Warehouse: Vinhomes Smart City: Debit account 621: 171,818,815
2.2.2.2. Current status of direct labor cost accounting a. Characteristics
This account is used to reflect the cost of direct labor involved in production and business activities in the industries of industry, construction, agriculture, forestry, fishery, and services (transportation, post and telecommunications, tourism, hotels, consulting, etc.).
Direct labor costs include amounts payable to workers directly involved in production activities at the construction site, such as: Salaries, wages, allowances, salary deductions (social insurance, health insurance, union fees, unemployment insurance).
b, Accounting process
The direct labor cost item of Anh Phong Construction and Trading Consulting Co., Ltd. includes the costs payable to workers directly involved in production activities at the construction site, including: Basic salary, additional salary, allowances and bonuses that direct employees on the company's list are entitled to and outsourced workers. The process of accounting for direct labor costs of a project is accounted for in that project.
Employees at the company include direct production workers and indirect workers such as technical staff, team accountants, security guards, janitors, etc.
Every month, the accounting department at each project prepares a timesheet (Appendix 2.10) for all staff working at the project, then sends it to the HR department. The HR department checks the timesheet and prepares the payroll for each project.
The salary payment table (Appendix 2.11) clearly states the number of workers, positions, jobs in charge as well as salary coefficients, allowance coefficients, deductions from salary... of each worker directly involved in construction.
The Company's current minimum wage is applied according to Decree 90/2019/ND-CP issued on January 1, 2021 with the amount of VND 4,420,000/month.
Based on the payroll approved by the Director, the accountant proceeds to account for the CPNCTT into the accounting software. Calculate and deduct social insurance, health insurance, union funds, unemployment insurance, support payments (such as life insurance, voluntary retirement insurance...) of workers directly producing products and performing services (the part included in the costs that the enterprise must bear) deducted from the employee's salary on the salary and wages payable according to the prescribed regime.
After entering data into accounting book TK 334, the software will automatically enter data into related accounting books such as: Detail book TK 334 (Payable to employees) (Appendix 2.12), TK 622 (Direct labor costs) (Appendix 2.13), TK 338 (Other payables), TK 3335 (Personal income tax).
After completing the data entry, the accountant will arrange and store the documents according to regulations. At the end of the fiscal year, the payroll accountant is responsible for finalizing personal income tax for employees.
For example: Based on the salary payment table for the second period of March 2021 (Appendix 2.10), participating in production at the Vinhomes Smart City project. There is Mr. Tran Manh Sang as a direct technical worker, with a salary in the contract of 4,729,400, the labor productivity coefficient is 1.5. The total number of hours in the month is 27, and the additional payments include:
- Occupational disease prevention: 500,000 VND
- Accommodation: 1,000,000 VND
- Gasoline and phone expenses: 1,000,000 VND
- In addition, there are no other incomes. At the time of salary calculation, Mr. Tran Manh Sang did not register any dependents. Mr. Tran Manh Sang's salary is calculated as follows:
Time salary = 4,792,400 x 1.5 x 27 / 26 = 7,366,950 VND
- Meal allowance: 675,000 VND Additional fees:
(500,000 + 1,000,000 + 1,000,000) x 1.5 = 3,894,231 VND
Mr. Tran Manh Sang's total salary in October 2019 is: 7,366,950 + 3,894,231 + 675,000 = 11,936,000 VND
During the month, Mr. Huu had the following deductions:
- Compulsory insurance contributions:
+ Social insurance: 4,729,400 x 8% = 378,352 VND
+ Health insurance: 4,729,400 x 1.5% = 70,941 VND
+ Unemployment insurance: 4,729,400 x 1% = 47,294 VND
- Total compulsory insurance contributions are:
378,352 + 70,941 + 47,294 = 496,587 VND
- Mr. Tran Manh Sang's personal income tax is calculated as follows:
+ Income before tax: 11,936,000 VND
+ Deductions when calculating personal income tax include: Family deductions
11,000,000 VND, insurance contributions 496,587 VND.
+ Mr. Tran Manh Sang's taxable income is:
11,936,000 – 11,000,000 – 496,587 = 439,413 VND
+ Applying the progressive tax calculation formula, the personal income tax Mr. Huu must pay is:
TNTT/month (million VND)
Tax rate (%) | Personal income tax Mr. Tran Manh Sang must pay | |
Up to 05 | 5 | 439,413 x 5% = 33,000 VND |
Add | 33,000 VND |
Maybe you are interested!
-
Current status of production cost accounting and pricing of food and beverage products and services at DMZ Tourism Joint Stock Company - 11 -
Current Status of Cost Management Accounting from the Perspective of Social Responsibility in Hospitals -
Current Status of Cost Accounting and Business Management at Minh Vu Investment, Trade and Construction Joint Stock Company. -
Direct Labor Cost Accounting: -
Current Status of Cost Management Accounting Information Analysis for Decision Making and Cost Control at Tu Loc Joint Stock Company
The salary Mr. Tran Manh Sang actually received was:
11,936,000 - 496,587 – 33,000 = 11,406,413 VND
Based on the salary table approved by the Director (Appendix 2.10), the accountant proceeds to record the accounting into the accounting software. The CPNCTT accounting screen at the Company is as follows:
Accounting for salary expenses: Debit account 622: 177,812,000
Credit account 334: 177,812,000
Accounting for salary deductions: Debit account 334: 529,587
Credit account 3383: 378,352 (Social Insurance)
70,941 | (Health Insurance) | |
There is account 3386: | 47,294 | (BHTN) |
There is account 3335: | 33,000 | (Personal Income Tax) |
Accounting for expenses of deductions paid by the Company on behalf of employees as follows: Debit account 627: 1,111,409
There is account 3383:827,645 | (Social Insurance) | |
There is account 3384: | 141,882 | (Health Insurance) |
There is account 3386: | 47,294 | (BHTN) |
There is account 3382: | 94,588 | (KPCĐ |
The Company's labor cost accounting process is illustrated in the diagram.
after:
Labor contract Timesheet
Payroll
Salary allocation table and salary deductions
Accounting from accounting software
General journal
Account detail book
Ledger account 622
Diagram 2.4: Direct labor cost accounting process
2.2.2.3. Current status of construction machinery cost accounting a. Characteristics
It can be said that the cost of using construction machinery is a specific cost of this field. However, for the construction industry, many jobs require a certain level of skill and technical skills of workers, which cannot be replaced by machines.
At Anh Phong Company, construction equipment costs include the following expenses: depreciation costs of fixed assets (machinery, equipment) serving the project, fuel costs (oil, lubricant), spare parts for machinery and equipment, and costs of outsourced machinery and equipment.
When there is a need to rent machinery for construction, the director signs a contract with the lessor, stating clearly: name of machinery and equipment, expected rental period, rental price, and payment method.
For outsourced machinery and equipment, the Company usually rents the equipment along with operating workers. The rental cost usually does not include fuel costs.
b, Accounting process
Daily and monthly, when receiving accounting documents for construction equipment costs: machine rental contract, VAT invoice for construction equipment rental (Appendix 2.14), minutes confirming equipment rental time (Appendix 2.15), minutes of debt reconciliation, etc., the accountant is responsible for checking the completeness, reasonableness, and legality of the documents and then recording them into the accounting software.
The accountant receives the invoice, checks the reasonableness, validity, and legality of the purchase invoice. Then enters the data into the accounting software.
After entering data, the software will automatically enter data into related accounting books such as: General Journal, Detail Book of Account 623 (Appendix 2.16), General Ledger of Account 623.
After completing data entry, the accountant will arrange and store the documents according to regulations.
determined
Proposal to provide machinery, equipment and spare parts
Director Browser
Equipment department purchases and delivers to the construction site
Minutes confirming rental period, financial invoices, etc.
General journal
Ledger account 623
Accounting from software
accountant
Detailed book account 623
Diagram 2.5: Construction machinery cost accounting process
Example 1: On December 3, 2020, Anh Phong Company rented 01 excavator from VNCIS Industrial and Civil Construction Joint Stock Company to serve the construction of Vinhomes Smart City project. With a total invoice of 50,000,000 VND. Price does not include VAT. Not paid to the seller yet.
Based on invoice No. 0000018 dated January 19, 2021 (Appendix No. 2.14).
Then proceed to enter data into accounting software.
Accounting:
Debit account 623: 50,000,000
Debit account 1331: 5,000,000
Credit account 3311: 55,000,000
Example 2: On December 13, 2021, the accountant received a document to purchase diesel oil from PAT General Trading Development Service Joint Stock Company with a total invoice amount of VND 19,455,000 to serve construction machinery at the F1 bridge project. The seller has not been paid yet.
Accounting:
Debit account 623: 19,455,000
Debit account 1331: 1,945,500
Credit account 3311: 21,400,500
2.2.2.4. Current status of general production cost accounting
a. Characteristics
To carry out production activities smoothly and effectively, in addition to the basic factors of raw materials, labor, direct production machinery... in reality, it requires the consumption of a number of other cost factors such as: costs of tools and equipment used for management, electricity costs, telephone charges, salary costs for management staff,... That is the general production cost.
When collecting general production costs, the accountant will directly account for any costs incurred directly for a project, and the construction team accountant will allocate costs incurred related to multiple projects to the projects according to direct labor costs.
At Anh Phong Company, the volume cost assigned to other units (also known as subcontractors) is also collected in account 627. This cost often accounts for a large proportion of the total costs incurred and collected in account 627.
b. Accounting and bookkeeping procedures
General production costs incurred in a project are directly aggregated to that project or project item. In case general production costs cannot be aggregated directly to each project, general production costs are allocated to each project or project item according to the estimated value of the projects or project items.
To collect management and construction service costs in construction teams according to regulations and allocate or transfer production costs to related construction objects, at Anh Phong Company, production costs are collected into account 627 - general production costs.
Construction staff costs : Costs for salaries of construction staff and construction management are collected and calculated by accountants as for direct labor costs and are collected separately for each project and construction item.
Cost of materials, tools and equipment used for production within the scope of the team: Because the usage value for each cost accounting object cannot be calculated, when these costs arise, they are recorded in account 627 and then allocated at the end of the month. At the end of the month, based on the material summary table, the accountant records the details of account 627.
Fixed asset depreciation costs:
Currently, the construction machinery and equipment at the project management board include two types: Company machinery and rented machinery. For fixed assets owned by the company, the project management board must conduct monthly depreciation for each fixed asset. Depreciation is carried out using the straight-line method.
For fixed assets that have been fully depreciated but are still involved in production and business activities, the company will still manage and monitor them normally but will no longer depreciate them.
Due to the diversity of fixed assets in the company and the different purposes of use. Therefore, it is possible to base the accounting on the costs of the users, the fixed asset accountant will create a table to calculate and allocate fixed asset depreciation. The table reflects the amount of depreciation that must be deducted and allocated to each user.
Periodically, based on the list of fixed assets approved by the Capital Management Department, the accountant conducts depreciation and prepares a table to calculate and allocate fixed asset depreciation (Appendix).
Outsourced service costs: Outsourced service costs at the company include electricity, water, telephone subscription, waste transportation fees, etc. When these costs arise, the accountant will base on the debit note, cash payment voucher, etc. to account for and record them in the detailed account 627.
Other cash expenses: Other cash expenses include: Guest reception, transaction, machine maintenance, document printing, etc. Based on original documents related to cash, bank deposits, advance payment papers, the accountant makes a list of documents and summarizes them in the General Ledger 627 and the General Journal, and at the same time prepares a summary table of general production costs.