* Accounting method: The accounting method for revenue deductions is presented in Appendix 1.2.
1.2.1.3. Accounting for financial activity revenue
* Documents used: To reflect financial revenue, accounting uses the following documents:
Bank Debt Notice on the amount of money paid for bank loan;
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Accounting vouchers for transactions arising from foreign exchange rate differences; differences from investments, securities trading, etc.
Sales invoices also determine payment discounts for customers;
Invoices for fees, securities transaction fees….
* Account used: Accountants use account 515 to reflect financial activity revenue.
Account 515 – Financial activity revenue. Account 515 has no ending balance.
* Accounting method: The method of accounting for financial activity revenue is presented in Appendix 1.3.
1.2.1.4. Other income accounting
* Documents used
To account for economic transactions arising in relation to income from other accounting activities based on the following documents: Accounting vouchers; Receipts; Credit notes; minutes of liquidation and sale of fixed assets; economic contracts, etc.
To account for economic transactions arising in relation to operating costs.
Other business accounting needs to be based on the following documents: Payment voucher;
Debit Note;
Value added tax invoice;
Minutes of liquidation and sale of fixed assets; Payment slip; payment receipt;
Economic contract…
* Mainly used account
Account 711 – Other income
This account has no ending balance Ƕ.
* Accounting method
Other income accounting is presented schematically in Appendix 1.4.
1.2.2. Cost accounting
1.2.2.1. Accounting for goods prices
Cost of goods sold is the total business costs related to the sales process, including the cost of goods sold and related costs.
How to determine the value of exported goods for trading enterprises:
There are many ways to account for exported goods, but at the company, the actual capital value of exported goods is recorded according to the actual purchase value of each import for each item of goods. Actual purchasing costs incurred directly related to the purchasing process such as: transportation costs, loading and unloading costs, warehouse rental fees, etc. (accounted for separately and not included in the actual price of each item of goods), are calculated and allocated to exported goods at the end of the month (end of the month) to calculate the actual capital value of exported goods.
Cost of goods sold = Purchase price of goods + Purchase cost allocated to goods sold
In which, the purchasing cost allocated to goods sold is calculated according to the formula:
Determining cost of goods sold is the basis for determining business results.
* Documents used
- VAT invoice, sales invoice;
- Warehouse delivery note, internal transport delivery note, material delivery note;
- Warehouse receipt, inventory record, payment voucher.
* Mainly used account
Accounting for cost of goods sold using account: Account 632: cost of goods sold (Applicable to the method of accounting for inventory using the regular inventory method).
Account 632 has no ending balance.
*The accounting procedure for cost of goods sold is presented in Appendix 1.5.
1.2.2.2. Accounting for sales costs and business management costs
The content of selling expenses includes the following elements:
- Sales staff costs;
- Cost of materials and packaging;
- Cost of tools and supplies;
- Fixed asset depreciation costs;
- Product warranty costs;
- Cost of outsourced services;
- Other monetary costs.
Business management costs
Business management costs are all costs related to production and business management activities, administrative management and some general expenses for the entire business.
Business management costs include the following elements: management staff costs, management material costs, office equipment costs, fixed asset depreciation costs, taxes, fees, charges, contingency costs, outsourced service costs, and other cash costs.
* Documents used
- Receipt, Payment voucher;
- VAT invoice;
- Payroll;
- Fixed assets allocation table, Depreciation allocation table.
* Mainly used account
Account 641 – Selling expenses;
Account 642 – Business administration expenses;
Account 641 is used to reflect actual costs incurred in the process of selling products, goods, and providing services, including costs of offering, introducing products, advertising products, sales commissions, product and goods warranty costs, preservation, packaging, and transportation costs.
Account 642 is used to reflect the general management costs of the enterprise: including salary costs for employees of the enterprise management department (cash
salaries, wages, allowances, etc.); social insurance, health insurance, union dues, unemployment insurance for business management staff; land rent, business license tax; provision for receivables; outsourced services (electricity, water, telephone, fire and explosion, etc.); other cash expenses (reception, customer conferences).
Sales expenses and business administration expenses are not considered expenses for calculating corporate income tax according to the provisions of the Tax Law but have full invoices and documents and are accounted for according to the accounting regime, they cannot be recorded as a reduction in accounting expenses but can only be adjusted in the corporate income tax finalization to increase the amount of corporate income tax payable.
Finally, the accountant transfers the selling expenses and business administration expenses to the Debit side of account 911 - "determining business results".
* The method of accounting for selling expenses and business administration expenses is presented in Appendix 1.6 and Appendix 1.7.
1.2.2.3. Financial cost accounting
Financial operating expenses are expenses related to financial activities, financial investment activities and financial activities of the enterprise.
Financial operating expenses include:
- Expenses related to financial instrument investment activities, joint venture investment, associate investment, investment in subsidiaries;
- Costs related to lending activities;
- Costs related to foreign currency trading;
- Business borrowing costs are not capitalized, and discounts are deducted when selling products and goods;
- Difference between buying and selling foreign currencies, difference between foreign currency prices;
- Provision for short-term and long-term financial investment depreciation.
……
* Financial operating cost accounting uses the following documents:
Bank Debt Notice on the amount of money paid for bank loan;
Accounting vouchers for transactions arising from foreign exchange rate differences; differences from investments, securities trading, etc.
Sales invoices also determine payment discounts for customers; Invoices on fees, securities transaction fees...
* User account
Account 635 – Financial expenses;
Account 635 – Financial activity expenses;
Account 635 is used to reflect financial operating expenses including; financial investments; foreign exchange rate differences; bank loan costs; securities transaction costs; payment discounts for customers, etc.
* Accounting methods are presented in Appendix 1.8
1.2.2.4. Other cost accounting
Other costs are the costs of activities other than production activities.
Business generates revenue for the business.
Other costs include:
- Cost of liquidation and sale of fixed assets;
- Remaining value of liquidated fixed assets, normal sale;
- The remaining value or selling price of the fixed assets sold for lease back under the form of financial lease or operating lease;
- Fines for breach of economic contracts;
- Tax penalties and tax arrears;
- Expenses due to errors or omissions in accounting records;
- Other expenses.
*Certificate of use
To account for economic transactions arising in relation to income from other accounting activities based on the following documents: Accounting vouchers; Receipts; Credit notes; minutes of liquidation and sale of fixed assets; economic contracts, etc.
To account for economic transactions arising in relation to operating costs.
Other business accounting needs to be based on the following documents: Payment voucher;
Debit Note;
Value added tax invoice;
Minutes of liquidation and sale of fixed assets; Payment slip; payment receipt;
Economic contract…
*Mainly used account
Account 811 – other expenses;
Account 811 has no ending balance.
* The accounting treatment of other expenses is presented in Appendix 1.9.
1.2.2.5. Accounting for corporate income tax expenses
Corporate income tax expense (CIT): Is the sum of current CIT expense and deferred income tax expense (or current income tax income and deferred income tax income) when determining the profit or loss of an entity.
In there:
Determine current corporate income tax expense
Current corporate income tax is the amount of corporate income tax payable (or recoverable) calculated on the taxable income and current corporate income tax rate of the enterprise.
Current corporate income tax = taxable income x corporate income tax rate
Taxable income includes income from production and business activities.
goods, services and other income.
Every quarter, accountants must determine the provisional corporate income tax payable according to the provisions of the corporate income tax law. At the end of the fiscal year, based on the actual corporate income tax payable, accountants will record additional corporate income tax payable or record a reduction in current corporate income tax expense.
Determine the cost of corporate income tax refund
According to regulations, deferred corporate income tax payable will be recorded in deferred corporate income tax expense.
Deferred corporate income tax liabilities are corporate income taxes that will be payable in the future based on temporary differences subject to corporate income tax in the current year.
Deferred income tax assets are corporate income tax recoverable in the future based on deductible temporary differences, carry-forwards of unused tax credits and carry-forwards of unused tax credits.
* Documents used
- Sheet two of provisional corporate income tax;
- Sheet two of corporate income tax settlement.
* User account
Accountants use account 821 - Corporate income tax expense; account 821 is divided into two sub-accounts:
Account 8211 – Current corporate income tax expense;
Account 8212 – Refundable corporate income tax expense.
* The method of accounting for corporate income tax expenses is presented in Appendix 1.10.
1.2.3. Accounting for business results
Business performance is the final result of production activities.
The results of normal business operations and other activities of an enterprise in a certain period of time, expressed in terms of money or interest. The results of normal business operations are the results from the activities that generate revenue of the enterprise, which are business activities and service provision.
* Documents used
- Spreadsheet of business results, other operating results
- Other self-made documents, accounting vouchers
* User account
Account 911 – Determination of business results;
Account 421 – Undistributed profits.
* The accounting method for determining business results is presented in the Appendix.
Section 1.11.
1.3. Accounting for business units, expenses and business results from the management accounting perspective
1.3.1. Prepare revenue, cost and business results estimates to serve management requirements
Budgeting is one of the tools widely used by managers in planning and control. Budgeting provides businesses with information about the entire business plan of the business in a systematic and guaranteed manner.
implementation of the set goals. In addition, budgeting also has the following other effects:
- Identify specific goals to serve as a basis for evaluating future performance;
- Anticipate potential difficulties to have timely and appropriate solutions;
- Link all business activities by integrating the plans and goals of different departments.
For commercial enterprises, the unit needs to prepare consumption estimates, cost estimates and business performance reports.
1.3.1.1. Tie estimate
business products
The product consumption estimate is the first estimate that needs to be made, this is the basis for determining other estimates. Making a consumption estimate is determining and calculating the estimated revenue amount for the operation and for the estimate.
When making a consumption budget, it is necessary to analyze the influencing factors, including:
- Consumption volume of previous Ƕ;
- Unfulfilled orders;
- Future pricing policy;
- Marketing strategy to expand the market;
- General terms and conditions of economic printing;
- Advertising, promoting production, competing in the market;
- Changes in gross domestic product, employment, prices, and per capita income.
Sales budget is prepared based on sales forecast. Sales budget includes information on types, quantity of goods sold, selling prices and structure of goods and products consumed.
Consumption budget = Consumption volume budget x Unit price of goods sold according to budget.
In addition, the sales budget also forecasts both cash sales and credit sales, as well as sales methods. When preparing sales budgets, managers need to consider the impact of marketing costs on sales activities at the enterprise.
1.3.1.2. Cost estimate
- Estimate cost of goods sold and estimate ending inventory