Actual Situation of Salary Accounting and Salary Deductions at Quang Minh Company Limited.

 Sales and transaction work.

 Follow up on debt reconciliation.

 The company's administrative costs.

Synthesize data from workshops and arising parts in the office block or technical-financial department to make a general report for the whole company.

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Accounting organization chart at Quang Minh Company Limited

KT synthesis​​​

Payment method

Treasurer​​​

Chief Accountant​

KT and material​

Salary​​​​

Storekeeper​​

Information collection​

Functions and duties of each accounting department:

- Chief Accountant: In charge of accounting, is the head of the accounting-finance department, in charge of general implementation of accounting functions and tasks at the Company according to the management decentralization regulations of the Company Director.

- General accounting: is the accounting that summarizes all accounting items. Monitors and reflects activities accurately, completely, and promptly, and is responsible for accounting books.

- Payment accounting: Closely monitor the consumption and payment of debts, monitor the balance value and fluctuations during the period of each type of cash and bank deposits of the Company.

- Cashier: Responsible for collecting, disbursing, and preserving cash by recording cash books and reporting daily funds.

- Material accounting: Monitor the import - export - inventory of raw materials, spare parts... Material accounting monitors each type of material in detail at the end of the month, calculates the storage fee for materials used during the period and makes a summary table.

have for raw material accounts, fixed assets, transfer to general accountant, chief accountant of the Company.

- Salary and social insurance accounting: Monitor and calculate salaries and social insurance for employees.

- Warehouse keeper: Monitor the import and export of raw materials and finished products and compare them with the material inventory at the end of the month and quarter.

2.1.3.2. Organization of application of the account system.

Based on the accounting system issued by the Ministry of Finance. Based on the actual accounting situation at the unit, the enterprise has used an accounting system applied at the unit. These are accounts revised according to the new circular of the Ministry of Finance, using accounts suitable for the production and accounting form at the unit.

2.1.3.3. Accounting forms, accounting books.

a) Accounting form.

The company applies the accounting method of bookkeeping and records inventory using the periodic inventory method, and calculates value added tax using the deduction method. This is very suitable for the production scale of the enterprise.

Accounting vouchers​​​​

Register of accounting documents​​​​

Ledger of accounts​​

Summary table of detailed ledgers​​​​​​

Detailed ledger account 911​

Other accounting books​​

Diagram of accounting form of accounting vouchers

Detailed account book 632,511,131​

Original document​​​​​

Financial report

Detailed report on revenue and business results​​

Note:

: Daily Record

: End of month

: Check and compare b). Accounting books.

Accounting books are used to systematically record and store economic and financial transactions that have arisen and are related to the accounting unit.

With the form of accounting by vouchers, all economic transactions in original documents are classified and recorded in vouchers before being recorded in the general accounting books.

The accounting system used by businesses includes:

- Ledger accounts.

- Books, cards, detailed accounting.

At the end of the month, the detailed accountant summarizes the economic transactions that occurred during the month, creates accounting vouchers and ledgers for all accounts at once. The ledger that the enterprise uses and the form of the ledger with few columns is suitable for the characteristics of the machine's operation, ensuring the principles of detailed accounting standards when using computers.

2.1.3.4. Accounting voucher system.

For economic and financial transactions arising in relation to the unit's operations, the accountant must prepare accounting documents. All activities of the Company are fully and promptly prepared with accurate documents according to the content prescribed in the form of the Ministry of Finance. During the accounting process, there are documents that do not have an accounting form. The Company has prepared its own documents but ensures that they fully comply with the contents prescribed in Article 17 of the Accounting Law. At the same time, some documents such as warehouse receipts and warehouse delivery notes are shortened and replaced with goods delivery and receipt minutes to suit the Company's operations.

Accounting documents must be prepared in accordance with the prescribed number of copies, valid documents, and appropriate for each item.

- Salary documents: Timesheet, social insurance leave slip, overtime notice slip.

- Documents on raw materials and finished products: Delivery receipt, value added invoice.

2.1.3.5. Equipment and machinery conditions.

Due to the scale of the Company's operations and management requirements, the Company has applied computerized accounting processing. However, due to the limited number of operations, the Company does not use any specialized accounting software, but mainly uses statistical operations, calculations, and document presentation to be able to account for debts, account in detail for accounts, and estimate costs such as raw materials and salaries quickly and promptly.

2.1.3.6. Inventory accounting .

The company applies the method of accounting for inventories according to the periodic inventory method. This method does not reflect the continuous monitoring of the import and export situation on the accounts but only reflects the value of the inventory at the end of the period. Therefore, it is a simple and compact inventory method and does not require adjusting the inventory data, thereby reducing labor and accounting costs (this method is suitable for the operation of companies with small and medium production scale).

Real value

commodity economy =

out of stock

Actual value of beginning inventory

Actual value

+ goods imported into warehouse during the period

Practical cockroach treatment

- Ending inventory

2.1.3.7. Applied accounting regime.

Quang Minh Company Limited strictly implements the accounting regime issued by the Ministry of Finance, which are circulars, decrees, regulations and instructions on accounting in the field or some specific tasks issued by the state management agency on accounting or authorized organizations. These are the following circulars and decrees:

- Circular No. 89/2002/TT-BTC guides accountants in implementing 4 accounting standards issued under Decision No. 149/2001/QD-BTC dated December 31, 2002.

- Decree of the President on promulgation of the Law on Accounting No. 12/2003/LKTN dated June 26, 2003.

- Circular No. 13/2003/TT-BLDTBXH dated May 30, 2003 of the Ministry of Labor, War Invalids and Social Affairs. Guiding the implementation of a number of articles of Decree No. 114/2002/ND-CP dated December 31, 2002 of the Government on wages for employees working in enterprises operating under the Enterprise Law.

- Circular No. 07/2003/ND-CP dated January 9, 2003 of the Ministry of Labor, War Invalids and Social Affairs guiding the implementation of a number of articles of Decree No. 01/2003/ND-CP dated January 9, 2003 on amending and supplementing a number of social insurance regulations issued together with Decree No. 12/CP dated January 26, 1995 of the Government.

- Decree No. 114/2002/ND-CP dated December 31, 2002 of the Government detailing and guiding the implementation of a number of articles of the Labor Code on wages.

- Decree No. 03/2003/ND-CP dated January 15, 2003 of the Government on adjusting social allowance salaries and innovating a step in salary management.

2.2 . ACTUAL SITUATION OF SALARY ACCOUNTING AND SALARY DEDUCTIONS AT QUANG MINH COMPANY LIMITED.

2.2.1. General situation of labor management .

Quang Minh Company Limited is a company with a workload and production model of a small and medium enterprise type. The products produced are of a specific nature, so the company's labor resource management is classified as follows:

- Direct labor force of 136 people. The average worker level of the whole company is 3/7, with a team of many years of experience, so in recent years the Company has always completed the set targets and has increasingly gained prestige in the mechanical, construction and structural installation market in the North and the whole country.

- Professional management staff: Office block includes 1 supervisor

Director, 2 deputy directors, 1 chief accountant and 39 employees in various departments.

- Other staff: 8 people (including driver, kitchen, security)

2.2.2. Characteristics of salary and salary management in the Company .

Salary is the amount of money that a business pays to employees according to the quantity and quality of labor they contribute to the business, to ensure that employees have enough to reproduce their labor and improve their labor.

Realizing the importance of salary, the Board of Directors and the accounting and finance department have built a suitable salary system since the Company started operating to ensure a stable life for employees.

According to regulations for enterprises in the non-state economic sector. Enterprises do not apply the salary scale system, salary table issued by the state, but employees negotiate with the representative of the grassroots union to sign labor contracts with the Board of Directors. The agreed salary stated in the labor contract always ensures that it is at least equal to the salary according to the profession or job prescribed by the state.

Right from the beginning of the establishment of the Company. The labor contract between the Company and the employee has agreed on a salary level which is the salary level. The salary payment regime is based on the work that the employee is in charge of plus professional qualifications and training degrees. The regulation of salary distribution for each department

, individual workers according to the regulations depend on the productivity, quality, efficiency of work, work of each part of workers, not distributed equally. For workers with high professional qualifications such as university graduates, high-level workers with good techniques, playing an important role and contributing to the formation of the production and business tasks of the unit, the salary and income must be paid accordingly. The difference in salary and income between simple service workers and workers with high professional, technical and good qualifications within the Company is considered and regulated accordingly.

Fully implement new circulars and decrees regulating new wages such as Circular No. 13/2003/TT-BLDTBXH, guiding the implementation of a number of articles of Decree No. 114/2002 of the Government on wages for employees working in enterprises operating under the Enterprise Law; Circular No. 04/2003/TT-BLDTBXH, guiding the implementation of salary and allowance adjustments; or Decree No. 03/2003/ND-CP on adjusting wages, allowances and innovating the wage mechanism, or the Company's announcement regulations on wages, bonuses... Currently, the Company has built a reasonable salary scale, suitable for the increase in living standards, initially ensuring the lives of officers and employees.

In addition to the salary level according to regulations, the Company's officers and employees also receive the Company's own salary coefficient based on the current job position and assigned work standards. That is:

- Responsibility allowance for staff.

- Allowance for meals, construction, housing, general allowance.

- Other allowances calculated on social insurance and health insurance numbers paid in lieu of salary.

There are also bonuses based on employee ranking or production progress of teams.

Due to the actual production situation, the Company uses the product-based and quality-based salary regime to link the tasks of employees with the final products of the unit based on the approved salary fund. The distribution of salaries to employees is applied in the form of a total project contract for the unit for work with technical standards. Production support workers, technical and professional staff, leaders and managers who are subject to the salary regime are entitled to full other benefits according to the current regime.

In addition, every year, based on the actual situation of the Company and the capacity and responsibility of the staff, the Company conducts a salary increase and salary level for staff.

2.2.3. Forms of salary payment for officers and employees at the Company .

The Company strictly and fully complies with Article 7 of Decree No. 114/2002/ND-CP dated December 31, 2003, which specifically stipulates the forms of salary payment. Based on the actual production situation and the organization of the enterprise's management apparatus, the Company has selected the most suitable forms of salary payment, associated with specific labor requirements and management to encourage employees to improve their skills, labor productivity and work efficiency. These are the following forms:

- Time-based salary (monthly) applies to office workers, those working in management, technical and professional positions.

- Piece rate salary: Due to the characteristics of production, workers' salaries are mainly piece rate salaries. In the Company, piece rate salaries are divided into 2 types.

+ Piece rate: applied to teams in workshops for products and projects that need to be completed within a certain period of time. The work for officers and employees is piece rate.

+ Construction contract salary: These are cases of construction work if calculated by daily wages. Usually applied to projects with small number of jobs, difficult complexity, requiring high technical skills or jobs requiring repairs.

2.2.3.1. Piece rate salary.

In order to effectively implement the payment of wages according to the unit price of product wages - piecework wages, linking wages with productivity, quality and production and business profits of each unit, department and individual employee under management. The Company has developed and issued the Company's salary distribution regulations according to the instructions in Official Dispatch No. 4320/LDTBXH-TL dated December 29, 1998 of the Ministry of Labor, War Invalids and Social Affairs.

a). Regulations on unit price of wages.

Due to the nature of production being contracted projects. Being a non-state-owned company, the company's regulations on unit price of contracted wages both have their own characteristics and ensure the regulations issued by the state.

Based on: - Unit price level.

- Minimum wage unit price

- Product unit price.

The Company has issued regulations on unit prices for products to ensure the quality of products and maintain the Company's reputation, specifically:

1> For structural welding:

a) Unit price for welding complete frame structure of Czech house: 185 VND/kg.

b) Unit price for welding complete Zamil house frame structure: 210 VND/kg

c) Complete unit price of flat mold: 5800 VND/kg 2> For building Czech and Zamil style house frames: 210 VND/kg

b) Product salary.

Construction workers, construction installation workers salary according to:

- Work standards.

- Unit price of salary for each product job.

Salary = Actual work salary unit price * Standard

Labor norms here are regulated by the state for each job and construction item or are set by the enterprise itself according to actual conditions in the following 2 ways:

- Build labor standards from structural components.

- Build standards according to the number of required workers.

The Company's piecework wage is a collective product contract for production teams and construction teams. During the process, the team leader assigns work based on the skills and ranks of workers to ensure production. At the end of the working day, the productivity and quality of team members are checked. Those with high productivity and good quality will be given extra pay, those with low productivity will receive less pay or have their work deducted. Each month, the team leader and team leader must be responsible for sending the timesheet to the accounting department to calculate the salary. At the end of the month, the timesheet is summarized for salary payment.

The basis for making a salary scale is based on the work assignment form and the acceptance of payment for actual work.

Salary calculation for individuals

Salary =

Total salary of the whole team in the month *

Actual number of workers in the month

Total actual product output of the whole team in the month

Piece rate salary paid to employees here is the amount of productivity and quality, those who do more work in a month will receive more salary and vice versa.

2.2.3.2. Time wages .

Applicable subjects: applicable to office teams, departments in the Company including office staff, indirect labor force - those who do management work, support work for the Company's production activities.