ACCOUNTING FOR PAYROLL AND PAYROLL DEDUCTIONS AT THIEN UNG SERVICES TRAINING COMPANY LIMITED

TABLE OF CONTENT INTRODUCTION 1 CHAPTER 1: GENERAL THEORIES OF ACCOUNTING FOR SERVICE PROVISION AND BUSINESS RESULTS 4 1.1. Overview of accounting for service provision and business results 4 1.1.1. Definition and characteristics of accounting for service provision and business results 4 1.1.2. Service business characteristics affect revenue and business results accounting 5 1.1.3. Tasks of accounting for service provision and business results 7 1.2. Accounting for expenses in the service provision enterprises 7 1.2.1. Cost of sales accounting 8 1.2.2. Accounting for selling expenses and general administration expenses 9 1.2.3. Accounting for financial expenses 12 1.2.4. Accounting for other expenses 14 1.2.5. Accounting for corporate income tax expense 15 1.3. Accounting for revenue in the service provision enterprises 18 1.3.1. Accounting for revenue from service rendered 18 1.3.2. Accounting for revenue deductions 21 1.3.3. Accounting for financial income 23 1.4. Application form of accounting books 31 1.4.1. General journal form 31 1.4.2. Journal Ledger form 33 1.4.3. Form of book entry voucher 33 1.4.4. Form of computerized accounting. 34 CONCLUSION CHAPTER 1 35 CHAPTER 2: ACTUAL SITUATIONS REGARDING ACCOUNTING FOR SERVICE PROVISION AND BUSINESS RESULTS AT VNPTI 36 2.1. Overview of VNPTI 36 2.1.2. History of the establishment and development of the VNPTI 36 2.1.3. System of organization, functions and duties of the company 38 2.1.4. Features of telecommunication service business mode at VNPTI 40 2.1.5. Services used in the companys business operations 41 2.1.6. Structure of accounting apparatus and applicable accounting policies 42 2.2. Actual situation of accounting for expenses regarding service provision at VNPTI 49 2.2.1. Accounting for cost of sale. 49 2.2.2. Accounting for selling expenses and general administration expenses. 63 2.2.3. Accounting for financial expenses. 85 2.2.4. Accounting for other expenses. 96 2.2.5. Accounting for corporate income tax expense 96 2.3. Actual situation of accounting for revenue regarding service provision at VNPTI company 96 2.3.1. Accounting for revenue from service rendered. 96 2.3.2. Accounting for sales deductions. 111 2.3.3. Accounting for financial income. 111 2.3.4. Accounting for other income. 119 2.3.5. Accounting for evaluating business results 119 CONCLUSION CHAPTER 2 127 CHAPTER 3: SOLUTIONS OF PERFECTING ACCOUNTING FOR SERVICE PROVISION AND BUSINESS RESULTS AT THE COMPANY OF VNPTI 128 3.1. General assessment on accounting for services provision and business results at VNPTI 128 3.1.1. Strengths of accounting work for service provision and business results evaluation at the company 129 3.1.2. Weaknesses of accounting work for service provision and business results evaluation at the company 132 3.2.1. The need to perfect accounting for service provision and business results at VNPTI 133 3.2.2. Solution for perfecting accounting for service provision and business results at VNPTI 134 CONCLUSION 137 REFERENCE LIST 139

GENERAL THEORIES OF ACCOUNTING FOR SERVICE

Overview of accounting for service provision and business results

1.1.1 Definition and characteristics of accounting for service provision and business results

Services is an economic industry with many unique characteristics, without a specific concept, but we can understand it as: “Services are activities and results that one party (seller) may provide to the others (buyer) and are mostly intangible and non-proprietary”.

In broad definition: Services are concepts of the whole activity and their results do not exist in the form of objects Service activities cover all fields with high levels, greatly controlling the socio-economic development and environment of each country, region in particular and the whole world in general Here, the service does not only consist of the media such as transportation, tourism, banking, commerce, insurance, and telecommunications but also spreading to new areas; for example; cultural, administrative, environmental protection and consulting services.

In narrow definition: Service is about doing a job for another person or a community, a job that effectively meets a person's needs such as the transportation, repairing and maintenance of equipment or machinery.

Business results are the final results of the business operations of an enterprise in a certain accounting period In other words, the business results are expressed in cash, the difference between the total revenue and the total cost of economic activities carried out If income is greater than cost, then business results are profitable If income is smaller than cost, business results are financial loss Depending on the characteristics of business results and the management requirements of an enterprise, the evaluation of business results shall be made at the end of the business period such as the end of the month, the end of the quarter and the end of the year.

Business results of an enterprise include normal business results and other activities.

Normal business results are the result of activities that generate revenue of the business, namely from sales, service provision and financial activities.

1.1.2 Service business characteristics affect revenue and business results accounting

The specific characteristics of the service business have a strong influence on the accounting for the expenses, revenues and service business results, namely:

 Pure service delivery results often do not take a specific physical form but can be interpreted by benefiting customers through satisfying their needs such as information, transportation, demand for knowledge, etc This characteristic leads to the fact that the process of production, consumption and service business management is often difficult to separate.

 Service business activities have a variety of implementation methods For instance, telecommunications can carry out mobile telecommunications, leasing internal international telecommunication channels Another example is transportation which also has many methods such as sea, road, air, rail transport It is the diversity of service delivery methods that leads to the diversity of management subjects as well as the complexity in the organization of accounting work in general,especially accounting for cost, revenue and business results.

 In terms of business management organization, service businesses often manage their business operations according to the service delivery process or on the order form This characteristic also leads to the variety of accounting for cost, revenue and business results.

 Service businesses have many forms of mutual support in the business process such as joint venture, associate, etc These types of combination lead to complexity in management in general and accounting in particular.

Request to manage the sales process and determine sales results:

Deriving from the meaning of the sales process and determining sales results, the management of this process should adhere to the following basic requirements:

 Capture and closely monitor each selling method, each payment method, each type of consumed goods and each customer, to ensure a quick recovery of capital.

 Calculate, sell, correctly determine the outcome of each type of activity and strictly implement the profit distribution mechanism.

In the process of selling, the business may have to pay expenses for the sales process called selling expenses, in addition, there are also sales deductions such as sales or sale prices return, consumption tax Good implementation of the sales process will ensure quick recovery of capital, increase working capital turnover to ensure production and business process is the top goal of businesses With that important meaning, in order to perform well the sales stage, accountants need to closely monitor each selling method, payment method, characteristics of each customer and each type of goods exported to be able to have measures to urge the payment to recover the capital fully and on time.

1.1.3 Tasks of accounting for service provision and business results

In current businesses, accounting in general and service provision accounting in particular have helped businesses and state agencies evaluate the completion of the plan and the cost of service, costs and profits, thereby overcoming and limiting the shortcomings in the management The organization and rational arrangement between the stages of the service provision process will create favorable conditions in the accounting for service provision and business results, simultaneously creating a consistency in the general accounting for enterprises in order to promote the accounting role in the management of business activities, the accounting for service provision and business results need to perform the following tasks:

 Reflect, record promptly and fully the situation of providing each type of service to customers.

 Reflect, record promptly, fully and accurately sales, deductions of revenues and expenses of each activity in the enterprise, and regularly monitor and urge customer receivables, ensure sufficient and timely collection of goods and avoid improper appropriation of capital.

 Provide accounting information for the preparation of financial statements, analyze periodically economic activities related to the service delivery process, identify and distribute results.

 Reflect and calculate accurately the results of each activity,monitor the situation of performance of obligations to the State,and the situation of distribution of operation results.

Accounting for expenses in the service provision enterprises

1.2.1.1 Content of cost of goods sold

The cost of service is the total business expenses associated with the process of providing the service.

Services cannot be stored as physical products and other goods, but are included in the cost of goods sold immediately, therefore, for services that have been completed without recorded revenue, the costs for those services are still considered to be costs of uncompleted products However, service activities usually do not account for work in progress Therefore, the cost of services is expressed in terms of the cost of living labor needed and materialized labor creating products and services provided to customers.

At the end of the business period, due to the characteristics of products and services without physical form, prices of services are transferred from account 154 - Work in progress to account 632 - Costs of goods sold.

Used vouchers: accounting vouchers, acceptance certificate, etc.

 Account 632 - Cost of goods sold

 Other related accounts: Account 154 - Work in progress

(1): Service costs in the period.

(2): Transferring cost price to evaluate business results.

1.2.2 Accounting for selling expenses and general administration expenses

1.2.2.1 Content of selling expenses and general administration expenses

Selling expenses are all incurred expenses related to the process of selling products, goods and providing services Content of selling expenses include the following elements: staff costs, packaging materials costs, cost of tools and supplies, depreciation of fixed assets, product warranty, outside services, and other cash costs In addition, depending on the production and business activities as well as the requirements of each industry and each unit, account 641 - Selling expenses may open some additional expenses.

General administration expenses are all expenses related to production and business management, administrative management and a number of expenses used to run the business General administration expenses include cost of management staff, cost of management materials, cost of office equipment, depreciation of fixed assets, taxes, fees and charges, provision expenses, costs of services purchased from outside service and other monetary expenses

Used vouchers: Goods delivery notes, spreadsheet and salary allocation, tool allocation table, VAT invoices, sales receipts, receipt vouchers, payment vouchers, debit notes, credit notes, advance lists and other related vouchers.

 Acc 6412 - Materials and packaging materials

 Acc 6425 - Taxes, fees and charges

 Other related accounts: Acc 111, Acc 112, Acc 331, Acc 334, etc.

(1): Cost of sales staff and management staff.

(2): Expenses of tools and instruments for selling and management (3): Depreciation of fixed assets at the selling and management department.

(4): Outside service, other expenses for selling, management and deducted input VAT.

(5): Provision for bad receivable debts, unemployment.

(6): Reversal of provision for bad receivable debts, unemployment. (7): Reduction of selling expenses, general administration expenses. (8): Accrual expenses for overhaul of fixed assets at the selling and management department.

(9): Transferring selling expenses and general administration expenses to evaluate business results.

Financial expenses are expenses related to capital activities, financial investment activities and financial operations of enterprises.

Financial expenses include: expenses related to tools of financial investment activities; investment in joint ventures and associates; investment in subsidiaries; cost of holding, liquidation, transfer of investments, losses in investment; expenses related to lending activities, buying and selling foreign currencies; business loan interest expenses are not capitalized, discount is paid when selling products, goods or services; foreign exchange losses; making provision for devaluation of financial investment.

Method of calculating financial expense depending on: bank interest based on total loan, exchange rate loss based on the amount of foreign currency of the transaction, etc.

Used vouchers: Loan calculation slips, payment vouchers, debit notes, etc.

(1): Expenses for holding and selling foreign currencies, financial instruments; expenses for financial investment activities are not included in contributed capital; losses in financial investment activities; exchange rate loss; non-capitalized business loan interest expenses; payment discount for customers.

(2): Losses when selling foreign currencies and financial instruments; losses upon sale, liquidation or transfer of financial investments; investment operation costs; investment losses calculated into contributed capital.

(3): Net foreign exchange difference upon revaluation of monetary items denominated in foreign currencies at the end of the year.

(4): Provisions for devaluation of financial investments

(5): Reversal of devaluation of financial investments

(6): Transferring financial expenses to evaluate business results.

Other expenses are expenses of activities beside production and business activities, which are losses due to events or activities that are different from normal business activities of enterprises.

Other expenses include: expenses for liquidation and sale of fixed assets; the residual value of liquidated fixed assets; residual value or selling price of a sold fixed asset for subleasing by mode of financial lease or operating lease; fines for violating economic contracts; amount of tax fines, retrospective tax payment; expenses due to wrong entries or omissions when recording accounting books; other expenses.

Used vouchers: payment vouchers, debit notes, etc.

 Other related accounts: Acc 111, 112, 211, etc.

(1): Expenses incurred during the process of liquidation or sale of fixed assets; other costs such as business risk recovery costs, etc.

(2): Residual value of sold or liquidated fixed assets.

(3): Fines for violating economic contracts; amount of tax fines, retrospective tax payment.

(4): Transferring other expenses to evaluate business results.

1.2.5 Accounting for corporate income tax expense

1.2.5.1 Content of corporate income tax expense

Income tax expense includes: current tax expense and deferred tax expense, when determining the profit or loss of a financial year.

Current tax expense is the amount of corporate income tax that an entity has to pay based on the taxable income for the year and the current corporate tax rate.

Deferred tax expense is the amount of corporate income tax to be paid in the future, incurring from:

 Recognition of deferred income tax liabilities for the year.

 Reversal of deferred income tax assets was recognized from the previous year.

Corporate income tax expenses are usually equal to 20% total Profit after reducing the amount of expenses arising in the period.

 Other related accounts: Acc 347, Acc 243, Acc 3334, etc.

(1a): Current corporate income tax is temporarily paid or additionally paid.

(1b): Current corporate income tax is overpaid.

(2a): Deferred corporate income tax payable.

(2b): Refund of deferred corporate income tax.

(3a): Deferred income tax assets incurred.

(3b): Reversal of deferred tax assets

(4): Transferring current corporate income tax expense to evaluate business results.

(5a): Difference in the amount of Debit is larger than the amount of Credit of account 8212.

(5b): Difference in the amount of Debit is smaller than the amount ofCredit of account 8212.

Accounting for revenue in the service provision enterprises

1.3.1 Accounting for revenue from service rendered

1.3.1.1 Content of revenue from service rendered

Revenue is the total amount of value of economic benefits earned by an enterprise in an accounting period, incurring from its normal business and production activities, thus contributing to increasing equity.

Revenue from service rendered is the entire amount of money collected or will be earned from transactions and operations generating revenues from customers, including surcharges and additional charges outside the selling price.

Revenue from service rendered is recognized only when the results of services are reliably determined If a transaction involving the rendering of services is attributable to several periods, revenue is recognized in the period according to the results of the work completed until the date the entity makes the Statement of Financial Position The results of service rendered transaction can be reliably determined when satisfying four following conditions:

 The revenue is measured relatively certain.

 It is possible to derive economic benefits from that service rendered transaction.

 Determine the part of work completed on the date of making the Statement of Financial Position.

 Determine the costs incurred for the transaction and the cost to complete the transaction to provide that service.

Some considerations when determining revenue from service rendered:

 If the outcome of a transaction cannot be reliably determined, the revenue recognized in proportion to the recognized expense may be recovered.

 Revenue and expenses related to the service provision transaction must be recognized according to the matching principle within the financial year.

 In the case of a service exchange for a service of the same nature and value, such exchange is not recognized as a transaction that generates revenue and is not recognized as revenue.

 The revenue is recognized at the fair value of amounts received or will be collected in the future, namely:

 For service enterprises that calculate and pay taxes by deduction method, service revenues are recognized at service prices exclusive of VAT.

 For service enterprises that calculate and pay taxes by the direct method, service revenue is recognized according to the total payment price

 In case the service is determined to be exported or subject to export tax, the revenue shall be recognized according to the total freight inclusive of export duty.

 In case the service provision contract is made through many accounting periods, service revenue is recognized by the method of completion rate.

 Service revenue is monitored in detail by each type: revenue for management, revenue to determine business results according to the business management requirements of the unit.

 In case of receiving advance payment in many periods, the enterprise shall base on invoices to record unrealized revenue into account 3387 - Unearned revenue, allocating revenue according to matching principles on each period.

Used vouchers: VAT invoices or sales receipts, good dispatched notes, economic contracts, receipt vouchers, credit notes, encashment orders, etc.

 Acc 5111 - Revenue from sales of merchandising

 Acc 5112 - Revenue from sales of finished goods

 Acc 5113 - Revenue from service rendered

 Acc 5114 - Revenue from government grants

 Acc 5117 - Revenue from investment properties

Diagram 1.6: Accounting order of revenue Diagram explanation

(2): Revenue from selling goods and services rendered.

(4): Transferring net revenue to evaluate business results.

Sales deductions such as trade discounts, sales rebates, VAT payable under the direct method, and special sales and export taxes Sales deductions are the basis for calculating net revenue and business results in the accounting period The sales deductions must be reflected, monitored in detail, separately on the appropriate accounts in order to provide information for accounting to prepare the financial statements.

 Trade discount: an amount sold by a business to a buyer on a list price because of a large volume of purchased service.

 Discount on service provision: a deduction for buyers because of poor quality services, wrong specifications or outdated tastes.

 Some taxes such as: VAT by direct method, special consumption tax, export tax, …

Used vouchers: The returned warehouse receipt, the sales agreement, the sales invoice of returned goods, payment vouchers, debit notes, etc.

 Acc 3333 - Import and export tax

(1a): Trade discounts, sales discounts actually incurred in the period. (1b): Deducted VAT payable.

(2a): The payable VAT amounts by the direct method, special consumption tax and export tax must be paid.

(3): Transferring trade discounts, sales discounts, and sales returns at the end of the period.

Financial revenue is the total value of economic benefits gained from financial activities or capital business in the accounting period

Revenue from financial activities incurred from interests, royalties, dividends and shared profits of an enterprise shall be recognized only when both of the following conditions are satisfied:

 There is a possibility to gain economic benefit from that transaction

 The revenue can be measured reliably

Revenue from financial activities includes: interest (deposit interest, loan interest, collection of deferred payment sales, installment sale); gains from sale, transfer of financial instruments, joint venture investments in jointly controlled businesses, associated investments and subsidiaries; dividends and distributed profits; interest difference from sale and purchase of foreign currencies, interests from exchange rate differences; payment discount is due to the purchase of supplies, goods, services and fixed assets; other income related to financial activities

Method of calculating financial income depending on: bank interest based on total loan, exchange rate gain based on the amount of foreign currency of the transaction, etc.

Used vouchers: credit notes, receipt vouchers, Deposit coupons, etc. Accounts:

 Other related accounts: Acc 111, Acc 112, Acc 3387, Acc 121, Acc 221, etc.

(1): Collection of deposit interests, loans, and profits from investment activities; profits from the sale of foreign currencies, interests of exchange rate differences; profits from the sale of financial instruments, transfer, liquidation of financial investments; payment discount received.

(2): Transferring unrealized revenue to Account 515 from interest on deferred or installment sales.

(3): Profits are divided from investment activities and left for further investment.

(4): Net foreign exchange difference (foreign exchange gains / losses >

0) when revaluing monetary items denominated in foreign currencies at year- end.

(5): VAT calculated by the method of direct payment.

(6): Transferring financial revenue at the end of the period to evaluate business results.

Other income is the income generated from activities other than the normal business activities of an enterprise.

Other income includes: income from sale, liquidation of fixed assets; the residual value or the selling price or fair value of fixed assets sold for subleasing the financial leasing method or operating lease; fines collected by customers, other units violating economic contracts; collecting bad debts that have been written off; taxes exempted and reduced by enterprise income tax; collected from payable debts of unidentifiable owners; bonuses of customers related to the consumption of goods, products and services are not included in the revenue (if any); income from gifts, gifts in cash and in kind of individuals and organizations increasing enterprises; business income from previous years that were omitted or forgotten to be recorded in accounting books is now discovered, etc.

Used vouchers: receipt vouchers, credit notes, etc.

(1): Reflecting the revenue from liquidation or sale of fixed assets; amounts of money collected from fines, amounts of money compensated by other units for breaching economic contracts; bad debt receivables that have been written off.

(2): Reflecting payable debts with unidentifiable owners, unrealized revenue transfer.

(3): Reflecting the donated sums and exhibits; other income such as bonuses, incomes that were forgotten and missed from the previous year.

(4): VAT payable on other income is calculated using the direct method.

(5): Transferring other income at the end of the period to evaluate the business results.

Business results are the final results of normal business activities and other activities of the enterprise in a certain period, expressed by the amount of profit or loss Business results of an enterprise include normal business results and other operating results.

Normal business results are the result of activities that generate revenue of businesses, these are sales, service provision and financial activities:

Total Net sales of goods and services rendered

Cost of goods sold and cost of corporate income tax

Selling expenses and administration expenses

Total Net revenue from financial activities

In which: Net sales of goods and services rendered are equal to the total revenue of sales of goods and rendering of services minus (-) sales deductions (trade discounts, sales discounts, sales returned goods, special sales tax, export tax, and VAT calculated by the direct method).

Other operating results are the results of the difference between other net income and other expenses:

Other operating results = Other net income - Other expenses

Formula to determine business results:

(2): Net sales of goods and rendering of services

- Corporate income tax expense Accounts:

(1): Transferring cost of goods sold.

(2): Transferring selling expenses, administration expenses.

(3): Transferring operating expenses, other expenses.

(4): Transferring net sales, internal sales.

(5): Revenue from financial activities and other incomes.

(6b): Transferring deductions for reduction of corporate income tax. (7a): Transferring Interest income.

Application form of accounting books

Types of accounting books that the company is using include:

Basic characteristics of the General Journal accounting form: All incurred economic and financial operations must be recorded in the Journal, especially on the General Journal, in accordance with the chronological order and according to the economic content (recording transaction) of that operation Then take data from the journals to record the Ledger according to each incurred transaction Every day, on the basis of the tested vouchers used as the book entry basis, firstly record the incurred operations in the General Journal, then base on the figures recorded in the General Journal to record in the General Ledger according to the appropriate accounting accounts If the entity has opened a detailed accounting book and card, at the same time as recording the General Journal, the incurred operations are recorded in the related subsidiary ledger and cards.

If the unit opens Special journals, on a daily basis, the entity will base on the vouchers used as a basis for book entry to record the incurred operations in the relevant Special journal Periodically (3, 5, 10 days) or at the end of the month, depending on the incurred volume of business, synthesize each special diary book, get the data to record in the appropriate accounts on the Ledger, after eliminating duplicates because a business is simultaneously recorded in many Special journals.

At the end of the month, the quarter or the year, add up the data on theLedger, make a balance sheet of incurred amounts After checking the matching, exactly the figures recorded in the Ledger and detailed summary tables (made from subsidiary ledger and cards) are used to prepare the financial statements In principle, the incurred amount of Debit and the total incurred amount of Credit on the Balance sheet must be equal to the figures for Debit and that of Credit in the General Journal (or General Journal and special Journal after excluding duplicates on Special Journal entries) for the same period.

Basic characteristics of the Journal-Ledger form:

 Gathering and systematizing the economic transactions arising on the Credit side of the accounts combined with the analysis of those economic operations on the Debt reciprocal accounts.

 Closely combine the recording of economic transactions arising in chronological order with the systematization of transactions according to economic content.

 Using pre-printed book forms, account reciprocal relations, economic and financial management norms and financial statement preparation.

Form of accounting for Journal - Ledger includes the following types of accounting books:

1.4.3 Form of book entry voucher

Basic characteristics of the book entry voucher form: The direct basis for making general accounting books is "Bookkeeping vouchers" General accounting entries include:

 Record chronologically on the Voucher Register.

 Record according to economic content on the Ledger.

Bookkeeping vouchers are made by accountants on the basis of each accounting voucher or the general sheet of vouchers of the same type with the same economic content.

The bookkeeping vouchers are numbered up each month or the whole year (according to the ordinal numbers in the Voucher Register) and the attached accounting vouchers must be approved by the chief accountant before recording the accounting books.

Form of accounting for Journal - Ledger includes the following types of accounting books:

Computerized accounting is the process of applying information technology in accounting information systems, using computers to support and replace part of the work of financial accountants in enterprises.

Basic characteristics of the computerized accounting form: Accounting work is carried out by a computer accounting software Accounting software is designed on the principle of one of the four accounting forms or a combination of the above accounting forms Accounting staff bases on accounting vouchers to enter data, then accounting software automatically updates the data into related accounting books Accounting software does not show the full process of bookkeeping, but must be fully printed in accounting books and financial statements as prescribed.

Form of accounting for computerized: Accounting software designed under which accounting form will have the types of accounting books of that accounting form but may not be exactly like the manual accounting book form.

Through chapter 1 presented above, we can clearly see the overview of accounting for service provision and business results evaluation.

At the same time, accounting for service provision and business results evaluation must always comply with the provisions of the circular, relevant accounting standards and be applied flexibly, in accordance with the characteristics of the business type, methods of recognizing and keeping business accounts such as expenses as well as revenues, accounting forms so as to be convenient, meeting the monitoring and management requirements of each enterprise.

From the above reasons, I found that it is really important to study about accounting for service provision and business results evaluation.

Chapter 1 outlines the whole theory of accounting for service provision and business results evaluation, through which we can understand the concepts, content and recognition methods The practice of accounting for service provision and business results evaluation at VNPT-I will be presented in chapter 2.

CHAPTER 2: ACTUAL SITUATIONS REGARDING ACCOUNTING FOR SERVICE PROVISION AND BUSINESS

Overview of VNPT-I

Company’s name: International telecommunication company (VNPT International)

Address: VNPT - Vinaphone Building, Nguyen Van Huyen Street, Xuan La Ward, Cau Giay District, Ha Noi

Business license’s number: 0106869738 granted by Hanoi Department of Planning and Investment on October 7th, 1996 and registered changes the 2nd time on April 16th, 2018.

2.1.2 History of the establishment and development of the VNPT-I

On March 31, 1990, Vietnam Telecom International (VTI) was established and was a unit directly under the General Department of Post and Telecommunications (later Vietnam Post and Telecommunications Corporation) Nam) is now the Vietnam Posts and Telecommunications Group (VNPT) with three regional international telecommunication centers 1,

The business cooperation contract provided VNPT capital for the implementation of about 500 large and small projects, the investment capital of BCC not only provided for domestic telecommunication projects but also invested in the construction of fiber optic lines under the sea and on land At the same time, VNPT / VTI and Telstra have invested to buy capacity on international submarine fiber optic cables outside Vietnam territory to connect and transfer telephone traffic to countries throughout Asia, Australia, Europe and Americas.

At the end of BCC, Vietnam could have telecommunication contact with 240 countries and territories around the world The transmission line capacity can be equivalent to more than 60,000 simultaneous international phone calls and business of various telecommunications services such as data transmission, Internet, etc VNPT / VTI telecommunication networks not only manage to meet the needs of VNPT's units but are also strong enough to serve the needs of other telecommunications enterprises in Vietnam.

Thanks to the historic decision, although in 1985 international communication was mainly via shortwave radio with two satellite communication ground stations via the Intersputnik system donated by the Soviet Government, so far VTI has been have complete international telecommunication system with modern technology with 3 new generation international switchboards NGN in Hanoi, Ho Chi Minh City and Da Nang,

03 international submarine cable systems land in Vietnam (SMW3, AAG, APG), 2 satellites VINASAT-1, 2 and ground stations; International television broadcasting system, VSAT-IP systems, etc.

In September 2012, in order to position and develop the brand ofVNPT, along with other units in the Group, VTI also officially changed the brand name of the International Telecommunication Company, VTI, to VNPTInternational, abbreviated VNPT-I The change of the brand name to VNPT-I demonstrates the association with the parent brand - VNPT, helping to improve the efficiency of brand building and development based on focusing all resources on the original brand VNPT At the same time, the new name also implies the meaning of VNPT-I, which is the sole focal point of VNPT's international telecommunications services business, concentrating resources, creating a premise for VNPT-I to develop to a new level.

2.1.3 System of organization, functions and duties of the company

2.1.3.1 The function of the company

The joint venture company invests in investment with other companies to expand the market, promote optimal business efficiency in order to seek profits for businesses and enrich the country.

The company also has the function of contacting, creating relationships and prestige with partners, from which the company's reputation increases and more entities come to the company.

2.1.3.2 The duties of the company

Expanding joint ventures with economic establishments in terms of domestic and international, strengthening economic cooperation.

Building and implementing the company's plan, constantly improving the efficiency of capital use and service delivery efficiency to meet the increasing needs of customers, self-offset costs, covering expenses debt, and fulfill obligations to the State budget on the basis of making the best use of the company's trading capacity and promoting the application of new technologies in business.

Conducting business according to the registered business lines, proper purposes of establishing businesses and performing the tasks assigned by the State.

Researching and applying technology to create new products to better serve the needs of customers.

Training, caring, fostering and fully implementing the State regimes and policies for employees such as bonuses, penalties, remuneration and welfare policies, etc coordinate with labor and social justice, organize the care for life and continuously improve the cultural and professional levels of officials and employees in the enterprise.

2.1.3.3 The organization system of the company

Diagram 2.1: Organization system of VNPT-I

The Directors are responsible to the State for managing state capital and assets as well as directly managing all production and business activities in the company They are the head of councils such as economic groups, discipline, salary raising council, etc The Directors have the right to appoint, dismiss and dismiss titles as deputy heads of departments, request the competent authority to appoint and dismiss titles such as Deputy Directors, Chief Accountant of the Company Directors are the person who directly assigns tasks to the heads of departments, from which to deploy the work to each worker and staff in the departments and workshops.

Functional departments play a very crucial role in the management of the company's operations, each has its own duties and has a close relationship in the process of operating activities, organizing production activities as well as the firm's general business, each department has a direct manager and is responsible to the Director for his/her activities, and has the function of advising the Director in making management decisions only director in the process of production and business.

2.1.4 Features of telecommunication service business mode at VNPT-I

Trade international telecommunication services, carry out trade promotion activities, invest in products, telecommunication services and information technology in foreign markets.

Supporting, implementing international business and promoting trade and investment activities of the Enterprise.

Look for investment and business opportunities for InformationTechnology telecom products and services.

Research, expand, seek partners and customers for international business activities, trade and investment.

Sign contracts and establish international Post Office Protocols of VNPT.

Surveying, researching, evaluating markets, researching orientations and research activities applying new technologies.

2.1.5 Services used in the company's business operations

Voice & International Roaming service is a long-standing traditional service field of VNPT-I With more than 25 years of experience, VNPT-I has built a worldwide service network connecting with hundreds of major international partners such as Vodafone, AT&T, NTT, KDDI, Orange, China Mobile ensuring uninterrupted communication for millions of mobile and fixed subscribers in the country.

VNPT-I provides satellite information services through VINASAT-1 and VINASAT-2 - the first two telecommunication satellites of Vietnam. VINASAT-1 and VINASAT-2 satellites at orbit 132.0 East and 131.80 East respectively have a large coverage area in Asia, Australia and Hawaii This is a product of strategic cooperation between VNPT Group and American Lockheed Martin VINASAT satellite services can meet the needs of telecommunications services in the field of Voice, Data Transmission, Private Channel, Television with the advantage of being fast, reliable and especially effective for places with rugged terrain, remote areas or island borders.

Data service is a strong service of VNPT-I in the Vietnam market.VNPT-I represents the VNPT Group to provide international transmission capacity and transmission channels to customers wishing to connect Vietnam and internationally Data services are provided via reputable major sea cables such as CHINA-US, SMW3, AAG, APG, APCN and dozens of Gigabit land cables connecting across the border with China, Laos, and Cambodia

2.1.6 Structure of accounting apparatus and applicable accounting policies

Chief Accountant: Take overall responsibility, directly formulate the annual plan, mobilize and distribute capital, output and input contracts, and take responsibility for the contents of revenue, cost of capital, and profits.

General Accountants: Directly perform the administrative tasks on the accounting software as follows:

 Operating parts of accounting for payments, cash, receipts,payment slips, money transfers, deposits into accounts, purchases(through warehouse and not through warehouse) buy services,pay suppliers, reconcile vouchers, goods returned, discount sales,collect money from customers , notice of liabilities (receivables, payables); accounting for wages, operating expenses on fixed assets, tools and instruments, revenue, price, professional documents, bookkeeping, carrying forward profit and loss, handling of differences exchange rate differences, close the accounting period, prepare financial statements.

 Settlement of projects, payment of contracts for purchase of fixed assets, tools and other expenses.

 Checking and performing other work tasks on accounting software.

 Directly perform the work on the accounting software as follows: support general accountants to make receipt vouchers and payment vouchers.

 Receive purchase invoices, issue sales invoices.

 Track the advance, collect documents, payment progress of projects, internal contracts.

 Carry out VAT related tasks, make sales lists, tax returns, pay taxes, deal with tax authorities and manage invoices.\

 Managing cash funds, performing cash collection and payment according to orders, making payment orders, checks, and counter-banking transactions.

 Carrying out the stock take, management, monitoring and distribution of service.

 Gather, close and store vouchers.

The company has applied Vietnamese Accounting Standards, accounting policies and attached guiding documents.

Applied accounting policy: The company applies the Vietnamese accounting system issued under the Finance Ministry's Decision No. 15/2006 / QD-BTC on March 20, 2006, the Vietnamese Accounting Standards issued by the Ministry of Finance and the text amendments, supplements, instructions attached.

Accounting currency unit: Vietnam Dong (VND).

The Company's fiscal year starts on January 1st and ends on December 31st annually.

Actual situation of accounting for revenue regarding service provision at VNPT-I company

2.3.1 Accounting for revenue from service rendered

The enterprise declares and pays Value Added Tax under the deduction method, so the revenue from providing services is the whole proceeds from the provision of services without value added tax, such as mobile data and mobile subscription

Because of its unique business characteristics, its revenue mainly comes from providing informatics, telecommunications and equipment installation services.

Used account: Acc 5113211- Revenue from service rendered

Accounting diagram is applied at the company

Excerpts from actual documents at the enterprise:

 On 31/12/2019, the company recognized Temporary revenue roaming service on December 2019.

Process of accounting and data entry:

 From the working screen, Select the “Hạch toán kế toán”, “Nhập chứng từ”, “Nhập chứng từ hạch toán”, then a table to fill the data shows up.

 In the “Ngày HT” box, enter the date that the transaction occurred, which is 31/12/2019.

 In the “Nội dung” box, enter the content of the accounting operation, here is “Doanh thu dịch vụ Roaming tạm tính tháng 12/2019”

 In the “PS” column, the first row is filled with “N” which stands for Debit and the second and third rows are filled with “C” which stands for Credit.

 In the “Mã TK” column, the first row is filled with 13131 - Trade receivables, the second column is filled with 5113211 - Revenue from services rendered and the third column is filled with

 In the “Tiền” column, the first row is filled with the amount of money the company was going to receive, which is

“18,373,975,953”, the second row is filled with the revenue the company received: “16,703,614,503”, and the third row is the amount of VAT output: “1,670,361,450”.

 Then, choose “Nhập” to save the data.

Picture 2.38: Screen for works, cases - Revenue from service rendered

At the end of the month, when you want to view or print detailed account TK 5113211, we proceed as follows:

 From the working screen, Select the “Hạch toán kế toán”, “Nhập chứng từ”, “Tìm chứng từ lưu chuyển”, then a table shows up.

 In the table, choose “Sổ cái tài khoản”, fill the date of the

General Ledger and choose the kind of Account that you need to search, which is 5113211 here.

 Press enter and choose print to see the General Ledger as well as the subsidiary ledger.

 Related departments will send Payment demand letter with VAT invoice to Planning- Accounting departments to demand advance.

 The Planning-Accounting department with the manager will concede the demand.

 After that, the Planning-Accounting department will make a payment voucher and send it to cashiers to disburse money

Picture 2.39: General ledger and subsidiary ledger of Account 5113211

Picture 2.45: VAT invoice related to recognize revenue from service rendering

Picture 2.46: Accounting record of account 5113211

The company does not recognize sale deduction according to the firm’s policies.

Revenue from financial activities of an enterprise only comes from:

 Interest of exchange rate difference

Used account: Account 515 - Financial income

Excerpts from actual documents at the enterprise:

 On 01/06/2018, the firm had an exchange rate loss when having a transaction of $1,180.04 with TELECOM LIECHTENSTEIN. Process of accounting and data entry:

 From the working screen, Select the “Hạch toán kế toán”, “Nhập chứng từ”, “Nhập chứng từ hạch toán”, then a table to fill the data shows up.

 In the “Ngày HT” box, enter the date that the transaction occurred, which is 05/12/2019.

 In the “Nội dung” box, enter the content of the accounting operation, here is “:PMT FOR INV OF AUG, SEP AND OCT

2019 (DETAIL OF PAYMENT ADVANCE ON 30 NOV 2019) F/O:ACASIA COMMUNICATIONS SDN BHD $ 19,505.85”

 In the “PS” column, the first row is filled with “N” which stands for Debit and the second and third rows are filled with “C” which stands for Credit.

 In the “Mã TK” column, the first row is filled with 33111 - Trade Payable, the second column is filled with 1122 - Foreign cash at bank and the third column is filled with 515 - Financial income.

 In the “Tiền” column, the first row is filled with the amount of foreign currencies, which is “453,901,130”, the second row is filled with the amount of trade receivables: “438,458,348”, and the third row is the amount of gain regarding exchange rate:

 Then, choose “Nhập” to save the data.

Picture 2.49: Screen for works, cases - Financial income

Since the only financial expense of the firm only comes from difference exchange loss so accountants only recorded this account by monitoring the bank's daily exchange rate without any relevant documents.

Other income of the enterprise mainly comes from:

 Income from liquidation or transfer of fixed assets

 Fines collected by customers; other units violate economic contracts.

Used account: Account 711 - Other income This account has 2 level 2 accounts as follow:

 Account 7111- Revenue from liquidation of fixed assets

On 12/2018, there were no other incomes.

2.3.5 Accounting for evaluating business results

Used account: Account 91132 - Income summary.

There is also Account 4212 - Retained earnings.

At the end of the period, to determine business results, accountants need to carry out the accounting entries The entries carried out are:

 Transfer Account 515 and 635 to Account 91132.

 Transfer Account 6418 and 6427 to Account 91132.

 Transfer profit or loss to Account 4212.

Process of accounting and data entry:

 From the working screen, Select the “Hạch toán kế toán”, “Nhập chứng từ”, “Hạch toán kết chuyển”, then a table to fill the data shows up.

 In the “Từ ngày” box, enter the beginning date of the transactions that need to be transferred.

 In the “Đến ngày” box, enter the end date of the transactions that need to be transferred.

 Press enter and the accounting software will automatically transfer all the expense and revenue to account 91132.

Picture 2.54: Screen for works, cases - Business results evaluation.

Picture 2.58: Statement of profit and loss 12/2019 (the numbers have been modified according to the request of the company)

Through the information presented in this chapter, I have an overview of VNPT-I as well as the entire process of accounting for service provision and business results evaluation at the company.

The information mentioned in chapter 2 gives a detailed view of the accounting organization of accounting for service provision and business results: accounting vouchers used, accounting forms and accounting books Thereby we can find the advantages and disadvantages in accounting for service provision and business results evaluation.

Some suggestions for improvement of the company will be presented in chapter 3.

SOLUTIONS OF PERFECTING ACCOUNTING FOR

Tiêu đề	Accounting for Payroll and Payroll Deductions at Thien Ung Services Training Company Limited
Tác giả	Nguyễn Thị Hoa, Khuat Khang
Người hướng dẫn	MS. Cao Phuong Thao
Trường học	Academy of Finance
Chuyên ngành	English for Finance and Accounting
Thể loại	graduation thesis
Năm xuất bản	2020
Thành phố	Ha Noi

Định dạng
Số trang	147
Dung lượng	24,39 MB