In addition, import and export lists, cumulative tables summarizing import, export, and material inventory are also used to make detailed accounting entries simple, quick, and timely.
1.2.3 Detailed accounting methods for raw materials
Due to the characteristics of manufacturing enterprises, raw materials often have many different types. However, the lack of a raw material can also cause production to stop, so accounting for raw materials must ensure monitoring of the fluctuation of each raw material item. Currently, there are 3 detailed accounting methods for raw materials
- Parallel card method
- Rotating reconciliation book method
- Balance book method
Each method has its own advantages, disadvantages and scope of application, but all aim to monitor the import, export and inventory of materials in terms of quantity and value in the warehouse and accounting department.
1.2.3.1 Parallel card method
* Conditions apply:
- Businesses have few types of goods and materials
- Import and export transactions are few and irregular.
- Accounting staff's professional qualifications are still limited.
* Book opening principles:
- The warehouse book (warehouse card) is created by the accountant and assigned to the warehouse keeper to track physical items.
- Detailed ledger opened by warehouse card to easily track quantity and value.
* Recording order:
At the warehouse: Every day when receiving import-export documents of materials, the warehouse keeper must check the reasonableness and legality of the documents, then record the actual import and export, calculate the inventory number to record on the warehouse card. The warehouse card is opened for
each type of raw material. For the material delivery voucher according to the quota, after each delivery, the warehouse keeper must record the actual delivery number on the warehouse card without waiting until the end of the document to record it once. The warehouse keeper must regularly compare the inventory number on the warehouse card with the actual remaining data in the warehouse to ensure that the books and physical items always match. The warehouse keeper must periodically transfer all import and export vouchers classified by each material to the accounting department.
In the accounting department:
The accountant must open a detailed accounting book (card) of raw materials for each material item corresponding to the warehouse card opened in the warehouse. The accountant uses the detailed accounting book (card) of raw materials to record the import and export of inventory according to physical and value indicators. Basically, the detailed accounting book (card) of raw materials is similar to the warehouse card, but has additional columns to record physical and value indicators.
Daily or periodically, when receiving import and export documents transferred by the warehouse keeper, the material accountant must check the documents, compare the import and export documents with other related documents such as purchase invoices, purchase orders, etc., record the accounting price and calculate the amount. Then the accountant records the import and export transactions in the related detailed material accounting books. At the end of the month, the accountant adds the material details and checks and compares them with the warehouse card. In addition, to have data for comparison and checking with the general accountant, it is necessary to summarize the detailed accounting data from the detailed accounting books into the summary table.
Warehouse card
Warehouse receipt
Diagram 1: Detailed material accounting using parallel card method
Material detail book
Warehouse delivery note
NXT Summary Table
KT book
Material synthesis
Note: Record daily Record at the end of the month
Compare, check
* Advantages: This method is simple in recording, easy to do, easy to check, compare and detect errors in data, ensures the accuracy of information and has the ability to provide quick information for inventory management accounting.
* Disadvantages: The recording between the warehouse and the accounting department still overlaps in terms of quantity indicators. In addition, the checking and reconciliation are mainly carried out at the end of the month, thus limiting the timely checking function of the accountant.
1.2.3.2 Rotating reconciliation book method
* Conditions apply:
Suitable for businesses that do not have many import and export operations and do not have separate staff to account for detailed raw materials.
* Recording order:
In stock:The warehouse keeper's recording is also done on the warehouse card like the parallel card method.
In the accounting department : The accountant checks and opens the circulation reconciliation book to record the import and export situation regarding the quantity and value of each material item in the warehouse. On the circulation reconciliation book, the accountant records once at the end of the month the change of each material item. To have data recorded in the circulation book, the accountant must make an import list, an export list based on the periodic import and export documents transferred by the warehouse keeper. At the end of the month, check and compare the quantity of materials on the circulation reconciliation book with the quantity of materials on the warehouse card, and compare with the general accountant.
Diagram 2: Detailed accounting of materials according to the circulation reconciliation book method
Warehouse receipt
Import statement
Warehouse card
Circulating reconciliation book
General accounting book of materials
Warehouse delivery note
Export list
Note: Record daily Record at the end of the month
Compare, check
* Advantages: This method is simple and easy to do, reducing the amount of work required for accountants to record compared to the parallel card method.
* Disadvantages:
- Duplicate records between the warehouse and the accounting department regarding quantity indicators.
- Checking and comparing data between the warehouse and the accounting department is only done at the end of the month, thus limiting the checking effect.
- According to the requirement of providing quick information for inventory management, businesses should not use this method, because to make a quick inventory report, it is necessary to rely on the data on the warehouse card. Data between the warehouse and the accounting department is not conducted during the month because the accountant does not record it.
- The work of recording books and checking and reconciling is concentrated at the end of the period, so in case the number of documents and types of materials is quite large, the checking and reconciling work will be difficult, affecting the progress of other accounting stages.
1.2.3.3 Balance book method
This method is a fundamental improvement in organizing detailed accounting of materials. The outstanding feature of this method is to closely combine the accounting of warehouse operations with the recording of the accounting department and on that basis, the warehouse only accounts for quantity and the accounting department only accounts for the value of materials, eliminating duplicate recording between the warehouse and the accounting department, creating conditions for regular inspection, ensuring accurate and timely accounting data.
* Conditions apply:
This method is suitable for businesses with many material names, frequent import and export operations. Many types of materials and on the condition that the business uses accounting prices to account for imports and exports. In addition, it requires the business to build a system of material names, qualifications
High expertise, solid accounting staff.
* Recording order:
In stock:
Accounting for raw materials in the warehouse is done by the warehouse keeper on the warehouse cards as in the above methods. Daily or periodically according to the company's regulations, after recording the warehouse card, the warehouse keeper must collect all documents for importing and exporting materials arising according to each specified material. Then, create a document delivery note for the accountant along with the documents for importing and exporting raw materials.
In addition, the warehouse keeper must also record the quantity of materials in stock at the end of the month according to each material item in the balance book. The balance book is opened by the accountant for each warehouse and used for the whole year. Before the end of the month, the accountant hands over the balance book to the warehouse keeper to record the quantity of materials in stock based on the warehouse cards. After recording, the warehouse keeper must transfer the book to the accounting department for checking and calculating the amount of money.
In the accounting department:
Periodically, the accountant must go to the warehouse to guide and check the records on the warehouse card of the warehouse keeper and collect documents. Upon receiving the documents, the accountant checks and calculates the price for each document, adding the total amount recorded in the amount column of the document delivery receipt. At the same time, record the amount just calculated for each group of materials in the cumulative table of import, export, and inventory of raw materials. This table is opened for each warehouse, one sheet per warehouse, recorded on the basis of the delivery receipts of import and export documents.
Next, add up the amount of money imported and exported during the month and base on the balance at the beginning of the month to calculate the balance at the end of the month for each group of materials. At the end of the month, when receiving the balance book transferred by the warehouse keeper, the accountant bases on the inventory at the end of the month calculated by the warehouse keeper and recorded in the balance book and the accounting unit price to calculate the inventory value to record in the amount column on the balance book. The checking and reconciliation is based on the inventory amount on the balance book and the summary list of imports, exports, and inventories (amount column) and the general accounting data.
Diagram 3: Detailed accounting of raw materials using the balance sheet method
Warehouse receipt
Warehouse card
Warehouse delivery note
Warehouse card
Balance book
Cumulative table of import, export and inventory of raw materials
General Accounting
Warehouse card
Note: Daily note
End of month recording
Compare, check
Advantages: Avoid duplicate records between the warehouse and the accounting department, reduce the amount of accounting records and calculations, work is carried out evenly throughout the month. Perform regular monitoring and inspection by the accountant
with daily import and export of raw materials.
Disadvantages:
- Because accounting only tracks value, to know the current quantity and increase or decrease of each material in physical form, one often has to look at the data on the warehouse card.
- It is difficult to check for errors and confusion between the accounting department and the warehouse.
1.3 General accounting of raw materials
Raw materials are the current assets of the enterprise and are imported and exported regularly. However, depending on the characteristics of raw materials of each enterprise, there are different inventory methods. According to the current accounting regime, there are 2 methods of accounting for raw materials:
- Regular declaration method
- Periodic inventory method
Each method has different characteristics and accounting methods suitable for different specific businesses. There are different disadvantages, work
Business accounting needs to research and choose the appropriate method.
1.3.1 General accounting of raw materials according to the regular declaration method
1.3.1.1 Concept, characteristics, advantages, disadvantages and scope of application of the regular declaration method.
Concept: The regular declaration method is a method of monitoring and reflecting regularly, continuously, and systematically the import, export, and inventory of materials and goods in the accounting books. Therefore, the value of materials and goods in the accounting books can be determined at any time during the accounting period.
Characteristic:
- All fluctuations in increase and decrease (import, export) and current quantity of materials and goods are reflected in inventory accounts (Accounts 151, 152, 153, 156, 157)
- At the end of the accounting period, compare the actual inventory data of goods and materials with the quantity of goods and materials in the accounting books.
- Calculate the cost of goods sold based on the warehouse delivery documents and the applied cost calculation method:
Actual export price = Export quantity x Unit price calculated for export goods
Advantages: this method has high accuracy and provides timely updated inventory information. With this method, at any time, accountants can determine the quantity of imports, exports, and inventory of each type of inventory.
Disadvantages: increase the volume of daily recording, take a lot of calculation effort, put pressure on accountants. However, this disadvantage is overcome when businesses computerize accounting work.
Applicable conditions: Suitable for manufacturing and trading enterprises that trade in valuable, large-scale goods, with traceable output materials each time.
1.3.1.2 User account:
Account 152 "Raw materials": (mainly used) This account is used to reflect the current value and the increase and decrease of raw materials.
- Value of imported raw materials during the period. - Value of self-processed and outsourced raw materials. - Raw materials are received from joint venture capital or other sources. - Value of unused imported raw materials - Value of excess raw materials detected when taking inventory | - Value of exported raw materials for sale, outsourcing processing or joint venture capital contribution. - Value of raw materials discounted or returned to seller - Trade discount on purchased raw materials - Value of lost materials, loss on inventory |
Debit balance: Actual value of raw materials in inventory at the end of the period |
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Debit account 152 Credit
Account 152 can open sub-accounts for detailed accounting by group and type of material depending on the management requirements of the enterprise.
Account 151: "Goods in transit" This account is used to reflect the value of purchased goods and materials that have been identified as purchased goods but have not yet been stored in the warehouse.
Debit account 151 Credit
- Value of purchased goods in transit | - Value of materials on the way to warehouse or transfer to users or customers. |
Debit balance: Value of materials in transit that have not yet been returned to the warehouse |
amniotic
In addition to the above accounts, accountants also use the following accounts: TK111, TK 112, TK 154, TK 133, TK 141, TK 331, TK 411, ....