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Accounting for consumption and determining business results at Saigon Kinh Do Food Joint Stock Company - 1

GRADUATION REPORT

Thesis​​

" Consumption accounting and determining business results at Kinh Do Saigon Food Joint Stock Company "​

TABLE OF CONTENTS

PART 1: INTRODUCTION 8

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1. Reasons for choosing topic 9

a) General goal 10

Accounting for consumption and determining business results at Saigon Kinh Do Food Joint Stock Company - 1

b) Specific objectives 10

a) Primary data 10

b) Secondary data 10

4. Research object and scope 11

5. Thesis layout 11

PART 2: CONTENT 12

CHAPTER 1 12

1.1. Accounting for finished product consumption 12

1.1.1. Concept and meaning of finished product consumption 12

1.1.2. Accounting for finished product consumption 13

Debit side recorded 13

The side with 14 written

Debit account 157 – Goods sent for sale 15

Account used: 632 – Cost of goods sold 16

Debit side record 16

The side with 16 written

a) Concept 18

a) Sales revenue and service provision 21

Account 512: Internal sales revenue 21

Account 511,512 22

Account used: 521 “trade discount” 23

Account used: 532 “sales discount” 24

Account used: 531 “Returned goods” 24

Principles of revenue recognition and reflection on chart of accounts 25

b) Financial operating expenses 25

Accountants use account 635 – Financial expenses 25

a) Other revenue 26

Account 711 has no ending balance 26

b) other costs 26

Account used : accountant uses account 811 - Other expenses 26

Account 811 has no ending balance 26

a) Accounting for cost of goods sold 26

Account 632 28

b) Accounting for sales costs 28

CHAPTER 2 31

2.1. The formation and development process of the company 32

2.1.1 Formation process 32

2.1.2 Development process 32

2.2.1. Business purpose of the company 35

Years of business service 35

▪ Target 35

Store systems under the company 36

2.3. Company management organization 37

2.3.1. Organizational structure 37

Diagram 2.1: Management organization of Kinh Do Saigon 38 Joint Stock Company

2.3.2. Functions and tasks of departments 38

Board of Directors 38

Board of Directors 38

Deputy General Director 38

Administration - Human Resources Department 39

2.3.3.1. Organizational structure of accounting department 40

Organizational chart of accounting department 40

Diagram 2.2: Organization of accounting department at Kinh Do Saigon Joint Stock Company 41

2.3.3.2. Functions and tasks of each department 41

Chief Accountant 41

Diagram 2.3: Diagram of document circulation at company 46

CHAPTER 3 48

3.1. General characteristics of accounting for finished product consumption and determining consumption results at company 48

3.1.1 Overview of finished product consumption and determination of consumption results at company 48

3.1.2 Characteristics and requirements for managing the finished product consumption process at the factory

company 48

Pay now in cash 49

Pay after 49

3.2. Accounting for finished product consumption at company 51

3.2.1. Accounting voucher procedures used 51

3.2.2. Applicable account 51

3.2.3. Accounting sequence 52

Note 52

Diagram 3.1: Accounting sequence in Detail Book, General Ledger Account 511 52

3.2.3.1. For customers who are outside the company 52

3.2.3.2. For stores within the company 53

3.2.4. Some sales transactions arising at company 53

3.2.4.1. Selling goods for cash and selling on credit to customers 53

GENERAL DIARY 54

3.2.4.2. Sales to Franchise customers (Company has just enjoyed

Sales revenue and service revenue) 54

GENERAL DIARY 55

March 2010 55

3.2.4.3. Exporting goods as gifts to employees and exporting to bakeries (stores)

goods belonging to the Company's internal system) 56

General Diary 57

3.3. Accounting for adjusting revenue deductions 57

3.3.1. Accounting for trade discounts 57

3.3.2. Accounting for returned goods 57

3.3.3. Accounting for sales discounts 58

3.3.4. Accounting sequence 58

Note 59

Daily Record 59

Recorded at the end of May 59

3.3.5 Some economic transactions arising at company 59

GENERAL DIARY 59

GENERAL DIARY 60

March 2010 60

Unit: Dong 60

Table 5: General journal recording sales returns of company 61

3.4. Accounting determines consumption results at company 61

Kinh Do Saigon Food Joint Stock Company 61

LEADERSHIP 61

Table 6: Ledger of sales revenue and service provision accounts at company 63

a) Method of determining cost of goods sold 63

b) Accounts and documents used 64

Accountants use account 632 "Cost of goods sold" 64

Note 65

Kinh Do Saigon 66 Food Joint Stock Company

LEADERSHIP 66

Table 7: Ledger of cost of goods sold account at company 67

Kinh Do Saigon 68 Food Joint Stock Company

LEADERSHIP 68

Table 8: Ledger of financial activity revenue accounts at company 69

Kinh Do Saigon Food Joint Stock Company 70

LEADERSHIP 70

Table 9: Ledger of financial activity expense accounts at company 71

a) Accounting principles 71

b) Documents used 71

d) Accounting sequence 72

Note 72

Diagram 3.4: Sequence diagram of accounting entries into the Detail Book, General Ledger Account 641 72

Kinh Do Saigon Food Joint Stock Company 73

LEADERSHIP 73

Table 10: General ledger of sales expense account at company 74

b) Documents used 75

c) Applicable account 75

d) Accounting sequence 75

Note 75

Daily Record 75

Diagram 3.5: Sequence diagram of accounting entries into the General Ledger, Detail Ledger Account 642 75

e) Some economic transactions arising at company 75

Kinh Do Saigon Food Joint Stock Company 76

LEADERSHIP 76

Table 11: General ledger of business management expense accounts 77

a) Accounting for other income 77

Kinh Do Saigon Food Joint Stock Company 77

LEADERSHIP 77

Table 12: Other income account ledger 78

b) Other cost accounting 78

Kinh Do Saigon Food Joint Stock Company 78

LEADERSHIP 78

Table 13: Other expense account ledger 79

a) Accounting principles 79

b) Documents used 79

c) Account used 80

Kinh Do Saigon Food Joint Stock Company 80

LEADERSHIP 80

Table 14: General ledger of corporate income tax expense account 81

a) Accounting principles 81

b) Documents used 81

c) Applicable account 81

d) Accounting sequence 81

Note 81

Daily Record 81

Kinh Do Saigon Food Joint Stock Company 81

LEADERSHIP 81

(6) (3) .............................................. .......................... 83

Account 642 83

(7) ................................................. ................................................................ .......................... 83

Account 811 83

Account 821 83

Account 421 83

Diagram 3.7: Accounting diagram to determine business results of the first quarter of 2010 83

BUSINESS PERFORMANCE REPORT 84

Debit account 8211: 541,902,190 86

Credit account 3334: 541,902,190 86

Debit account 3334: 541,902,190 86

Credit account 1111: 541,902,190 86

Debit account 911: 541,902,190 86

Credit account 8211: 541,902,190 86

Debit account 911: 1,625,706,569 86

Credit account 421: 1,625,706,569 86

PART 3: CONCLUSION AND RECOMMENDATIONS 86

4.1.3. About accounting method 88

4.2.1 Advantages 88

a) Accounting method 88

Debit account 156 88

Credit account 3389 88

Debit 3389 88

There is account 331 88

4.2.2 Existing issues 89

Debit account 621 90

There is account 152 90

Debit account 152 90

There is account 627 90

Debit account 6418 91

There is account 5121 91

Debit account 642 91

There is account 139 91

Debit account 139 92

There is account 642 92

Debit account 139 92

Debit account 642 92

Debit account 004 92

Debit account 152 92

There is account 154 92

CONCLUSION 92

REFERENCES 93

PART 1: INTRODUCTION

1. Reason for choosing the topic

In today's market economy, with the business accounting mechanism and fierce competition of many economic sectors, in order to survive long-term and develop sustainably, production and business units must ensure autonomy in production and business activities and operate profitably. To achieve this requirement, business managers need to grasp timely and accurate information, thereby serving as a basis for making the most effective business decisions. Therefore, managers must pay attention to all stages of the production process, from the time of investing capital to recovering capital because the ultimate goal of most businesses is to maximize profits. In this condition, businesses must decide for themselves what to produce? For whom to produce? And how to produce? At this time, any business that organizes the consumption of products and goods well will ensure capital recovery, offset costs and correctly determine business results and will have the opportunity to survive and develop. On the contrary, any business that does not pay attention to consumption and determine business results will lead to a situation of "fake profit, real loss" and sooner or later will go bankrupt. To do that, businesses must grasp and meet the psychology and needs of consumers with high-quality products, beautiful and rich designs, diverse, attractive marketing programs, promotions... only then can businesses compete to survive and develop. The reality of the market economy has clearly shown that.

Through consumption, products are transformed from physical form to monetary form and finally end a capital circulation cycle. Only by consuming new products can there be capital to carry out expanded reproduction, improving the efficiency of capital use. However, to promote consumption, managers must use many different tools and measures, in which accounting is an important and indispensable tool to manage economic activities, check the use and management of assets and goods to ensure dynamism, creativity and autonomy in production and business. Thanks to the accounting information provided, business managers can know how the business's product consumption is, what the business results are during the period, thereby creating a basis for outlining appropriate business strategies to promote

promote production and business activities, enhance the competitiveness of enterprises in the market.

Realizing the importance of the above issue, through the internship at Kinh Do Saigon Food Joint Stock Company, with the dedicated guidance of Teacher Pham Xuan Vien and the attention and guidance of the seniors in the company's accounting department, I realized that accounting in general and accounting for finished product consumption and determining business results are extremely important parts that always require improvement. Therefore, I decided to delve into the company's accounting work with the topic: "Accounting for finished product consumption and determining business results at Kinh Do Saigon Food Joint Stock Company".

2. Research objectives

a) General objectives

The main objective of the research topic is to further improve the theoretical aspect of organizing product consumption accounting and determining business results in the conditions of a market economy, financial measures to promote product consumption to solve some problems in current accounting practices.

b) Specific goals

Research the actual situation of product consumption and accounting work to determine the results at the company to make some recommendations for the agency to refer to. Learn and accumulate practical experience for yourself.

3. Research methods

- Dialectical method: examines the dialectical relationships of consumption accounting objects and determines business results in a specific time and space.

- Data collection method:

a) Primary data:

Observe, collect documents from the company as well as learn about issues related to research from accounting staff at the internship unit and according to one's own understanding.

b) Secondary data:

+ Financial reports of the enterprise: balance sheet, income statement

Business results, receipts, payment vouchers...

+ Collect more information from newspapers (Saigon Marketing newspaper, ...) and the Internet.

4. Research object and scope

The topic focuses on theoretical and practical research on the organization of product consumption accounting in the context of a competitive market economy and financial measures to promote product consumption at Kinh Do Saigon Food Joint Stock Company - a company specializing in the production and supply of confectionery products and industrial food processing to the market. On that basis, establish a model of organizing product consumption accounting based on the company's current application, and at the same time improve it to perfect the accounting system for the enterprise.

This topic is limited to the scope of production and business activities of Kinh Do Saigon Food Joint Stock Company. The author only studies the product consumption process, costs, and revenue in the early part of 2010 (Quarter I). The data is collected from the company's accounting department.

5. Thesis layout

The thesis consists of 3 parts: introduction, content and conclusion - recommendations.

There are 3 chapters in the content:

Chapter 1: Theoretical basis of consumption accounting and determining operating results

business.

Chapter 2: Current status and operation of Food Joint Stock Company

Saigon Capital Product.

Chapter 3: Accounting for consumption and determining business performance at

Kinh Do Saigon Food Joint Stock Company.

Due to the limitations of time and personal knowledge, the thesis is inevitably flawed. I sincerely hope for the guidance and comments of teachers and friends to help improve the thesis.

CHAPTER 1:

PART 2: CONTENT

THEORETICAL BASIS OF CONSUMPTION ACCOUNTING AND DETERMINING RESULTS

BUSINESS PERFORMANCE

1.1. Accounting for finished product consumption

1.1.1. Concept and meaning of finished product consumption

1.1.1.1. Concept

Product production activities include: production - circulation - distribution - consumption. These stages take place sequentially and consumption is the final step that determines the success or failure of the product as well as the business.

Consumption of finished products is the process of providing products to customers and receiving money or being accepted by customers for payment. Consumption is the process of transforming capital from physical form to "monetary" value form and forming business results. In other words, consumption is the process of transferring ownership of products and goods associated with benefits or risks to customers and at the same time receiving money or payment acceptance. If a business's products meet market demand, they will be consumed quickly, increasing capital turnover, and if the cost is reduced, it will increase the business's profits.

There are many common ways to consume finished products, it can be consuming products by selling directly to customers, or it can be exporting to agents for sale. If the enterprise exports by selling directly to customers, the enterprise can sell at a cash price or can sell at an installment price; the enterprise can export products to customers and collect money or have customers accept payment, or it can export products to customers by exchanging goods.

Enterprises can supply products on demand and by agreement with various organizations and individuals; they can also supply on demand or according to state orders.

Products made by enterprises are mostly consumed in the market, but in some cases they are consumed internally; used as gifts; free promotions; used to pay salaries and bonuses to employees...

The company's products can be consumed in the domestic market, as well as

can export to foreign markets to expand the market.

1.1.1.2. Meaning

Consumption of finished products (goods) is to carry out the purpose of production and consumption, bringing goods from the place of production to the place of consumption, so the consumption process is the bridge between production and consumption. It is the stage of reproduction, creating conditions for capital recovery, cost compensation, fulfilling obligations to the State Budget through tax payment, further investment in development, improving the lives of workers. Especially in a market economy, consumption is not only about selling goods but also includes market research, determining customer needs, organizing the purchase and sale of goods according to customer needs to achieve the highest business efficiency.

1.1.2. Accounting for finished product consumption

The method of consuming finished products has a direct impact on the use of accounting accounts reflecting the situation of finished products and goods being exported from the warehouse. At the same time, it is decisive in determining the time of sale, forming sales revenue and saving sales costs to increase profits. Currently, businesses often apply the following sales methods:

1.1.2.1. Sales and accounting for sales by consignment method According to this method, the business periodically sends goods to customers on

The basis of the agreement in the sales contract between the two parties and delivery at the agreed location in the contract. When the goods are shipped, they still belong to the business, only when the customer pays or accepts payment will ownership be transferred and sales revenue be recorded.

Account used: 157 – Goods sent for sale.

Content and structure of account 157:

The debit side records:

- Actual capital value of finished products, goods for sale, consignment.

- Value of labor and services performed for customers but not yet received

accept payment

- Carry over the actual cost of goods and finished products sent for sale that have not been accepted for payment by customers at the end of the period (periodic inventory method).

The side that says:

- The actual capital value of finished products, goods and services sent for sale has been recorded.

Customer pays or accepts payment.

- Value of goods, finished products, services returned or not by customers

accept.

- Carry over the value of finished products and goods that have been sent but not yet received by customers.

Beginning balance (Periodic inventory method).

Debit balance: recorded on the debit side and reflects the value of finished products and goods sent for sale that have not been accepted for payment by customers.

Principles of reflection in accounts:

- Only reflect in account 157 "Goods sent for sale" the value of goods that have been sent or the value of completed services delivered to customers according to economic contracts or orders but have not been accepted for payment (not yet recorded as sales revenue and service provision in the period)

- The goods in this account are still owned by the enterprise. The accountant must open a book to track each type of goods, each product; each time goods are sent and each time payment is accepted (Goods and products are determined to be consumed).

- Do not reflect in this account the costs of transportation, loading and unloading, and advance payment.

client...

Accounting method by shipping method:

- For units accounting for all inventories using the regular declaration method

through:

- Based on the warehouse delivery note for sending finished products and goods for sale or sending them to agents for sale - the accountant records:

Debit account 157 – Goods sent for sale

Credit account 155 – Finished products

Credit account 156 – Goods

- In case a trading enterprise purchases goods and sends them for immediate sale without going through the warehouse, accounting

math:

Debit account 157 – Goods sent for sale

Credit account 331 – Payable to sellers

- Based on the payment acceptance or payment documents of the customer, the sales agent and other payment documents, the accountant transfers the cost of goods sold to the debit side of account 632 - Cost of goods sold.

Debit account 632 – Cost of goods sold Credit account 157 – Goods on consignment

- Finished products, goods have been sent or services have been performed, but the customer does not accept them, the accountant reflects the re-import transaction:

Debit account 155 – Finished products Debit account 156 – Goods

Credit account 157 – Goods on consignment for sale

- For units that account for inventories using the periodic inventory method

period:

- At the beginning of the period, the value of finished products sent for sale at the end of the previous period but not yet accepted for payment is transferred, the accountant records:

Debit account 632 - Cost of goods sold Credit account 157 - Goods on consignment

- At the end of the period, based on the results of inventory of finished products sent for sale but not yet determined as sold, the accountant records:

Debit account 157 – Goods on consignment for sale

Credit account 632 - Cost of goods sold

- When exporting finished products, the accountant records:

Debit account 157 – Consignment for sale

Debit account 632 – Direct sales at warehouse

Credit account 155 - Actual cost of finished products leaving the warehouse

1.1.2.2. Sales and accounting for sales by direct delivery method According to this method, the customer authorizes a professional staff to come to

Receive goods at the warehouse of the selling enterprise or deliver goods by third parties (trading enterprises that buy and sell directly). After the recipient signs the sales document of the enterprise, the goods are determined to be sold (ownership belongs to the customer).

Account used: 632 – Cost of goods sold Content and structure of account 632:

Debit side:

- The actual capital value of finished products and goods exported from the warehouse has been determined.

is for sale.

- Cost value of finished goods inventory at the beginning of the period (Periodic inventory method)

period in manufacturing enterprise).

- Actual capital value of finished products in stock and completed labor and services (Periodic inventory method in manufacturing enterprises).

- Non-deductible input VAT must be included in cost of goods sold.

The side that says:

- Carry over actual capital value of finished products, goods, labor and services

Completed in debit account 911 - Determining business results.

- Transfer the capital value of finished products in inventory at the end of the period to the debit side of the account.

155 – Finished products (Periodic inventory method in manufacturing).

Account 632 has no balance.

The method of exporting finished products and goods according to the direct sales method is as follows:

- For units accounting for all inventories using the regular declaration method

through:

- Based on the warehouse delivery note, deliver goods directly to customers, accounting

take note:

Debit account 632 – Cost of goods sold Credit account 155 – Finished products

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