Characteristics of Accounting Organization and Accounting Forms

Production block

Office block

Pill factory

Ampoule injection workshop

Necklace

 Lactam

Non-woven fabric

 Lactam

Powder Injection Workshop

Electromechanical workshop

Necklace

 Lactam

Non-woven fabric

 Lactam

Diagram 2.1 Production organization model at pharmaceutical manufacturing enterprise

The pharmaceutical production process also has different characteristics compared to other manufacturing industries. Pharmaceutical production is carried out in production batches. The size of each production batch is also very diverse depending on the type of drug and depending on the consumption capacity. The time of each production batch is also different depending on the type of drug produced, tablets are only from 1 to 2 days but injections require 2 weeks because of the need to check the quality of microorganisms. To avoid cross-contamination, usually at a time there is only one production batch on a production line. The characteristic of the pharmaceutical production process is that any production batch needs to be tested for quality. The quality testing of pharmaceutical products is also different from other types of products. After production, pharmaceutical products need to be tested for qualitative, quantitative, uniformity and microbial limit to evaluate the quality of the drug according to the registered standards.

If the sample does not meet the quality standards, the entire production batch will be discarded. Normally, each pharmaceutical manufacturing enterprise has a testing department fully equipped with necessary equipment and qualified staff. However, for small-scale enterprises that cannot organize their own testing department, the product testing will be performed by the local Pharmaceutical Testing Center.

The pharmaceutical manufacturing process can be summarized into 3 stages: the production preparation stage, the production stage and the production completion stage. In the production preparation stage, the enterprise needs to prepare raw materials and packaging for the production process, for example, it is necessary to aseptically clean bottles and jars, grind materials and additives. The production stage is the stage where raw materials are mixed together according to the formulation of each type of medicine and transferred to the stages of drug shaping (compression, vial, etc.). The production completion stage is the stage of packaging and labeling the finished product. Usually, each of these stages is specialized for different production teams. For example, the Injection workshop at Central Pharmaceutical Factory 1 is divided into Water teams, Packaging teams, Mixing teams, Medicine making teams, Presentation teams and Warehouse teams.

It can be seen that pharmaceutical products have a continuous production process with a relatively short time. The pharmaceutical production process is summarized in diagrams 2.2 and 2.3.

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RAW MATERIALS

GRIND, SIEVE

BARTENDING

DRYING

TABLET COMPRESSING, FILM COATING, BLISTER COMPRESSING

TESTING

PACKING, LABELING

BARTENDING

RAW MATERIALS

HOLLOW PIPE

Tube Incubation

CUTTING PIPE

PIPE WASHING

SOI PRINTING

TESTING

Diagram 2.2 Technological process of tablet production

PACKING, LABELING

Figure 2.3 Technological process of injectable drug production

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The pharmaceutical consumption process also has its own characteristics of the pharmaceutical industry. Most pharmaceuticals are not directly selected by consumers, but consumers of pharmaceutical products are only selected indirectly through a doctor's prescription or availability in pharmacies (for non-prescription drugs). Therefore, the pharmaceutical product consumption process of pharmaceutical manufacturing enterprises depends heavily on intermediary distribution channels. Large enterprises often open branches in the provinces to promote and consume their drugs, such as Central Pharmaceutical Enterprise 1 with 5 branches in Nghe An, Thanh Hoa, Nam Dinh, Hai Phong, Da Nang and Ho Chi Minh City. In addition to branches in the provinces, pharmaceutical manufacturing enterprises often have to build a network of agents to consume their drugs.

2.1.4.2. Characteristics of management organization

Because Vietnamese pharmaceutical manufacturing enterprises currently have a large number of different scales, the way of organizing the management apparatus also has many different features. However, the general management organization model of these enterprises is to organize the management apparatus according to the functional online method, dividing the enterprise management apparatus into functional departments with independent professional responsibilities. The board of directors often divides work to deputy directors in charge of each field, such as production; business; technical - quality. The typical management organization of pharmaceutical enterprises is summarized in diagram 2.4.

2.1.5. Characteristics of accounting organization and accounting forms

2.1.5.1. Characteristics of accounting organization

The accounting apparatus in pharmaceutical manufacturing enterprises is currently organized according to the functional online model (diagram 2.5). The number of accounting staff is about 5 to 10 people depending on the size of the enterprise. Each accounting staff is assigned to be in charge of a specific part of the business, usually each unit has its own accounting staff in charge of detailed accounting of production costs and product pricing. Except for the Pharmaceutical Corporation, which has its own accounting organization according to the corporation model, all Vietnamese pharmaceutical manufacturing companies currently organize accounting work according to a centralized model.

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BOARD OF DIRECTORS

ORGANIZATION AND ADMINISTRATION DEPARTMENT

FINANCE - ACCOUNTING DEPARTMENT

PLANNING DEPARTMENT - MATERIAL SUPPLY

SECURITY DEPARTMENT

TESTING LABORATORY

QUALITY ASSURANCE DEPARTMENT

RESEARCH AND DEVELOPMENT DEPARTMENT

MARKETING DEPARTMENT

SALES DEPARTMENT

PRODUCTION WORKSHOP

Diagram 2.4 Organization of management apparatus in pharmaceutical manufacturing enterprises

Although there are many large-scale pharmaceutical enterprises with many branches nationwide, or production areas in different locations, all of these units organize a centralized accounting model. At the branches or production areas, the enterprise only arranges accountants or statisticians to collect documents, enter them into detailed lists, and then transfer those documents and lists to the central accounting department for processing.

CHIEF ACCOUNTANT

COST AND PRICE ACCOUNTING

ACCOUNTING PART

ACCOUNTING PART

ACCOUNTING AT CONSUMPTION BRANCH, PRODUCTION AREA

Diagram 2.5 Organization of accounting apparatus in pharmaceutical manufacturing enterprises

2.1.5.2. Applicable accounting form

The accounting forms applied in Vietnamese pharmaceutical manufacturing enterprises are currently very diverse, including the form of Bookkeeping vouchers (52%), the form of Voucher Journals (29%) and the form of General Journals (19%). Accounting work in pharmaceutical manufacturing enterprises today is mostly performed on accounting software with accounting systems that have flexible applications for each unit, but are still based on the principles of organizing accounting books according to regulations. Units applying the form of Voucher Journals encounter certain difficulties when performing accounting work on computers because the accounting software does not fully meet the requirements for organizing accounting work in the form of Voucher Journals.

At Central Pharmaceutical Enterprise 1, although the accountant opened detailed books for accounts 621, 622 and 627, the voucher journal No. 7 did not show the accounting process on these accounts, but all three items of raw material costs

Direct costs, direct labor costs and general manufacturing costs are all shown directly in account 154 (Appendix 12).

2.2. PRACTICE OF COST ACCOUNTING IN VIETNAMESE PHARMACEUTICAL MANUFACTURING ENTERPRISES

In fact, the cost accounting system in Vietnamese pharmaceutical manufacturing enterprises is influenced by two factors, which are the regulations of the cost accounting regime and the application of those regulations according to the characteristics of the pharmaceutical industry. In this part, the thesis will outline the cost accounting regime in manufacturing enterprises through the periods and the current cost accounting system in Vietnamese pharmaceutical manufacturing enterprises.

2.2.1. Overview of cost accounting regime in Vietnamese manufacturing enterprises through the periods

Right from the early days of the founding of the Democratic Republic of Vietnam, the government issued accounting regulations to serve the management of the young state. Along with the development of history, through the periods of resistance against French colonialism, the period of building the socialist North and the war against American imperialism in the South, the period of building the country after the war and the period of renovation - integration, the Vietnamese accounting system in general and the cost accounting system in particular also had appropriate developments, meeting the requirements of management and economic development of the country. The development process of the Vietnamese accounting system in general and the cost accounting system in particular can be summarized in three stages:

 Period before 1990

 Period from 1990 to 1995

 Period from 1996 to present

2.2.1.1. Cost accounting system before 1990

In 1957, Decision No. 130-TTg dated April 4, 1957 on "Gradual implementation of economic accounting regime in state-owned enterprises" marked the first accounting regime issued to put accounting into orbit.