TECHNICALECONOMIC MANAGEMENT AND ORGANIZATIONAL STRUCTURE ABOUT NGUYEN CUONG COMPANY LIMITED

2 TECHNICAL ECONOMIC MANAGEMENT AND ORGANIZATIONAL STRUCTURE ABOUT NGUYEN CUONG COMPANY LIMITED Table of Contents List of Figures 1 List of tables 2 1 CHAPTER 1 OVERVIEW OF TECHNICAL ECONOMIC MANAGEME.

TECHNICAL-ECONOMIC MANAGEMENT AND ORGANIZATIONAL STRUCTURE ABOUT NGUYEN CUONG COMPANY LIMITED

Table of Contents

List of Figures 1

List of tables 2

1 CHAPTER 1: OVERVIEW OF TECHNICAL-ECONOMIC MANAGEMENT AND ORGANIZATIONAL STRUCTURE ABOUT NGUYEN CUONG COMPANY LIMITED 2

1.1 History of establishment and development of NGUYEN CUONG TRADE COMPANY LIMITED 2

1.2 Features of business operation 3

1.2.1 Functions and responsibilities 3

1.2.2 Main business activities 3

1.3 Features of technology and production process 5

1.3.1 Process of warehouse import 5

1.4 Organizational structure 8

1.5 Financial position and performance of NGUYEN CUONG 11

2 CHAPTER 2: AN INTRODUCTION TO ACCOUNTING ORGANIZATION AND SYSTEM APPLIED IN FIRM 12

2.1 Structure of accounting organization 13

2.2 Features of accounting system 13

2.2.1 General accounting policies 13

2.2.2 Features of accounting documents 15

2.2.3 Features of chart of accounts 16

2.2.4 Features of accounting books 19

2.2.5 Features of accounting reports 23

2.3 Features of some key accounting cycles in firm 25

2.3.1 Features of accounting for cash 25

2.3.2 Features of accounting for inventory 32

2.3.3 Feature of accounting for accounting payment 34

3 CHAPTER 3: EVALUATION ACCOUNTING ORGANIZATION AND SYSTEM IN FIRM 37

3.1 Evaluation of accounting organization 37

3.2 Evaluation of accounting system 38

CONCLUSION 38

RERERENCES………40

List of Figures

Figure 1-2: The process of warehouse export 9

Figure 1-3: The organizational structure of the company 11

Figure 2-1: The structure of accounting organization 16

Figure 2-2: The diagram of accounting books 24

Figure 2-3: The prcoess of financial recording 29

Figure 2-4: The process of cash payment 32

Figure 2-5: The process of cash collection 34

Figure 2-6: The process of cash payment/collection by bank 35

Figure 2-7: The process of collection money by wire transfer 37

Figure 2-8: General accounting of cash 38

Figure 2-9: Detail accounting of inventory 39

Figure 2-10: General accounting of inventory 40

Figure 2-11: The process of sales at the company 42

Figure 2-12: The process of payable documents 43

Figure 2-13: General accounting for accounting payment 44

List of tables

1 CHAPTER 1: OVERVIEW OF

TECHNICAL-ECONOMIC MANAGEMENT AND ORGANIZATIONAL STRUCTURE ABOUT NGUYEN

CUONG COMPANY LIMITED

1.1 History of establishment and development of NGUYEN CUONG TRADE COMPANY LIMITED

NGUYEN CUONG TRADE COMPANY LIMITED was established on October 21,

2018, under the business registration license No 0109787314 NGUYEN CUONG CO., LTD specializes in distributing, wholesaling and retailing nutritious milk lines to help develop a comprehensive future of nutrition

Business registration name: NGUYEN CUONG TRADE COMPANY LIMITEDHead Office : No 27 Thinh Liet, Hoang Mai, Ha Noi, Viet Nam

Charter capital : 10 billion VND

Tax code : 0109787314

Email : hotro.nguyencuong@gmail.com

1.2 Features of business operation

1.2.1 Functions and responsibilities

- Being a self-balancing business unit in terms of finances, managing and usingassets effectively

- Nguyen Cuong Co., Ltd cooperates with partners to provide source of safe andnutritious, high-quality goods to customers

- The company organizes the implementation of the plan to achieve its own businessgoals and contents

- The company is an intermediary agent specializing in providing nutritionalpowdered milk products to factories, shops and supermarkets

- Responsibility for ensure the input quality of goods from the factory, researchedand licensed safely

- Diversified products: nutritious milk for children, nutritious milk for pregnantwomen, nutritious milk for strong bones for the elderly

- Saving costs for stores which want to import in bulk because the company hasmany years of experience in warehousing, transportation and logistics

- Nguyen Cuong Co., Ltd always put cargo safety insurance on top: provide a list ofgoods, cost price, selling price, full of all necessary items

- Goods return and exchange policy, helping new wholesale customers not have longinventory, quick liquidity, avoid expiry date loss and increase business efficiency

on best-selling items and indefinite guarantee period for goods

- Ensure the fulfillment of obligations to the State, create jobs, and ensure incomefor officials and employees

1.2.2 Main business activities

Understanding the important role of nutritional dairy product quality and user anxiety

in today's market, NGUYEN CUONG ensures that customers are provided with the most prestigious and quality products have been tested, imported directly from the research and production factory

Powdered milk is one of the popular and effective methods trusted by users Thereby helping to make the powdered milk market in Vietnam become vibrant, and at the same time promoting the appearance of more different models of powdered milk, helping users have more diverse choices Besides the development of product

production, economic mechanisms and protective barriers for the dairy industry have also been removed, helping the market develop rapidly In this article, I will give you

an overview of the Vietnamese powdered milk market

With the current situation, Vietnam's powdered milk market fluctuates rapidly and the competition is great due to not only domestic powdered milk lines but also the diverse appearance of imported and raw milk lines imported materials and produced in

Vietnam At the same time, the market price of milk also escalated and changed

continuously especially in the infant formula market segment

Over the past 5 years of establishment and development, the company has achieved certain success, including signing contracts and becoming long-term partners of large stores and factories such as: Pharmaceutical Joint Stock Company HADU79, Hoang

Le Trading Company Limited - KIWIFOOD Supermarket System, NEWHOUSE International Nutrition Joint Stock Company, Nano Pharma Pharmaceutical Joint Stock Company, Pharmaceutical - Pharmaceutical Joint Stock Company I

(CHEMICO) Mo Lao, Ha Dong, THN Group Joint Stock Company…

List of Product:

Bebelusi GROW IQ PLUS Nutrition Milk

Bebelusi MAMA Nutrition Milk

Bebelusi New Born Nutrition Milk

Nutrition milk Bebelusi PEDIA BA

Bebelusi Sure Gold Nutrition Milk

Big Bibi Gain Nutrition Milk

Big Bibi Goat Baby Nutrition Milk

Big Bibi Kid Nutrition Milk

Big Bibi Pedia Gold Nutrition Milk

Big Bibi Bone and Joint Nutrition MilkBigBibi IQ Grow Nutrition Milk

Dairy Pro Colos Max Nutrition Milk 0+OGN Pedia Gold Nutrition Milk

MyKid Kids Gold Nutrition Milk

…

and 37 other products

1.3 Features of technology and production process

1.3.1 Process of warehouse import

Figure 1-1: The process of warehouse import

- Step 1: Create a "Purchase Request"

When departments have a need to buy goods, tools, assets, raw materials, etc., theywill make requests to the purchasing department to make purchases to meet productionand business needs approved by the department head or responsible person Whenthere is a "Purchase Request", the purchasing department assigns the purchasing staff,searching for suppliers, and quoting the items

- Step 2: Make "Proposal Quotation"

From "Purchase Request", Purchasing Department makes a "Request for Quotation" tosend to traditional suppliers or new suppliers, which have been searched according tothe conditions requested by the departments

- Step 3: Make "Contract/ Purchase Order"

When a supplier is selected, a contract will be drawn up, on the contract, theinformation of the quotation, payment terms, and delivery schedule will be recorded

on the contract Send an order or contract to a supplier and execute the order orcontract between the two parties

In case the contract signing has many implementations, an order will be made for eachperformance The information on the order is similar to the terms on the contract

Transfer “Contract/Purchase Order” to relevant departments to monitor: Accounting isbased on payment, debt tracking, Warehouse department monitors the process ofimporting goods to the warehouse

- Step 4: Make "Request for goods import" and "Request for goods inspection"

To prepare for the scheduled import phase, the purchasing department makes a

"Request for goods import" and "Request for goods inspection" and sends it to therelevant departments to monitor the implementation

- Step 5: Enter stock

When the goods are transported to the warehouse, the information on the Contract /Purchase Order (quantity, specifications, specifications ) will serve as a basis for theWarehouse department to check Items that do not meet the standards will be reported

to the Purchasing Department, and the Purchasing Department will receive and takesteps to return NCC Items that meet the standards will be sent to the warehouse

When goods are in stock, the warehouse department will enter the quantity, and thepurchasing department will add price information

- Step 6: Pay the invoice

Based on the terms of the contract and related documents, the purchasing departmentwill make a payment file The Accounting Department receives and re-checks it, if it isvalid, it will pay the Supplier if it does not respond to the Procurement Department foradditions/modifications

1.1.1 Process of warehouse export

Figure 1-2: The process of warehouse export

- Step 1: Submit requests, warehouse proposals

The unit using the goods needs to make a request or request for the shipment of goodsthat can be sent to the department in charge.

- Step 2: Confirm the required export warehouse

This request to be used to the management section, director of the browses the level before being exported from the warehouse (Whether exporting or importing, alltopics must be approved by the management department)

web Step 3: Check inventory

After the warehouse request is approved, we will transfer it to the departmentmanagement warehouse Here, the warehouse keeper will check the items to beexported, quantity, storage and then feedback to the relevant units about the exportedgoods In case, the number of goods in the warehouse is not enough to meet therequirements, the warehouse department will suggest to import new goods to ensurethe sales volume

- Step 4: Set up the delivery notes, invoices, make contracts

After checking and adding the quantity of goods in accordance with the requirements,the warehouse department will proceed to set up the delivery notes, invoices andrelated papers to send to the management department of the enterprise

- Step 5: Export goods

Based on the export note, the warehouse staff will export goods according toregulations

- Step 6: Update information on the system

After goods are exported from the warehouse, information should be updated on themanagement system (manual, software, ) so that the management department canunderstand reports on the quantity of goods exported - imported - due

Step 7: The Accounting department collects immediate payment from customers orrecords receivables from customers

1.4 Organizational structure

The company's organizational structure is online - straight line

Figure 1-3: The organizational structure of the company

Key leaders of the company include:

─ Ms Bui Thi Tin - General Director of the company, Bachelor of Economics

The General Director of the company is elected by the General Meeting ofShareholders or the Board of Directors according to the provisions of the company'scharter, and is the legal representative of the company The General Director is theperson who runs the daily business of the company and is the representative of thecompany before the law; under the supervision of the Board of Directors andresponsible before the Board of Directors and before the law for the implementation ofthe assigned rights and duties

Deputy General Director of the Company includes:

─ Ms Dinh Thi Hue – Finance and Administration Director, Bachelor of Finance –Accounting, from National Economics University

─ Ms Nguyen Thi Oanh – Sales Director, graduated in accounting from University

of Economics – Technology for Industries

─ Mr Nguyen Van Dai – Marketing Director, graduated in banking and finance fromBanking Academy

Finance Director, Deputy General Director is responsible for advising the GeneralDirector on finance

Deputy General Director of Sales has authority and full responsibility in thefollowing areas: sales, logistics and products

Deputy General Director of and Marketing has responsibility and authority inbusiness organization, and is the person who directly manages the departments:marketing and public relations (PR), business research and development

The Director of Finance and Administration manages the following departments:Finance and Accounting, Administration and Human Resources, Import-Export

The position of Finance and Administration in the organizational structure of the enterprise:

Departments in Finance and Administration have always played an important role

 Import-Export Department: is responsible for organizing the business ofproviding domestic import and export goods, carrying out procedures forreceiving imported goods, organizing delivery of goods for projects on thebasis of economic contracts

In particular, the Finance and Administration Department has the followingfunctions and tasks:

a) Function:

 Advise company leaders in the field of management of Finance - Accountingactivities, in assessing the use of assets and capital in accordance with theState's financial management regime

 Coordinate with the departments of Sales - Marketing and Service - TechnicalSupport for appropriate business strategy

 On the basis of financial plans and business plans of the member units, there is

a plan to develop a financial plan for the whole company Monitor and urgeunits to implement assigned financial plans

 Periodically gather to reflect and provide information to the Corporation'sleaders on the fluctuation of capital sources, the efficiency of using assets,materials and capital of the company At the same time, promptly reflect thepolicy on costs and prices in each business period to the Company's leaders

 Checking the financial accounting activities of the whole company inspection or participating in the inspection with relevant agencies)

(self-b) Mission:

 Develop annual financial programs and plans, submit them to enterprises forapproval and organize the implementation of such programs and plans

 Investment proposal for effective management of capital

 Prepare and implement a financial plan in accordance with regulations

 Prepare quarterly and annual settlements and open accounting books inaccordance with the State's regulations on the Finance - Accounting regime.Plan the allocation of funds

 Build the revenue and expenditure ratio for the unit's revenue-generating

activities

 Manage and be responsible for performing accounting operations on all

revenues and expenditures of the enterprise; payment settlement and debt

tracking

 Organizes checks on the receipts and expenditures of capital funds, use of

materials, equipment and other assets of all departments in the company

 Assume the prime responsibility for organizing the periodic inventory and

assessment of assets, inspecting the use of assets and presiding over the annual

liquidation of assets in accordance with the State's regulations

 Implement revenue - expenditure and payment of economic contracts, labor

contracts

 Make regular and extraordinary reports and coordinate with the organizational

department to register the quarterly and annual payroll and salary fund

 Effective management and use of assets

In short, the Finance and Accounting department is indispensable in any business

and always plays an important role in the financial activities of the enterprise,

especially in trading enterprises such as Nguyen Cuong Trade Company Limited

1.5 Financial position and performance of NGUYEN CUONG

Table 1-1: Financial position and performance of the company

Content

  2019

  2020

  2021

Variation (between 2019 and 2020)

Variation (between 2020 and 2021)

-6,135,737 196,60%Comment:

The revenue in 2020 decreased considerably compared to 2019 by 37.37% The profit

after tax decreased slightly by 24.40%, equivalent to 182,671 thousand VND, from

2019 to 2020 This decrease can be traced to the serious impact of covid-19 upon the

business operation The shut-down policy leads to the decline in goods sold and

increase in operating expenses Specifically, administrative expenses climbed to

maintain the business in case of the pandemic However, in 2021, the profit after tax

went up by 21.37% thanks to the recovery after covid-19 The increased sales leads to

the total revenue and profit increased as well

The decline of total asset in 2020 comes from the disposal of fixed asset Because of

economic recession, the company decided to liquidate some spare fixed asset to

compensate for the other expenses to drive the business Fortunately, the recover from

the pandemic, in 2021, the significant upturn of total assets is because the company

made an expansion, so they purchased more fixed assets and also equipment The total

assets went up approximately four times compared to 2020 with the aggregate of

11,005,281 thousand VND This promises a ambitious future for the company

2 CHAPTER 2: AN INTRODUCTION TO ACCOUNTING ORGANIZATION AND SYSTEM

APPLIED IN FIRM

2.1 Structure of accounting organization

Figure 2-4: The structure of accounting organization

- The chief accountant has general responsibility and leads the department toperform assigned functions and tasks, directly doing general accounting, financialreporting

- The general accountant has the following tasks: to check the detailedaccounting books; prepare accounting reports, tax reports (not financial statements)according to regulations

- Cash payment accountant, bank deposit, advance payment: responsible for cashpayment and bank deposit

- Accounts receivable and payable accountant: Responsible for checking thecompany's debts, monthly collecting and summarizing debts

- Treasurer: is responsible for the export and import of cash in the company'scash fund

2.2 Features of accounting system

2.2.1 General accounting policies

Nguyen Cuong Co., Ltd pursuant to accounting rules and contents of the balance sheetspecified in No 133/2016/TT-BTC, record the transactions in a way that is appropriatefor operation and management requirements This accounting principle act as theprimary set of guidelines on the manner in which accounts and books are prepared andrecorded

The accounting currency is Vietnamese dong (VND) is used to prepare the accountingbooks and financial statements of company In the case of import and export trade,conduct transactions (including sales, purchase, and provision of goods and services)

with foreign currencies are permitted to choose a monetary unit in accounting andmust notify relevant tax authorities of choice.

An accounting period is determined based on the calendar year, which is from January

1 to December 31 The 12-month accounting period begins on the first day of eachquarter to the following year, for instance, April 1 to next year’s March 31, July 1 tonext year’s June 30, or October 1 to next year’s September 30

Commodity accounting method: Nguyen Cuong company makes accounting

according to the perpetual declaration method Because the permanent declarationmethod is a continuous monitoring method At any time, accountants can alsodetermine the amount of goods purchased, imported - exported and in stock for eachtype

Inventory cost method: company uses Average method at the end of the

period Under this method, the cost of goods sold in the period is calculated at the end

of the period Depending on the enterprise's reserve period, inventory accounting isbased on the input price, the amount of inventory at the beginning of the period, andthe inventory in the period to calculate the average unit price

Formula:

Average unit selling price

in the period of a product

(Value of inventory at the beginning of the period+ Value of goods imported during the period)(Quantity of inventory at the beginning of theperiod + Quantity of goods imported in the period)

Value-added tax (VAT) calculation method: Deduction method is that

company determine the amount of tax payable based on the result of subtracting inputvalue-added tax from the output value-added tax amount Input VAT of products:When company buys a product, it will have to pay VAT on that type of product.Output VAT of the product: When company proceeds to sell that product to the buyer,that person will have to bear the VAT calculated on the value of that product

Formula: VAT that businesses have to pay = Output VAT – Input VAT

Depreciation method for fixed assets: straight-line method, which is to

depreciate at a steady rate each year into the company's operating expenses of fixedassets engaged in business activities

Formula:

Average annual depreciation = Original cost of fixed assets

Amortization time

2.2.2 Features of accounting documents

(Students need to describe rules applied for accounting documents, organization and

managing accounting document in company)

When collecting data on input products, the accounting department collects andprocesses initial documents, takes notes and keeps track of some detailed books such

as account details books, etc At the end of the period, summarize data, makeaccounting reports, prepare financial statements, and general reports for the wholecompany

2.2.2.1 Accounting for domestic purchases:

Accounting documents used: Invoices and vouchers used to account for domestic purchases include:

- VAT invoice

- Invoice of purchase and sale of goods

- Invoices for the purchase of some special goods and services: bills for electricity,water, etc

- Payment slips, debt notices, advance payment slips, etc Reflect the payment forpurchases

Accounting accounts used:

- Account 156 “Commodities”: This account is used to record the current value andchanges in actual prices of the enterprise's goods

- Account 151 “Buy goods in transit”: This account is used to record the value ofgoods, which have been identified as purchased goods, but have not yet beenhanded over to a third party

- Account 133 “Deducted Value Added Tax” (Account 1331- Deductible ValueAdded Tax of goods and services): This account is used to record the input VAT to

be deducted deducted, deducted, refunded and deductible, non-refundable ofpurchases

- In addition to the above accounts, in the process of accounting for domesticpurchases, the accountants also use relevant accounts such as: 111, 112, 141, 331,etc

2.2.2.2 Accounting for import purchases:

Accounting documents used:

To serve the process of accounting for import of goods, accountants use the followingsets of eggs:

- Set of payment documents for imported goods: import contract, commercialinvoice, certificate of origin, bill of exchange,

- In addition to the payment vouchers, there are other documents such as:

 Customs tax notice

 Tax receipt.

 Customs declaration

 Payment documents

Accounting accounts used:

To account for the import of goods, accountants use the following main accounts:

- Account 156, 151, 133 (1331)… to reflect the value of imported goods

- In addition, to account for the import and export of goods, the accountants also usethe following accounts: 3333 – import and export tax; 144 – pledge, deposit, short-term deposit; 413 – Exchange rate difference; 007 – Foreign currencies of all kinds

2.2.3 Features of chart of accounts

The process of importing goods is done as follows:

- Step 1: After transferring the goods to the warehouse, the import staff will issuethe warehouse receipt to the accountant;

- Step 2: The accountant prepares the warehouse receipt This include 1 links atinput output number, 1 links to plan to, a link for staff to import goods;

- Step 3: After completing the inspection of quantity, quality and paper, thedelivery person will hand over the goods to the warehouse staff;

- Step 4: The relevant departments will sign and receive the paper inputwarehouse The accountant updates the information in the warehouse andrecords the inventory

The accounts used in this process include:

Account 156: Commodities

Account 331: Account Payable

Credit Account 331 63.031.800Documents: Goods received note; VAT invoice

Unit: Nguyen Cuong Trade

Address: 27 Thinh Liet,

Hoang Mai, Ha Noi (Issued under Circular No 133/2016/TT-BTCAugust 26, 2016 of the Ministry of Finance)

GOODS RECEIVED NOTE

Number: NK0010 Credit: 331

- Name and surname of the delivery person: HADU79 PHARMACEUTICAL JOINT STOCK COMPANY

- According to invoice number 0000013 day 01 month 11 year 2020

of the HADU79 PHARMACEUTICAL JOINT STOCK COMPANY

Import at the warehouse : Big Bibi Warehouse, Dairy Pro Warehouse

quality materials, tools,

number coun

t license import Price money

2 SPDD DAIRY PRO IQ GROW

3 SPDD BIG BIBI GOAT KAO