KẾ HOẠCH TRIỂN KHAI ỨNG DỤNG PHẦN MỀM TÀI CHÍNH VÀ KẾ TOÁN: CÔNG TY XÂYDỰNG LŨNG LÔ A PLAN FOR IMPLEMENTING APPLICATION OF THE FINANCE AND ACCOUNTING SOFTWARE: LUNG LO CONSTRUCTION COMPA
Trang 1KẾ HOẠCH TRIỂN KHAI ỨNG DỤNG PHẦN MỀM TÀI CHÍNH VÀ KẾ TOÁN: CÔNG TY XÂY
DỰNG LŨNG LÔ
A PLAN FOR IMPLEMENTING APPLICATION OF THE FINANCE AND
ACCOUNTING SOFTWARE:
LUNG LO CONSTRUCTION COMPANY
I Introduction
1 General Information:
Company name: Lung Lo Construction Company
Address: No 162 Truong Chinh Street, Dong Da District, Ha Noi
Telephone: (84-4) 35633582
Fax: (84-4) 35625708
Email: info@lunglo.com.vn
2 Development history:
Lung Lo Construction Company is a defence-business company belonging to the Ministry of
Defence
- Established in November, 1989 with the initial business name: The Lung Lo constructional
survey and Design Company In August, 1993 the Ministry of Defence made the decision no 577/ QĐ-BQP changing the name into Lung Lo Construction Company
- On 17 April 1996, the Ministry of Defence made the Decision no 466/QĐ-QP to establish thye
Lung Lo Construction Company on the basis of merging 3 businesses: Lung Lo Construction Company, Construction Company 25-3 and the Constructional Survey, Design & Consultancy Enterprise
- On 8 January 2010, the Minister of Defence made Decision No 45/QĐ-BQP to turn the Lung
Lo Construction Company into the Lung Lo Single-Member Limited Liability Construction Company operating with the mother company-daughter company form of business
- On 02 December 2011, The Minister of Defence made Decision No 4698/QĐ-BQP about
transferring the Lung Lo Single-Member Limited Liability Construction Company from the
Trang 2umbrella of the Engineering High Command to under the direct charge of the Ministry of
Defence
- On 12 January 2012, the Minister of Defence made the Decision no 99/QĐ-BQP to reorganize
the Lung Lo Single-Member Limited Liability Construction Company and turn it into the Lung
Lo Construction Company operating with the mother company-daughter company form of
business
[p 2 Vietnamese]
3 Organization chart:
Trang 4Note: Title Line: Skeleton Diagram about the organization of Lung Lo Construction Company
operating with the mother company – daughter company form of business
Line 1 (Yellow): Chairman of the Council of Members (Chairman of the Council of Members and concurrently Director General) – Controller
Line 2 (Yellow): Directorate General
Line 3 (Lavender): Planning Department; Administrative & Accounting Department; Organization and Labour Department; Political Department; Investment Project Management Department; Technology Equipment Department; Secretariat
Line 4 (Yellow): Daughter companies; Dependent Units; Associated Companies
# Daughter Companies (vertical lineup): Lung Lo 3 Single-Member Limited Liability Company; Lung Lo 4 Construction Joint Stock Company; Lung Lo 6 Construction Joint Stock Company; Lung Lo 9 Construction Joint Stock Company
# Dependent Units (Left Vertical Lineup): Bridge and Tunnel Construction Company; Marine Projects Construction Company; Centre Processing Bombs, Mines and Explosives; Transport & Mechanical Performance Company; Underground & Submerged Projects Construction Company; Southern Construction and Investment Company
# Dependent Units (Right Vertical Lineup): Urban Investment and Development Company; Infrastructure Investment and Development Company; Central Representative Office, Da Nang; Southern Representative Office, Ho Chi Minh City; Northern Central Representative Office, Nghe An; Representative Office, Laos
# Associated Companies (Right Vertical Lineup): Lung Lo 2 Construction Joint Stock Company; Lung Lo
5 Joint Stock Investment and Development Company; Construction Joint Stock Company MXD VN – URAL; My Duc Cement Joint Stock Company; Military Commercial Joint Stock Bank
4 [p 3 Vietnamese] Achievement Awards
Labour Medal First Grade of the President of the Socialist Republic of Vietnam regarding
“Excellent achievements in the tasks performing lanes and locks in the service of rescue
Trang 5activities in Song Tử Tây islands, Spratly islands, contributing to the cause of building Socialism and National Defence” pursuant to Decision no 153 QĐ/CTN on 15 October 2009
Labour Medal Second Grade of the President of the Socialist Republic of Vietnam regarding “Excellent completion of the designing and performing tasks concerning
Bach Long Vi island’s dock and anchorage Project, Hai Phong City, contributing to the cause
of building Socialism and National Defence” pursuant to Decision no 21 QĐ/CTN on 09 January October 2004
Labour Medal Second Grade of the President of the Socialist Republic of Vietnam regarding “Excellent achievements in the tasks performing the A Vuong
Hydroelectric Power Plant, contributing to the cause of building Socialism and National Defence”
Labour Medal Third Grade of the President of the Socialist Republic of Vietnam regarding “Excellent achievements in the tasks from 1994 to 1998, contributing ot
the building of the army, consolidating national defence and safeguarding the country” pursuant to Decision no 470 KT/CT on 13 December 1999
High Quality Gold Medal for path HCC.25R of Tân Sân Nhất airport.
Merit Certificate of Vietnam Oil and Gas Group regarding “Excellent achievements in the
emulation movement while building the Dung Quat Oil Refinery in 2007” pursuant to Decision no 098/QĐ-DKVN on 4 January 2008
Merit Certificate of Ministry of Defence regarding “Excellent achievements in carrying out
the task of building TTBG road in 2008” pursuant to Decision no 1148/QĐ-BQP on 23 April 2009
[p 4 Vietnamese] Merit Certificate of Quang Nang People’s Committee regarding
“Achievements in building the pressure tunnel of the A Vuong Hydroelectric Power Plant in accordance with the schedule” pursuant to Decision no 1118/KT on 09 March 2006
Merit Certificate of Bằng khen của General Confederation of Vietnamese Labour regarding “Excellent achievements in the emulation movement while building the
Dung Quat Oil Refinery in 2007” pursuant to Decision no 47/QĐ-TLĐ on 07 January 2008
Trang 6 Merit Certificate of Vietnam Electricity regarding “Achievements ensuring operation
schedule and construction quality while building A Vuong Hydroelectric Power Plant” pursuant to Decision No 1118/KT on 09 March 2006
Merit Certificate of Son La People’s Committee regarding “Many achievements helping
Son La Province to build cadastral archives information centre” pursuant to Decision No 90/KT on 23 August 1995
Merit Certificate of Ministry of Defence regarding “Excellent achievements in 2 years of
participating in bulding the Ho Chi Minh Highway” pursuant to Decision No 161/QĐ-BQP on
23 January 2003
II Analytical discussion of the present state of applying the finance and accounting software of the company
1 The present state of applying the finance and accounting software of the Lung Lo Construction Company
The company is using the accounting software Misa This software is rather famous in the market
It has been used since 2008 and has become inadequate in many respects:
The software does not have the reporting system typical for the needs of the construction sector The company is a construction one and it has used many management reports to administer schemes and construction projects Costs and profits are all calculated and allocated
to each project This is the most obvious shortcoming of softwar Misa, regarding its failure to meet the needs of present management
Presently the softwares fail to update the changes of the state accounting system
The software has the low ability while extending and connecting with the applied software of the subsidiaries and other units The company has transformed into the business form mother company and many daughter companies together with many dependent units, having a great need for synthesizing reports [p.5 Vietnamese] The company’s accounting department has 19 staff members and they have to work excessively overtime on the occasions of synthesizing reports
The case of the subsidiaries: At present the finance and accounting software has been applied at many subsidiaries Today there are rather numerous inadequacies:
Trang 7 The subsidiaries bought software from different people The system is different, helping to make it rather difficult to synthesize data
Rather numerous units have not used software
2 Comparison with professional rivals in the construction sector
Today small construction companies as well as big construction general corporations have applied modern finance and accounting software There are backward steps in the state of IT application
in Lung Lo Construction Company Comparison with a number of organization in the sector is made to show the present weaknesses and shortcomings of Lung Lo Construction Company Comparison with the following organizations is made: Housing and Urban Development Corporation (HUD) , Nam Cuong Group, Song Hong Corporation
Updating new information and
circulars
Development/Implementation costs
(million VND)
It can be seen in the above table that the software used by Lung Lo Construction Company is the weakest one among those used by the compared companies The failure to invest or use a strong enough software will make the company bear great costs like those regarding: Expenditure on salaries of cadres and expenditure of time, etc This is the weak point leading to inadequacy in managing the projects and expenditures, reducing the competitiveness of the Lung Lo Construction Company in comparison with rivals in the same economic sector
3 Lessons drawn from Nam Cuong experiences
[p.6 Vietnamese] Nam Cuong Group selected and has applied the software Fast Accounting since
2005 and presently is applying it in 19 member units
Trang 8Nam Cuong Group was established in 1984, operating in different sectors like real estate, construction, investments, tourism, mineral exploitation, etc Nam Cường has been known as a group strong in the fields of real estate and infrastructure construction with big projects like: The development axis route North of Ha Dong and New Town Dương Nội, Project “The Ha Tay province 63,23 km North-South socio-economic axis development route and the new town “Green
Ha Tay”, the extended Le Van Luong street project and New Town Phùng Khoang
In 2005 Nam Cuong Group selected the software Fast Accounting and applied it in 7 member units In the following years Nam Cuong Group successively applied it in the remaining member units and today 19 member units are using Fast Accounting Moreover, at the main office and in a number of member units the version “Fast Accounting for Construction” is being used
Everyday the total number of people using the software Fast Accounting in Nam Cường Group is about 80
To extend the software successfully Nam Cuong Group applied it for the mother company and standardized all systems of management reports In the beginning stage, the mother company selected the solution of synthesizing data by integrating data taken from the excel tables of the member units Software Fast enabled Nam Cuong Group to have a system of management reports
of its own and issue a standard excel form The member units would enter data into the excel tables in accordance with the standard form and send them to the parent company Thanks to a kit developed by Fast the data was to be updated and entered into the software automatically
In the second year, the parent company continued to apply the software to 07 member units The data fields were designed like the management reports before, helping the accountants to easily approach and use the applied software
In the third year, the parent company applied the software in 12 subsidiaries Today the reporting system is completely integrated into the accounting software and the units do not have to enter data into the report forms like before The system of the subsidiary software would automatically produce a data file for conveyance to the software of the parent company
[p.7 Vietnamese] At present, with the synchronized and scientific or methodical use of the software, Nam Cuong Group achieves clearely beneficial working effectiveness:
Trang 9 Not wasting time to synthesize report data Everything is automatic and accurate Nam Cuong Group can synthesize the Group’s data almost right upon the conveyance of the data from the units This helps the leaders of the parent company to grasp the common data of the Group immediately
Labour productivity increased
Closely controlling the costs resulting from the performance of the projects, minimizing errors and negative deeds during the realization of the schemes
The system of distinctive reports helps the Group to keep track of the business results of each job or case and project This is the most necessary thing for a construction company like Nam Cuong
With the business form parent and subsidiary companies in the construction sector, Nam Cuong Group has the same characters as Lung Lo Construction Company The expansion experiences of Nam Cuong Group can be seen as the great lessons for Lung Lo Construction Company in the latter’s process of developing its applied finance and accounting software
III Several kinds of fiance and accounting software in the present market
1 The Fast software for building and erection firms:
The activities and management of building and erection firms have distinctive features FAST has been applied in rather numerous enterprises in the construction sector and has also been used as a software having a particular network subsystem specializing in mangaging and calculating the building and erecting costs
Network subsystem mangaging and calculating the building and erecting costs solves the the particular accounting problems of the building and erection firm like:
Tracking and comparing real costs and making estimates of targeted expenditures
Gathering costs, determining prices, reporting losses and profits of the projects in a term, cumulatively calculating them with the effect since the beginning of the year and the
commencement of work
Tracking liabilities of the customers and projects
Tracking the input and output as well as the materials in stock according to stores and projects
Calculating expected interest rate for each scheme and project
Trang 10Menu of functions
[p 8 Vietnamese] Items of projects and building and erection works
Project code up to 16 characters
There are 3 data fields for grouping and categorizing projects in the service of statistical and analytical purposes
Having a declarator stating mother and daughter codes in the service of synthesizing data according to project items and projects
Initial declarations
Declaring the acceptance values according to stages
Declaring expected prices according to targets, indices and factors
Declaring interest rates or base rates of projects
Updating the initial balance and remainder
Enter the initial balance of the schemes and projects
Enter the initial balance and remainder of the schemes and projects
Updating data
Having orders regarding conveyance according to schemes and projects
Processing and calculating
Calculating monthly averages for schemes and projects
Calculating profits of schemes and projects
Making entries regarding the carry-over of capital prices
Reporting input and output of materials and inventory according to schemes and projects
An account or record of the receipt of a material according to schemes and projects
An account or record of the delivery of a matetial according to schemes and projects
An account or record of the receipt of materials according to schemes and projects
An account or record of the delivery of materials according to schemes and projects
Synthesizing the receipts of materials according to schemes and projects
Synthesizing the deliveries of materials according to schemes and projects
Stock cards and a detailed book regarding materials of schemes and projects
Reporting receipts, deliveries and inventory according to schemes and projects