Accounting procedures for sales at gia phat vietnam trading co ltd

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS BARCHELOR THESIS TOPIC ACCOUNTING PROCEDURES FOR SALES AT GIA PHAT VIETNAM TRADING CO , LTD Student Nguyen Hoang Minh Speciality Accounting[.]

NATIONAL ECONOMICS UNIVERSITYADVANCED EDUCATIONAL PROGRAMS

TABLE OF CONTENT

INTRODUCTION 1

CHAPTER 1 FEATURES OF REVENUES AND EXPENSES, ORGANIZING AND MANAGING REVENUES AND EXPENSES AT GIA PHAT VIETNAM TRADING CO., LTD 3

1.1 Features of revenues and expenses at Gia Phat Viet Nam Trading Co., Ltd 3

1.1.1 General activities of Gia Phat Viet Nam Trading Co., Ltd 3

1.1.2 Market of Gia Phat Viet Nam Trading Co., Ltd 4

1.1.3 Sales method and bussiness process of Gia Phat Viet Nam Trading Co., Ltd5 1.1.4 Feature of expense at Gia Phat Viet Nam Trading Co., Ltd 9

1.2 Revenues and expenses management at Gia Phat Viet Nam Trading Co., Ltd 10

1.2.1 Organization and management structure at Gia Phat Viet Nam Trading Co., Ltd 10

1.2.2 Regime applied 11

1.2.4 Application of Accounts System 16

1.2.5 Application of Accounting Books System 16

CHAPTER 2 CURRENT PRACTICE OF ACCOUNTING PROCEDURES FOR REVENUES, EXPENSES, AND INCOME SUMMARY AT GIA PHAT VIET NAM TRADING CO., LTD 18

2.1 Accounting for revenues 18

2.1.1 Accounting documents and procedures 18

2.1.2 Detailed accounting of revenue at Gia Phat Viet Nam Trading Co., Ltd 35

2.1.3 General accounting of turnover at Gia Phat Vietnam Trading Co., Ltd .38

2.2.1.2 Detailed accounting of COGS at Gia Phat Vietnam Trading Co., Ltd 532.2.3 General accounting of cost of goods sold at Gia Phat Vietnam TradingCo., Ltd 592.2.2 Accounting for sales expenses 62CHAPTER 3 IMPROVING ACCOUNTING PROCEDURES FORREVENUES, EXPENSES, AND INCOME SUMMARY AT GIA PHATVIETNAM TRADING CO., LTD 783.1 Assessing the current accounting procedures for revenues, expenses, andincome summary at Gia Phat Vietnam Trading Co., Ltd 783.1.1 Strength 783.1.2 Weakness 803.2 Solutions to improve sales accounting at Gia Phat Vietnam Trading Co., Ltd 813.2.1 The need to complete the sales accounting at Gia Phat Vietnam TradingCo., Ltd 813.2.2 Principle of completion 823.2.3 Recommendations to complete the accounting of sales at Gia PhatVietnam Trading Co., Ltd 823.2.4 Circumstances for implementing proposed solutions 84CONCLUSION 87

I would like to sincerely thank the support of the accounting staffs at GiaPhat Viet Nam Trading Co., Ltd- my internship organization helped me with thisgraduation report that was successfully implemented and achieved the expectedresults

I would like to thank the teachers of the National Economics School,especially the teachers in the accounting department who have cultivated andprovided the foundation of knowledge and skills during the time I studied at theschool

In particularly, I would like to express my deep gratitude to my instructor:

Ms Doan Thanh Nga for her dedicated help, guidance, and valuable suggestionsduring the process of guiding me to complete my graduation internship report

Although I have tried our best to collect and research, due to limited time,knowledge and experience, the report cannot avoid shortcomings I look forward

to receiving the sincere contributions and advice from the teachers to make mygraduation report more complete

Thank you sincerely!

ABBREVIATIONS

LIST OF TABLES, LIST OF FIGURES

Figure 1 1: Business process at Gia Phat Viet Nam Trading Co., Ltd 7

Figure 1 2: The bookkeeping process follows the General Journal 12

Figure 1 3: List of vouchers/documents used at Gia Phat Vietnam Trading Co., Ltd14 Figure 1 4: Accounting entry orders with computerized accounting system 16

Figure 2.1: Sales accounting rotation process at Gia Phat Viet Nam Trading Co., Ltd 19

Figure 2.2 : Information when customers demand quotation 21

Figure 2.3: Quotation form of Gia Phat Viet Nam Trading Co., Ltd sent to PT Packaging Joint Stock Company 22

Figure 2.4: Sample orders at Gia Phat Viet Nam Trading Co., Ltd 23

Figure 2.5: Economic contract No 02/2018 / HDNT 25

Figure 2.6: Vat invoice No 0000710 30

Figure 2.7: Delivery Receipt Note 31

Figure 2.8: Sale invoice No.0000739 33

Figure 2.9: Delivery Receipt Note 34

Figure 2.10: Detailed book recording process of Sales of goods at Gia Phat Vietnam Trading Co Ltd 35

Figure 2.11: Recording process of Sales Summary at Gia Phat Vietnam Trading Co., Ltd 38

Figure 2.12: Principle contracts of Gia Phat Vietnam Trading Co., Ltd And Nam Thin Co., Ltd 43

Figure 2.13: Purchase invoice 46

Figure 2.14: Good delivey note for invoice 0000710 dated December 16, 2019 of Gia Phat Vietnam Trading Co., Ltd For PT Bao Joint Stock Company 47

Figure 2 15: Purchase invoice of Gia Phat Vietnam Trading Co., Ltd 49

Figure 2 16: Delivery note 51

Figure 2.17: Document rotation order of cost of goods sold at Gia Phat VietnamCo., Ltd 52Figure 2.18: Detailed recording process of Cost of goods sold at Gia PhatVietnam Trading Co., Ltd 53Figure 2.19: General recording process of Cost of goods sold at Gia PhatVietnam Trade 59Figure 2.20: Bookkeeping process Details of Selling expenses at Gia PhatVietnam Trading Co., Ltd 72Figure 2.21: Bookkeeping process Genral Book of Selling expenses at Gia PhatVietnam Trading Co., Ltd 75

Table 2 1: Detailed book of account 511 at Gia Phat Vietnam Trading Co., Ltd.Table 2.2: Summary of sales at Gia Phat Vietnam Trading Co., Ltd

Table 2 3: General Journal of Gia Phat Vietnam Trading Co., Ltd

Table 2 4: Ledger of Account 511 at Gia Phat Vietnam Trading Co., Ltd

Table 2 5: Receipt of delivery of milk glue P115A dated December 16, 2019Table 2 6: General Journal at Gia Phat Viet Nam Trading Co., Ltd

Table 2 7: Ledger of account 632 at Gia Phat Vietnam Trading Co., Ltd

Table 2 8: VAT invoice for freight

Table 2 9: Attendance record for Sales staff in December 2019

Table 2 10: Salary table for employees of Sales Department in December 2019Table 2 11: Salary payment schedule for Sales department, December 2019Table 2 12: Extract of fixed asset depreciation spread sheet in the fourth quarter

Table 2 17: General Journal at Gia Phat Vietnam Trading Co., Ltd

Table 2 18: Ledger Account 641 of Gia Phat Vietnam Trading Co., Ltd

STATUTORY DECLARATION

I herewith formally declare that I have written the submitted BarchelorThesis independently I did not use any outside support except for the quotedliterature and other sources mentioned at the end of this paper

I clearly marked and separately listed all the literature and all othersources which I employed producing this academic work, either literally or incontent

Hanoi, 12/ 05/ 2019Signature

Our country is undertaking reforms of the economy according to thesocialist-oriented market mechanism under the management of the state As aresult, the country's economy is undergoing great changes and new mechanismshave affirmed the great role of production, trade, and service activities In order

to promote the indispensable role of private enterprises in the multi-sectorcommodity economy in accordance with the market management and regulation

of the State, it requires enterprises not only to accumulate experience forenterprises themselves but also have to find a foothold in the market

The increasingly integrated world has created for businesses moreopportunities to develop, but besides that, many challenges come Every businesshas a top goal of maximizing profits, bringing the highest economic efficiency

To achieve that, managers must take practical measures in their businessstrategies

In such a situation, many enterprises that have not caught up with thedevelopment of the new period, so they have been eliminated, bankrupt anddissolved because of the fierce competition of the market Enterprises mustcalculate and innovate on products, apply new scientific and technical advances

in not only their production but also their business activities In addition, theappropriate economic and financial management system will be a major factoraffecting the success or failure of businesses Accounting is an extremelyessential part that provides information about the financial situation, capital,assets, and their movements in the business As a result, managers can accuratelyand fully control the ongoing economic activities of the enterprise

There is a certain distance between theory and practice, so the NationalEconomics University has created favorable conditions for final year students towork with accounting work in operating businesses on the market through theend of the internship program As a student of Accounting, realizing theimportance of accounting work in a current business situation, I chose to practice

at Gia Phat Viet Nam Trading Co., Ltd.- one of the business trading companies,which is in the field of glue in Vietnam During my internship at the company, Iwas able to learn about the business situation, organizational structure of the

knowledge about my major and have initial contacts with the accounting jobwhich helps me to apply the knowledge learned in the classroom to reality in thebusiness.

With the enthusiastic guidance of Dr Doan Thanh Nga, I have completed

my Internship thesis My internships consist of the following 3 main chapters:

Chapter 1: - Characteristics and organization of sales managementactivities of Gia Phat Viet Nam Trading Co., Ltd

Chapter 2: - Current situation of sales accounting at Gia Phat Viet NamTrading Co., Ltd

Chapter 3: - Completing the sales accounting at Gia Phat Viet Nam TradingCo., Ltd

Finally, I would like to express my sincere thanks to my teacher Dr DoanThanh Nga for helping and guiding me to complete the Integrated InternshipReport In the process of making mistakes in knowledge, I look forward toreceiving comments to draw experiences to better prepare for the upcominginternship

Thank you sincerely!

StudentNguyen Hoang Minh

CHAPTER 1 FEATURES OF REVENUES AND EXPENSES, ORGANIZING AND MANAGING REVENUES AND EXPENSES AT GIA PHAT VIETNAM

Gia Phat Viet Nam Trading Co., Ltd provides a full range of glue products

in all segments from the low-end segment to the high-end segment

+ Glue: Milk glue, Jowapur glue, printing glue, fabric glue, simili glue,paper glue, electrical glue, floor glue,

+ Other products: Wallpaper

Currently, Gia Phat Viet Nam Trading Co., Ltd is trading in glue productsand is supplying products: Milk glue, Jowapur Glue, paper adhesives, letter-typeadhesives, aluminum adhesives, opaque OPP glue, opaque glue Color OPP, clearOPP adhesive, Simili adhesives, fabric adhesives, plastic core VPP adhesives,heat resistant adhesives

Here, I would like to present two items, which the company is trading that Iwill mention in part 2 as follows

Features of some main products:

Milk glue P115A-1Kg / Bag

Milk glue, also known as PVAc glue, is a product made in Vietnam withthe paste of dry objects such as wood, packaging In addition, they are alsoapplied in the field of wallpaper construction Milk glue is one of the two

TECHCHEM P115A Milk Glue is a high-quality Polyvinyl Acetate (PVAc)adhesive that is widely used in wood processing, surface decoration, packaging,paper, etc., through hot or cold pressing methods TECHCHEM P115A colloidalglue creates adhesion to DI European standards (EN 204/205).

Glue 687.22 Jowapur

Jowapur 687.22 is a universal adhesive for bonding windows, doors, stairs,garden furniture, wood materials, laminates, mineral and ceramic materials,composite elements (metal, wood, foam, etc.) as well as for workbench andassembly work Bonded larch is to be protected against direct contact with water.Product features:

-Fast curing

-For bench work and assembly

-Weather-resistant bond (D4 fulfilled in accordance with DIN EN 204/205)tested to WATT 91

1.1.2 Market of Gia Phat Viet Nam Trading Co., Ltd

At present, Gia Phat Viet Nam Trading Co., Ltd is providing products onthe market to potential customers who are home decoration needs, mainly housedesign companies and wooden furniture companies , such as Tien Bo FurnitureCompany Limited, PT Packing Joint Stock Company,

The company's operating area is mainly in the Northern provinces andsome other provinces such as: Nghe An, Ha Tinh, Ho Chi Minh City and DaNang Currently, the company holds about 80% market share in the Northmarket, and about 40% of the South market

Currently, the company is supplying goods to more than 400 customersnationwide More than 400 customers with regular loading capacity of about 50-

70 delivery notes per day is also a number representing the working efficiency ofthe staff of the company

The company's customers are basically divided into 2 main groups of customers:

- The first customer ‘s group is a joint stock company group This group

of customers is often characterized by their purchasing decisions beinginfluenced primarily by the company's Director

- The second group of customers is companies or private printers andhome-decorers This is a large group of customers, accounting for about twothirds of the company's total customers They are processing home decoration,wood workshop, printing works Purchases and payments are often quick

Currently, the company has won the right to supply glue to the two groups

of customers, which is its current market Therefore, the company always tries itsbest not to be competed by competitors for its market In addition, the company

is constantly expanding its market in the southern provinces because it is apotential market However, since the North is currently the main market, so thecompany's policy is not because it exploits the market but neglects the currentmarket

1.1.3 Sales method and bussiness process of Gia Phat Viet Nam Trading Co., Ltd

Sales is a process of realizing the value of a product or goods through theexchange of goods - currency in which the enterprise gives goods to the buyerand the buyer pays money or accepts to pay money to the enterprise Sales is animportant stage of production and business It opens new business andproduction cycles To improve the efficiency of this process, businesses need toapply appropriate sales methods

The method of sale has a direct effect on the use of accounting accounts toreflect the inventory of finished goods and commodities Moreover, sale method

is crucial to establishing a time of sale, forming sales, and saving sellingexpenses to increase profits

1.1.3.1 Sales method

Wholesale via warehouse:

A method of wholesale goods in which goods must be exported from theenterprise's warehouse In this method include:

- Wholesale in the form of direct delivery at the warehouse: In this form the

- Wholesale by way of shipping: Under this form, the seller shall base onthe economic contract to transport the goods to the buyer after signing fordelivery, then goods will be delivered to the buyer.

For Gia Phat Viet Nam Trading Co., Ltd, the form of wholesale shipping isapplied mainly This means that Gia Phat Viet Nam Trading Co., Ltd will beresponsible for transporting goods from its warehouse to customers, thendelivering the goods to customers

Retail sale

Merchandise retailing is a way of selling goods directly to consumers oreconomic organizations or collective economic units for internal consumption.Selling by this method is characterized by the goods that have moved out ofcirculation and into the consumer field, the value and use value of the goodsmade Retailing is usually sold alone or in small quantities and prices areusually stable

1.1.3.2 Business process of Gia Phat Viet Nam Trading Co., Ltd

Mostly, the process of selling goods of trading companies is quite simple:Buy goods -> Make quotation to customer -> Sell goods -> Make Sale Invoice->Get money, and liquid the contract

At Gia Phat, the stages of selling goods are presented as follows:

Based on customers' buying needs, Gia Phat Viet Nam Trading Co., Ltd 'smanufacturing process consists of the following steps:

Step 1: Purchase goods, receive invoices and make inventory note: Thecompany buys goods from suppliers, then transports goods into the company'swarehouse

Step 2: Make a quotation to customers: When customers have orderedgoods, the sales department will set up a detailed price list of each type and price

to send to customers

Figure 1 1: Business process at Gia Phat Viet Nam Trading Co., Ltd

Step 3: Based on purchase orders from customers, make sales orders:When customers close the number of goods to be purchased, the sales departmentshall make detailed orders and transfer them to the warehouse department

Step 4: Warehouse department prepares a delivery note

Step 5: Sales accounting department makes sales invoices and deliversgoods to customers

Step 6: The customer pays for the good, the accountant prepares a receipt

or credit note and collects the money

First, through market research, the company connects with potentialcustomers to sign a contract Buyers request to place an order: type, specification,quantity, The company will have a quote for the customer If customers accept

to purchase, the company will proceed to sign a contract, send samples If thequantity is small, company and customer can consider quotes and orders instead

of economic contracts

 Payment method at Gia Phat Viet Nam Trading Co., Ltd.:

During the sale process, Gia Phat Viet Nam Trading Co., Ltd alwayscreates the most favorable conditions for customers to apply different paymentmethods:

Currently, the company accepts the main forms of payment are:

+ Direct payment in cash:

Customers buy retail, buy large volumes directly at the warehouse to paydirectly to sales staff, sales accountants After that, the salesperson makespayment to the cashier, the customer buys products by phone and internet, paycash directly to the cashier

Customers purchase goods under a contract of direct payment to thedelivery staff, pay in accordance with the contract and issue a VAT invoice Thedelivery staff returns the cashier

+ Payment by bank transfer:

Funds with a value of 20 million or more are required to pay by banktransfer

Customers who buy products via phone, website or on contract, in casethey have not received value-added invoices right after receiving goods, theyoften use this method.

1.1.4 Feature of expense at Gia Phat Viet Nam Trading Co., Ltd

At Gia Phat Vietnam Co., Ltd, there are two types of expenses related tothe company's sales activities: cost of goods sold and selling expenses

Determining the cost of sales and cost of goods sold is very important forevery business This is the basis for the collection of expenses that period,helping the company accurately determine profits and economic efficiency Inaddition, the determination of expenses is a prerequisite for planning, analyticalsurveys for direct management agencies, control the economic activities ofbusinesses, help avoid the phenomenon of increasing cost At the same time, ithelps managers assess the cost situation compared to the business plan to use thecost more reasonably

Cost of goods sold is an important indicator that directly affects thebusiness results of enterprises These are figures representing the true value ofgoods sold At present, Gia Phat Vietnam Trading Co., Ltd the account usingcost accounting is account 632- "Cost of goods sold" The company calculatesthe ex-warehouse value of the goods on a weighted average method

In business activities, especially for a trading company, the Companywants to carry out the consumption of products, it must pay money such as:Paying for employees, paying for electricity and water , sales, signing,advertising costs, product marketing, delivery costs All expenses related tosales are recorded into selling expenses as a basis for the end of the calculationperiod profit before tax of the business

Selling expenses of the company are all expenses incurred during the saleprocess and expenses for quick and effective sale, including:

- Depreciation expense of fixed assets

- Salary costs for sales

- Expenses in other currencies

In Gia Phat Vietnam Trading Co., Ltd, the accountant uses the account

1.2 Revenues and expenses management at Gia Phat Viet Nam Trading Co., Ltd

1.2.1 Organization and management structure at Gia Phat Viet Nam Trading Co., Ltd

- Director of Gia Phat Viet Nam Trading Co., Ltd:

  Directing the work of planning business, financial accounting, ensuringthe completion of tasks and organizing production under the direction of theCompany At the same time, the director also directed the diplomatic aspectssuch as importing goods, selling products, signing, and directing theimplementation of purchase and sale contracts, VAT invoices, and related papers, Sign and approve the required documentation

- Business Development Department:

Understand the market, find customers, close orders, economiccontracts, Maintain business relationships customer care Make weekly andmonthly work plans to submit to the Director for approval Follow the approvedplan Understand product features, packaging, pricing, advantages anddisadvantages of products, similar products, products of competitors Understandthe process of handling information complaints, the process of receiving andresolving customer information, fully recording according to the contradictions

of these processes Receive and handle customer complaints about productquality, delivery time Contact customers and record all customer information

in customer contact reports Draft the contract after the customer has agreedbasically, forward to the Director for comments on the contract terms Makingcontract signing procedures Directly implement, urge the performance of thecontract, including delivery procedures, invoicing, and customers to check thequality of products delivered Monitoring the process of contract liquidation,supporting the accounting department to speed up the debt, only finishing theresponsibility when the customer has paid

- Designing and technical room.

Study the needs and characteristics of the objects that customers require,combining marketing products Based on the needs of the paper design market,the products should match the demands of customers and the Director's request to

manufactured, they shoud instruct, and check the employees who have producedthe product according to the requirements, product design and quality as in themodel and customer obligations.

- Accountancy degree: From January 1 to December 31 of the annualcalendar of the calendar year

- Accounting period: year

- Currency: Vietnamese Dong

- Form of accounting: General journal

- Method of VAT declaration and calculation: Deduction method

- Inventory accounting method: Regular declaration

- Fixed asset depreciation method: Depreciation in a straight line

- Method of calculating the warehousing price by the average method at theend of the period (monthly average)

Figure 1 2: The bookkeeping process follows the General Journal

Note:

Record daily Record at the end of the month

<- - - > Collation and check relationship

Financial statement Balance Sheet

Detailed accounting book General Journal

Source document

Summary Detailed book

Genera l Ledger Special Journal

 Daily:

Based on the tested documents used as a book entry basis

- First, record the arising transactions in the general journal - then base onthe figures recorded in the general journal to record in the ledger according to theaccounting accounts that have arisen in the general journal

- The company has opened a detailed accounting book and card at thesame time with recording general diary, arising operations are recorded in relatedaccounting books and cards

- Based on vouchers used as a basis for book entry, the arising operationsare recorded in the related special diary book

 At the end of the month, end of quarter, end year:

Add figures on the ledger, make a balance sheet After checking thematching, the figures recorded in the ledger and the summary table (made fromthe detailed accounting card books) are used to prepare the financial statements

1.2.3 Application of Accounting Vouchers System

Accounting vouchers at Gia Phat Vietnam Trading Co., Ltd are papers andinformation carriers reflecting the arising economic and financial operationswhich have been completed, serving as a basis for making accounting books.Accounting documents at Gia Phat Vietnam Trading Co., Ltd have thefollowing main contents:

- Name and number of the accounting voucher

- Date, month, and year of making the accounting voucher

- Name and address of the entity or individual that makes the accountingvoucher

- Name and address of the entity or individual that receives the accountingdocuments

- The content of arising economic and financial operations

- The number, unit price and amount of economic and financial operationsare recorded in numbers; The total money amounts of accounting vouchers used

- Signature, full name of the maker, the approver and people related to theaccounting voucher.

Figure 1 3: List of vouchers/documents used at Gia Phat Vietnam Trading Co., Ltd

Declaration of liquidation (acceptance testing) of work contract

piece-09-LĐTL

Statement of allocation of salary and social insurance contributions

Minutes on testing materials, tools, products, goods 03-VTSlip of materials remaining at the end of the accounting

Statement of allocation of raw materials, materials, tools, instruments

07-VT

Vouchers

of

Currency

Advance Payment Request / Request for advande 03-TTAdvance Repayment/ Voucher for payment of advande 04-TT

Statement of gold, silver, precious metals, gemstones 07-TT

Statement of fund inventory/ Balance Inventory (For cash in VND)

Minutes on trasfer of fixed asset after major repairs 03-TSCĐ

Statement of calculating and allocating costs of amortization of fixed assets

06-TSCĐ

1.2.4 Application of Accounts System

The company applies the Vietnam Business Accounting System guided inCircular No.133/2014 / TT-BTC dated August 26, 2016 and the Vietnam AccountingStandards System issued by the Ministry of Finance It is suitable for the productionand business model of the company as well as the management requirements

In the company, the account system is classified into each object, eachcustomer For example:

Accounts 152, 153, 155 : The company uses details based on each unit ofuse, each inventory, name and particularly materials

Accounts 154, 622, 623, 627, 641, 642: The company uses detailsaccording to each item and object

Accounts 131, 331: The company uses details for each partner andcustomer

For off-balance sheet accounts, the company uses 7 accounts which is: 001,

002, 003, 004, 007, 008, 009

1.2.5 Application of Accounting Books System

Currently, the company uses computer accounting form, the software thecompany is using is MISA accounting software

Accountingsoftware

Financial statement

Ledger

- Detailed book

- Summary detailedbook

Enter daily data Print book, report at the end of the month

Collate, check Interpret the diagram.

-Daily: Accounting vouchers are classified the summary of vouchers of thesame type

-At the end of the month: Accountants perform the closing operations

-At the end of the year: General books and detailed books are printed onpaper, bound in books, carried out legal procedures according to regulations onaccounting books recorded by hand and kept

CHAPTER 2 CURRENT PRACTICE OF ACCOUNTING

PROCEDURES FOR REVENUES, EXPENSES, AND INCOME SUMMARY AT GIA PHAT VIET NAM

TRADING CO., LTD

2.1 Accounting for revenues

For a commercial enterprise, sales is the key activity and sales revenue is alifeblood of the entire business Therefore, accounting sales revenue isparticularly interested in Gia Phat Company Sales revenue accounting is theprocess of monitoring and managing the efficiency of sales activities, helping theCompany's director to recognize the times of market prosperity and stagnation.Thereby, company leaders can come up with reasonable business policies thatpromote sales effectiveness

2.1.1 Accounting documents and procedures

 Documents used

Currently, at Gia Phat Viet Nam Trading Co., Ltd, the accountant of revenueusing a number of documents such as: VAT invoices, receipts, Debit notes,Credit notes and some related documents as a basis for accounting for revenue inthe period

Because the Company's main business items are glue products, which arevery popular, most cases sell in large quantities and types The companycomplies with the following steps: Order - Contracting - Payment - Receivinggoods - Making VAT invoices-Delivery Each economic contract clearly statesspecifications, price, type, quantity of each type of goods, delivery time, deliverymethod, payment method, warranty,

 Document circulation at Gia Phat Viet Nam Trading Co., Ltd

Figure 2 1: Sales accounting rotation process at Gia Phat Viet Nam Trading

Co., Ltd

Customers Sales staff Accountant Stocker Treasure

Details of sales accounting rotation process at Gia Phat Viet Nam TradingCo., Ltd are as follows:

(1) Upon receipt of a request from a customer who wishes to purchase, thecustomer sends a request for a quote, a sample order form to the business

(2) Sales staff receive Request for Quotation, make Quotation, sampleproduct information

Request a

quote, sample

request form

Create, sendquotes, andphotos,sampleinformationGet quotes,

samples,

make orders

Receiveorders, orsign purchasecontracts

Making adeliverybill

Receivegooddeliverynotes anddeliverygoods

Invoicingsales anddelivery

Collectmoney

(1)

(2)

(6) (7)

(8)

(3) The Customer receives a Quote, agrees to make a purchase, and makes anOrder or an economic contract to send to the sales staff.

(4) Sales staff receive welding orders, contracts and deliver them towarehouse accountants

(5) Warehouse keeper takes orders and prepares delivery notes and deliversthem to the storekeeper

(6) The warehouse keeper receives delivery notes and delivers the goods tothe salesman

(7) The salesperson receives the goods from the storekeeper, prepares a VATinvoice and shipping to customers

(8) Customer receives goods and invoice from sales and payment staff

(9) Salesperson receives money from customer, transfers to sales accountant apromissory note or debit note

(10) Cashier receives receipt, collect money and record in book

The Company's products are not subject to special sales tax On the otherhand, the company's goods during the import process have been thoroughlyinspected by the relevant departments, so the phenomenon of poor qualitygoods is almost not available, so in the period there was almost no reductionwhich minus sales revenue due to returns or rebates In contrast, consumergoods are mainly sold under economic contracts signed with customers Inparticular, the selling price of the goods is the price agreed by the two partiesbased on economic benefits between the two parties If there is a discount, adiscount is immediately included in the selling price Therefore, sale deductionsusually do not arise or if they arise, they will be made by reducing immediately

on Account 511

On December 2, 2019, after the sales department met and exchanged information and received customers' information in need of quotation, Gia Phat Viet Nam Trading Co., Ltd send quotation, and successfully negotiate orders The company signed a purchase contract with PT Packaging Joint Stock Company The customer will request the company to sell goods base on the purchase order to Gia Phat Viet Nam Trading Co., Ltd

Figure 2 2: Information when customers demand quotation

No Catalogue Information

Caller name:

phone number: 0124356478

Email:

Company name:

PT Packaging Joint Stock Company

After receiving the information, the company will send a quotation to the company to PT Packaging Joint Stock Company

Figure 2 3: Quotation form of Gia Phat Viet Nam Trading Co., Ltd sent

to PT Packaging Joint Stock Company.

QUOTATION To: PT Packaging Joint Stock Company

Gia Phat Viet Nam Trading Co., Ltd would like to quote P115A-1KG / BAGMilk Glue as follows:

(VNĐ)

INTO MONEY (VNĐ)

1 Milk glue

- Price does not include VAT

- For further information, please contact:

- Mrs: Phuong Anh_ Mobile: 0932145346Best regards!

After reviewing the quotation and agreeing to purchase, PT Packaging Joint Stock Company will send to Gia Phat Viet Nam Trading Co., Ltd an order The order will have name of goods which customers purchase, quantities, and theamount of money

Figure 2 4: Sample orders at Gia Phat Viet Nam Trading Co., Ltd

THE ORDER

Number: 1214.

To: Gia Phat Viet Nam Trading Co., Ltd

Address: No 11, Alley 41/2, Dong Tam Ward, Hai Ba Trung District, Hanoi

Phone number: 094321423Based on the needs of the Company, we need to place an order at your company

The order content is as follows:

1 Milk glue

P115A-1KG / BAG

Total: One hundred forty-two million eight hundred thousand dong even

Delivery time: December 16, 2019

Delivery location: Xuan Lam branch cluster, Xuan Lam commune, Thuan

Thanh district, Bac Ninh province, Vietnam

Payment methods:

- Payment by cash or bank transfer

- 50% of the contract value in advance, the remaining 50% paid after delivery

Hanoi, December 3, 2019

Director of the company

For wholesale via warehouse m ethod:

This is the method of wholesale goods in which the goods must be exportedfrom the enterprise's warehouse In this method include:

Wholesale in the form of direct delivery at the warehouse: In this form thebuyer sends people to the warehouse of the seller to receive goods

Wholesale by way of shipping: Under this form, the seller shall base on theeconomic contract to transport the goods to the buyer after signing for delivery,then goods will be delivered to the buyer

Therefore, the accountant will use the Principle Contract between the two parties, the VAT invoice issued by Gia Phat Viet Nam Trading Co., Ltd Good Delivery Notes to serve as the original voucher for sales operations.

The principle contract will be made based on the agreement of both parties,

in the contract specifies the name of the supplier and the name of Gia Phat VietNam Trading Co., Ltd the item name, quantity, contract value , payment terms,responsibilities of each party, and must be sealed by both companies, andsigned by their representatives The contract is kept in 2 copies, each party keepsone copy

The VAT invoice will be prepared by Gia Phat Viet Nam Trading Co., Ltd.The invoice must contain the supplier and buyer information, economictransaction information such as the quantity and value of the shipment

Delivery note is made by the company's Asset Accountant, signed by theCompany Director and Stocker The delivery note must contain the date ofdelivery, the quantity, the unit price of the merchandise and the reason fordelivery

Actual example of an order with a bulk contract: On December 16, 2019

PT Packaging Joint Stock Company ordered 6000kg of P115A milk glue type 1kg / bag under economic contract No 02/2018 /HDNT (Figure 2-2) and Sales Invoice No 0000710 (Figure 2-3) Delivery receipt note (Figure 2-4)

Figure 2.5: Economic contract No 02/2018 / HDNT

SOCIALIST REPUBLIC OF VIETNAMIndependence - Freedom - Happiness

BUYER: PACKAGING JOINT STOCK COMPANY PT

Address: (Hire Doan Plastic Electric and Trading Co., Ltd) Xuan Lam Industrialgroup, Xuan Lam commune, Thuan Thanh district, Bac Ninh province, Vietnam.Phone: 022.2379.4689

Email:

Represented by: Mr DANG LUONG SON Position: DirectorTax code: 0106628806

Account number: 0991000003286

Bank: Vietcombank Tay Ho Branch

(Hereinafter referred to as "Party A")

SELLER: GIA PHAT TRADING CO., LTD VIETNAM

Hà Nội city

Phone: 0913,155,589; 0911,531,568

Email: infogiaphatvn @ gmail, com

Represented by: Mr Nguyen Manh Cuong Position: DirectorTax code: 0108170712

Account number: 08611666665678

Bank: Army Commercial Joint Stock Bank - Ba Đình Branch, Hà Nội

(Hereinafter referred to as "Party B")

The two parties A and B agree to enter an economic contract on goods purchaseand sale with the following specific contract contents:

ARTICLE 1: SUBJECTS OF CONTRACT

1 Party A agrees to buy industrial adhesive products provided by Party B:

- According to Party A's orders and Party B's quotation

2 Quality and specifications of goods

- Goods supplied by the calf are industrial adhesive products of all kinds toensure the quality of the manufacturer

- Packing specifications of the manufacturer

ARTICLE 2: PRICE:

The price of the adhesive will be applied according to the price quote sent byParty B to Party A and signed by both parties The quotation is considered as anappendix of the contract and in the event of a price change, the two parties willagree and adjust by another quotation and the new quotation will replace youwith the current quotation Use when certified by both parties

ARTICLE 3: TERM OF CONTRACT

Duration of Contract is: 10 months from March 1, 2018 to the end of December

31, 2018

1, Party A will pay Party B as follows:

- Payment of 100% of the contract value within 30 days (the day is inclusive ofweekends and holidays) since the date of receipt of the goods and the attacheddocuments

- Invoicing vouchers include: delivery bills, financial invoices and relevantdocuments

2 Payment method: payment by cash or bank transfer

If you transfer: Transfer to the beneficiary below:

Beneficiary: GIA PHAT TRADING CO., LTD VIETNAM

Account number: 08611666665678

Bank: Army Commercial Joint Stock Bank - Ba Đình Branch, Hà Nội

Account holder: Nguyen Manh Cuong

ARTICLE 5: TIME AND LOCATION AND METHODS OF TRANSFER

OF GOODS:

1.Delivery Time:

Party A will pre-order the shipment by email or phone from 3 to 5 days from thedate of receipt

Depending on each order that Party A requires, before delivery, Party B will have

a notification of delivery to Party A with a plan to receive

2 Place of delivery:

- At the factory or party A

- Means of transportation and transportation costs are responsible by party B

- When receiving goods, Party A is responsible for checking the quality andspecifications of goods on the spot If the goods are found missing or not up tothe quality standards, then make a record on the spot and ask Party B forcertification

ARTICLE 6: OBLIGATIONS OF THE SELLER

specifications of the product

2 Party B is obliged to deliver goods to Party A in accordance with theagreement

3 Party B is obliged to provide all necessary instructions for the preservation anduse of goods in accordance with this contract to Party A

4 Party B has the obligation to guarantee Party A's ownership over the soldgoods without being disputed by a third party

ARTICLE 7: OBLIGATIONS OF THE BUYER

1 Party A is obliged to check and sign for delivery of goods in full upondelivery

2 When Party A finds out that the product is defective, it is not obliged to sealthe goods again and immediately notify the party of the calves so that they canguide and handle and return the goods for free

3 To pay to the calf strictly according to the provisions of Article 4 of thiscontract

ARTICLE 8: DISPUTE SETTLEMENT.

1 The two parties commit to comply with the terms of the contract All changes

to the contract must be made in writing and signed by the representatives of bothparties and an integral part of the contract

2 All disputes related to this Contract will firstly be resolved through negotiationand conciliation between the parties If after 15 parties fail to resolve the disputethrough negotiation or conciliation, either party has the right to bring the dispute

to the competent Court The decision of the Court is final and binding on bothparties The court all costs related to resolving the dispute will be paid by thelosing party

ARTICLE 9: CASE OF TERMINATION

This contract will be terminated in the following cases:

- When the parties have fulfilled their rights and obligations prescribed in thisContract

has the right to unilaterally terminate the contract.

- The contract may be terminated by the agreement of the Parties

ARTICLE 10: EFFECT OF IMPLEMENTATION.

This contract is effective from the date of signing and is ended when the partieshave fulfilled their obligations in the contract In case one party wishes to amendthe terms of the contract, it must notify the other party at least 30 days in advanceand mutually agree on what needs to change with the consent of both parties.When the contract expires, if the two parties have no idea, they willautomatically renew for another 12 months

This contract is made in two copies, each party keeps a copy of the same legalvalue

SALER BUYER

Nguyen Manh Cuong Dang Luong Son

Figure 2.6: Vat invoice No 0000710

VAT INVOICE Form no:

01GTKT3 Copy 1 : Archived 1 Symbol: GP/18P

Date:16/12/2019 Number: 0000710Saler unit: GIA PHAT TRADING CO., LTD

Name of the buyer:

Unit name: PT PACKAGING JOINT STOCK COMPANY

Address: (Hire Doan Plastic Electric and Trading Co., Ltd) Xuan Lam Industrialgroup, Xuan Lam commune, Thuan Thanh district, Bac Ninh province, Vietnam.Account number:

Payment method: Cash/Tranfer Tax code: 0106628806

(Need to check and compare when preparing, delivering and receiving invoices)

Figure 2 7: Delivery Receipt Note

GIA PHAT TRADING CO LTD VIETNAM

Number 11, Alley 41/2 Vong Street, Dong Tam Ward, Hai Ba Trung District, Hanoi CityPhone: 0913,155,589; 0911,531,568

Customer's name: PACKAGING JOINT STOCK COMPANY PT

Address: (Hire Doan Plastic Electric and Trading Co., Ltd) Xuan Lam Industrial group,Xuan Lam commune, Thuan Thanh district, Bac Ninh province, Vietnam

- In words: One hundred fifty-seven million and eighty thousand even

- Number of original documents attached:

Buyer Chief accountantManagement

(Signed) (Signed) (Signed)

For retail method:

Documents currently used by Gia Phat Viet Nam Trading Co., Ltd: VAT invoice, Delivery receipt note and some related documents

The VAT invoice will be prepared by Gia Phat Viet Nam Trading Co., Ltd.The invoice must contain the supplier and buyer information, economictransaction information such as the quantity and value of the shipment

Delivery note is made by the company's Asset Accountant, signed by theCompany Director and Stocker The delivery note must contain the date ofdelivery, the quantity, the unit price of the merchandise and the reason fordelivery

Actual case example of retail:

On December 30, 2019 Tien Bo Furniture Co., Ltd purchased 6kg of Jowapur glue at the warehouse, sales invoice number 0000739 (Figure 2-4) and delivery receipt note (Figure 2-5)