Current Status of Accounting for Imported Goods Circulation at the Company

DIAGRAM 2.1.2: ORGANIZATION OF IMPORT-EXPORT BUSINESS

SALES MANAGER

MARKET STAFF

EXPORT STAFF

IMPORT STAFF

Import-export business department has 6 people:

1 department head: responsible for all import-export business issues and reports to the Director.

3 market staff: import and export market research

1 export staff: responsible for export issues at the company

1 import staff: responsible for import issues at the company

Export, import and marketing staff are all under the management of the Sales Manager. The Sales Manager is directly responsible to the Company Director.

2.1.3. Management organization and management apparatus

EDD Company Limited has 3 members and a capital contribution of 1,500,000,000.

Since its establishment, the company had only 6 employees, but now the number of employees and workers has increased to more than 30 people. Of which:

+ University degree: 10 people.

+Intermediate level: 5 people.

+ High school level: 15 people

The company has a centralized organizational model according to the following diagram:

DIAGRAM 2.1.3

ORGANIZATION OF OPERATIONS AT THE COMPANY

DIRECTOR OF WORK

TY

SALES DEPARTMENT

ACCOUNTING DEPARTMENT

TECHNICAL DEPARTMENT

SHOP & INTRODUCTION

PRODUCT

FACTORY

EXPORT

* Sales department has 3 people:

- 1 import-export staff: The duty of the import-export staff at the Company is to transact and carry out import-export procedures: such as opening customs declarations, foreign contracts, Packing list, INVOICE, C/O, checking ship schedules.

- 2 market staff: The market staff's task is to promote and find consumer markets for insulators and cosmetics, and plan the consumption of goods.

* Accounting Department consists of 7

The person and department whose functions and duties are to perform accounting and bookkeeping work according to the law; manage the Company's financial activities; manage the Company's accounts and funds; conduct revenue and expenditure transactions and directly transact with financial institutions.

product

The technical department consists of 4 people responsible for the production of cosmetic products.

All departments are under the direct management of the Director.

2.1.4. Organization of accounting apparatus and accounting work.

The accounting department is organized in a centralized form according to the following diagram:

DIAGRAM 2.1.4A

ORGANIZING ACCOUNTING SYSTEM AT THE COMPANY

CHIEF ACCOUNTANT

CASH ACCOUNTING, TGNH

GOODS AND MATERIALS ACCOUNTING

ACCOUNTANT

DEBT, FIXED ASSETS

TREASURER

WAREHOUSE KEEPER

SALES ACCOUNTING, VAT REPORTING

The Company's accounting department consists of 7 people, including 3 university-educated accountants and 2 technical accountants.

2 college level accountants and 2 intermediate level accountants.

- Chief Accountant: Is the person primarily responsible to the Company's Board of Directors for

finance and accounting

- Cash and bank deposit accounting: Responsible for monitoring cash flow at the fund and bank deposits, preparing cash receipt and payment vouchers, making payment orders, buying and selling foreign currency through the bank.

- Sales accounting: Track sales and collect sales at stores, supermarkets and agents.

- Accounting for goods and materials: Tracking the purchase and sale of goods, materials...

- Accounting for fixed assets, receivables and payables: Track and enter data on increases

Reduce fixed assets, track and receivables, payables.

- Treasurer: Responsible for managing and monitoring cash in the Company's treasury.

- Warehouse keeper: Responsible for monitoring the import and export of goods and raw materials at the warehouse.

warehouse.

* Due to the characteristics of the company's production organization, the company's accounting organization is a centralized accounting organization. According to this form, accounting work will be centralized in the company's accounting department.

* EDD Company Limited is currently applying the accounting regime for small and medium enterprises according to Decision 144/TC/QD/CDKT dated December 21, 2001 of the Minister of Finance, along with the revised guidance documents.

The accounting year starts from 01/01 and ends on 31/12. The company pays tax by the deduction method.

The form of accounting books that the Company is applying is the Journal form of accounting books.

Shared.

The depreciation method is the straight line depreciation method.

The inventory accounting method is the perpetual inventory method. The inventory costing method is the average monthly method.

The form of capital ownership is LLC with contributed capital of 1,500,000,000.

The Company applies the accounting voucher regime for small and medium enterprises according to Decision No. 1177TC/QD/CDKT dated December 23, 2006 and Decision No. 144/2001/QD-BTC dated December 21, 2001 of the Ministry of Finance.

Accounting voucher template

- Required accounting voucher form: is a special voucher form with value

Example:

+ Money includes – receipts, payment vouchers, checks, receipts...

+ Imported goods: Commercial invoice for imported goods, bill of lading, license

import...

- Contents of accounting documents:

+ Cash and bank deposit indicators

+ Purchase and sales targets

+ Labor and salary index

+ Inventory index

+ Fixed assets index

- Document circulation order:

The order and time of circulation of documents are determined by the unit's chief accountant. Documents created by the unit or imported from outside must be brought to the accounting department for inspection and verification before they can be used for accounting entries.

* Document circulation process at EDD company

DIAGRAM 2.1.4B

DOCUMENT CIRCULATION PROCESS AT EDD COMPANY

(4)

(4a)

Accounting part:

Purchase, sales, fixed assets, materials, expenses

fee...

Cash accounting

Chief Accountant - Head of Unit

Bank

Bank deposit accounting

Payer

(1)

Treasurer

(1a)

(1)

(2) (3) (2a)

(3a)

(2) (3) (2a) (3a)

(1)

face.

1 Receive documents from the payer

1a: The accounting department checks the documents, prepares the documents to record the money transfer accounting.

2: Cash accountant after checking the documents transfers to chief accountant and director for signature

2 a: Director's signature

3: Chief accountant approves receipt and payment vouchers...

4: Cash accountant transfers receipt and payment vouchers to the cashier as the basis for payment.

4a: Bank deposit accountant transfers accounting documents to the bank.

* User account system

The enterprise accounting system is implemented according to the provisions in the "Accounting regime for small and medium enterprises" issued under Decision No. 1177/2006/CDKT dated December 23, 1996 of the Minister of Finance and Decision No. 144/2001/QD-BTC dated December 21, 2001 of the Minister of Finance on "Supplementing and amending the accounting regime for small and medium enterprises issued under Decision No. 1177 TC/QD/CDKT". In 2007, the enterprise used a new account system according to Decision No. 48/2006/QD-BTC dated September 14, 2006 of the Minister of Finance.

The company's accounting system is included in the appendix.

* Characteristics of the Company's accounting system

After collecting the original documents, the accountant enters data into the computer from the data entry windows of the detailed book. Then, from the data on the detailed book, the computer will automatically process and output the account books, summary books, and create a balance sheet of arising numbers and financial reports.

The accounting reports the Company is using include:

TT

Newspaper name	Symbol
1	Balance sheet	Model B01-DNN
2	Business performance	Model B02-DNN
3	Financial Statement Notes	Model B09-DNN
4	Balance sheet	Model F01-DNN
5	The situation of implementing patriotic obligations to the state	Model F02-DNN
6	Summary table of Import - Export - Inventory of Goods	Model B15a-KTNB
7	Summary table of Import - Export - Inventory of materials and supplies	Model 16-KTNB

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Regarding the books used: The company uses detailed accounting books for goods and materials; detailed books

Payment to customers; Cash book; Ledger of accounts 111, 112, 131, 211...

The Company uses the General Journal accounting form combined with Fast Accounting software. This is a bookkeeping form suitable for small and medium-sized enterprises. The bookkeeping form is illustrated as follows:

DIAGRAM 2.1.4C

PROCESS OF ENTERING DATA INTO SOFTWARE AT THE COMPANY

ORIGINAL DOCUMENT

DATA ENTER BY

PART OF ACTION

DETAILED BOOK

CASH, TGNH

DETAILED BOOK

BUYING, SELLING

DETAILED BOOK OF FIXED ASSETS AND DEBITS

DETAILED BOOK

GOODS, MATERIALS

GENERAL ACCOUNTS

BALANCE SHEET

FINANCIAL REPORT

DETAILED SUMMARY

Daily Record Reconciliation

Record end of month, quarter

2.2. Current status of accounting for imported goods circulation at the company

EDD LLC.

2.2.1. Current status of accounting for imported goods at LLCs

EDD.

*Method of importing goods at EDD LLC:

A company that imports goods directly is an import method in which import business units are granted import licenses by the State, directly transact, negotiate, and sign contracts for the purchase and sale of goods with foreign countries. Therefore, not all businesses are entitled to conduct direct import and export business, but only a few units that meet all the conditions according to the State's regulations on import and export business are entitled to direct import.

*Payment methods for foreign trade contracts in import activities

At EDD company payment method:

Payment method by telegraphic transfer % advance to the exporter (T/T IN Advance) with delivery condition is FOB price, transfer money after delivery or pay after delivery of documents.

Letter of Credit (L/C): is a commonly used method.

best.

Documents used and procedures for circulating import documents.

Accounting documents are a written evidence of economic and financial transactions that have arisen and actually been completed. Through the preparation of documents, accountants can check the reasonableness and validity of economic transactions. Accounting documents are the legal basis for all data recorded and reflected in accounting books and all economic information in the enterprise. Accounting documents are the basis for checking compliance with financial policies and regulations and are the basis for determining the material responsibility of relevant persons. At the same time, accounting documents are evidence to resolve all disputes, complaints and denunciations that occur between parties.

In the company's import activities, the set of documents used as the basis for receiving goods, payment and recording are:

- Commercial Invoice : is the basic document of the payment stage.

Invoice is a request by the seller for the buyer to pay the amount of goods stated on the invoice.