GRADUATION THESIS ACCOUNTING FOR SALES AND BUSINESS RESULTS IN VIET DUNG YEN MY LIMITED COMPANYIn commercial business activities, selling is the basic profession, which plays an important role in other operations, business activities can only run smoothly w hen the sales are efficiently organized.Currently, the sale of goods and services by entities has faced a range of difficulties and challenges. First, the competition between domestic and foreign commercial enterprises is increasingly fierce. Second, the economic management mechanism still has many shortcomings, causing many difficulties and obstacles for businesses. Therefore, to be able to stand firmly in the marketplace, enterprises must organize well the sales process, have a suitable sales strategy so that they can actively adapt to the environment, seize opportunities, and effectively mobilize existing resources to improve business efficiency. Sales and business result determination play a very important role because it provides managers with information about the performance and business situation of each commodity to make accurate, timely and effective business decisions.On the basis of applying the theory of sales accounting and determining business results learned at school and based on the actual situation of the company, along with the enthusiastic help of Teacher, PhD. Thai Ba Cong and MSc. Nguyen Ba Linh and other members of the Accounting Department of the company, I have a certain understanding of the company and accounting work at the company. Being aware of the importance of managing sales accounting and determining business results at the company, after the internship at the company, I decided to choose the research topic to write my final thesis “Accounting for sales and business results at Viet Dung Yen My Limited Company”.
GENERAL THEORY ON ACCOUNTING FOR SALES AND
Importance of accounting for sales and business results in commercial
1.1.1 Overview of sales and business results
Concept and characteristics of the sales process
Sales is the process of transferring the ownership of goods associated with benefits or risks to customers and being paid or accepted by the customer Selling is the final stage of the business process in commercial enterprises, this is the process of transforming capital from a commodity form to a monetary capital form or capital in payment.
Characteristics of the sales process
- There is an exchange agreement between the buyer and the seller. The seller agrees to sell, the buyer agrees to buy, pays and accepts to pay.
-There is a change in ownership of goods: the owner loses ownership and the buyer has ownership of the purchased goods.
In the process of selling goods, economic units provide the customer with a certain quantity of goods and receive back from the customer a sum of money called the sales of goods.
Determination of business results is the comparison between the costs spent and the revenue earned in the period from selling activities If the revenue is greater than the cost of selling, the result is profit and vice versa, if the revenue is less than the cost, the result is a loss Determining business results conducted at the end of a business period is usually the end of the month, the end of a quarter or the end of the year, depending on each business characteristics and management requirements of each business.
Relationship between sales and business results
Selling is the last stage in the business process of an enterprise, business results is an important basis for the unit to decide whether to consume goods or not Therefore, there is a close relationship between selling and business results Business results are the ultimate aim of the business, and sales are the means to achieve that goal. Management requirements for sales and business results
Sales operations relate to each customer, each payment method, and each item, and each type of service Therefore, the management of sales operations, service provision requires management of indicators such as revenue management, revenue deduction management, change of responsibility at the sale stage, consumption and collection of money, debt situation and debt payment on the buyer's accounts receivable, cost price management of sold goods,
Managing sales operations, determining business results should adhere to the following requirements:
- Manage the movement of each item in the process Receipt – Issue –
In stock on quantity, quality and value indicators.
- Capture and closely monitor each method of sale, each payment method, each customer and each type of product consumed.
- Urge payment, fully recover the sales of goods
- Calculate and correctly determine the results of each type of activity and strictly implement the profit distribution mechanism.
- Fulfill all obligations towards the State according to the prescribed regime.
1.1.2 The role of sales and determining business results
Sales and business results are of paramount importance to a commercial enterprise Accurate determination of business results is the basis for determining the performance of an enterprise.
The organization of accounting for sales and business result are an important tool in the effective management and administration of an enterprise's operations in the business process.
Accounting information for sales and business results is provided to help business managers understand the implementation of the sales plan in terms of type, quantity, quality, price, and payment; check the implementation of cost of goods sold estimates, selling expenses, administration expenses and determine business results of the unit On that basis, it will propose measures to guide business operations in the next period, improve business operations, manage operations, save costs and increase revenue.
Accounting information for sales and business results is provided to help State agencies inspect and supervise the performance of their obligations to the State, from which to propose appropriate policies to comprehensively develop the national economy.
Accounting information for sales and business results provided are the concerns of those with direct interests related to the business situation of the business such as investors, suppliers, and creditors, That is the basis for these subjects to grasp the business situation of the business and to make timely appropriate economic decisions.
1.1.3 Task of accounting for sales and business results
- Reflect and record fully, promptly and accurately the existing situation and changes of each type of finished product or goods according to the quantity, quality, type and value criteria.
- Reflect and record fully, promptly and accurately the revenues, sale deductions and expenses of each type of activity in the enterprise, at the same time monitor and urge customers' receivables.
- Reflect and calculate accurately the results of each activity, monitor the performance of obligations to the State and the distribution of the results of activities.
- Provide accounting information for the preparation of FinancialStatements and periodically analyze economic activities related to the sales process, determine and distribute results.
Accounting for sales and determination of business results
1.2.1 Methods of sales and payment
The sales process of an enterprise can be done according to many different selling methods, sales methods can be understood as the ways that enterprises use to sell goods In businesses often use sales methods such as wholesale, retail, and some other methods such as: Selling through agents, consignment; Sale using deferred or instalment payment,
Wholesales: Wholesale is a method of selling in large quantities to other commercial units Wholesale usually includes 2 forms: Wholesale through warehouse and wholesale direct shipping.
Wholesale through warehouse: goods are delivered for sale from the warehouse of the wholesaler, it is done under two forms: Direct delivery at the warehouse and form of delivery.
Direct shipping wholesale: goods are delivered for sale right from the buying stage without going through the wholesale factory's warehouse. This method of wholesale is also done under two forms: direct shipping wholesale and wholesale shipping directly in the form of shipping.
Retail: Retail is a method of selling directly to consumers and economic organizations Retailers usually sell in small volumes, change according to customers' requirements, with stable selling prices.
Retailing has a more diverse range of practices than wholesaling. Detail: Direct sales and collection; Concentrated sales and collection; Self- service sales; Online sales; Installment sales; and Vending.
Under this method, when the buyer receiving the goods from the business will immediately pay the business by cash on hand or cash in bank This method is often used in the case of buyers who are small customers and buy small quantities or have immediate payment ability at the time of delivery.
Credit sales and calculate interest (if any)
Under this method, the buyer pays money after the time of receiving the goods for a certain period of time agreed by the two parties, at the end of that time the buyer will have to pay all the value of the purchased goods plus a fee called interest from this delay.
Revenue is the gross inflow of economics benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants (VAS 01 – Framework)
Sales revenue is the entire proceeds or will be earned from transactions generating sales such as the sale of products or goods to customers, including surcharges and additional charges in addition to the selling price (if any).
According to the Circular No 133/2016/TT – BTC enterprise shall record an amount as revenue from goods sale when all of the following conditions are satisfied: o Most risk and benefits associated with the ownership of the product have been transferred from the enterprise to the buyer; o The enterprise no longer holds control over the product as its owner or controller; o The revenue can be reliably determined; o The enterprise has obtained or will obtain economic benefits from the sale; o Selling expenses are identified.
Accounting documents and accounts used
- Accounting documents: VAT invoice, Sales invoice, Payment documents(Receipt note, cheque, …), Credit note, VAT declaration, and Other related documents
- Accounting accounts used: Acc 511 – Revenue, Acc 3331 – VAT, Acc
Accounting entries for some major transactions
- Cash sales or Credit sales without interest on late payment
- Credit sales with interest payment, installment sale
(1a): If value of exchanged goods is less than value of received goods (1b): If value of exchanged goods is greater than value of received goods
- Employees and other workers are paid in goods
- Product used for business activities or for promotion purposes
- Goods sent on consignment with fixed price
Case 1: consignees deduct commission fee before making payment to consigners
Case 2: Commission fee is paid separately
Revenue deductions include the following main amounts
- Trade discounts is the amount of money that enterprise credited or paid to customers who bought goods and services in large volume in accordance with the agreement that the seller will give trade discount to the buyer.
- Sales returns is the amount of goods sold which have subsequently been returned due to the following reasons: breaching the commitment or the economic contract, or in a wrong quantity, quality or specifications.
- Sales allowances is a reduction made when the goods are not the same specification as those mentioned in the economic contract.
Accounting documents and accounts used
- Accounting documents: Goods Receipt Note related to sales returns, Sales invoice related to sales returns, Payment voucher, Debit Note, …
- Accounting accounts used: Acc 511 – Revenue, Acc 3331 – Value AddedTax
- According to Circular No 133/2016/TT – BTC, the monitoring and accounting of revenue deductions is done on account 511 “Revenue from sales and service provisions" This account reflects, aggregates and transfers the revenues and sales deductions incurred in the accounting period Account 511 does not have a closing balance and can be opened in detail according to the management requirements of the enterprise to facilitate separate tracking of revenues and sales deduction arising during the period
• Accounting entries for some major transactions
1.2.4 Accounting for cost of goods sold
The concept of cost of goods sold and inventory costing method
- The concept of cost of goods sold: Cost of goods sold is the total business costs related to the sale process, including the cost of inventory, selling expenses and administration expenses.
In case of goods purchased for immediate sale, not through warehouse
= Actual purchase price of goods purchased from a supplier
+ Cost related to the purchase process
In case of issued goods for sale
= Actual purchase price of goods sold
+ Purchase charge allocated to goods sold
Actual purchase price of goods sold include the purchase price payable to the seller and import tax (if any) In cases where an enterprise buys goods for resale but the goods have to be processed or preliminarily processed, the purchase value shall include processing and preliminary processing costs.
Purchase charge allocated to goods sold includes costs directly related to the purchasing process such as: transportation, loading and unloading costs; rent of warehouse and yard; natural losses in the norm arising through the purchasing process; Purchase charge apportionment to goods sold at the end of the period according to the following formula:
Purchase charge apportionment to goods sold
Unallocated purchase charge at the beginning
Purchase charge incurred in period
Quantity (amount) of goods sold
= Quantity (amount) of beginning balance inventory
Quantity (amount) of goods purchased in period x (1.3)
Purchase charge apportionment to ending balance inventory
Unallocated purchase charge at the beginning
Purchase charge incurred in period
Purchase charge apportionment to goods sold
According to Circular No 133/2016/TT–BTC, there are 3 methods: The weighted average cost method; First-in, first-out method (FIFO); and Specific identification method.
The weight average cost method
The weighted average method assumes that the goods available for sale/use have the same (average) cost per unit Under this method, the cost of of goods available for sale/use is allocated on the basis of the weighted – average unit cost.
Cost of goods sold/used
= Units of goods sold/used x Weighted – average unit cost
- Advantages: + Easy to apply, objective, not as subject to income manipulation
+ Provides income tax minimization during rising prices
- Disadvantages: Recent costs reflected in COGS, older costs reflected in Inventory
First-in, first-out method
The FIFO method assumes that the earliest goods purchased are the first to be sold/used Under this method, the costs of the earliest goods purchased are the first to be recognized as cost of goods sold/used.
- Advantages : o Attempts to approximate physical flow of goods o Ending inventory close to current cost
Presentation on financial statement
The sales transactions and business results criteria are shown in the Statement of Profit or Loss, the way to set these targets is as follows:
- Data base: The previous year Income Statement; The general accounting books and specific accounting books for accounts from 5 to 9.
Column "Current year/period" o Revenues from goods sale and service provision (Code 01): Figures recorded in this item are arising accumulation of the Credit site of Account 511 in the reporting period (not include indirect taxes and revenue from intra-group transactions) o Revenue deductions (Code 02): Figures recorded in this item are accumulation the arising sum in the Debit side of Account 511 corresponding to the Credit site of Accounts 111, 112, 131 in the accounting period. o Net revenues from sales and service provisions (Code 10)
Code 10 = Code 01 – Code 02 o Costs of goods sold (Code 11): Figures recorded in this item are arising accumulated amounts of Credit side of Account 632 corresponding to the Debit side of Account 911 Gross revenues from sales and service provisions (Code 20)
Code 20 = Code 10 – Code 11 o Financial income (Code 21): Figures recorded in this item are arising accumulated amounts of Debit side of Account 515 corresponding to the Credit side of Account 911. o Financial expenses (Code 22): Figures recorded in this item are arising accumulated amounts of Credit side of Account 635 corresponding to the Debit side of Account 911. o Interest expense (Code 23): This item records the cost of accrued interest included in financial expenses during the reporting period Figures recorded in this item are based on detailed accountings of Account 635. o Administrative expenses (Code 24): Figures recorded in this item are the total numbers of arising amounts of Credit site of Account 642 (6421 and
642) corresponding to the Debit side of Account 911 in the accounting period. o Net profit from operations (Code 30)
Code 30 = Code 20 + Code 21 – Code 22 – Code 24 o Other income (Code 31): Figures recorded in this item are based on the total arising amounts of Debit side of Account 711 corresponding to the Credit side of Account 911 in reporting period. o Other expenses (Code 32): Figures recorded in this item are based on the total arising amounts of Credit side of Account 811 corresponding to the Debit side of Account 911 in reporting period. o Other profit (Code 40)
Code 40 = Code 31 – Code 32 o Total pre-tax profit (Code 50)
Code 50 = Code 30 + Code 4 o Corporate income tax expense (Code 51): Figures recorded in this item are based on the total arising number of Credit side of Account 821 corresponding to the Debit side of Account 911 in detailed accounting books of Account 821 or based on the arising numbers of the Debit side of Account 821 corresponding to the Credit side of Account 911 in the reporting period, in which case negative numbers shall be put in round brackets. o Profits after CIT (Code 60)
Based on the data in column "Current year" of the previous year income statement to transfer the corresponding recorded data for each item.
This chapter provides a broad overview of the theory of organizing sales accounting and determining sales results; understanding the roles, tasks, processes, and requirements of sales accounting; and determining sales results in general and specific commercial enterprises Understand accounting practices including sales accounting and revenue deductions, cost of goods sold accounting, cost of sales accounting, business management, revenue and financial expenses, revenue and expenses other fees, payable CIT, determine sales results, and perform machine accounting.
These are the bases and premises to help me study the current situation of sales accounting and determine business results at Viet DungYen My Limited Company in chapter 2.
THE ACTUAL SITUATION OF ACCOUNTING FOR
Overview about Viet Dung Yen My Limited Company
2.1.1 Establishment and development of the VIET DUNG YEN MY company
Viet Dung Yen My Limited Company ("the Company" for short) was established on November 3, 2009 under the Business License issued by the Business Registration Authorities under Hanoi Authority for Planning and Investment The company is a private enterprise in the form of a Limited Company, operating under the Law on Enterprise and other current regulations of the Socialist Republic of Vietnam.
- The company name is written in Vietnamese: Công ty Trách nhiệm hữu hạn Việt Dũng Yên Mỹ
- The company name is written in foreign language: Viet Dung Yen My Limited Company
- The abbreviated company name: VIET DUNG YEN MY CO., LTD
- Head office address: 206 Street, Pho Noi A Industrial zone, Lac Hong Ward, Van Lam District, Hungyen Province.
- Address of drug storage: No 48 Nguyen Van Cu Street, Bo De Ward, Long Bien District, Hanoi City.
- Charter capital: 5,000,000,000 VND (Five billion VND)
- Legal representative: Do Nho Dung
- Address of the legal representative: Room 106 – C4, Vinh Ho, Nga Tu
So Ward, Dong Da District, Hanoi City
2.1.2 Business organizational characteristics of the company
Viet Dung Yen My Limited Company is a wholesaler of petroleum products (including oil, greases, petrochemical products, liquefied petroleum gas,…) stored under normal conditions With only 3 years of experience of establishment, the company is trading and distributing prestigious petrol products and supplies in the regional market
Currently, petroleum distribution is the main activity of the company and contributes to more than 95% of the company's revenue (in 2020), of which distribution to companies, and other customers
For retail distribution, currently the company has 1 drugstore at No 48, Nguyen Van Cu Street, Long Bien District, Hanoi, specializing in gasoline supplies to retail customers.
2.1.3 Management organizational characteristics of the company
Viet Dung Yen My Company is a trading company, operating in the commercial field of wholesale and retail of finished oil and medical supplies. With more than 10 years of construction and development, the company has built itself a brand name and reputation in the domestic pharmaceutical market by providing timely, accurate, sufficient quantity, quality and expiry date assurance of drugs as prescribed, delivery time within 72 hours after the contractor receives the order.
With flexibility in management, the company is always proactive in business operations, increasing assets and income, improving the physical and mental wellbeing of all employees in the company.
The company is small, so the management apparatus is quite compact,the company's management apparatus is organized according to the following diagram:
Sales Department Warehouse & delivery Accounting Department DIAGRAM 2.1: COMPANY MANAGEMENT APPARATUS
Director: directly manages the company, makes decisions on all matters related to the company's business operations Currently, the company has
Sales Department: is responsible for the supply of input goods and the consumption of output goods of the company; responsible for planning and advising the director on business plans and proposing strategies to promote efficiency business activities At the same time, they are responsible for customer care, monitoring sales contracts
Warehouse and delivery department: is responsible for full control of activities during petrol distribution and storage to avoid the penetration of petrol products are not allowed to circulate into the distribution system, thus, the company ensure the quality of oil and gas products are always maintained according to standards, provide customers with the best products.
Accounting Department: is responsible for systematically collecting, recording, processing, and analyzing economic transactions that arise every day Synthesize, analyze financial and accounting information,prepare accounting reports to serve the decision making of the director,and fulfill obligations to the State.
2.1.4 The organization of accounting works in the company
The company's accounting organized in the form of centralized accounting because the feature of business organization and management of the company is small scale Under this form, all accounting work at the company is done concentrated in an accounting department in the company.
DIAGRAM 2.2 STRUCTURE OF THE COMPANY'S ACCOUNTING
Chief accountant: Direct the implementation of all accounting work in the company in accordance with current policies and regimes Checks the reasonable and validity of documents, the bookkeeping, from there, they enter general data, makes financial statements They are the person responsible for the company's financial affairs, advising the director in the organization of the accounting system, as well as in making financial decisions At the same time, they are also responsible for monitoring the accountant's activities and
Warehouse accounting department are responsible to directors and superiors for the quantity and quality of financial statements
Sales accounting department: is responsible for making quotes, updating prices, new goods Manage books and documents related to sales of the company Enter sales figures, sum up sales figures Tracking, calculating discounts for customers Every day, he/she compares with the cashier about cash in and cash out at the end of the day Monitor sales, keep track of cash receipts and payments.
Warehouse accounting department: is responsible for daily recording and making vouchers for receipt and issue goods Checking the arrangement of goods in the warehouse, comparing the receipt and issue data with the chief accounting data Calculate cost of goods sold and purchased. Make a physical inventory count report Make a receipt-issue-in stock report. Every day, he/she compares with the warehouse-keeper about the amount of receipt, issue and in stock goods.
Accounting Liabilities accounting department: is responsible for receiving sales contracts, buying goods, checking the contents and terms in the contract, adding new customer code, supplier code if any Checking and urging customers, suppliers to pay debts, checking the details of the debt of each customer, each supplier according to the related debt documents, payment term, amount already overdue and notify the sales department and directors to recover a debt Track the debt situation, payment of suppliers and customers Periodically, he/she performs reconciliation with suppliers and customers and then prepares related debt reports.
Accounting policies applied at VIET DUNG YEN MY Company
Accounting system: The Company applies the Small and MediumEnterprises Regime issued under Circular No 133/2016/TT - BTCAugust 26 th , 2016 of the Ministry of Finance.
Accounting book form: General Journal
Software used: Accounting software Misa.sme.net 2021
Accounting Currency: Vietnam Dong (VND).
VAT calculation method: Deductible VAT methods
Accounting for inventory: o Initial recognition: Based on actual purchase price o Cost of goods sold: Calculate based on moving-average cost method o Recording inventory: According to perpetual inventory system
Accounting for fixed assets: o Assess fixed assets: According to historical cost and residual value o Depreciation method: Straight-line method
Characteristics of accounting software Misa.sme.net 2021 is used at the company
All accounting works are performed by the company on the accounting software Misa.sme.net 2021 Misa accounting software includes Funds, Bank, Purchases, Sales, Invoices, Electronic invoices, Warehouse, Fixed assets, Tax, …
At the company, accountants do not use all the sections that the software has, accounting only uses a few basic sections such as: Fund, Banking, Purchases, Sales, Warehouse, Fixed Assets, Tools, Salary, Tax, Summary.
Since the enterprise buys the software copyright, after successfully logging in, there will be the words "Viet Dung Yen My Limited Company" in the upper left corner of the screen.
SCREEN 2.1 WORKING SCREEN OF ACCOUNTING SOFTWARE
Everyday, the accountant is based on the checked documents and is used as a basis for entering data into the accounting software in the computer.
At the end of the year, accountants carry out the transfer, close accounting books, print books and report, and compare with related books in the software.
Characteristics of accounting software MISA.SME.NET 2021
Misa.sme.net accounting software is an accounting solution for small and medium-sized businesses with the advantages of ease of use, popularly used by businesses and especially professional customer support services on the Misa accounting software.
The main features of the accounting software Misa.sme.net 2021
49 o Purchases: Create and manage purchase orders Track detailed debt to each supplier, each invoice o Sales: Manage invoices closely Track debt by age of debt, bills.
A ccounting for sales and determination of business results in Viet
2.2.1 Accounting for sale revenue and revenue deductions
Sales process of the company
VIET DUNG YEN MY 's customers are usually companies, hospitals, and pharmacies, so they will send orders or call to order After that, the Sales Department will check the customer's request with inventory (lot number,
52 expiry date) on Misa accounting software to see if there is enough in stock, otherwise they will contact the supplier to purchase more If the quantity in the order is met and the customer accepts the payment, the Sales Department will notify the Accounting Department to make the sales documents based on the order Goods are delivered to customers with VAT invoices, Goods despatch notes and Receipts if customers pay in cash For customers who buy to pay later, it will be based on the agreement of the two parties or according to the predetermined debt term When it is eligible to record revenue, sales accountants base on VAT invoices to input data into the software.
The company has both wholesale and retail forms All of them are selling directly through the company's warehouse, without consignment of goods
Wholesale through warehouse, direct delivery: Goods and finished products are stocked and then sold according to orders and contracts When the goods are delivered and the customer accepts to pay, the sales revenue will be calculated.
Retail, direct delivery: For retail customers, the buying volume is often low, when customers come to, the salesperson carefully review the prescription, take the medicine and advise customers on how to use and then directly collect money from the buyer.
Payment methods of the company
Instant cash collection: Right after the customer checks the goods and accepts the goods, the customer will pay the company in cash (mostly) or transfer via bank account.
Collection of money later: The company will deliver the goods with invoices and related documents to the customer, after a certain time according to the agreed agreement between the company and the customer, the customer will pay the company by cash or bank transfer.
Accounting documents and document rotation process in sales accounting
Accounting documents: VAT invoices, receipts, credit notes, …
Document rotation process at the company
VAT invoice: When customers request to buy goods, the sales accountant will issue a Value-Added Invoice consisting of 3 copies After making the invoice, the sales accountant will check the information on the invoice, ensure the accuracy and sign all 3 copies When the customer receives the goods, the shipper request the customer to sign the buyer part on the invoice, the first sheet is kept at the stalk, the second sheet is handed over to the customer, the third sheet is kept by the sales accountant as a basis for book entry.
Receipt: for cash sales, the sales accountant makes a receipt from the software by selecting Fund/Collection, then entering the necessary data The accountant prints only one receipt, then passes it to the director, chief accountant, cashier and payer for signature, and then the receipt is kept by the sales accountant.
Credit Note: When receiving the Credit notes from Bank, the sales accountant compares the amount with the detailed bank deposit book for each bank to see if there is a difference or not If there is no difference, based on that to enter data into software, then Credit notes will be stored by the sales accountant If there is a difference, the sales accountant reports to the chief accountant to find the cause and resolve the difference.
Accounts used and accounting for some major transactions
Accounts used: Account 51111, Related accounts: Account 1111, 131,
Accounting for some major transactions
Data processing process at the company
On December 2 th , 2020, the company sold 41.123 litres of DO 0.05 oil to Ha My Vina Co., Ltd., unit price is 10,390.9 VND/litre, the total payment is VND 470,036 (including VAT 10%), customers pay in cash.
Sales accounting is based on the product, unit price, and number of goods purchased to make VAT invoice into 3 copies The VAT invoice at VIET DUNG YEN MY company is a E-invoice, so the sales accountant just needs to fill in the information on the available invoice and carefully check the information on the invoice to ensure the correctness and accuracy, then transfer it to the customer to sign it
SCREEN 2.4 THE INTERFACE OF ENTERING SALES
After making VAT invoice, the sales accountant will collect money from the customer according to the amount recorded in the invoice, make a Receipt for the customer to sign, transfer it to the chief accountant and the cashier for signature, and transfer to the director for signature and stamp, then the receipt is kept by the sales accountant.
TABLE 2.1: EXTRACT LEDGER OF ACCOUNT 511 FOR
Based on Sheet 3 (VAT Invoice No 9987), the sales accountant will enter data into the software.
To record sales revenue, the sales accountant is based on VAT invoices On the main screen interface, select Sales/Sales documents, click
Collect money because Ha My Vina company pays in cash, then enter
57 necessary information Once completed, click the button "Save", the software will automatically save the data, and update related books: General Journal, Ledger Account 5111, Detailed book Account 33311
To view the book, from the desktop, select the item "Reports" in the toolbar at the top of the screen, then select the item "Summary" and click on the desired book.
On December 01 st , 2020, the company sold 70 litres of DO 0.5 oil to Hoa Phat Hung Yen Industrial Parks Infrastructure Development Company Limited , the unit price is VND 10,390.914/litre, the total payment is VND 727,364 (including VAT 10%) As a regular customer of the company, Hoa Phat Hung Yen Industrial Parks Infrastructure Development Company Limited has not paid and committed to pay within 60 days by cash.
VIET DUNG YEN MY Company tracks liabilities according to customer code on the software, not opening detailed accounts to track. Therefore, the amount receivable from Hoa Phat Hung Yen Industrial Parks Infrastructure Development Company Limited is collectively recorded in Account 131.
The sales accountant is based on the product, unit price, and number of goods purchased to make a VAT invoice into 3 copies similar to the Cash sale described above.
TABLE 2.2 EXTRACT OF ACCOUNT 511 FOR CREDIT SALE
SCREEN 2.5 THE INTERFACE OF ENTERING CREDIT SALES
Based on the VAT invoice No 9917, the sales accountant enters information and figures in the Sales/Sale documents section Because the hospital has not yet paid, the accountant selects Credit sale, enter the necessary information and check carefully, click the button “Save”, the software will automatically save the data and update related books: General Journal, Ledger of Account 131, …
After receiving the Receipt, the company records a reduction in customer receivables.
The company does not open a detailed receivable account for each customer, the enterprise collectively records on Account 131 and tracks the debt according to the customer code on the software.
Some comments on accounting activities in Viet Dung Yen My
In the current economic conditions, high profitability and business safety are the top goals of any business, to achieve that goal, each enterprise must find its own solution and direction But most of the measures to increase profits are: Dominating the market, increasing revenue, lowering costs, and enhancing competitiveness The competition law of the market economy has required businesses to mobilize themselves, catch up with the general development speed of the national economy as well as the development trend of the world economy.
Before that request, the Company leaders promptly recognized the problem, quickly took advantage of the opportunity to promote available strengths to
83 overcome difficulties, creating momentum for the Company to integrate and stand firmly in the current market mechanism This is a favorable condition for the company to promote its business capacity, contributing to that success is the collective effort of the employees of the whole Company In the efforts and overall achievements of the whole Company, it is impossible not to mention the contribution of the accounting work With an accounting system organized scientifically and closely, selecting staff with steady professional qualifications and a sense of responsibility in their work, the good implementation of the regimes and policies promulgated by the State, the company's accounting apparatus has promptly reflected, and provided fully and accurately economic information, and served to make economic decisions In general, the general accounting organization of the company has many outstanding advantages and certain limitations as follows:
First, the Company's accounting apparatus is organized according to a centralized model, the accounting apparatus is organized neatly and still ensures good completion of the assigned work The assignment of tasks to accountants is suitable according to each person's level and ability The staff are trained in basic accounting, have a high sense of responsibility, regularly update new legal documents on accounting to serve at work.
Second, the Company applies the form of accounting under the General
Journal which is suitable for the company's organizational scale The advantage of this form is the simple book form, easy to implement, easy to record, easy to understand and convenient for assigning work in the accounting department In addition, this form creates favorable conditions for the inspection and comparison of accounting data for each accounting object because transactions are recorded in chronological order with economic
84 content From there, it can provide quick and timely accounting information to managers.
Third, using the documents system, in general, the Company has implemented well regulations on invoices, original documents Based on the accounting documents issued by the State and the content of economic activities as well as the requirements to manage those activities, the Company has built a system of suitable documents and forms, regulations on recording economic activities in each form of accounting documents in a specific way. After checking the legality and validity of the original documents, these vouchers can be used as a basis for recording the Book The process of preparing and rotating documents has ensured that the accounting work is done in a timely and accurate manner.
Fourth, one of the advantages of accounting work at the company is the use of machine accounting, so that the work of accountants becomes simpler In addition, it has somewhat reduced the work such as recording, book printing and data storage, and brought high efficiency at work At the same time, it also honestly, accurately and promptly reflects the financial situation and business operations of the company.
Fifth, on the application of accounting regimes and standards, the company applies the accounting regime according to Circular 133/2016 / TT – BTC which is completely suitable for small and medium-sized companies' operations At the same time, in accounting records, in general the company has fully complied with the required Vietnamese accounting standards, has ensured the basic principles to meet the needs of information quickly, promptly and reliably for management and also provide sufficient financial information to interested parties.
In general , the accounting work at the Company is done relatively completely in terms of both formality and content Accounting books are printed from the computer, so it is very clear, strict in content, aesthetically in terms of form There are almost no errors in accounting data, because if a person enters incorrectly, the pre-programmed accounting software will immediately report back to the person who entered the data Therefore, the accounting work has contributed significantly to stabilizing the business situation and protecting the company's assets.
Thus , the organization of the company's accounting work has closely followed the characteristics and scale of the company's business operations. Accounting recording in general and accounting for sales and business results in particular are done in a simple and easy-to-understand way, but it still ensures the recording process of the business.
Besides the above advantages, the organization of accounting for sales and business results at Viet Dung Yen My Limited Company still has some shortcomings that need to be overcome as follows:
First, Viet Dung Yen My Company does not determine monthly or quarterly business results and only determines business results by year, does not open Ledger of Account 911 by month and only open by year Therefore, there will be difficulties in business management and administration, the director will not be able to track regularly and continuously the fluctuation of business results and does not make timely decisions to adjust appropriately business activities.
Second, the company has not applied discount policies for customers paying early to encourage early payment and effective debt collection. Therefore, customers are not encouraged to pay early, customers will tend to pay on deadline to get maximum benefit from capital appropriation, even
86 slow payment, this will lead to the risk increasing bad debts, adversely affecting the company's capital.
Third, besides the risks of not being able to recover the debts, the
Company did not make provision for bad debts, so it violated the prudence concept for the debts of customers of the Company This is also one of the current problems in many companies.
Fourth, on the management of selling expenses and administrative expenses, these are very important expenses for business, but the company has not yet managed closely, not determined estimates, plans, not undertaken the allocation to objects, not performed analysis and evaluation so the cost is still high In addition, the recording and classification between the sales expenses and the administration expenses is still error and confusion.
For example, charges for remittance when paying for a supplier are sometimes recognized as selling expenses, while it should be recorded as a administration expenses Especially, the company does not record separately salary for sales departments and office department All salaries and meal-shift allowances of all employees are recorded in administration expenses, telephone and gas allowances are recorded into selling expenses This can affect manager's decision-making about business and sales strategy and corporate governance, such as salary and bonus mechanism for sales staffs.