LL, 02/GTTT -2LN)
+ Advance payment slip (form 04-TT)
+ Receipt of payment (form 05-TT)
1.3.3 Organization of the chart of accounts
Ledger and detailed books of account 642: Administration expense, and 338: Account payable
Collect and process accounting information and data according to accounting subjects and contents, according to accounting standards and accounting regimes specified in the current Accounting Law
1.3.4 Organization and application of accounting forms
The company employs a "General Journal" accounting system, facilitating efficient and prompt accounting processes tailored to its business characteristics This system ensures the collection of accurate and timely information, enhancing the reliability of the company's financial statements In compliance with the Ministry of Finance's regulations regarding invoice registration and document usage, the company has implemented a voucher system and developed various internal documents for operational purposes.
Currently, the Company does not use accounting management software to keep track of its finances and accounting
+ Accurate accounting records and cards
Figure 3 Process of accounting books in the form of computerized accounting
At the end of each month, the accountant calculates the total number of working days and prepares the payroll and social insurance payment table for employees Initially, the originating transactions are recorded in the General Journal, followed by entries in the Ledger based on the corresponding accounting accounts, utilizing verified accounting vouchers as the basis for accurate bookkeeping.
At the conclusion of each month, quarter, or year, it is essential to compile the data from the Ledger to generate a balance sheet reflecting the latest figures Once all economic transactions have been recorded, the books should be meticulously totaled and reviewed to ensure accuracy and balance, adhering to established accounting principles.
Total amount = Total generated (In Debit columns) = Total generated (In credit column)
1.3.5 Organization of the financial statements
The financial reporting system of an enterprise includes
The Company develops and submits accounting reports in compliance with Ministry of
Finance rules The Company's accounting reports include:
+ Statement of cash flows (Form B03 – DNN)
+ Notes to financial statements (Form B09 – DNN)
The company is applying the accounting system according to Circular No 200/2014/TT-BTC issued on December 22, 2014
- Currency used: Vietnam Dong (VND) Any economic transactions related to foreign currencies will be converted according to the principles and methods of conversion prescribed by the State
- Accounting year: Starting from January 1 to December 31 of each year The accounting period performed is quarterly
+ Principle of recording inventory: at actual cost
+ Accounting method of inventory: regular declaration method
+ Method of calculating HTK value: Weighted average cost
+ Method of making provision for devaluation of HTK: poor quality goods, slow consumption
- VAT calculation method: deduction method
- The company uses the general journal accounting method on a master file called master file
After an economic transaction, accountants receive pertinent documents and input these transactions into a computer system The adoption of computer technology in accounting has significantly streamlined the workload, enhancing efficiency in financial record-keeping.
Utilize accounting software to maintain detailed books and ledgers for each account, following a standardized format Accountants record transactions in the general journal based on vouchers, subsequently transferring this information to the detailed account books electronically At the month's end, the software summarizes the data by reciprocal accounts and updates the general ledger accordingly.
Economic transactions are documented in chronological order and based on their economic significance The foundation for entries in the General Journal relies on accounting vouchers or a summary of similar accounting vouchers.
Payables are often unplanned and require regular estimation to assess economic downturns, including provisions for payables and unemployment benefits Estimating the fair value of these expenditures involves management's judgment and various evaluation methods to recognize their financial impact accurately.
The enterprise has transferred substantially all the risks and rewards of ownership of the product or goods to the buyer
Revenue can be measured with relative certainty as to the owner of the goods or control of
Enterprises no longer hold the right to manage goods
The enterprise has received or will receive economic benefits from the sale transaction
Determine the costs associated with the payable sales transaction
Accounting policy on borrowing costs
Borrowing costs include loan interest and other costs directly related to the enterprise's loans, including loan interest and expenses related to loan procedures, periodic interest payments on financial leases.
CURRENT STATUS OF ACCOUNTING AT V&S SOURCING COMPANY LIMITED
ACCOUNTING FOR MERCHANDISE
Commercial activities primarily facilitate the movement of goods from production to consumption through buying and selling The purchasing phase marks the initial step in this process, establishing an exchange relationship between buyers and sellers based on the value of goods and payment This process involves transferring the enterprise's capital from money to commodities, where the business gains ownership of the goods while relinquishing ownership of the money or committing to pay the supplier.
The company employs a single purchasing method, acquiring goods through shipping based on signed economic contracts or purchase orders The seller delivers the goods to a designated warehouse or supermarket, and at the time of acquisition, costs are allocated to respective asset and liability items where feasible In consolidated reporting, the book values of these items are considered irrelevant; instead, emphasis is placed on their fair market values at the time of acquisition.
Purchases are recorded when ownership of the goods transfers from the seller to the buyer, and payment has been made or accepted The timing for recognizing a purchase varies based on the method used for the transaction.
When purchasing goods through direct delivery, the buyer designates a purchasing officer with a power of attorney to collect the items from the seller's warehouse The buyer is then responsible for transporting the goods to their enterprise The transaction is considered complete once the delivery procedures are finalized and payment for the goods has been made or accepted.
When purchasing goods via delivery, the seller is responsible for delivering the items to the buyer's designated location, as outlined in the signed contract The transaction is considered complete when the buyer receives the goods and either pays for them or accepts payment.
Determining the time of purchase is crucial as it marks the transfer of ownership of goods, serving as a key point for assessing loss and resolving disputes Additionally, identifying the appropriate time to acquire goods plays a significant role in effective asset management for businesses.
The timing of a purchase decision varies based on the chosen method of buying For companies that opt for shipping, the purchase is considered complete when the business receives the goods from the seller and either makes a payment or agrees to the payment terms.
2.1.4 Method of determining the actual price of purchased goods
* Must comply to the principle of original price
– For goods purchased from outside
Actual price of purchased goods = Price paid to the seller + import tax + costs incurred when buying - Trade discount, sale discount, returned goods
The inclusion of VAT in the actual price of purchased goods depends on whether the items are used for business activities If the goods are utilized for taxable business purposes, the enterprise must calculate the tax using either the deduction method or the direct method, determining the applicable VAT accordingly.
When purchasing goods that include separate packaging for which an additional charge is applied, it is essential to itemize the packaging cost and track it distinctly in account 1532.
If purchased goods require processing before sale, the total processing costs will be factored into the actual price of the inventory.
Actual price of goods = Price of processed and exported goods + processing cost
2.1.5 Documents, books used a) Accounting documents
The process of transferring documents
Figure 4: The process of transferring documents Process Description:
When a customer wants to place an order, they will send an attached PO and contact information
V&S will conduct a search for a 3rd supplier to support the order issue Suppliers, upon receiving the draft invoice from V&S, will issue an official invoice
From the invoice issued by the supplier, V&S's accountant will record the information into the system and send the goods to the customer (Appendix 3)
• Issue invoice with VAT invoice
V&S Sourcing • Enter data into file
The company uses the book form according to Circular 200/2014/TT-BTC
Master file is updated throughout the month, used to record orders and purchases that occur during the month so that it can be uploaded to the AP file
For each order placed, the customer will be charged a separate fee called the Support Service Fee which is recognized when the company receives a third party supplier invoice
2.1.6 Illustration of arising economic transactions a Input method
Upon receipt of the goods as well as the invoice The accountant will record the date and time,
PO number, AP deadline, AR, person in charge
Check data between invoice, PO and actual receipt to import goods In this process
In case the actual product is different from the invoice, different PO, the product information between the PO and the invoice is different:
- About product quantity and product price
+ If the product quantity or product price of the invoice is lower than the PO, the goods will be received
+ If the product quantity or product price of the invoice is higher than the PO, the whole shipment will be paid
In case other information on the invoice is wrong, the whole shipment will be returned b How to check and retrieve data (Appendix 5)
Invoices when entered correctly and double checked, the data will be automatically updated via sheet 131 to record the price and product cost
If the information does not match:
The accountant will directly contact the supplier to update and correct any discrepancies between the quantity of goods, product names, and prices listed on the invoice and the entry slip.
The accountant will verify the pricing between the invoice and the order by sending a price confirmation via line If the invoice price is accurate, the accountant will confirm it; if the order price is correct, they will reach out to the supplier for further action Additionally, it is essential to effectively organize and maintain both general and detailed accounting records.
The company utilizes the General Journal format for bookkeeping without maintaining a separate diary To facilitate easy tracking, it opens detailed ledgers for accounts 131 and 331, along with a comprehensive summary book All transactions are recorded using Excel files.
Summary table of accounting vouchers of the same type
Balance sheetAdvanced composite panelExcel files General ledger
Professional accountants rely on the Checked Summary of accounting vouchers of the same type daily to guide their book entries This summary helps determine the appropriate debit and credit accounts for data input into the total file, following the structures established in accounting software Consequently, the information is automatically recorded in the general journal, general ledger, and account details book 131 and 331.
Accountants are responsible for closing the books, entering new balances, and preparing financial statements They meticulously check and compare records, and if discrepancies arise, they collaborate with the IT department to identify the issues Once the discrepancies are resolved, accountants ensure accuracy and integrity in the financial records Finally, they print, bind the financial reports, and complete the necessary legal procedures for handwritten accounting books, adhering to regulatory requirements.
Accounting for fixed assets
2.2.1 The General information and characteristics of fixed assets in the company
Fixed assets are long-term tangible properties or equipment owned by a company, essential for its daily operations and income generation Unlike current assets, fixed assets cannot be easily converted into cash within a year, making them illiquid These assets are also subject to depreciation over time, reflecting their gradual loss of value.
The historical cost of fixed assets encompasses the actual purchase price, excluding trade discounts and rebates, along with non-deductible taxes and additional costs directly associated with acquiring the asset These costs typically include transportation, storage, installation, connection fees, customs duties, and other related expenses Therefore, the formula for calculating the cost is: Cost = Purchase Price + Non-Deductible Taxes + Other Direct Costs - Trade Discounts - Product Returns or Scrap.
The historical cost determination method for tangible fixed assets at RBVH generally adheres to accounting standard No 03 "Tangible Fixed Assets." However, it is important to highlight that while international accounting standards (IFRS) and Vietnamese accounting standards (VAS) allow for the capitalization of interest on investment loans if future economic benefits can be reliably measured, V&S Sourcing Global Limited opts not to capitalize these costs into the fixed asset value, believing them to be immaterial.
2.2.2 Procedures for handing over and liquidating fixed assets
Once the written request for purchasing fixed assets is approved, the purchasing department reviews it, identifies the required items, obtains quotations, and forwards them to the accounting department These quotations must detail all costs associated with preparing the asset for use, as well as information regarding the asset's intended use Subsequently, accountants will follow the necessary procedures based on this information.
The chief accountant evaluates the quotation detailing the tangible fixed asset to determine its classification and assess which associated costs should be incorporated into its historical cost.
When acquiring a tangible fixed asset, the fixed asset accountant creates an 8-digit asset code to identify the purchase.
When acquiring an asset with multiple distinct components, it is essential to assign a primary asset code formatted as xxxxxxx-0, alongside sub-assets labeled xxxxxxx-1, xxxxxxx-2, and so forth, to ensure proper order association If the asset does not qualify as a tangible fixed asset, its cost will be directly charged to the relevant division's expenses.
Upon receipt of goods, the shipping department forwards delivery records, invoices, and purchase orders to the accounting department The debt accountant then records debts using essential documents such as purchase orders, invoices, contracts, and delivery receipts for fixed assets At this stage, tangible fixed assets are officially recognized.
Finally, the accounting department stores the vouchers
2.2.3 Documents, books used a Accounting documents
Calculation and amortization of fixed assets
Minutes of liquidation of fixed assets
Minutes of handing over fixed assets for major repair to be completed b Accounting books
Account 211, titled "Tangible Fixed Assets," is utilized to document the current value and fluctuations—both increases and decreases—of all tangible fixed assets owned by the enterprise, recorded at cost.
- Account 21139000: Tangible fixed assets - Means of transport
- Account 21189000: Tangible fixed assets-Other
Account 133 “VAT deducted” Detailed accounts of 133 used when buying fixed assets
- Account 33119100: Payables to domestic sellers
- Account 33119200: Payables to foreign sellers
- Account 13319100: VAT on imported goods has not yet been deducted
- Account 13329000: VAT on goods and services purchased on fixed assets
2.2.6 Illustration of arising economic transactions
On January 15, 2022, the company placed an order for a Honda City CVT car Prior to finalizing the purchase order, the accountant established the asset code 3890002506-0 in the SAP system, categorizing it under the asset group "Vehicles of Transport" (21139000) and the asset class "Vehicles of Transport for Management Purposes" (VN015502).
• VAT invoice No 0045522-PT/18P (Appendix 7)
Each month, the fixed asset accountant at RBVH calculates the depreciation for all tangible fixed assets This process involves recognizing the amortized value based on the asset's useful life, which is determined at the time of asset creation in the system As a result, the accounting procedure is efficiently applied to all company assets in a single operation.
At the end of December 2021, the fixed asset accountant at RBVH will assess the depreciation for all fixed assets, including the Lexmark MX910de printer, identified by asset code 3890001719-0 This printer falls under account group No 21189000 for Other Tangible Fixed Assets and is classified as fixed asset No VN015322, designated for equipment storage management The printer was placed in a ready-to-use state on December 15, 2021, with an original cost of VND.
ACCOUNTING FOR PAYROLL
People's active limbs and thoughts are used to change things into labor-useful goods that meet people's requirements
Salary, or wages, refers to the compensation provided by a business to its employees, reflecting the quantity and quality of labor they contribute This payment system is essential for sustaining the workforce and managing labor costs effectively during production and business operations.
A paymaster is an accountant tasked with managing salary accounting by considering various factors such as timesheets, overtime records, work tracking sheets, overtime slips, labor contracts, and a comprehensive list of allowances Their role involves creating spreadsheets, establishing salary scales, processing salary payments, and administering social insurance regimes for all employees to ensure the most accurate and appropriate compensation is applied.
The salary fund of an enterprise encompasses the total compensation paid to all employees, including management and staff Key components of this fund consist of base salary, bonuses, and subsidies, with the primary focus being the wages earned during actual working hours In the context of production and business operations, the salary fund is categorized into two fundamental types.
- Main salary: This is the salary paid to the employee during the main duty period, including salary grades, regular allowances, and bonuses during the work process
Supplementary salary refers to the compensation provided to employees during their leave periods, ensuring they continue to receive their regular pay according to established guidelines This includes salaries during various circumstances such as leave for social obligations, attending meetings, or pursuing education, as well as payments made to employees during production stoppages.
Health insurance serves as a financial support system for employees, covering the costs of preventive care and medical treatments Insurance agencies reimburse a portion of medical expenses for individuals who have contributed to the insurance fund This fund is established through a designated percentage of employee salaries, ensuring that those enrolled in the program receive the necessary healthcare benefits.
According to Article 3 of the Social Insurance Law, social insurance serves as a safeguard that partially compensates an employee's income during periods of income loss due to illness, maternity, or work-related accidents.
The social insurance fund is formed by the appropriation at the prescribed rate of salary to be paid to employees in the period
Unemployment insurance is an amount deducted to subsidize employees who lose their jobs
A trade union fee is a percentage deducted from employees' overall compensation to support the protection of their legitimate interests and ensure the continued operation of the union.
Trade union payments are deducted before being submitted to the higher trade union organization, with the remaining funds allocated for trade union activities within the company These funds are specifically reserved to cover expenses related to union activities, ensuring the protection and support of workers' interests.
Level of deduction of salary deductions:
Funds Duduction rate (%) Cost of production and business (%)
2.3.2 Some regulations on salary at the company
- Wage accounting's job is to capture, synthesize, and completely represent data on labor quantity and quality, time utilization, and outcomes in a timely and accurate manner
- Salary calculation and deductions, such as insurance regimes, trade union fees, etc ; allowances provided to employees guarantee that the current labor regime laws are correctly calculated
- Allocating labor expenses to each company in a timely and precise manner in order to deliver pay to employees
- Examine how the salary fund, social insurance fund, health insurance fund, and trade union fund are used to discover errors and manage cash flow
- Monitoring the payment situation - advance salary, bonus, allowances, and employee allowances
- Proposing cost-cutting initiatives and analyzing data for general accountants and other management departments
- Prepare labor, salary, and salary deduction reports on a regular basis
Monthly salary = Minimum salary * (Salary coefficient + Entitlement coefficient)
Salary payable in the month = Minimum salary / number of working days in a month * Number of actual working days in the month of the employee
Salary payable for the week = Monthly salary / 52 * 12
Salary payable per day = Monthly salary / number of working days in a month
Overtime wage = Hourly wage * (150% / 200% / 300%) * overtime hours
The form of salary payment to employees is based on product
When calculating the salary for employees based on product, you will calculate based on the following formula:
Product salary = Number of finished products x Unit price of each product:
The calculation of the flat salary is based on the following formula:
Flat salary = Flat salary x Percentage of job completion
2.3.3 Documents, books used a Accounting documents
- Account 338: Other payables or receivables
Each month, the general accountant compiles a list of salary deductions and payments based on the salary table, which serves as a foundation for accurate bookkeeping.
General accountant prepares bookkeeping vouchers which are then used to record the ledger
The list of deductions and payments of salaries, after serving as the basis for making book- entry vouchers, is used to record in the detailed accounting card book
Arising balance sheetPayroll deduction list
Based on the accounting ledger, make a balance sheet of arising numbers b The process of documents report
Figure 7: The process of documents report
Each day, the data from verified original vouchers is recorded directly into the voucher diary or appropriate detailed lists At the end of the month, the cumulative data is compiled for review.
At the end of the month, ensure that the detailed book entries are transferred to the voucher diary and organized within the distribution tables Subsequently, record the data from the allocation table into the relevant lists and diaries It is essential to verify and compare the information in the voucher diary against the detailed accounting books and summary sheets Finally, compile the total data from the voucher diary directly into the ledger for accurate financial tracking.
On December 31, 2021, compile a list of officers and employees who contributed to social insurance, unemployment insurance, and health insurance premiums in December 2020 for both office and construction site workers Prepare the collection forms for social insurance, health insurance, and salary insurance for December 2020, totaling 6,629,700 VND.
SUMMARY OF INSURANCE COLLECTION DECEMBER 2021
Table 1: SUMMARY OF INSURANCE COLLECTION DECEMBER 2021
So, the total amount paid is 6,629,700 VND
Characteristics of revenue from sales and service revenues, investment revenues and other income of V&S Sourcing Co., Ltd Vietnam
Revenue generated at the Company mainly includes: revenue from sale of goods and provision of services, financial activities and other operating income
2.4.1 Accounting for sales and service revenues a) Revenue from sales of goods and provision of services
V&S Co., Ltd primarily engages in trading and supplying goods, making revenue from sales and services the key driver of the company's profitability This revenue is crucial for assessing the company's size and its capacity to generate profits, underscoring its significance as a fundamental business objective.
The sales method serves as a crucial link between the ordering party and goods suppliers, primarily focusing on delivering products for the company Sales revenue encompasses the total earnings generated from the operation of selling household electrical products and electrical equipment, along with offering services like warranties and repairs Understanding the principles of revenue recognition from sales and service provision is essential for accurate financial reporting and business performance assessment.
Revenue is recognized at the point of transaction when it is likely that economic benefits will be received This recognition is based on the fair value of the amounts owed, irrespective of whether cash has been received or will be collected Additionally, the process involves the transfer of relevant documents.
When customers express a need to purchase goods, a representative is assigned to take their orders and source suppliers Following this, the accounting department prepares draft invoices using Excel and the “Sinvoice” website They then generate a VAT invoice in triplicate along with a delivery note for the ordering party.
36 note Transfer bill VAT (copy 2) and delivery note to the sales department to deliver goods to customers at Sales price
Upon finalizing the sale, a delivery note will be generated for the customer to sign, confirming the receipt of goods This document will then be recorded by the sales department, where it will be organized and transferred to the next room for further processing Additionally, the status of customer receivables will be monitored closely.
Customers of V&S Company typically adhere to specific payment terms, with Okamoto Vietnam Co., Ltd allowing 60 days and Map Pacific Vietnam Co., Ltd extending this to 120 days For providers, accounts payable (AP) terms range from 30 to 90 days If a customer fails to make a payment, the accountant monitors the payment status and due dates Upon receiving payment, the accountant updates the debt records in sheet 331 of the General Ledger, consolidating all liabilities from sales activities from the start of the period to the present.
Figure 8: The process of transferring documents
- Every day, accountants base on original documents and input them into Excel files
- According to the process of the software, the information will be updated in the ledger 133,
At the end of each month, the accountant will transfer funds to Account 911 and prepare a balance sheet of the resulting figures, which will be utilized to create the final financial statements.
- Value added invoice (VAT invoice) – Form No 01GTKT3/003
- Payment documents: Receipt slip, bank credit note d) Accounts books
- Accounts arising in the enterprise:
+ Account 131 - AR received from the ordering party
+ Account 331 - AP paid to suppliers
+ “Elnvoice” file Excel e) Illustrative figures
Transaction 1: The company received an order for TnT short-sleeved T-shirt on February 20,
2022, V&S Company received the order to file revenue and expenses, below is a sample invoice file of company when receiving an order from the client company
Thông tin người mua Thông tin hàng hóa Địa chỉ Email
Tên hàng hóa Đơn vị tính Số lượng (*) Đơn giá
Thuế suất % (*) buyerAdd ress buyerE mail buye rTax Cod e buyerLe galName itemNa me itemU nit itemQuantity itemPric e amountBeforeTa x taxPercent ag
Hoà - Đồng Nai huyen. pham
TY TNHH BAYER VIỆT NAM
1690 áo thun tay ngắn TnT
Table 2: Making sale invoice Revenue will be recorded as follows:
Phí dịch vụ hỗ trợ / Supporting service fee_Inv0000771_POP- PMAVN02000003_Phí dịch vụ hỗ trợ_Support service fee_SDC
Trade Receivabl es - Short term
Thuế GTGT - Phí dịch vụ hỗ trợ / VAT - Supporting service fee_Inv0000771_POP- PMAVN02000003_Phí dịch vụ hỗ trợ_Support service fee_SDC
Phí dịch vụ hỗ trợ / Supporting service fee_Inv0000771_POP- PMAVN02000003_Phí dịch vụ hỗ trợ_Support service fee_SDC
Supp Service Agreemen ts (SSAs)
General ledger: Revenues and expenses will be booked into GJ, GJ includes COGS set up and
- After entering data into GL, the software will automatically update the data in 2 books 131 and 331
SỔ TỔNG HỢP CÔNG NỢ THEO ĐỐI TƯỢNG
131 - PHẢI THU KHÁCH HÀNG _RECEIVABLE FROM CUSTOMER
Client Beginning balance The arising Ending balance
Account 131 - AR received from the ordering party
Account 331 - AP paid to suppliers
In the fourth quarter of 2021, the Company did not incur any revenue deductions
2.1.3 Financial activities a) Revenue from financial activities
At V&S Trading and Service Co., Ltd., financial income mainly arises from businesses depositing money in banks and earning interest every month
Currently, the business has two bank accounts:
+ Vietcombank b) Principles of revenue recognition from financial activities
When a notification is received from the bank's website, the accountant uses the credit notice to record the profit from the deposit as part of the financial activities revenue Additionally, this involves a systematic process for transferring relevant documents.
Figure 9: The process of transferring documents
Each month, upon receiving the bank's deposit interest notice, the accountant inputs the data into the system using the credit note The software then automatically updates the financial profit and loss records To ensure accuracy, the accountant compares the Excel file data with the bank's records to verify consistency.
- At the end of the month, the accountant will transfer to Account 911 to prepare financial statements
GJ Balance sheet Financial report
During its operational period, V&S Company will conduct banking transactions, including requests to Grant Thornton for the transfer of funds to cover office expenses and employee salaries via Vietcombank's digital banking platform An example of a bank statement reflecting the company's transactions from the previous month is provided below.
During the month, the company paid for such things as office fees, car rental, payment of travel expenses
Chủ tài khoản: V&S Company Limited
Số tiền ghi nợ Số tiền ghi có Mô tả
00 THU PHI QLTK TO CHUC-VND
2021 OFFICE RENTAL FEE (INCLUDED 10% VAT)
IBVCB.1011210368120002.Payment the remaining of Oct office expenses for Mr Terry
IBVCB.0511210819900003.QC TONY EXPENSE WORK AT TPC FACTORY (ROOM, TRAVEL, MEAL) IN OCT 2021
IBVCB.0511210190192004.OCTOBER 2021 PAYMENT FOR MR TINH FOR OFFICE EXPENSES
IBVCB.0511210105940001.TERRY TRAVEL EXPENSE (INCLUDED VAT)_OCT 2021
/REF:309366218{//}VAL:211105USD4891.86/33B :USD4891.86/MID:LAB5B3424CUK1P3V/Rel ref:null/50:THE COTSWOLD COMPANY (UK) LIMITEDNORFOLK TOWER 48 -52 SURREY STREET/70:OFFICE EXPENSES OCT
21/Pmnt:/INS/SHBUKGB4BXXX/71A:OUR/71G:
Table 5: Table of bank record
On November 25, 2021, received a credit note from VCB about the November bank interest in the amount of VND 1,440
According to VCB's statement, each transaction consists of two components: the cost amount and the bank that charges the transfer fee For transactions associated with the bank, we have documented the relevant data.
English Description Debit Credit Amount Supplier
Thanh toán chi phí công tác cho
Payment for business trip to Kevin in Oct 21 (10% VAT included)
Vietcombank - The bank account of V&S Vietnam
Phí ngân hàng thanh toán công tác phí cho Terry
Bank fee Business trip of Terry in Octobor 21
Vietcombank - The bank account of V&S RO Vietnam
Thanh toán chi phí văn phòng
Payment for office expense in Octobor 2021
Vietcombank - The bank account of V&S RO Vietnam
Phí ngân hàng thanh toán phí thuê văn phòng
Bank fee for office expense in October 2021
Vietcombank - The bank account of V&S RO Vietnam
Thanh toán chi phí công tác cho
Payment for business trip to Tony in Octobor.21 (10% VAT included)
Vietcombank - The bank account of V&S RO Vietnam
Phí ngân hàng thanh toán công tác phí cho Tony
Bank fee Business trip of Tony in Octobor
Vietcombank - The bank account of V&S RO Vietnam
Nhận tiền thuê văn phòng
Received to payment for office rental
Vietcombank - The bank account of V&S RO Vietnam
Chi phí văn phòng cho QC
Payment the remaining of Oct office expenses for
Vietcombank - The bank account of V&S RO Vietnam
Phí ngân hàng thanh toán phí thuê văn phòng
Bank fee for office rental
Vietcombank - The bank account of V&S RO Vietnam
Thanh toán chi phí thuê văng phòng T10/2021
Payment for office expense in October 2021
Vietcombank - The bank account of V&S RO Vietnam
Phí ngân hàng thanh toán phí thuê văn phòng
Bank fee for office rental
Vietcombank - The bank account of V&S RO Vietnam
VCB thu phí quản lí tài khoản VND
Account management fees (VND) in Nov 2021
Vietcombank - The bank account of V&S RO Vietnam
Lãi tiền gửi ngân hàng T11/2021
Interest from bank in November 2021
Vietcombank - The bank account of V&S RO Vietnam
Table 6: Table of Bank in GJ Master
The beginning balance The arising The ending balance
Debit Cred it Debit Credit Debit Cred it
Account 711 General Ledger Balance sheet Financial report
Once the account setup is finalized, the integrated formula will automatically transfer the recorded bank expenses for the month into the designated sheet.
2.1.4 Other income accounting a) Other income
Other incomes are taxable incomes in a tax period that are not in the business lines and fields stated in the enterprise's business registration
The enterprise's additional income primarily consists of commercial discounts received from purchases made at Okamoto Vietnam Co., Ltd and Map Pacific Vietnam Co., Ltd Furthermore, it is essential to adhere to specific revenue recognition principles to accurately reflect this income.
Based on the VAT invoices, vouchers related to the purchase, receipts and payments, the accountants record those amounts into other income c) The process of transferring documents
Figure 10: The process of other income accounting
Accountants meticulously gather, verify, and document income-related transactions in the General Ledger At the month's end, they transfer these entries to Account 711 to facilitate the preparation of financial statements.
* Transaction: On December 10, 2022, received a credit note from Vietcombank about a commercial discount of VND 4,890,000
After completing the accounting, the data will automatically jump to section 711: Other income as below:
The beginning balance The ending balance
Other income - Interco Group Management Fee
Table 8: The process of other income accounting
Accounting characteristics of expense items at V&S Sourcing Co., Ltd Vietnam
The main expenses incurred at the Company include: Cost of goods sold, financial expenses, selling expenses, business management expenses, and other costs
2.2.1 Cost of goods sold a) Cost of goods sold
The cost of goods sold (COGS) represents the direct expenses associated with producing goods that a business sells This includes the costs of materials, direct labor involved in manufacturing, and allocated shipping and handling charges However, COGS excludes indirect expenses such as distribution costs and sales force salaries.
The Company uses a first-in, first-out (FIFO) method to determine its cost of goods sold, which assumes that the earliest purchased or produced inventories are sold first Consequently, the remaining inventory at the end of the period reflects the cost of goods acquired or produced more recently This approach ensures that the value of inventories is based on the pricing of goods at both the beginning and near the end of the period.
Cost of goods sold is recognized on the matching principle: revenue matches expenses
Account 632 General ledger Balance sheet Financial report
The cost of goods sold is calculated based on the value and quantity of finished products and supplies sold to customers, aligning with the revenue recognized during the period This calculation reflects the actual costs incurred to complete the service, ensuring consistency with the revenue recorded Additionally, the process involves the systematic transfer of relevant documents.
Figure 11: The process of Cost of goods sold
The accountant will record sales from the VAT invoice, and using a pre-set formula, the data will be automatically incorporated into item 632, Cost of Goods Sold, in detailed book 632.
At the end of the month, the accountant will transfer the cost of goods to Account 911 and prepare financial statements
- Account 632 – Cost of goods sold
- Ledger account 632, detailed book account 632 e) Illustrative figures (Appendix 9)
* Transaction: The Company received an invoice from the supplier of Song Hanh products for
3000 handheld umbrellas The accountant will calculate the cost of goods sold VAT invoice, cost price 240,000 VND Accountants record in COGS price sheet
Upon receiving goods from the supplier, the accountant records the cost in the financial file, prepares a draft invoice that outlines both revenue and costs, and subsequently delivers the goods to the ordering party.
Table 9: Table of COGS record
After importing data into the file, the data will automatically be exported to account 632 in the trial balance sheet
The beginning balance The arising The ending balance
Table 10: COGS in General ledger 2.2.2 Financial expenses a) Financial expenses
V&S Trading Service Co., Ltd, financial expenses are mainly come from interest payments from banks b) The process of transferring documents
Figure 12: Process of financial expense
Upon receiving the bank's credit note or statement, the accountant will input the data into the system, allowing the established formula to automatically update the account ledger for Account 635.
At the end of the month, accountants transfer to prepare a balance sheet of arising numbers, and finally prepare financial statements c Document
- Debit note from the bank
*Transaction: On December 31, 2022, VCB's debt report on automatic deduction of company accounts to pay interest on contract loan accounts 281643139, amount 17,733,075.0 VND
The beginning balance The arising The ending balance
Non-Tradg P/L on Exch - Real
Non-Tradg P/L on Exch - Unreal
Table 11: Table of financial expense
After entering data into the file, the software will automatically update the data into the 635 ledger
V&S Trading Service Co., Ltd, financial expenses are mainly come from Basic Salaries
Staff Bonus, Insurance, Office Supplies & Stationery, Depreciation - Computer, Other S&M Expenses, S&M Travel – Flights, and S&M Travel – Accommodation
57 b) The process of transferring documents
Figure 13: Process of selling expense
Upon receiving the VAT invoice, the accountant inputs the information into the system, where it is automatically updated in the account ledger once the formula is configured.
At the end of the month, accountants transfer to prepare a balance sheet of arising numbers, and finally prepare financial statements c) Document
*Transaction: At the end of each month, V&S Company will summarize the selling expenses of 1 month as the table below:
This cost of sales mainly comes from customer support service fees, fixed asset depreciation, product testing, and product warranties
The beginning balance The arising The ending balance
Table 12: Process of selling expense
After entering data into the file, the software will automatically update the data into the 641 ledger
2.2.4 Business management expenses a) Business management expenses
General and administrative expenses encompass the costs associated with organizing business activities essential for operational functionality These expenses pertain to various enterprise activities, focusing on business management, administrative oversight, and the management of bank accounts They reflect the overall management and operational framework of the entire organization.
At V&S Trading and Service Co., Ltd., various administrative expenses are incurred, including costs related to other staff, insurance, office supplies, tax fees, property lease and rental, property service, general and administrative travel, parking, legal, consulting, accounting, audit fees, and telephone services.
In managing economic transactions related to company activities, such as electricity and water, accountants rely on VAT invoices to create payment slips for processing payments Subsequently, they utilize these VAT invoices, along with payment slips or bank debit notes, to input data into the accounting system This ensures accurate recording of business management expenses Additionally, accountants are responsible for checking the system and maintaining the integrity of documents throughout the process of transferring these records.
Figure 14: Process of Business management expenses
Based on documents such as VAT invoices, accountants enter data into the software on Excel The data will automatically update the data into the ledger, account details book 642
− At the end of the month, the accountant closes the books and checks and compares the data, then prepares the financial statements
- Other relevant invoices and documents d) Accounts
Ledger Account 642 Detailed book of account
6427-4120400 - Property Service Costs e Illustrative data
- On December 31, 2022, based on payment slip PC10/0015, pay the insurance of staff in the amount of VND 42,249,810.00
- Tax fee for staff is 2,000,000
The beginning balance The arising The ending balance
Table 12: Business management expenses record
- After entering data, the data will automatically update the data in the detail book of Account
In the fourth quarter of 2021 The enterprise does not incur any other expenses.
Accounting for business results determination at V&S Sourcing Co., Ltd Vietnam
The results of business activities of an enterprise include: Results of production and business activities, financial results and other operating results
The outcome of production and business activities is determined by subtracting the cost of goods sold from net revenue This includes expenses related to products, goods, investment real estate, and services, as well as production costs for construction and installation Additional expenses, such as depreciation, repair and upgrade costs, operating lease expenses, liquidation costs, and transfer costs of investment properties, along with selling and administrative expenses, also factor into this calculation.
Financial performance is the difference between financial income and financial operating expenses
Other income is the difference between other income and other expenses and corporate income tax expense
2.3.2 The process of transferring documents
Figure 15: Process of Business results
At the end of the period, based on the number of related accounts, the chief accountant will check and make accounting vouchers to transfer the related accounts to Account 911
− Then, the chief accountant makes a transfer entry of Account 511, Account 515, Account
632, Account 642, Account 711, and Account 811 to Account 911 "Determination of business results" and prepare financial statements
- Summary table of transfer documents
- Account 911 – Determination of business results
- Account 4212 – Undistributed profit after tax this year
911 account Financial report Profit and Loss transfer
- Reciprocal accounts: Account 511, Account 515, Account 711, Account 632, Account 642, Account 821 (Appendix 10)
The figure shows the business results from September to December Then the figures will be transferred to Account 911 and determine the business results of the fourth quarter of 2021.
Accounting for cash, receivables and payables
2.5.1 Accounting for cash on hand a) General information
Cash on hand, or cash equivalents (CCE), represents the total cash available to a company, including physical cash and funds in bank accounts Business owners typically consider any asset that can be converted to cash within 90 days as part of cash on hand It's important to note that some cash may be tied up in minimum bank deposits, which should be deducted to determine the actual cash available The cash balance at the end of an accounting period will carry over to the beginning of the next period; for instance, if the cash on hand is $5,000 at the end of December, it should remain at $5,000 at the start of January.
The initial segment of cash refers to all physical currency that a business holds, encompassing bills, coins, and notes This includes funds in cash registers for retail businesses and petty cash for other types of enterprises Additionally, it accounts for any money available in savings or checking accounts that can be accessed immediately.
To calculate the total cash your firm has at the end of the accounting period, sum all cash amounts recorded If you hold foreign currency, ensure to convert these amounts into US dollars as of the date specified on your cash statement.
Cash equivalents are short-term assets readily convertible to cash, including treasury bills, certificates of deposit, and short-term bonds These assets typically mature within three months and maintain stable values, making them a reliable option for immediate liquidity.
Money market fund investments are considered cash equivalents due to their stable values and quick withdrawal options In contrast, stocks and mutual funds do not qualify as cash equivalents because their values fluctuate daily Additionally, assets that cannot be easily converted to cash, like private business shares, should be categorized as investments rather than cash equivalents.
Once the written request to purchase fixed assets is approved, the purchasing department will evaluate the request, identify the necessary items, obtain quotations, and forward them to the accounting department These quotations must detail all costs associated with making the asset ready for use, as well as information regarding the intended use or purpose of the fixed asset Subsequently, accountants will follow the necessary procedures based on this information.
The chief accountant evaluates the quotation that includes a detailed description of the tangible fixed asset, determining its classification as a tangible fixed asset and deciding which associated costs should be incorporated into its historical cost.
When acquiring a tangible fixed asset, the fixed asset accountant will create an 8-digit asset code, formatted as xxxxxxx-x, to uniquely identify the asset being purchased.
When acquiring an asset with multiple distinct components, a primary asset code (xxxxxxx-0) is assigned alongside sub-assets (xxxxxxx-1, xxxxxxx-2, etc.) linked to the order If the asset fails to meet the recognition criteria for tangible fixed assets, the associated costs will be charged directly to the division's expenses.
Upon receipt of goods, the shipping department forwards delivery records, invoices, and purchase orders to the accounting department The debt accountant then records liabilities using a comprehensive set of documents, which includes purchase orders, invoices, contracts, and delivery and receipt minutes for fixed assets At this stage, tangible fixed assets are officially recognized.
• Finally, the accounting department stores the vouchers
- Receipt note - Form 01 - TT (BB)
- Payment slip - Form 02 - TT (BB)
Account 111 has the following structure:
- Cash, foreign currency, monetary gold
- Excess cash, foreign currency, monetary gold in the fund discovered during inventory
- Exchange rate difference due to revaluation of foreign currency balance at the reporting time (in case the foreign currency rate increases against Vietnam Dong)
- The monetary gold revaluation difference increased at the reporting time
- Cash, foreign currency, monetary gold
- Amount of cash, foreign currency, monetary gold in shortage detected during inventory
- Exchange rate difference due to revaluation of reported foreign currency balance (in case the foreign currency rate decreases against Vietnam Dong)
- The difference in revaluation of monetary gold decreased at the reporting time
Cash, foreign currency, monetary gold in cash fund at the reporting time c) Illustrate the arising economic transaction
- During the period, the company did not have any cash on hand transactions
2.5.2 Accounting for cash at bank a) General information
A bank deposit refers to the funds that a business places in banks, the State Treasury, or financial institutions, which can include Vietnamese currency, foreign currencies, gold, silver, and precious stones Essential documents and records are utilized in this process to ensure proper management and tracking of these deposits.
The foundation for documenting transactions associated with an enterprise's deposits includes credit notes, debit notes, and bank statements, accompanied by original documents such as collection orders, payment orders, transfer checks, and account checks.
- When receiving the documents sent by the bank, the accountant must check and compare with the attached original documents
If discrepancies arise between an entity's accounting data and its bank records, the bank's voucher should take precedence for recording purposes Any differences should be documented separately in accounts receivable or other payables and communicated to the bank for comparison and verification.
- For enterprises with affiliated organizations and divisions, it is possible to open a specialized collection and spending account, and an appropriate payment account to facilitate transactions and payment
- Accountants must organize detailed accounting according to each bank, treasury, financial company to facilitate checking and reconciliation
Accountants use Account 112 "Deposits with banks" to record the increase or decrease and the current balance of the enterprise's deposit accounts
Account 112 has the following structure:
- Amounts of money in Vietnam, foreign currency, monetary gold deposited in the Bank
- Exchange rate difference due to revaluation of foreign currency balance at the reporting time (in case the foreign currency rate increases against Vietnam Dong)
- The monetary gold revaluation difference increased at the reporting time
- Amounts of money in Vietnam, foreign currency, monetary gold withdrawn from the Bank
- Exchange rate difference due to revaluation of foreign currency balance at the end of the period (in case the foreign currency rate decreases against Vietnam Dong)
- The monetary gold revaluation difference is reduced at the reporting time
The amount of Vietnamese currency, foreign currency, and monetary gold currently deposited at the Bank at the reporting time
Account 112 - Bank Deposit, has three secondary accounts:
- Account 1121 - Vietnam Dong: Reflects the amount of money deposited, withdrawn and currently deposited at the Bank in Vietnam Dong
- Account 1122 - Foreign currency: Reflects the amount of money deposited, withdrawn and currently deposited at the Bank in foreign currencies of all kinds converted into Vietnam Dong
- Account 1123 - Monetary gold: Reflects the volatility and value of monetary gold deposited by the enterprise at the bank at the reporting time c) Illustrate the arising economic transaction
Each month, a designated amount known as Staff Claim is allocated to cover employees' expenses related to company activities, including lunch, taxi fares, Grab rides, and other associated costs.
This Staff Claim will be recorded at 1121-7220210 include 10% of Tax
After booking the expenses incurred in the month into account 1121-7220210, the corresponding amount will automatically be linked to the next Trial Balance sheet
2.5.3 Accounting for Receivables a) General information
Selling on credit allows consumers to purchase products or services with the option to pay later, creating a liability for the buyer and an asset for the seller in the form of accounts receivable Since sellers typically receive payment within a year, these receivables are classified as short-term assets.
COMMENTS - RECOMEDATIONS
Assessment of accounting work at V&S Sourcing Co., Ltd Vietnam
V&S Co., Ltd has successfully navigated a competitive market economy by adapting to economic changes and accurately analyzing market needs While many companies face bankruptcy, V&S thrives by implementing effective strategies and solutions that leverage its strengths The company is committed to keeping pace with both domestic and international economic developments, actively seeking consumer markets, and enhancing business quality This focus on creating optimal working conditions for employees has led to a significant increase in annual revenue The company’s resilience and growth stem from continuous innovation, a dynamic board of directors, a well-structured organization, and strong employee solidarity.
The company employs a centralized accounting structure where the operations department handles all accounting tasks, receiving data from technical departments The chief accountant holds the ultimate decision-making authority and accountability within the organization Supporting chief accountants oversee specific areas of practical accounting, facilitating timely financial decision-making for both accounting activities and the General Board of Directors.
During my internship, I gained valuable insights into accounting management, particularly in revenue and cost accounting, which helped me understand how to determine business results The support from the company and the accounting department staff provided me with practical experience, reinforcing the knowledge I acquired in school This experience has significantly enhanced my understanding of real-world accounting practices.
84 some comments and recommendations on the accounting of revenue, expenses and determination of business results at the company
The accounting structure within the company aligns with its reputation and unique business characteristics The accounting team is efficiently organized, with clearly defined assignments, responsibilities, and tasks for each accountant All accounting activities are meticulously adhered to by the team, ensuring full compliance with established regulations.
3.1.1 Advantages a) About the organization of the accounting apparatus
The accounting system is centralized, aligning with the enterprise's business characteristics The accounting team at the main office promptly checks and summarizes all economic vouchers from the entire supermarket system, ensuring compliance with accounting regulations to effectively support business management.
The accounting system is systematically structured and cohesive, encompassing roles from the chief accountant to the accounting staff The department operates under defined regulations, with each accountant assigned specific functions, duties, and authorities, while maintaining strong collaboration among the various accounting sections.
The accounting department efficiently manages and records all company transactions through a stable internal system, ensuring that emerging transactions are handled systematically and effectively.
Accountants possess strong professional qualifications and quickly manage emerging transactions while demonstrating a deep understanding of their field They stay updated with the latest changes in the state's accounting regulations and leverage their work experience The company prioritizes enhancing each accountant's expertise through ongoing training programs and the introduction of new practices.
85 accountants are fully and carefully supported to help minimize errors and quickly adapt to the work b) Regarding the accounting of revenue, expenses and determination of business results
The company's revenue primarily stems from the sale of household, electronic, and refrigeration products At the end of each month, it records the cost of goods sold only once, simplifying the process compared to updating the cost price with each product import Consequently, during economic transactions, the accountant focuses solely on recording the revenue.
The company employs the weighted average method at the end of the period to calculate the cost of goods sold, which is a reasonable approach considering its diverse range of products This method slightly decreases the reported volume of goods sold, effectively managing expenses and enhancing financial accuracy.
The company's accountants adhere to the accounting standards established by the Ministry of Finance, ensuring compliance through a systematic use of vouchers, forms, reports, and accounts in line with current regulations.
The company utilizes an advanced computer system equipped with the latest software updates, enhancing its accounting processes This automated system enables accountants to efficiently determine business results, significantly reducing their workload while improving accuracy, speed, and the timely provision of information.
The company maintains an efficient document circulation system, ensuring that vouchers are thoroughly checked, signed, and securely stored in their respective departments With a robust accounting framework in place, there is consistent reconciliation among accounting sections, resulting in complete and transparent records Additionally, the company promptly addresses requests for information from directors and agencies, demonstrating its commitment to effective communication and operational excellence.
The number of accountants is limited, so each person has to do many different jobs, requiring high-qualified and experienced accountants
Regarding the accounting process for payment of construction and maintenance costs:
Searching for documents is still time consuming
Accountants face significant pressure in managing construction and maintenance costs due to the overwhelming volume of orders and documents processed by the accounting department This workload often results in missing or erroneous submissions, which prolongs the correction process and delays the receipt of accurate documents Despite these challenges, the accounting practices for construction and maintenance costs at the company generally comply with current regulations and effectively reflect the company's construction and maintenance status The accounting process has improved the speed of transaction recording and has enabled efficient handling of emerging issues, leading to a stable working capacity overall.
Selling expenses, which encompass costs like freight and petrol associated with the sale of goods, should be recorded under account 641: "Sales Expenses." It is essential to distinguish these expenses from those of the sales department and business management, as combining them into account 642 is not justified.
Some solutions
The company needs to apply accounting software like “Vacom” or Fast Accounting to be able to quickly calculate numbers or repetitive expenses quickly, saving accountants' time
To enhance efficiency, the IT department should increase the access limits for interns, allowing them to retrieve documents more swiftly Regularly scanning for spam messages on computers is essential for maintaining optimal performance and minimizing work disruptions Furthermore, the company should consider printing various types of books to facilitate accountants in their verification processes and to safeguard against data loss due to potential computer equipment failures.
- The records transferred to the accounting department should be classified (form of payment, required by the department) for quick processing, saving time and effort
- Regularly monitor debts to suppliers, to plan appropriate accounting work to pay suppliers, to ensure the company's reputation
Regularly scanning for spam messages on your computer is essential for maintaining optimal performance and ensuring uninterrupted workflow Additionally, companies should print various types of documents to aid accountants in their checks and to prevent data loss caused by potential computer equipment failures.
To minimize errors on invoices and ensure compliance with tax regulations, companies must carefully verify all information, including the tax authority's code, before issuing invoices This proactive approach helps prevent situations where incorrect invoices are issued, requiring a complete re-export of documents.
To overcome and correct incorrect invoices, it is recommended that the accountants apply Circular 78/2021/TT-BTC
E-invoices encompass several key elements, including the authorization process for their creation, the model number and symbol associated with them, and the conversion necessary for compliance with tax authority codes They are applicable in various scenarios and involve specific procedures for processing, particularly when errors occur in the summary table of e-invoice data submitted to tax authorities Additionally, e-invoices featuring tax authority codes are generated from cash registers that are electronically connected to these authorities Finally, there are established criteria for e-invoice service providers to ensure proper service delivery.
88 contract with the agency's code tax and receipt, transmission and storage of invoice data and other related services
2 Some contents of paper invoices include: name of invoice type, symbol of invoice model number, invoice symbol, name of invoice copy ordered by the Tax Department, symbol of invoice model number is stamp, ticket, etc card printed by the Tax Department
To meet the growing demands of store expansion, it is essential to increase human resources in the accounting department, particularly in the construction and maintenance payment sector As the volume of accounting and payment tasks rises alongside construction and maintenance costs, hiring additional staff will alleviate pressure on current accountants, ultimately enhancing productivity and the quality of work.
The company must diligently verify that all documents comply with the Ministry of Finance's prescribed formats To enhance the efficiency of checks and comparisons, it is advisable for the company to sequentially number receipts and payments prior to their use.
Conditions for implementing the solution
- To ensure the completion of general accounting and revenue and cost accounting and determination of business results, it is necessary to:
Perfection should align with the enterprise's structure, organization, and production scale while adhering to the principles of respecting financial institutions, as well as complying with the Vietnamese accounting regime and standards.
Completion must ensure objectivity, respond to timely and accurate information when required and meet the management requirements of the enterprise
+ Perfecting to bring benefits and values to the business in the long run, giving effective directions and solutions and must be on the basis of cost savings
To enhance workplace efficiency, the company should implement a clear division of labor among employees to prevent task overlap Providing professional training will cultivate a supportive environment, enabling staff to excel in their assigned responsibilities.
Continuously acquiring and updating knowledge on the latest policies from the Ministry of Finance, as well as investment and foreign cooperation laws, is essential It is crucial to closely monitor departmental operations, ensuring effective coordination among teams and promptly addressing any identified shortcomings or inefficiencies.
- Strictly abide by the regulations of the Party and State on business and commerce and on organization of accounting work
In today's competitive market economy, effective commodity consumption is crucial for the survival and growth of businesses Consequently, the strategic organization of accounting practices, particularly in the areas of purchases, revenues, costs, and business results, is essential for ensuring company development.
During my internship at GRANT THORNTON Co., Ltd, while working with the client company V&S, I analyzed data on purchases, revenue, and costs, which revealed that the company's business activities are effective However, V&S has yet to expand its service market, and its promotional programs are limited Overall, compared to competitors in the same industry, the company performs well in the current economic landscape To thrive in today's competitive environment, it is crucial for V&S to implement robust financial management solutions and optimize human resource utilization to reduce costs and enhance revenue Additionally, the company must address the challenges identified in my recommendations to ensure sustained growth and profitability.
During my internship, I gained valuable insights that highlighted the gap between theoretical knowledge and real-world application It became clear that accountants must not only grasp theoretical concepts but also develop practical skills to effectively implement these theories, thereby enhancing the efficiency of their accounting practices.
However, because of the limited time to research, the level of professional knowledge is not deep, so my report inevitably has shortcomings or has not really relevant opinions
I would like to express my gratitude to Ms Tran Thanh Thuy Ngoc, the dedicated faculty of the Accounting - Auditing Department at the University of Economics and Law, and the team at Grant Thornton Co., Ltd for their invaluable support, which enabled me to successfully complete my graduate internship thematic report.
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Purchase order
Appendix 5: How to check and retrieve data
Appendix 7: VAT invoice No 0045522-PT/18P