Accounting for revenues, expenses r nand determining business results at r nviet thanh steel limited liability r ncompany

Accounting determines business results from the perspective of management accounting CHAPTER 3: GENERAL INTRODUCTION TO VIET THANH STEEL LIMITED LIABILITY COMPANY 3.1.. Some other rele

COMPANY

Lecturer: Duong Trong Nhan

Student: Hoang Phuong Chi Student’s ID: K194050740 Class: K19405CA

TPHCM, 4/2023

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ACKNOWLEDGEMENT

Students who constantly want to equip fundamental skills and specialized knowledge related to their major during the learning process and research To reinforce a solid foundation and understand the importance of work, students need

to test their knowledge of what they have learned through real situations in business Hence, I applied to The Viet Thanh Steel company to practice real activities in business, and test the knowledge that has learned during the last three years at the university

The thesis is the result of my 3-month internship at Viet Thanh Steel Limited Liability Company During the process of learning about the company's activities,

I received enthusiastic guidance from the accounting staff, so I had the opportunity

to improve my experience and skills for my future work

I’m thankful for the helpful guidance, comments, and suggestions of my advisor –

Mr Duong Trong Nhan, The Master, University of Economics and Law, I could complete my report I have no words to express my gratitude to my advisor I also would like to thank all those persons for their honest help during my internship period

Ho Chi Minh City, April 4th 2022

Hoang Phuong Chi

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INTERNSHIP DIARY General information

Student’s name: Hoang Phuong Chi

Class: K19405CA

Student’s ID: K194050740

DOB: 09/02/2001

Supervisor: The Master Duong Trong Nhan

Organization’s Name: Viet Thanh Steel Limited Liability Company

Address: No.6, National Highway 51, Phuoc Tan Ward, Bien Hoa, Dong Nai

1 16/11-23/11 The company disseminates the workflow,

learns how to use printers, copiers, scanners, and practices

Excellently

2 24/11-01/12 Make a quotation to send to customers Excellently

4 10/12-17/12 Check vouchers, invoices and issue

7 03/01-10/01 Import data of purchase invoices and sales

invoices into Misa software

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SUPERVISOR EVALUATION

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INTRODUCTION

1 The necessity of the subject

2 Purpose of the study

2.1.3 Determination of business results

2.2 Revenue, expenses and determination of business results for management accounting

2.2.1 Revenue accounting from the perspective of management accounting

2.2.2 Expenses accounting from the perspective of management accounting 2.2.3 Accounting determines business results from the perspective of management accounting

CHAPTER 3: GENERAL INTRODUCTION TO VIET THANH STEEL LIMITED LIABILITY COMPANY

3.1 The process of formation and development

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3.3.4 Financial reporting features

3.3.5 Some other relevant accounting policies

CHAPTER 4: ACCOUNTING FOR REVENUES, EXPENSES AND DETERMINING BUSINESS RESULTS AT VIET THANH STEEL LIMITED LIABILITY COMPANY

4.1 Reality of revenue accounting in Viet Thanh steel limited liability company 4.2 Reality of expenses accounting in Viet Thanh steel limited liability company 4.2.1 Cost of goods sold accounting

4.2.2 Selling expenses accounting

4.2.3 General and administration expenses accounting

4.3 Reality of accounting work and the transfer of business results at Viet Thanh steel limited liability company

CHAPTER 5: COMMENTS AND RECOMMENDATIONS ON ACCOUNTING REVENUE, EXPENSES, AND DETERMINATION OF BUSINESS RESULTS

AT VIET THANH STEEL LIMITED LIABILITY COMPANY

5.1 Comments

5.2 Recommendations

Diagram 3.3 The order of transferring vouchers at the company

Diagram 4.1: Sequence diagram of revenue accounting procedures

Figures

Figure 1: Quotation of Viet Thanh company sent to VEDAN company

Figure 2: Principle contract between Viet Thanh company and VEDAN company Figure 3: Minutes of goods delivery and reception

Figure 4: VAT invoice for VEDAN Company

Figure 5: VAT invoice from Toan Dung Company

Figure 6,8 : Payment reques

Figure 7: VAT invoice from BIDV Insurance

Company

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INTRODUCTION

1 The necessity of the subject

Currently, our country is gradually conducting economic reform and integration This means that businesses have to face stiffer competition with domestic and foreign competitors To prepare for this, businesses must change and push to adapt to what

is happening

In today's market economy, the problem that businesses are always interested in is how to operate their business most effectively, by maximizing profits and minimizing costs The factors directly related to determining the profitability of a business are revenue, income, and expenses Therefore, the organization of accounting for revenue and expenses and determining business results plays an extremely important role Therefore, I chose the topic "Accounting revenue, expenses and determining business results at Viet Thanh Steel Limited Liability Company " as the basis for this internship report

2 Purpose of the study

Research and evaluate the current situation of revenue and expenses accounting and

determine business results at Viet Thanh Steel Limited Liability Company At the same time, it also points out the advantages and limitations of the enterprise, thereby proposing solutions to improve revenue and expense accounting and determine business results at the company

3 Research objects

Accounting for revenue, expenses, and business results at Viet Thanh Steel Limited Liability Company

4 Scope of the study

Location: Viet Thanh Steel Limited Liability Company

Department: Accounting Department

Time: November 16, 2022 - February 20, 2022

Research activities: Observing and studying the revenue and expenses accounting processes and procedures and determining business results at the enterprise, and at

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the same time making objective comments about the accounting activities at the company

5 Research layout

The report will be divided into 5 chapters

Chapter 1: Overview of research on revenues, expenses and determining business results

Chapter 2: Theoretical basis of accounting revenues, expenses and determination of business results

Chapter 3: General introduction to Viet Thanh Steel Limited Liability Company Chapter 4: Accounting for revenues, expenses and determining business results at Viet Thanh Steel Limited Liability Company

Chapter 5: Comments and recommendations on revenue and expense accounting activities and determination of business results at Viet Thanh Steel Limited Liability Company

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CHAPTER 1: OVERVIEW OF RESEARCH ON REVENUES, EXPENSES

AND DETERMINING BUSINESS RESULTS

Recognizing the importance of accounting for revenue, expenses and determining business results to the existence of the business, this topic has become one of the issues that PhD students, students accountant, the most researched lecturer Despite much research, however, in practice, different companies lead to very different application

of theory in practice Therefore, the studies are carried out to bring contributions in both theoretical and practical value The topics carried out have specifically reflected the reality of accounting for revenue, expenses and determining business results of enterprises Presenting both the shortcomings and the good points in the establishment

of the accounting work of the enterprise, thereby making some suggestions and recommendations with high contribution to improve the accounting work of the enterprise However, after the research process, most of these studies stop at commercial production enterprises, and there are very few studies for service enterprises

In the field of commerce, author Nguyen Thi Huong with a thesis titled "Improving revenue and expenses accounting and determining business results in commercial enterprises in Hanoi" The thesis has systematized and clarified the theory of revenue, expenses, and business results accounting in commercial enterprises Present and analyze different views on accounting concepts of revenue,expenses, and business results and give their own opinion Presenting and analyzing management accounting

in providing management information, objective comments, and assessments, helping commercial enterprises in Hanoi see the nature of their work corporate governance through accounting tools, thereby taking active measures to innovate in accounting and business administration

In the field of tourism services, author Phan Thanh Son with the thesis topic

"Accounting revenue, expenses and determining business results in a limited liability company with one member tourism union Vietnam Trade Union" Based on theoretical research on accounting revenue, expenses, business results, and the current situation of revenue and expenses accounting, determining business results at Vietnam Trade Union

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Tourism Company Limited, the author proposed and analyzed the principled requirements of perfecting the accounting of expenses, revenues, and business results The author has shown solutions to complete expenses accounting, revenue, and business results from both management accounting and financial accounting perspectives From the perspective of financial accounting, the thesis has proposed solutions to complete the accounting of cash receipts, revenue accounting numbers, and business results From the perspective of management accounting, the thesis has given complete solutions according to the content such as perfecting identifying, classifying costs, estimating costs, revenue, and business results To implement the above solutions, the thesis also proposes conditions and solutions from the State and enterprises

In the field of the hotel business, author Hoang Thi Trang with the thesis "Improving revenue and expenses accounting and determining business results in hotel businesses

in Vietnam" has researched the revenue, expense accounting, and business results determination for hotel businesses in Vietnam According to the author, accounting work, especially management accounting, is not placed heavily in hotel businesses in Vietnam Based on studying the current situation of cost management in small and medium-sized hotel businesses, the author delves into the study of revenue and expenses accounting organization and the determination of business results to take measures to improve the organization With this topic, the author only focuses on exploiting the weak points in the management accounting of tourism businesses However, it is still only for small hotel businesses, without a clear management system,

so it cannot be applied to larger companies or businesses

The thesis "Accounting of revenue, expenses, and business results at An Ngai Mechanical and Construction Joint Stock Company" by author TranThi Bich Le has systematized the basic theoretical issues of revenue and expenses accounting and determining results in businesses The author clearly states the necessity, basic requirements, and content to complete the accounting of revenue, expenses, and business results at An Ngai Mechanical and Construction Joint Stock Company The thesis has also given the conditions for implementing the complete solution both on the part of the State, authorities, and enterprises This is also a topic with a field that is closest to what Viet Thanh Company is providing to customers, so some factors can be

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applied in the process of coming up with a complete solution company accounting machine

From the above researches on revenue, expenses and determination of business results,

we can see that most of them are concentrated in businesses that only provide one type

of service multi-service business Although the above studies are studied on both financial and management accounting aspects, management accounting is still very little focused Partly because most of the topics are of a general nature instead of focusing on the management accounting organization of a certain enterprise The rest

is because the management accounting aspect has not been taken seriously in accounting organizations in Vietnam in general and enterprises in particular At the same time, the above studies also show that there is no research paper on Viet Thanh Steel Co., Ltd Therefore, the author has carried out the topic "Accounting revenue, expenses and determining business results at Viet Thanh Steel Limited Liability Company " with the desire to make some recommendations to help businesses can improve their accounting work as well as achieve strong development goals in the company

a third party that are not a source of economic benefit, do not increase the equity of the enterprise and are not considered revenue Revenue does not include capital contributions by shareholders or owners that increase equity

For enterprises paying value-added tax by the deduction method, the tax is the revenue excluding value-added tax In contrast, enterprises pay value-added tax under the direct method of added value, which is revenue including value-added tax

b) Revenue characteristics

Revenue is recognized at the time of the transaction, when it is probable that economic benefits will flow to the entity, measured at the fair value of the amounts entitled to receive, regardless of whether cash has been collected or will be collected The revenue and expenses that generate that revenue needs to be recognized in the income statements

of the business and the revenue recognition needs to follow the matching principle and must be guaranteed for accuracy

Revenue is classified into many categories: sales revenue, service provision revenue, internal sales revenue, financial activity revenue…

c) Revenue recognition principles

The revenue recognition of organizations will need to strictly comply with the accounting principles specified by the state:

• That enterprise has transferred most of the risks as well as benefits associated

with the ownership of products and goods to entities that are buyers

• The enterprise no longer holds the right to manage the goods such as the owner

or the right to control the goods

• The revenue can be measured reliably

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• The enterprise has or will receive economic benefits from the sale transaction

• Enterprises need to determine the costs related to sales transactions

Revenue is recognized at the time of transactions, when it is probable that economic benefits will flow to them, measured at the fair value of the amounts entitled to receive, regardless of whether cash has been collected or will be collected An economic contract can include many transactions Accountants must identify transactions to apply appropriate revenue recognition conditions Revenue must be recognized by the nature rather than the form or name of the transaction and must be allocated according to the obligation to provide goods or services

For transactions that give rise to obligations of the seller now and in the future, revenue should be amortized at the fair value of each obligation and recognized when the obligation has been fulfilled Revenue does not include third-party receipts Recognized revenue includes only the revenue of the reporting period Revenue accounts have no balance At the end of the accounting period, revenue must be transferred to determine business results

The recognition of revenue and expenses must be consistent When revenue is recognized, a corresponding expense related to the generation of the revenue must be recognized In the case of revenue from commercial activities, the time to recognize taxable revenue is the time when the ownership and use rights of goods are transferred

to the subjects who are buyers

d) Vouchers and user accounts

Based on documents such as commercial contracts, VAT invoices, warehouse delivery notes, etc User accounts: 131- receivables from customers, 5111- sales of goods

2.1.2 Expenses

a) Concept

Cost is the total value of items that reduce the economic benefits of the entity during the accounting period and contribute to a decrease in equity indirectly Expenses are one of the two sides of the operational process, as opposed to income in the outcome-determining process If income causes results to increase, costs cause results to decrease Thereby, income indirectly increases equity, and costs indirectly reduce quity

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b) Expenses characteristics

The recognized expenses are subject to the matching principle between revenue and expenses Expenses are understood as the value of resources used in production and business activities to achieve revenue and profit goals The essence of cost is a trade-off for a different outcome

In business activities, understanding and calculating the types of costs in the business is extremely important for managers By understanding the costs, businesses can come up with effective management and use strategies, which can minimize costs and maximize business profits Enterprise cost management is a job that requires administrators to understand the organizational structure and standardize the management process as well

as optimize the costs of the business effectively to bring greater profits To maximize profits, each business must maximize revenue and minimize costs For many businesses, administrative expenses account for a small proportion One of the important keys to helping businesses manage business costs effectively is to classify costs in the most reasonable and manageable way to become the basis to help them make business policy decisions for them best fit Expenses can be classified in the following ways: administrative expenses, selling expenses if classified by purpose of use, controllable and uncontrollable costs are based on authority, …

c) Expense recognition principles

Expenses are recognized at the time the transaction is incurred or when it is reasonably probable that they will arise in the future, regardless of whether the money has been spent or not The recognition of expenses even when payment is not yet due but there is

a certainty that they will arise in order to ensure the principle of prudence and preservation of capital The expenses and the revenue it generates must be recognized simultaneously under the matching principle However, in some cases, the matching principle may conflict with the prudential principle in accounting, so the accountant must base on the nature of the transaction to reflect honestly and reasonably Accountants must keep track of costs incurred by factors, wages, raw materials, outsourced costs, and depreciation of fixed assets Expenses that are not considered deductible expenses according to the provisions of the Law on Corporate Income Tax but have sufficient invoices and vouchers and have been properly accounted for

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according to the accounting regime shall not be recorded as a reduction in accounting expenses only adjusted in the finalization of corporate income tax to increase the amount of corporate income tax payable Accounts reflecting expenses have no balance

At the end of the accounting period, all expenses incurred in the period must be transferred to determine business results

Invoices and vouchers of expenses must be archived by the enterprise in accordance with tax regulations for inspection By law, the seller is required to keep the invoice for

10 years whether it is a paper invoice or an electronic invoice

d) Expenses classification

• Cost of goods sold

Cost of goods sold is the total cost of making a product or the value of the product sold during a particular production period Cost of goods sold is related to the sales process This process includes cost of goods shipped, selling expenses, and administrative expenses of the business Depending on the business, there will be different calculations and definitions Goods out of stock will be valued according to one of three methods: actual, first-in, first-out, weighted average

• Selling expenses

Selling expenses are actual expenses incurred to serve the process of selling goods and providing services Some common selling expenses such as sales staff expenses, fixed asset depreciation costs, selling costs, product advertising costs, sales commissions, warranty costs, and insurance costs for handling, packaging, and transportation

Selling expenses are an important factor in bringing profits to businesses, so the company needs to spend appropriately to reduce risks and save costs Companies need

to make a clear financial plan, the recipients need to be aware of the cost savings to achieve the company's set sales goals The company must build a consumption norm of materials to suit reality In parallel with closely checking each bill of materials used Companies need to set KPIs suitable for each person to serve as the basis for evaluating the salary and bonus for each employee It is necessary to control expenses incurred during the sale These items must have adequate legal documentation otherwise the company may get involved in the legal department

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• General and administration expenses

General and administrative expenses include general management expenses of the enterprise, including expenses for salaries of management department staff, cost of office supplies, and depreciation of fixed assets used for management enterprise, provision for doubtful receivables, services purchased from outside, etc Enterprise administration expenses are not considered deductible expenses according to the provisions of the corporate income tax law, but there are sufficient invoices and documents and If accounting expenses have been properly accounted according to the accounting regime, they are not allowed to record a discount in accounting expenses but only adjust them in the corporate income tax finalization to increase the payable enterprise income tax amount

Business administration costs are one of the important operating expenses, so managers need to track and capture these costs effectively Identifying business management costs will bring the following benefits to the organization:

• As a basis for companies to estimate production and business activities, because

to estimate personnel costs, it is necessary to have parameters on the norm of working days, calculating the price of raw materials, it is necessary to have a norm of raw materials Whether

• It is easier for managers to control the business activities of the organization

because this is the basis for evaluation and is the standard price

• Helps provide business managers with information quickly to make investment

decisions, set selling prices, or analyze profitability more effectively

• Savings in management and use of resources of the organization

Managing enterprise expenses is extremely important and complex because it requires companies to know how to capture the information on the org chart and standardize the entire process to bring greater benefits to the business To do this, companies need to maximize revenue and minimize costs For some businesses, the costs incurred to operate the business are very large and for effective cost management, we need to determine the level of business administration costs

• Profit from selling goods and providing services is the difference between sales

of goods and provision of services minus the cost of goods sold, selling expenses, and administrative expenses

• Profit from financial activities is the difference between financial income and

financial expenses

• Another profit is the difference between other revenue and other expenses

b) Principles of determining business results

Determining business results plays a very important role in helping investors, owners, and users of information of an enterprise to understand the information, production, and business situation of the enterprise for the best decision-making Businesses must determine profits for a given accounting period The official accounting period of our country is according to the business year, so to determine the actual profit of an accounting year, the total revenue and expenses of that year must be determined

Consistency principle: the accounting policies an enterprise chooses must be applied for at least one accounting year If there is a change in the policy, the reason and impact

of that change must be explained in the notes to the financial statements

Cost principle: based on the going concern principle, accountants are not interested in the current market value of business elements but only in the initial cost When the original cost of the existing supplies and goods in the enterprise is higher than the market price at the time of making the report, the price difference shall be recorded in expenses

c) Steps to determine business results

(1) Transfer the revenue from sales and provision of services to the business results determination account

(2) Transfer the cost of goods and services provided to the account for determining business results

(6) Calculation and transfer of profit after deducting corporate income tax of business activities in the period

2.2 Revenue, expenses and determination of business results for management accounting

2.2.1 Revenue accounting from the perspective of management accounting

In revenue accounting from the perspective of management accounting, the report that businesses are most interested in is the revenue report by department Especially for multi-industry businesses when the number of departments operating and generating revenue is large At that time, according to the detailed information needs of the administrator, the accountant will perform the following work: store documents according to details for each department, create detailed accounts for each job or department, products, tracking detailed revenue books by each field of activity

Establishing revenue projections is also an important factor for management accountants

in planning business transactions Revenue estimation is an important issue in the business operating budgeting system, which is the basis for building other estimates The revenue forecast is the detail of the near-term consumption of a product or service provided for product groups and divisions, which forms the basis of the entire budgeting process because all other estimates depend on this estimate The making of revenue estimates must be scientific and reasonable, which is the basis for determining specific goals as a basis for evaluating the operation process and forecasting upcoming difficulties to have plans and handle them on time, linking all activities at the enterprise

to the common goal of the whole organization When making revenue estimates, accountants will forecast the business's ability to generate revenue based on influencing factors such as:

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• Contracts or orders that have not been fulfilled but are within the supply capacity

of the enterprise

• The upcoming trend in the business industry

• Brand promotion policy, product promotion if any in the future

• Current economic policies and future changes

• Competition among businesses in the same industry

2.2.2 Expenses accounting from the perspective of management accounting

Similar to revenue, to help managers control expenses incurred at the enterprise most reasonably according to the set management goals, accountants must also manage in

detail for incurred costs in each department, product group, through jobs: store documents according to details for each department, create detailed accounts for each job, department, and item, and keep track of the detailed revenue book by area of activity The cost estimate, it will be divided into 3 types: cost of goods sold, selling expenses, and general and administrative expenses

Cost of goods sold estimate: For service businesses that do not have raw materials or finished goods in stock, the focus of the cost of goods sold estimate will be made mainly

on the expected quantity of goods sold transaction potential and the human resources needed to achieve the target Service businesses must continuously estimate the possibility of future revenue to ensure that labor resources are always available to meet the needs of customers because the cost of capital in service enterprises is the human resources of the enterprise

The estimated selling expenses : The selling expenses reflects expenses related to the expected consumption of finished products in the following period This estimate is created to anticipate the costs that will be incurred during the sales process There are annual and little variable selling expenses that will be kept the same, except in the case

of adding a new market network, or market research fees if the next year's development orientation is the business's orientation Fees rarely change, so they stay the same As for sales variables that can be changed such as commissions, employee salaries will usually be estimated based on the number of goods sold or as a percentage based on the number of goods sold the experience of the accountant The estimated cost of sales determined based on total fixed and variable selling costs

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Estimating general and administration expenses : This cost is related to the entire enterprise, not to each department, so the estimate will depend on the organizational structure of the business Similar to the cost of sales estimate, the estimate of general and administrative expenses is also determined by the sum of the variable and fixed costs of the general and administrative expenses of the enterprise The fixed cost of the enterprise's administrative expenses usually rarely changes unless there is an addition

of machinery for the management department, so it is necessary to base it on the specific content forecast to make the estimate more accurate

2.2.3 Accounting determines business results from the perspective of management accounting

Estimates of business results are general based on both types of revenue estimates and cost estimates This estimate provides data for comparison and evaluation between the implementation of the business plan to achieve the business's goals Based on comparison between reality and estimate to detect potential dangers in business that have not been exploited to propose remedial measures as well as deal with weaknesses and shortcomings in the operation process and take active measures to further promote the strengths that the business currently has

CHAPTER 3: GENERAL INTRODUCTION TO VIET THANH STEEL

LIMITED LIABILITY COMPANY 3.1 The process of formation and development

Company name: Viet Thanh Steel Limited Liability Company

Tax code: 3600811005

Address: No 6, National Highway 51, Phuoc Tan Ward, Bien Hoa, Dong Nai

Viet Thanh Steel Company was established in 2006 by Mr Hoang Van Chau as

general director until now

Viet Thanh Steel Company Limited was established in 2006, complying with the Enterprise Law promulgated by the National Assembly of the Socialist Republic of

Viet Thanh Company has initiated hundreds of projects for domestic and international companies for more than 8 years of operation The company developed some of the core parts of the project using advanced technologies and outsourced the add-ons Therefore, the company's reputation has been further enhanced and more successful in the steel market with the dedication of the company's staff for the past 16 years, up to

2022 Viet Thanh's report reached 13 billion VND, the size of the company reached 20 workers and the revenue in 2019 was 53 billion VND Viet Thanh is the main raw material supplier for Vedan Vietnam Joint Stock Company with high profit Viet Thanh Company cooperates with KCP Vietnam Industrial Co., Ltd to achieve a total revenue

of over 10 billion dongs in 2021

The company's partners are reputable raw material suppliers, contributing to the success of the company so that the company has gained the trust of customers during the company's establishment Customers satisfy personal needs or purchase goods or services used for construction real estate for sale, rent or supply to retailers or any construction purpose or engineering materials for manufacture

3.1.1 Type of business

Bring satisfaction to partners, along with the appreciation of friendship through the implementation of business commitments Viet Thanh is committed to providing high- quality products and professional services, constantly improving products, applying new technologies to maximize operational efficiency, and upholding business ethics standards Become one of the leading companies in the construction field To be a strategic partner of major domestic and foreign steel manufacturers and contractors Products and services:

• Mechanical processing, metal processing, and coating

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• Construction of houses of all kinds

• Construction of civil works and other technical works

• Supply of spare parts and auxiliary parts for automobiles and other

motor vehicles

• Sale of metals and metal ores

• Road freight transportb

3.1.2 The organizational structure of the management apparatus

Diagram 3.1 The organizational structure of Viet Thanh Steel Limited Liability

Company

Based on the above diagram, it can be seen that the company's organizational structure

is built as an interconnected system In addition to the director, the officer in charge of the management of each department will be the person to directly deal with the problems arising in his or her department For larger issues that affect the whole company, the director will be responsible and approve the solution to the problem

• Director: the person who has the highest executive authority at the enterprise and

is responsible for approving the company's activities, deciding how to control the business, and making the final and important decisions Ensure established company strategic plans and goals are being met Analyze and monitor employee progress toward achieving set goals and objectives The director must be responsible before the law if there are any legal problems

Director

Accounting department

• Business department: research, develop and sell products Develop sales strategies, increase profits, and build and maintain relationships with customers Another important function of the business department is handling, monitoring and reporting business issues

3.2 Organization of accountancy

Diagram 3.2 Organizational structure of the company's accounting

department

Chief Accountant is the head of the accounting department of the enterprise and will

be in charge of and advise the leaders on finance, financial strategies, and accounting for the business The chief accountant has the right to decide on revenue and expenditure issues, record nominal ledger and compare them with subsidiary ledger, determine business results, and prepare financial statements In addition, he is also responsible for inspecting, controlling, and helping the staff in the accounting department fulfill their duties well

Chief Accountant

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Tax accounting: responsible to the chief accountant, in charge of business tax declaration issues Tax accountants use arising invoices and vouchers to account, balance, and process data to suit the enterprise's revenue Directly work with tax authorities when arising, prepare tax reports, and pay taxes to the company

General accountant: responsible to the chief accountant, responsible for the general recording, evaluation, and statistics of data and figures on accounts, books, and financial statements based on the enterprise's value criteria and take overall responsibility from detailed to aggregated data in the accounting books

Accountant: Doing the assigned work, the main job is to support the head of the accounting team in such areas as taxes, expenses, rent, cash, sales, and purchases

3.3 Organizational characteristics of accounting work at Viet Thanh steel limited liability company

3.3.1 Features of applying the voucher system at Viet Thanh Steel Limited Liability Company

Diagram 3.3 The order of transferring vouchers at the company

Accounting

voucher

Consolidation

of accounting vouchers of the same type

Misa accounting software

Subsidiary ledger;

nominal ledger

Financial statement

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Based on valid original voucher, accountants summarize and categorize different

expenses and revenues for each different department to determine a book-keeping

account After that, accountants make payables and receivables in excel; then, the data

will be converted to Misa accounting software The data will be processed by the

software and transferred to the subsidiary ledger of each account and ledger, then

financial statements will be madeVoucher Consolidation of

Misa softw accounting vouc

3.3.2 Features of applying accounting accounts at Viet Thanh steel limited

liability company

The Company applies accounting accounts according to the current Vietnamese

accounting system

The company's commonly used accounts: cash (Account 111), bank deposits (Account

112), revenue from sales and provision of services (Account 511), revenue from

financial activities (Account 515) direct labor costs (account 622, cost of goods sold

(account 632), financial expenses (account 635), selling expenses (account 641),

administrative expenses (account 642), determined business results (account 911)

3.3.3 Features of the accounting system

The company's entire bookkeeping system is stored on the company's secure computer

system The company's subsidiary ledger, general ledger and nominal ledger are all

prepared using Misa accounting software When the company is required to provide

the book, just export the excel from the software without any conversion step

3.3.4 Financial reporting features

Applicable accounting standards and regimes: The Company’s consolidated financial

statements are presented in Vietnam Dong following the Vietnamese Accounting

System for Enterprises and the Vietnamese Accounting Standards issued by the

Ministry of Finance onion

The company's financial statements include:

• Balance sheet

• Statement of income

• Cash flow statement

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• Notes to the financial statements

3.3.5 Some other relevant accounting policies

- The accounting year applied at the company is quarterly

- Method of calculating VAT according to the deduction method

- The company uses accounting software Misa

- Accounting for inventory: the company uses perpetual inventory

- Fixed Asset Depreciation Method: The company uses the straight-line method of depreciation

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CHAPTER 4: ACCOUNTING FOR REVENUES, EXPENSES AND

DETERMINING BUSINESS RESULTS AT VIET THANH STEEL LIMITED LIABILITY COMPANY

4.1 Reality of revenue accounting in Viet Thanh steel limited liability company

Viet Thanh Steel Co., Ltd is a trading company, specializing in trading iron, steel, aluminum, stainless steel, mechanical processing, metal processing and coating, and civil engineering construction The company's revenue is the revenue from the sale of goods In the company, special attention is paid to discounts/discounts in the business process because the above items rarely appear in the process of operation, so there will

be no sales deductions from revenue in the course of business

User account: 511- sales and service provision

Usage voucher: sale contract, quotation, the order, value added invoice, credit note

from the bank

Accounting procedures:

recording

software

Diagram 4.1 Sequence diagram of revenue accounting procedures

Example: Based on invoice number 00000195, Viet Thanh Steel Co., Ltd sold goods

to VEDAN Vietnam Limited Company on December 27, 2022, the Company sold 74kg of galvanized steel pipe and 710.4kg of H-shaped steel with the number money 19,879,200 VND including VAT

Step 1: After being sent an order and requesting a quote from the customer, the business department will send a quotation to the customer, and at the same time make

a contract in principle for the purchase and sale of the galvanized steel pipe and H- shaped steel and make an order, a contract can be applied to multiple orders because

of multiple orders

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Figure 1: Quotation of Viet Thanh company sent to VEDAN company