Company Performance in Recent Years

- Deputy Accounting Manager: Support and be responsible to the Chief Accountant in guiding the accounting regime, checking and approving books and documents within the assigned scope, ensuring accounting activities are completed accurately and promptly.

- Tax accounting: Monthly, quarterly, yearly reporting, VAT declaration, personal income tax, corporate income tax, annual tax settlement, checking accounting of bank loans, payments to foreign countries.

- Sales accounting - Warehouse: Issue sales invoices, track import and export of goods, check sales reports of agents, save and preserve related documents.

- Payment accounting: Check books, documents, collection orders, payment orders, promptly and fully reflect the situation of cash receipts and disbursements, bank deposits. At the end of the day and month, coordinate with the cashier to compare the amount of money in the fund and make a record of fund inventory, compare the bank balance. Save and preserve relevant documents and books.

- Accounts receivable accountant - Cashier: Receive documents, monitor, urge, compare, collect debts, prepare debt reports, compare receipt and payment documents. After checking and comparing documents, collect money for goods and pay cash.

3.3.2 Organizing accounting work at the company

3.3.2.1 Accounting method applied at the company

The company applies accounting on computer software. The company uses Fast Accounting 10.0 accounting software designed in the form of accounting vouchers.

Diagram 3.3 Sequence of recording on accounting software

ACCOUNTING BOOKS

- General ledger

- Detailed ledger

ACCOUNTING DOCUMENTS

MATHS

SUMMARY OF ACCOUNTING DOCUMENTS

Similar Math

- Financial report

- Accounting report

COMPUTER

(Source: Company Accounting and Finance Department, 2014)

Note:

Enter data daily

Print books, reports at the end of the month, end of the year. Compare and check.

3.3.2.2 Accounting regime applied at the company

- The accounting regime at the company is applied according to the enterprise accounting regime prescribed in Circular 200/2014/TT-BTC of the Ministry of Finance issued on December 22, 2014, together with Circular 75/2015/TT-BTC of the Ministry of Finance on guiding the amendment and supplementation of Article 128 of Circular 200 on the accounting regime.

- The annual accounting period begins on January 1 and ends on December 31 of the calendar year.

- Currency used: Vietnamese Dong (VND).

3.3.2.3 Accounting policies applied at the company

The enterprise applies the following accounting policies:

- Accounting policy for inventories:

+ Inventory accounting using the perpetual inventory method.

+ Inventory valuation by weighted average method at the end of the period.

- Method for calculating the cost of goods sold: Weighted average method at the end of the period.

- Fixed asset depreciation method: Straight-line depreciation method.

- VAT calculation method: Deduction method.

3.4 Company performance in recent years

Based on the company's business performance report in 2013-2014, it is shown as follows:

Table 3.1: Revenue structure in 2013 - 2014

Unit: million VND

Target	2013	2014
Finished lubricants	163,248	181,783
Lubricants	26,033	22,576
Petroleum products	317,175	321,126
Other goods and services	5,966	3,708
Revenue deductions	21,634	20,760
Total net revenue	490,787	508,433

Maybe you are interested!

( Source: Audited financial statements of the company )

From the revenue structure table, it can be seen that in 2013-2014, the company's revenue mainly came from petroleum trading and finished lubricant products, accounting for more than 60% and 30% respectively. In 2014, the company achieved encouraging business results, with a revenue growth rate of 3.6% compared to 2013. In the context of 2014 being a volatile year for the world and domestic oil markets, domestic gasoline prices increased 5 times and decreased 12 times, marking a record change for this item in one year. The company's business activities have always been promoted year by year through maintaining and developing the system of agents and industrial customers. At the same time, the company actively seeks and expands customers to promote product images directly to consumers. The company's performance in 2014-2013 is shown through the business results report as follows:

Table 3.2 Business performance report 2014 - 2013

Unit: million VND

INDICATORS

2013	2014
Net revenue from sales and services	490,787	508,432
Cost of goods sold	440,374	450,986
Gross profit from sales and service provision	50,412	57,445
Financial revenue	2,667	3,725
Financial costs	317,205	2,134
Cost of sales	28,583	30,402
Business management costs	21,584	25,041
Net operating profit	2,594	3,593
Other profits	730,782	(258,435)
Total accounting profit before tax	3.325	3.335
Profit after corporate income tax	2,476	2,597

( Source: Audited financial statements of the company )

Through table 3.1: It shows that the company's business operations are effective. Profit after corporate income tax in 2014 is higher than profit after corporate income tax in 2013. The company's business results are maintained stably, all thanks to the efforts of the executive board, the company's Board of Directors always focuses on step by step innovation of business methods, expansion

sales network. In addition, the Board of Directors also needs to overcome limitations and promote advantages to achieve better business results in the near future.

3.5 Advantages, difficulties and development direction of the company

3.5.1 Advantages

- PV OIL Lubricant Joint Stock Company is proud to be one of the first enterprises in Vietnam to produce and trade in lubricants with its own brand (since 1991).

- PV OIL Lubricants Joint Stock Company is a member company of Vietnam National Oil and Gas Group (PETROVIETNAM). The company inherits the characteristics of high organizational discipline, understanding of the law and State policies.

- Staff are well-trained, have high management and professional qualifications in their fields of operation.

- The company's equipment is modern with advanced German grease mixing system, automatic canning line, modern testing room according to international standards.

- The State's correct policies and guidelines during the open-door period create favorable conditions for the company to develop and proactively improve the efficiency of production and business activities.

- Extensive retail system with 500 gas stations under PV OIL and more than 2,000 affiliated gas stations across provinces and cities.

3.5.2 Difficulty

- Compared to competitors, the company's production scale is still relatively small, the company's distribution system is still very limited, production costs are still high, and competitiveness is low.

- The global economic crisis is still affecting the domestic market.

- The situation of high inflation, high prices of consumer goods, prices of lubricants also increased, while the income of workers did not increase much. Therefore, the mentality of tightening spending, limiting the use of personal means of transport and instead using public transport of people also partly reduced the ability to consume the company's goods.

- The current situation of poor quality gasoline has caused consumers to lose confidence, which has also made it more difficult to sell the company's products.

3.5.3 Development direction

+ The company's development goal by 2020: Market share and customers account for about 5-7% of the national retail market share of lubricants. Revenue reaches about 750-900 billion VND/year and pre-tax profit is about 70-80 billion VND/year.

+ Strive to have a team of staff that meets the standards of professionalism - creativity - efficiency - honesty - responsibility.

+ Expanding consumption markets, especially foreign markets, to attract more foreign currency and develop import-export markets.

+ Research and implement measures to improve product quality, improve professional level of business management. Become a unit with advanced, professional business management level, meeting integrated ISO standards.

+ Strengthen marketing to attract more individual and organizational customers. Promote the advantages of providing for industrial customers, especially units in the Oil and Gas industry.

CHAPTER 4: CURRENT STATE OF CONSUMPTION ACCOUNTING AND DETERMINATION OF BUSINESS RESULTS AT PV OIL LUBRICANTS JOINT STOCK COMPANY

4.1 Business characteristics, consumption and payment methods at the company

4.1.1 Business characteristics of the company

With the advantage of being the only company producing and trading lubricants under the Vietnam Oil and Gas Group. Currently, the company has two lubricant factories, the products are manufactured on modern production lines, packaged automatically and strictly comply with the requirements of the ISO 9001:2008 quality system with a capacity of 10,000 tons/year. The inspection work from the stage of selecting raw materials during the production process to the stage of distributing products to customers always ensures product quality according to the regulations and standards issued by the company.

Currently, the company focuses on developing two business lines: retail and industrial. The company's business activities are very rich and diverse, including:

- Production and business activities of grease

- Lubricant business activities.

- Petroleum business activities.

- Business activities of other goods and services.

4.1.2 Consumption methods at the company

The company focuses on developing two main customer segments in the market through two product lines as follows:

- Retail industry: Customers are distributors in each area, including customers in the industry which are member units of Vietnam Oil Corporation such as: PV OIL Binh Thuan, Vung Tau, ... External customers are distributors in each area such as: Mai Khoi Company, Dong Duong Tan Company, ...

- Industrial sector: Customers are manufacturing and trading enterprises, contractors, units inside and outside the oil and gas industry such as: Hoa Phat Steel, Vietsopetro, ...

4.1.3 Payment methods at the company.

To ensure the consumption process and avoid the situation of customers appropriating capital. The company has based on many different factors to come up with appropriate payment methods for each customer. The main payment methods at the company include:

- Cash payment: This method is applied to retail customers and customers who do not have a credit agreement in the contract.

- Payment by bank transfer: Applicable for large orders, the company will open accounts at banks and customers will pay through these accounts. This is a convenient and safe form of payment in transactions, helping to ensure the payment process and recovery of sales proceeds of the company.

4.2 Accounting for revenue and other income

4.2.1 Accounting for sales revenue and service provision

4.2.1.1 Content

- Sales revenue and service provision at the company include:

+ Revenue from selling finished lubricants produced by the company such as: lubricants for motorbikes, cars, hydraulic oil, industrial oil, multi-purpose grease, etc.

+ Revenue from lubricant business: When the company does not produce enough lubricant according to customer orders, the company will purchase lubricant from outside to supplement the quantity and type according to the signed contract.

+ Revenue from petroleum business: The company trades 95 KC gasoline, 92 KC gasoline, E5 gasoline, kerosene, ...

+ Revenue from sales of goods and provision of other services such as: Freight transport, office rental, etc.

4.2.1.2 Documents used and document circulation process at the company

- Documents used:

 VAT invoice, delivery request form and invoice issuance

 Warehouse delivery note, accounting note

 Receipt, bank credit note

- Document circulation process:

+ Sales department receives customer orders, checks and ensures the type and quantity according to the order. After that, the sales department will create a request for goods delivery and issue an invoice according to the company's form.

+ Based on the request for goods delivery and invoice issuance, the accounting department will check the debt. If agreed, the accounting department will sign the confirmation and send it to the board of directors for approval. After that, the request for goods delivery and invoice issuance will be returned to the accounting department to issue VAT invoices.

+ The original VAT invoice will be sent to the customer by the Sales Department, the photocopy will be attached to the delivery request form and the invoice will be sent to the driver to receive the goods at the warehouse and deliver them to the customer.

Accountants base on accounting documents to enter data into Fast accounting software in the order shown in the diagram below:

Accountant enters data into sales accounting and accounts receivable subsystem

- VAT invoice

- Order

- Contract

Receipt

- Notice of receipt

Diagram 4.2: Accounting sequence for sales revenue and service provision

Fast software automatically updates data into accounting books according to regulations.

- Sales invoice list

- Order list

- List of receivables

Accounting vouchers, account detail books, account ledger 51101

Financial report

(Source: Company Accounting and Finance Department)

4.2.1. 3 Accounting accounts currently applied at the company

To account for sales and service revenue, accountants use account 51101: “Sales and service revenue - company”. This account opens level 2 and level 3 accounts as follows:

- Account 511101: "Revenue from selling finished lubricants - company" to record revenue from lubricants produced by the company.

- Account 511201: "Revenue from sales of goods - company" to account for revenue from trading in lubricants and gasoline, accountants open level 3 accounts as follows:

+ Account 5112101: "Revenue from lubricants - company" to record revenue from lubricants trading.

+ Account 5112201: "Revenue from petroleum products - company" to account for revenue from petroleum trading.

- Account 511801: “Revenue from other goods and services – company”

4.2.1.4 Accounting books

- Record keeping documents

- Detailed account books: Track detailed sales revenue of each type of product and goods such as: Detailed account books 511101, account 5112101,..