GRADUATION THESIS “ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULT AT AMISU SERVICES SUPPLYING COMPANY LIMITED”In the past few years, with limitless efforts of enterprises and the support of the State and foreign organizations, our countrys economy has made higher and higher development steps, Vietnams economy has been increasingly consolidated. However, recently, when the world economy is in crisis due to the Covid19 pandemic, our country is not unaffected. In that circumstance, along with the consequences of measures to reduce aggregate demand under the tightening monetary and fiscal policies, it has had a negative impact on the purchasing power of the market and the economic growth rate. The number of enterprises shutting down, going bankrupt and being dissolved has increased rapidly since the end of 2020. Bad debts increased rapidly, businesses lacked working capital, but banks could not increase credit. Even with the efforts of the State to encourage business, the economy entered a new year – 2022 in stagnation, with the growth rate below potential. Bear that in mind, it is necessary to always have new business strategies and measures to mobilize and effectively use resources, exploit market opportunities well, thereby improving business performance, competitiveness, and increasing the life of enterprises, especially at time of downs right now.
BASIC THEORY OF ACCOUNTING FOR SALES AND DETERMININATION
The role of accounting for sales and determining business results in the enterprise
1.1.1 Nature and meaning of sales, determination of business results 1.1.1.1 Nature of sales and determining business results
Sale is the transfer of ownership of a product or products to customers, along with the majority of the benefits or hazards, and the customers make or accept the payment.
The sales process is fundamentally about buyers and sellers exchanging ownership in the operational market External sales involve selling goods to individuals and organizations outside the company, while internal sales refer to transactions within different units of the same organization As the final stage of a business’s operations, sales are crucial for revenue generation and business growth.
The definitions of revenue, cost and business results are as follows:
Revenue represents the total value of economic benefits generated by a company during an accounting period through its regular production and business activities, ultimately contributing to the growth of owners' equity.
Cost represents the total value of expenses that diminish economic benefits, including out-of-pocket payments, asset reductions, or debts incurred, which lead to a decrease in equity It does not encompass owner distributions Managing costs effectively is crucial for optimizing financial health and ensuring accurate financial reporting.
Business results represent the final outcomes of a company's activities over a specific period, reflecting the difference between total revenue and total costs They provide essential insights into the company's profitability and financial performance during that period Analyzing business results helps stakeholders assess the overall success and sustainability of the enterprise.
1.1.1.2 Meaning of sales activities and determining business result
Consumption of commodities is becoming a critical concern for all commercial organizations in the current trend of economic integration.
Sales have become one of the most crucial business strategies today, driving rapid capital turnover through quickly sold goods This increased sales volume boosts profits for the owners and improves workers' livelihoods while ensuring compliance with state obligations Additionally, sales performance serves as a vital financial indicator, providing clear insights into a company's operational efficiency and overall financial health.
Determining business results is essential for evaluating the effectiveness of company activities over time and guiding future strategic directions It also serves as a key tool for the State to assess the operational capacity of businesses and ensure compliance with commitments Additionally, accurate business results help optimize human resource utilization and resource allocation across the national economy, benefiting both individual companies and the broader economic landscape.
1.1.2 Management requirements for sales, determination of business results
Effective management of the sales process is essential for driving business results, as sales are directly linked to the company's profits Controlling the sales stage ensures the achievement of the consumption plan and helps assess the accuracy of production and overall business efficiency By optimizing sales management, companies can identify and address challenges more effectively, leading to improved profitability and sustainable growth.
First, Plans and situation management of consumption plans implementation for each period, each consumer, and each economic activity
Effective quality management and brand building are essential for sustainable business growth This involves meticulously controlling the quantity, quality, and types of goods, ensuring each product meets standards to prevent losses, damages, or theft By focusing on these areas, businesses can strengthen their brand reputation and achieve long-term success.
Third, Strictly controlling capital, closely monitoring sales expenses, enterprise management costs, verifying the legality and reasonableness of data, and allocating to consumer goods, assuring accurate and acceptable consumption.
To ensure the accurate finalization of the consumption process, it is essential to reflect on and monitor the thorough and timely execution of duties owed to the State Implementing a stringent and scientifically based organization for consumption accounting is crucial to uphold accountability and precision in financial management.
1.1.3 The necessity and mission of accounting for sales, determining business results
1.1.3.1 The necessity of accounting for sales, determining business results
Sales and accurate company performance are crucial not only for enterprises but also for the overall national economy Profits enable businesses to cover costs, improve working conditions, and support economic growth through savings and investments The operational efficiency of enterprises is reflected in their ability to contribute to the state budget via taxes, fees, and charges Establishing a合理costing structure and utilizing profits effectively are essential for balancing economic benefits and ensuring sustainable development.
Accounting for sales and determining business results is a critical responsibility for establishing the number and value of sold goods, as well as the company's turnover and financial results However, in order to fully realize the function of well-performing jobs, accounting work must be organized in a scientific manner, and accountants must have a clear grasp of the contents of sales accounting and the determination of business results in companies
1.1.3.2 The missions of accounting for sales, determining business results
With a view to managing sales and evaluating business result, accounting for sales and business result has to execute some following missions below:
Fully, timely, accurately reflecting and recording occurred transactions and movements of each type of goods and products under quantity, quality, model and value.
Accurately calculating and reporting results of each transaction.
Monitoring the implementation of state obligations and division process of business result.
Interpreting accounting reports to information users Accounting information must be reliable, easy-to-read and useful.
Accounting for sales and determining business result must follow the accounting standards and able to adapt to the status of the company’s accounting system.
1.1.4 Classifications of sales methods in commercial enterprises
1.1.4.1 Methods of sales and payment in the enterprises
Sales are the activity or business of selling products or services to customers There are two typical methods of sales, including direct sales and sales through agents (consignment sales).
Direct sales: Direct sale refers to selling goods directly to the customers in a non-retail environment This method includes wholesale and retail.
Wholesale is a method of distributing large quantities of goods to various customer types, including domestic and international buyers, joint-venture manufacturers, traders, and private enterprises This approach typically involves bulk purchases, resulting in lower prices compared to retail prices due to the volume of goods traded There are two primary forms of wholesale: wholesale from warehouses and direct shipping wholesale.
Retail is the method of distributing goods directly to final consumers for use and consumption, not for resale, typically involving small quantities and stable prices Key retail methods include collective encashment, direct encashment, installment payments, automatic vending, and handling goods in transit, all aimed at providing convenient access to products for consumers.
Consignment sales involve distributing goods through agents, with the company recognizing sales revenue only when the agent reports the sale Commissions paid to agents are recorded as selling expenses Revenue from goods sold on consignment is recognized only upon the agent’s reported sale, ensuring accurate financial reporting and compliance with accounting standards.
- The company has received money payment from the customers.
- The customer has received goods and agreed to pay.
- The customer has advanced the amount of purchase payment of goods.
- The goods on consignment is paid via bank.
A payment involves the transfer of goods, services, or financial assets in exchange for equivalent value, as agreed upon by all parties Payments can be made using funds, assets, or services, ensuring flexibility in transaction types There are two main payment methods commonly used in various economic exchanges: cash and digital/payment gateway solutions Understanding these methods is essential for efficient financial transactions and maintaining secure, seamless payment processes.
Cash payment: Cash payment is a form of payment that, after selling goods, the buyer makes a payment - immediately pays the seller.
Payment via bank: According to Clause 10, Article 1 of Circular
26/2015/TT-BTC amending and supplementing Clause 3, Article 15 of Circular 219/2013/ TT-BTC has the following provisions regarding via-bank payment documents:
- Bank transfer voucher is a transaction document to prove the money transfer between the buyer and the seller
- Account used for transactions between two parties must be registered or notified to the tax authorities.
- Can the two parties transfer or transfer money to the private enterprise owner's personal account if that account is registered with the tax authorities.
Other non-cash payments:According to Clause 10 Article 1 of Circular
Basic theory of accounting for sales and determination of business results
1.2.1 Accounting for sales revenue and revenue deductions
Sales revenue is the amount realized from selling goods in the normal operations of a company in a specified period
Net sales is determined by sales revenue after deducting sales deductions including trade discounts, cash (or settlement) discounts, and sales returns.
According to the VAS 14, sales from sale of goods will be determined only when it satisfies the following five (5) conditions:
- The enterprise has transferred the major of risks and benefits associated with the right to own the products or goods to the buyer.
- The enterprise no longer holds the right to manage the goods as the goods owner, or the right to control the goods.
- Turnover has been determined with relative certainty.
- The enterprise has gained or will gain economic benefits from the good sale transaction.
- Determining costs related to sales transactions.
- Debit note, Request for payment
- Credit notes, bank statements and other similar documents.
Account 511: Revenue from sales of goods and services
- Account 5111: Revenue from sales of goods
Total price with VAT Acc 3331
- Account 5112: Revenue from sales of finished goods
- Account 5113: Revenue from service provisions
Flowchart 1.1 – Accounting entry for direct sales (for company applying deductible/subtraction VAT method)
VAT payable Total price with VAT
Price without VAT Commissions for agents
Flowchart 1.2 – Accounting entry for direct sales (for company applying direct VAT method)
Flowchart 1.3 – Accounting entry for sales through agents
Total price with VAT Acc 3331
Flowchart 1.4 – Accounting entry for sales in case of deferred or instalment payment
Sales deductions are used to reflect the set of discounted money for shoppers to be deducted from the business's operating revenue.
According to Circular 133, the revenue deductions are recorded directly to account 511
Acc 333 Reduction of payable tax
Flowchart 1.5 – Accounting entry for Revenue deductions
1.2.1.3 Accounting for costs of goods sold
In an enterprise, cost of goods sold is commonly determined as follows:
For goods out of stock for sale, the original value of exported goods is the cost of goods sold.
The purchased goods are not brought into the warehouse for immediate sale, the purchase price and the purchase cost are the cost of goods sold.
Method of determining the cost of goods out of stock:
First in first out (FIFO) method
First In, First Out (FIFO) is an essential accounting method that assumes the oldest inventory items are sold or used before newer ones This approach simplifies inventory management by prioritizing the sale of the earliest acquired assets FIFO is widely used in industries to ensure proper inventory turnover, reduce clutter of obsolete stock, and provide accurate financial reporting Understanding FIFO helps businesses optimize inventory levels, improve cash flow, and comply with accounting standards.
The average cost method, also known as the weighted-average method, calculates inventory value by dividing the total cost of goods purchased or produced during a specific period by the total number of items acquired This approach assigns a uniform cost to all inventory items, providing a simple and consistent way to determine inventory valuation Implementing the average cost method helps businesses effectively manage their inventory costs and ensures accurate financial reporting.
The specific identification inventory valuation method is used to track each purchase and its price individually.
When used for inventory management, it provides more useful information on sales.
When used for tracking investments, it can reduce capital gains taxes due.
The steps to calculate the cost of goods sold
Calculate the total actual purchase value of goods for sale
Average method for the whole reserve period:
Actual average unit price Actual inventory value + Value of goods purchased during the period
Actual inventory + Quantity purchased during the period
Actual out-of-stock value = Quantity of exported goods x Actual avarage unit price
The continuous weighted average method:
This method, similar to the previous approach, calculates the average unit price based on the actual purchase price of stock at the beginning of the period It also considers the unit price of each goods import during the period, ensuring accurate inventory valuation and cost management.
Actual value of the out-of-stock = Quantity of exported goods x Unit price of avarage exported
First in first out method: This method assumes that goods that come first will be out first.
Expenses for purchase and distribution of expenses for out-of-stock goods
At the end of the period, the accountant shall amortize purchasing expense to the sold out-of-stock goods by the following formula:
Purchase expenses are allocated to
= Purchase expenses from the beginning of the period
+ Purchase expenses incurred in the period x Standard distribution of goods
(6b) goods sold during the period sold for sale in the period
Ending inventory and inventory sold during the period
Account 632 – Cost of goods sold.
In addition, some related accounts are used such as Acc 156, Acc 157, Acc
Flowchart 1.6 – Accounting entry for cost of goods sold under perpetual inventory method
(1a) Buy finished goods and sell them directly
(2) Buy finished goods and put them in warehouse
(3) Goods are sold directly from warehouse
(8) Cost of goods sold transferred to Acc 911 at the end of the period
Flowchart 1.7 – Accounting entry for cost of goods sold under periodic inventory method
(1) The ending balance of finished goods in stock transferred to Acc 611
(2) The value of goods issued to sell in the period
(3) Transfer the value of goods in transit and goods on consignment
(4) At the end of the period, value of goods sold transferred to Acc 632
(5) Transfer cost of goods sold to Acc 911
(6) The value of goods return: For sales through agents:
(7) The beginning balance of goods on consignment transferred to Acc 632 at the beginning of the period
(8) The value of outward goods on consignment in the period but have not been sold yet.
1.2.1.4 Accounting for selling expenses and administration expenses
Selling expenses refer to the costs incurred in distributing, marketing, and selling a product or service, making them a key component of a company's operating expenses Alongside administration and general expenses, selling expenses play a vital role in the overall operational costs of a business Effective management of selling expenses is essential for maximizing profitability and ensuring successful product promotion Understanding these costs can help businesses optimize their marketing strategies and improve financial performance.
- Distribution costs such as logistics, shipping and insurance cost
- Marketing costs such as advertising, website maintenance and spending on social media
- Selling costs such as wages, commissions and out-of-pocket expenses
Selling expenses are classified as indirect costs on a company's income statement since they do not directly impact product manufacturing or service delivery These expenses can vary with sales volume, with some components fluctuating as sales increase or decrease, while others remain constant Therefore, selling expenses are considered semi-variable costs, combining aspects of both fixed and variable costs for accurate financial analysis.
Administration expenses represent the costs associated with paying wages, salaries, and providing benefits to non-sales personnel They are a key component of a company's operating expenses, alongside selling expenses and general expenses, which together cover the broad spectrum of costs necessary to run the business efficiently Proper management of administration expenses can enhance overall operational performance and profitability.
Administration expenses are classified as indirect costs on a company's income statement because they do not directly contribute to product creation or service delivery These expenses tend to stay stable regardless of fluctuations in production volume, making them fixed costs Unlike variable or semi-variable costs, administration expenses remain consistent, providing financial stability to the company's overall budget Understanding the nature of administration expenses is essential for accurate financial analysis and budgeting in business operations.
- Staff’s payroll, declaration of input goods and services
- Contracts for supplying services, warranty, security…
Flowchart 1.8 – Accounting entry for selling and administration expenses
(1) Sell or office staff’s salary, wages and related social insurance, health insurance, trade union fees…
(3) Deprecation of fixed assets used for selling or general administration purposes
(4) Business taxes and fees payable to the State
(5) Payable provisions (warranty expenses, business restructuring,…)
(6) Services and other expenses in cash
(7) Reduction in selling expenses (reserve provision…) or administration expenses
(8) Transferring selling and administration expenses to determine business result.
1.2.1.5 Accounting for financial incomes and financial expenses
Financial expenses are all expenses incurred in relation to financial activities of the company, such as borrowings…
- Costs of manufacturing products, rendering services
- Operating costs of real estate
- Expenses covered by other source of fund
Other related accounts: Acc 111, Acc 112, Acc 131
Acc 133 Deductible VAT (if any)
Flowchart 1.9 – Accounting entry for financial expenses
Transfering financial expense to determine business results
Financial incomes are all incomes gained in relation to financial activities of the company, such as borrowings…
Revenue from financial activities encompasses various sources, including interest income from loans and deposits, capital gains from the disposal of financial investments, dividends and profits received, gains from foreign exchange differences, payment discounts, and other financial incomes, contributing significantly to the company's overall financial performance.
Other related accounts: Acc 111, Acc 112, Acc 131,…
Flowchart 1.10 – Accounting entry for financial incomes
Transferring financial incomesto determine business result
VAT under tax credit method (if any)
1.2.1.6 Accounting for other incomes and other expenses
Other expenses are the expenses of activities other than production and business activities that generate revenue of the enterprise.
Other expenses include: (1) Expenses from disposal and liquidation of fixed assets and their net book value; (2) Losses from revaluation of materials, goods and fixed assets which are contributed in joint ventures, associates…;
(3) Compensation for breaches of contracts; (4) Tax penalty; (5) Other expenses
The documentation process for fixed assets includes detailed minutes of the fixed asset inventory, revaluation, and destruction to ensure accurate tracking and valuation Key records also encompass economic contracts for the sale of liquidated fixed assets and minutes of their delivery and receipt, facilitating transparent transaction management Additionally, minutes related to the liquidation of fixed assets and economic contracts for selling these assets are essential for legal compliance and financial reporting Properly maintaining these records enhances asset management efficiency and supports audit readiness.
To successfully sell fixed assets, it is essential to prepare comprehensive documentation including the minutes of the fixed asset revaluation, the sale and purchase contract, and the minutes of asset delivery and receipt Additionally, issuing VAT invoices for the sale ensures compliance with tax regulations, while maintaining all related documents provides a clear audit trail Proper planning and documentation are crucial for a smooth and legally compliant sale of fixed assets.
- Minutes of breach of contract; Liquidation records.
- Receipt voucher, payment voucher, debit note, credit note, accounting voucher.
- Other related accounts: Acc 111, Acc 112, Acc 338, Acc 211…
Flowchart 1.11 – Accounting entry for other expenses
Other incomes refer to revenue that is not generated from the core turnover of the business These incomes arise from activities outside the primary operations of the enterprise, including various supplementary sources of earnings that contribute to overall profitability Understanding these additional income streams is essential for comprehensive financial analysis and effective business planning.
Other expense Transfering other expenses to determine business result Acc 133
Proceeds from the disposal of fixed assets include gains from revaluation of materials, goods, and assets used for investments in associates or long-term investments; income from contract compensation received from customers; tax refunds issued by the State Budget; unidentifiable account receivables; sales-related tips or awards provided by suppliers that are not included in sales revenue; gifts or donations in cash or in kind from organizations and individuals; and other miscellaneous income.
Documenting fixed asset management is essential, including minutes of fixed asset inventory and revaluation to ensure accurate asset records Economically significant contracts for the sale of liquidated fixed assets should be properly documented, along with minutes of fixed asset delivery and receipt to track transfer processes Proper records of fixed asset destruction are vital for maintaining compliance, while liquidation of economic contracts and minutes of fixed asset liquidation are necessary for transparent disposal and financial reporting These comprehensive documentation practices help optimize asset management and ensure adherence to accounting standards.
Selling fixed assets involves several essential steps, including deciding to dispose of the assets and documenting this decision through minutes of fixed asset revaluation The process continues with drafting a comprehensive contract for the sale and purchase of the fixed assets, ensuring all terms are clearly outlined Proper records such as minutes of fixed asset delivery and receipt are crucial for confirming the transfer Additionally, issuing VAT invoices for the sale of fixed assets ensures compliance with tax regulations Finally, maintaining all related documents, including contracts, minutes, and invoices, is vital for accurate record-keeping and audit purposes.
- Minutes of breach of contract; Liquidation records.
- Receipt voucher, payment voucher, debit note, credit note, accounting voucher.
- Other related accounts: Acc 111, Acc 112, Acc 3387, Acc 331…
Transferring other incomes to business resultOtherincomes incurred
VAT under tax credit method (if any)
Flowchart 1.12 – Accounting for other incomes
1.2.1.7 Accounting for corporate income tax expense
Content of corporate income tax expense
The accountant records estimated current income tax into current income tax expense each quarter depending on the tax declaration.
THE ACTUAL ACCOUTING FOR SALES ANDBUSINESS RESULTS AT
OverviewaboutAMISU Services Supplying Company Limited
AMISU Limited Liability Company was established in 2014 by Mrs. Nguyen Thi Phuong Thao
Company’s name in Vietnamese : Công ty TNHH Cungứngdịchvụ AMISU Company’s name in foreign language : AMISU Service Supplying Limited
Abbreviated company name : AMISU Co., LTD
Address headquarters : No 38, alley 642 PhạmVănĐồng, TừLiêm, HàNội Tax identification number : 0102340943.
AMISU Co., LTD has thrived rapidly over half a decade, now supplying more than 600 consumer goods and establishing firm business connections with a wide range of business partners worldwide
Company position: A major supplier of consumer goods that provide a wide range of supermarkets, mini-markets, and convenience stores in Hanoi
Development strategy: The company follows a 10-year plan at the moment:
From 2020 – 2030: Become one of the Top 10 biggest suppliers in exported consumer’s goods Help bring more diverse products to Vietnamese customers
The main fields of activity of the company are wholesale and retail of exported consumer goods, namely ice creams, confectioneries, biscuits from Korea, Taiwan, etc
First, AMISU imports the goods from its business partners, mainly through cargo ships AMISU distributes the goods to a network of supermarkets, markets, and convenience stores throughout Vietnam
The company also ventured to import and sell freezers and other storing applicants However, wholesale and retail of consumer’s goods remain its main stream of revenue.
AMISU provides a wide range of more than 600 products, which can be classified into these categories:
- Drinks (Soda, Coffee, Milk tea, Tea)
AMISU specializes in high-quality ice cream, a product that is challenging to store due to its tendency to melt easily To maintain product freshness and quality, AMISU has invested in hundreds of freezers, ensuring optimal storage conditions Our commitment to proper storage reflects our dedication to delivering delicious, premium ice cream to every customer.
All of AMISU’s product (except for freezers) are fast-moving consumer goods – products sold quickly at a relatively low cost
Customers: Since AMISU is a significant supplier in the consumer goods market, it has a myriad of customers, up to 500 customers.
Suppliers: The suppliers of AMISU are scattered around the world, ranging from domestic suppliers to international suppliers in Japan, Korea, Taiwan, etc.
2.1.3 Organization and managerial characteristics at the company:
2.1.3.1 Chart of the organization and management apparatus
An effective management system rooted in rationality and scientific principles is essential for a company's survival and growth, serving as the foundation for successful production and business operations This system enhances the efficiency of economic management across all sectors and levels Departments within the company advise the director, promoting specialized expertise while ensuring effective command and oversight from the board of directors As a trading company focused on buying and selling, the organizational structure remains relatively simple, with the Director at the top, supported by a Deputy Director and various departments, forming a streamlined management framework.
Flowchart 1.15 Chart of the organization and management apparatus
AMISU Limited Liability Company is legally represented by Mrs Nguyen Thi Phuong Thao, who serves as the company's director and is responsible for making all key business decisions.
Mrs Thao will serve as the director, leading the company's organizational and managerial structure Supporting her are department heads, each responsible for their respective areas This hierarchical setup ensures efficient and smooth business operations.
The person in charge of the accounting department is Msr Nguyen Thu Huong – the chief accountant.
The description of roles in the company is depicted as follows:
The director is responsible for the overall management of critical business stages, ensuring economic efficiency and overseeing all business activities They assign tasks, hold accountability for performance results, and establish goals and policies to guide department management.
- The administrative department is responsible for organizing and managing employees in the company, arranging work to suit the employees and other financial issues.
The accounting department is responsible for accurately recording and calculating financial data, including the utilization and turnover of assets, materials, and funds It reflects the company's current financial position, encompassing production and business activities, capital usage, and the overall financial results This ensures transparent financial reporting and supports effective management decision-making.
- Business department: In charge of sales, finding potential customers, contractors, suppliers and customers relationship management
- Warehouse management: in charge of storing and ensuring product quality
2.1.3.2 Benefits from theorganization and management apparatus
Assist your company in proactively engaging in business operations and dynamically leveraging product sources, enabling diversification of business activities Stay well-informed about market conditions to respond swiftly, ensuring your business remains adaptable and competitive in a changing market environment.
Second, information from superiors reaches subordinate units rapidly.
Third, each employee is immediately exposed to the company's daily operations, which allows them to develop their credentials and experience, promote their strengths, and do their tasks efficiently.
The accounting work organization model of AMISU Co., LTD is centralized accounting model.
At AMISU Co., LTD, all accounting functions are centralized within the company's accounting department, which handles voucher reception and verification from eight stores daily, records transactions, and performs accounting operations to support business management This streamlined model leverages modern technological tools to optimize efficiency, requiring fewer employees while ensuring timely and accurate accounting information to guide business decisions The Chief Accountant plays a crucial role in organizing and analyzing the company's operations at each stage, aligning financial data with strategic plans.
Flowchart 1.16 Accounting apparatus organizational characteristics
The Chief Accountant holds the highest position in the finance department, reporting directly to the company's director and overseeing all financial activities They are responsible for managing and controlling the company's finance and accounting functions, ensuring an accurate understanding of the financial situation to advise on strategic decisions The role includes evaluating and analyzing the company's financial and business performance, developing financial plans, and reviewing reports on cost implementation across various entities Additionally, the Chief Accountant conducts regular cost performance analyses and recommends effective savings strategies based on comprehensive evaluations.
A sales accountant is responsible for collecting sales invoices, preparing quotations, and drafting service provision contracts to ensure accurate documentation of services rendered to customers They meticulously record and update the value of services provided, calculate selling expenses and operational costs, and analyze sales data to accurately determine the business's sales performance Additionally, they provide timely sales reports and insights to support informed decision-making by business leaders.
Salary accountant: Check employees in/out, calculate salaries, insurance for staffs,
Tax accountant Collect input and output invoices as the basis for year-end tax declaration and finalization Report on VAT, CIT, PIT
The company applies Vietnamese accounting standards and regulations on corporate accounting issued under Circular No 133/2016/TT- BTC.
The company’s fiscal year starts on January 1st and ends on December 31st every year.
The currency unit used in accounting is Vietnam Dong (VND).
Accounting forms applied in business: With the support of the MISA accounting software
The basis for preparing financial statements: The financial statements are presented in Vietnam Dong (VND), follow the Vietnamese accounting standards, the current corporate accounting regime, and relevant legal regulations.
VAT calculation method: Deduction method.
- Principles of recognition of Inventories: historical cost.
- Principle of valuation Inventories out of stock: AVCO
Accounting method of fixed assets:
Principles of valuation of fixed assets: According to the historical cost and residual value.
Fixed asset depreciation method: Straight-line method
The company follow general ledger as the form of bookkeeping.
Our company streamlines all accounting procedures using MISA accounting software, which offers comprehensive features for efficient financial management MISA software handles end-of-period transactions, automates tax reporting for VAT and income, and simplifies invoice management with the "Invoices, Self-Printed Forms" feature Additionally, it facilitates effective plan management for revenue and expenses, ensuring accurate financial planning and reporting.
Principles of inputting subjects in MISA accounting software
The company leverages MISA accounting software to streamline all financial procedures, including end-of-period transaction processing and automated tax reporting for VAT and income With its comprehensive features, MISA simplifies invoice management, allowing for easy creation, printing, and management of invoices using the "Invoices, self-printed forms" feature Additionally, the software facilitates effective plan management for revenue and expenses, ensuring accurate financial oversight and compliance.
AMISU Co., LTD follows this number noting rules: abbreviation of the document name in two letters, followed by the order of the subject (in 4 digits)
For example, the invoice has the following code HDXXXX, in which HD is the abbreviation of “Hóađơn” and XXXX is the number of the invoice.
Screen 2.1.The interface of MISA accounting of codes for product “Kem”
Screen 2.2 The interface of MISA accounting of account 511
Screen 2.3 The interface of MISA accounting of account 642
Advantages and disadvantages of the accounting software MISA:
A prestigious brand trusted by more than 130,000 businesses, with more than 25 years of experience and won many noble awards;
Simple interface, easy to use;
Fully meet accounting operations for most fields: commerce, services, construction, manufacturing,
Check, compare documents, books, conversion gaps, prepare financial statements automatically after about 5 minutes;
Time-saving processing work, high accuracy
Update full, fast, and regularly new legal regulations, form changes (if any);
Fully meet financial management - accounting operations in accordance with regulations;
Easily manage your company's financial and accounting data anytime, anywhere with mobile access, featuring comprehensive chart analysis and reporting tools that enable directors to quickly assess business strength and make informed decisions The mobile platform seamlessly connects with the General Department of Taxation, invoice software, e-banking, point-of-sale systems, and eSign digital signatures, reducing time and costs associated with tax declarations, invoicing, and banking transactions This integrated solution ensures real-time financial oversight, improves operational efficiency, and supports timely, data-driven business decisions.
Accompanied by scientific and optimized utilities and information systems, Misa’s accounting software also requires a relatively high configuration computer to install, ensuring the software’s program runs smoothly;
Often maintain or upgrade the system, so sometimes failure or slowness occurs;
The manufacturer has not developed the cost calculation module.
When exporting reports to Excel, the order of data may no longer match the original arrangement, causing inconvenience for users This misalignment can increase the time and effort required to edit and organize reports effectively Ensuring consistent report order during export is essential for streamlining data management and improving workflow efficiency.
The issue of commissions in salary processing has not been thoroughly handled.
Accounting for sales and determining business results at AMISU Services Supplying
2.2.1 Actual situation of methods of sales and payment at the company
The company specializes in direct delivery as its primary sales method, purchasing or importing goods from suppliers to ensure fresh and quality products It then distributes these goods efficiently to a broad network of supermarkets, mini-markets, and retail stores This streamlined supply chain approach enhances availability and quickens delivery times, meeting the demands of diverse retail outlets.
AMISU Co., LTD employs a deferred payment method, delivering goods in accordance with contractual agreements Customers are required to settle payments for delivered goods either before a specified deadline or within a designated payment period outlined in the contract This payment approach ensures clarity and compliance with contractual terms, supporting smooth transaction processes.
2.2.2 Accounting for sales revenue and revenue deductions
The fair value of collected or receivable amounts determines revenue The company's sales revenue is recognized when the delivery is completed and the customer pays or accepts payment.
The company's revenue from selling goods and services supplied is the selling price without VAT because the company pays tax using the deduction method.
The conditions for AMISU Co., LTD to recognize revenue from selling are as follows:
- The company has shifted the majority of the risks and rewards connected with product and goods ownership to customers;
- The company retains neither ongoing managerial engagement nor effective control over the goods sold;
Revenue should be recognized accurately, only when the conditions allowing product returns are no longer applicable Specifically, if a contract grants the buyer the right to return purchased goods under certain conditions, the business must defer revenue recognition until those conditions have been fulfilled, and the buyer has no remaining right to return the products This ensures compliance with revenue recognition principles and enhances financial reporting accuracy.
- The company has or will gain economic benefits from the sale transaction;
- The company is able to determine the costs associated with the transactions
In practice, AMISU Co., LTD recognizes revenue from selling when the invoice is exported.
Data processing at AMISU Services Supplying Company Limited
When customers place orders with AMISU Co., LTD via email, hotline, or in person, the sales staff first seek approval from the Board of Directors (BOD) for the selling price Once the BOD approves, the sales department's administrator submits a request to the warehouse The warehouse manager reviews the requested quantity of goods; if sufficient stock is available, they approve the request and notify the sales department Finally, the sales administrator prepares the contracts and delivers them to the customers, ensuring a smooth and approved sales process.
The customer who receives the contract will transfer the deposit to buy the products by transferring to the company's account.
Once the goods are prepared for delivery, the sales staff is responsible for informing the customer The customer completes the payment by transferring the agreed amount as outlined in the economic contract, reciprocal arrangements, or bank loan commitments After the goods leave the warehouse, a Goods Delivery Note (GDN) is issued and sent to the accountant Subsequently, the accountant issues the VAT invoice, completing the transaction process efficiently and ensuring compliance with tax regulations.
When the customer transfers 100% of the amount of the economic contract,the sales department is responsible for making the handover record and handing it over to the customer.
On 02/01/2020, AEON Vietnam Co, LTD – Long Bien Branch bought
“Kem bánh cávịdâu”” from AMISU Co.,LTD, total payment was 1.977.250 (excluding 10% VAT).
On 20/01/2020, AEON Vietnam Co, LTD – Long Bien Branch made the payment via bank transfer.
On 02/01/2020, the account at AMISU Co LTD entered into MISA accounting software as follows:
From the main screen of MISA accounting software, chose Nghiệpvụ /
Bánhàng/Chứngtừbánhàng, then entered the following data
- Customer: Công ty TNHH AEON Việt Nam – Chi nhánh Long Biên
- Address: Số 27, đườngCổ Linh, Phường Long Biên, Quận Long Biên, ThànhphốHàNội, Việt Nam
- Content: “KH thanh toán tiền hàng””
Screen 2.4 The interface of MISA accounting of entering documents
The data will be automatically transferred to related books such as:Subsidiary ledger of Account 511, General Journal, General Ledger of
Table 2.1.Subsidiary Ledger of Account 511 – Revenue (Extract for example)
Table 2.3.Ledger Book of Account 511 – Revenue (Extract for example)
According to Circular 133, to record revenue deduction, the accountant would record directly into account 511 In 2020, no revenue deduction transactions were recorded.
2.2.3 Accounting for costs of goods sold
The cost of purchasing items into the warehouse, transportation charges, labor costs, and so on are all included in the cost of goods sold at the company.
Data processing at AMISU Services Supplying Company Limited
At AMISU Co., LTD, customer orders are initiated through email, hotline, or in person, with sales staff seeking approval from the Board of Directors (BOD) for the agreed-upon selling prices Once the BOD approves the sale, the sales department’s admin submits a request to the warehouse, where the manager reviews the availability of the requested goods If sufficient stock exists, the warehouse manager approves the request and notifies the sales admin The sales team then prepares the contract based on this approval and proceeds to send it to the customer, ensuring a smooth sales process.
The customer who receives the contract will transfer the deposit to buy the products by transferring to the company's account.
When the goodsare prepared for delivery, the sales staff is responsible for informing the customer The customer transfers the amount as agreed in the economic contract or the reciprocal amount and the bank's loan commitment Once the goods are out from the warehouse, the GDN would be issued and sent to the accountant The accountant would then issue the VAT invoice.
When the customer transfers 100% of the amount of the economic contract, the sales department is responsible for making the handover record and handing it over to the customer.
Cost of goods sold determination
To calculate COGS (Cost of Goods Sold) using the AVCO method
The accountant at AMISU Co., LTD calculates COGS by using MISA accounting software: From the main screen, choose Nghiệp vụ/Kho/Tính giá xuất kho:
Screen 2.5 The interface of MISA accounting of calculating COGS
On the calculating interface, the accountant could to calculate the COGS of all goods or the COGS of one goods only, then choose the calculating time period. After that, the accountant clicks on “Thực hiện” to calculate the COGS
Screen 2.6 The interface of MISA accounting of calculating COGS
The Goods Dispatch Note (GDN) is generated by the sales accountant when a customer makes a purchase, as items are exclusively sold through the company The sales accountant prints two copies of the GDN, which are then signed by the chief accountant and handed over to the warehouse manager for goods collection Afterward, the delivery team transports the items to the customer, provided the VAT invoice is not required One copy of the GDN is kept by the customer, while the other is returned to the sales accountant for record-keeping.
Accounting accounts used: Account 632 – Cost of goods sold.
Example: On 15/01/2020, AMISU Co., LTD sold ice cream “Trà xanh bạc hà Morocco hoàng gia” to BRG Retail Limited Company, total payment was1,549,080 (10% VAT included)
On January 15, 2020, the accountant calculated the Cost of Goods Sold (COGS) for the product "Trà xanh bạc hà Morocco hoàng gia" using MISA accounting software To do this, they navigated from the main screen to Nghiệp vụ (Operations), then selected Kho (Warehouse), and accessed Tính giá xuất kho (Calculate Export Price).
Screen 2.5 The interface of MISA accounting of calculating COGS
On the calculating interface, the accountant choose product ““Trà xanh bạc hà Morocco hoàng gia”, then choose the calculating time period from 01/01/2020 to 31/01/2020.
After that, the accountant clicks on “Thực hiện” to calculate the COGS
Screen 2.6 The interface of MISA accounting of calculating COGS the account at AMISU Co LTD entered into MISA accounting software as follows:
From the main screen of MISA accounting software, chose Nghiệp vụ /
Mua hàng/Chứng từ bán hàng, then entered the following data
- Customer: Công ty TNHH AEON Việt Nam – Chi nhánh Long Biên
- Address: Số 27, đường Cổ Linh, Phường Long Biên, Quận Long Biên, ThànhphốHàNội, Việt Nam
- Content: “Mua hàng của công ty BRG”
Screen 2.7 The interface of MISA accounting of “Chứng từ mua hàng”
2.2.4 Accounting for selling and administration expenses
Definition: Selling expenses are expenses related to the sale of goods at the company, including many specific expenses and they are gathered according to the prescribed content when incurred.
Accounting accounts used : Account 6421- Selling expenses
Example: On 05/01/2020, AMISU Co., LTD paid a selling expense of 1.197.559 VND via cash at bank.
On March 14, 2020, the accountant recorded a cash disbursement in MISA Accounting software by navigating to the “Ngân hàng” (Bank) section and selecting “Chi tiền” (Cash Payment) on the main page They then entered the relevant details into the “Chi tiền” input form to accurately document the transaction.
- Nội dung TT: choose Chi khác and enter “Chi phí bán hàng”
- Diễngiải: “Chi phí dịch vụ bán hàng”
Then the accountant clicked on the “Cất” button to save the data.
Screen 2.8 MISA accounting software screen of “Ủy nhiệm chi” input
The data will be automatically transferred to related books such as: Subsidiary ledger of Account 6421, General Journal, General Ledger of Account 642.
Table 2 Subsidiary Ledger of Account 6421 – Administrative Expenses (Extract for example)
Table 2 Ledger of Account 642 – Administrative Expenses (Extract for example)
Definition: Administration expenses are all expenses related to the general administration and service of the company's production and business activities, including many specific expenses.
- Payment voucher, Payment order, Debit note
Accounting accounts used: Account 6422 is used and opened in detail as follows:
Example: On 05/01/2020, AMISU Services Supplying Co., LTD paid office rent of 174.933.000 VND (including 10% VAT) for 3 months (January, February, March for the year 2020) via cash at bank
On 05/01/2020,, the account at AMISU Co LTD entered into MISA accounting software as follows:
From the main screen of MISA accounting software, chose Nghiệp vụ/
Ngân hàng/ Chi tiền, then entered the following data:
- Customer: click to choose “NCC00074” “Công ty TNHH Dệt may HàNội”
- Content: Click to choose “Chi khác” and enter “TT tiền thuê VP tháng1-2-3”
Screen 2.9 MISA accounting software screen of “Ủy nhiệm chi” input
The data will be automatically transferred to related books such as:Subsidiary ledger of Account 6422; Voucher diary; General ledger ofAccount 6422.
Table 2 Subsidiary Ledger of Account 6422 – Administrative Expenses (Extract for example)
Table 2 Ledger Book of Account 642 – Administrative Expenses (Extract for example)
2.3.5 Accounting for financial expenses and financial income
Definition: Financial expenses of the company are interest payment.
Accounting vouchers used: Accounting note
Accounting accounts used: Account 635 – Financial Expenses
Example: On 21/01/2020, AMISU Services Supplying Limited Company paid bank loan interest of 2.136.986 VND via cash at bank.
On 21/01/2020, the account at AMISU Co LTD entered into MISA accounting software as follows:
From the main screen of MISA accounting software, chose Nghiệp vụ/Ngân hàng/ Chi tiền, then entered the following data
- Content: “Trả lãi TK vay””
Screen 2.10 The interface of MISA accounting of recording Financial expenses
The data will be automatically transferred to related books such as:Subsidiary ledger of Account 635, General Journal, General Ledger ofAccount 635.
Table 2.2 Ledger Book of Account 635 – Financial Expensed (Extract for example)
Definition: Financial incomes of the company include interest on bank deposits.
Accounting vouchers used: Note of deposit interest payment, Credit note Accounting accounts used: Account 515 – Financial income
Example: On 25/01/2020, ACB Bank paid interest on deposits to AMISU
Co., LTD in January 2020, total amount of 1.272 VND.
On 25/01/2020, the account at AMISU Co LTD entered into MISA accounting software as follows:
From the main screen of MISA accounting software, chose Nghiệp vụ/
Ngân hàng/ Thu tiền, then entered the following data:
- Receiving reason: Click to choose “Thu lãiđầutưtàichính” and enter
Screen 2.11 MISA accounting software screen of “Thu tiềngửi” input
The data will be automatically transferred to related books such as:Subsidiary ledger of Account 515, General Journal, General Ledger ofAccount 515.
Table 2.1.Subsidiary Ledger of Account 515 – Financial Expenses (Extract for example)
Table 2.2 Ledger Book of Account 515 – Financial Expenses (Extract for example)
2.2.6 Accounting for other incomes and other expenses
Definition: Other incomes are the incomes generated from activities other than normal business activities of the enterprise.
Account 711 – Other incomes: This account reflects other incomes of the enterprise Account 711 has 2 sub-accounts:
Account 7111 – Other income: bonus and compensation
In 2020, the company did not have any transactions relating to other incomes, therefore, no entries were recorded into Account 711 – Other incomes.
Other expenses refer to costs incurred from activities unrelated to the core production and business operations that generate revenue for the enterprise These expenses typically result from events or transactions outside the normal scope of the business, leading to potential losses Understanding other expenses is essential for accurate financial analysis and reporting, as they impact the overall profitability of a company Proper classification and management of these expenses can help improve financial health and strategic decision-making.
Account 811 – Other expenses: This account has 2 sub-accounts:
Account 8111 – Other expenses: Compensation, fines and other expenses Account 8118 – Other extraordinary expenses
In 2020, the company did not have any transactions relating to other incomes, therefore, no entries were recorded into Account 811 – Other expenses.
2.2.7 Accounting for corporate income tax expense
Definition: Corporate income tax expense: is the cost of income tax calculated on the basis of income tax rate and accounting profit before tax.
Accounting voucher used: Tax finalization declaration
Accounting accounts used: Account 821 – Corporate income tax expenseOther related accounts: Account 3334 – Corporate income tax, and
Corporate income tax expense determination:
- Step 1: Calculate the gross profit from sales and service provision using this formula: Gross profit from sales = Net sales - Cost of goods sold
- Step 2: Calculate the net profit from business results.
Formula: Net profit from business results = Sales gross profit + Financial revenue - Financial expenses - Selling expenses and enterprise management expenses
- Step 3: Calculate other profits Formula: Other profits = Other Income – Other expenses
- Step 4: Calculate the total profit before tax Formula: Profit before tax = Net profit from business results + Other profits
- Step 5: Corporate tax expense Formula: Corporate income tax payable = Profit before tax x corporate income tax rate (20%)
How AMISU Co., LTD paid for corporate income tax expense
The accountant reports current Corporate Income Tax (CIT) payable and income tax expenses quarterly using the CIT return At year-end, the accountant records adjustments to corporate income tax expenses based on the finalization of the tax return This process accounts for differences between provisional CIT payments and the actual amount owed, ensuring accurate financial reporting.
2.2.8 Accounting for determining business results
Business results are determined at the end of the annual accounting period when the accountant closes the books and transfers data using MISA accounting software This process encompasses both normal business activities and other activities To accurately calculate business results, the accountant must complete two essential steps during this closing process.
- Step 1: Record closing entries of accounts
To access the closing accounts in MISA Accounting software, navigate to the main page, click on “Danh mục” in the top menu, then select “Tài khoản” and choose “Tài khoản kết chuyển” from the dropdown list The software already lists standard closing accounts, but accountants can add, edit, or verify the information to ensure it aligns with management requirements To add a new closing account, click on “Thêm” and fill out the “Thêm tài khoản kết chuyển” form To edit an existing account, select the account and click on “Sửa.”
Screen 2.12 MISA accounting software screen of “Thêm tài khoản kết chuyển” input
On the left menu, choose “Tổng hợp” Then on the top menu, click