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Detailed Accounting Methods for Raw Materials

+ List of documents for purchased goods and services


 Detailed accounting book of raw materials:


+ Warehouse book (card).

+ Detailed accounting book (card) of raw materials.

+ Circulation reconciliation book.

+ Balance book.

1.3.1.2. Detailed accounting methods for raw materials


Detailed accounting of raw materials is the accounting combined with the warehouse keeper and accounting department based on import and export documents with 3 methods:

+ Parallel card recording method.

+ Rotating reconciliation method

+ Balance recording method.

Whichever of the three methods above is applied, the enterprise must monitor the import-export inventory situation at the unit:

● At the warehouse: All three methods above are accounted for the same way. Accordingly, the accounting

The accountant creates a warehouse card and assigns it to the warehouse keeper to monitor and record the daily import and export of materials, based on the import and export documents to record the quantity index. Each warehouse card is opened in detail for one type of material.


● At the accounting department:


+ Parallel card recording method


+ Balance recording method


+ Rotating reconciliation book method


 Parallel card recording method

* Procedure: Every day when receiving documents for import and export of raw materials in the warehouse, the accountant checks and completes the documents and records them in the detailed book (card). Periodically, the data on the warehouse card and the detailed book must be checked. At the end of the month, calculate the inventory and compare the data with the general accounting book. Compare the data between the detailed material book in the accounting department and the warehouse card of the warehouse keeper by reviewing the report on the fluctuation of raw materials sent by the warehouse keeper.


Table 1.1: Sample of raw material detail book

BILL OF MATERIALS

Account: … Warehouse name: …

Name of material specifications, goods….

Code ….

Unit….


Proof

from

Interpretation

TK

opposite to

application

Unit price

Enter

Export

Existing

Note

S

stain

Day

SL

Money

SL

Money

n

SL

Money

























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Detailed Accounting Methods for Raw Materials














Bookkeeper

(Signature, Full Name)

Accounting Manager

(Signature, Full Name)


* Advantages and disadvantages:


Advantages : Simple recording , easy to check and compare .


Disadvantages : The recording between the warehouse and accounting still overlaps in terms of quantity indicators, the volume of recording work is too large. Work is also piled up at the end of the month , limiting the timeliness of accounting and causing waste of labor.


Conditions of application : The parallel card recording method is suitable for businesses with few types of raw materials and irregular import and export. Especially in businesses that have applied machine accounting , this method is still applicable to businesses with many types of materials that occur regularly. Therefore, this method is increasingly widely applied.


* Detailed accounting diagram of raw materials using parallel card recording method


Document

Warehouse card

Detailed accounting book

NXT Summary Table

enter


General Accounting

Export documents


Daily Record Check


End of month recording


Diagram 1.1: Parallel card recording method

Balance sheet method


* Order: From

the documents

daily import and export, procedure

Fund

card

warehouse.Then the

Periodic warehouse

send documents

import export for planning

math.Both sides established

Delivery note and import-export documents for proof. Accountants base on delivery note to record in import-export cumulative table (this list is opened in detail for each item of goods and materials) according to value index.


The cumulative import-export statement is the basis for accountants to create a summary of import-export inventory.


As for the warehouse keeper: at the end of the month, the warehouse keeper must record the ending inventory quantity in the balance book (quantity column) and transfer it to the accountant. The accountant calculates and records the balance in the value column (money). Then the balance is compared with the import-export inventory summary table (according to the value index).

Table 1.2: Sample inventory balance book

INVENTORY BALANCE BOOK

Year: … Warehouse: …

STT

Material Name

Unit

Unit price

Balance

31/1

Balance

28/2

………..

Balance

12/31


































Bookkeeper

(Signature, Full Name)

Accounting Manager

(Signature, Full Name)


Advantages : Reduces the daily recording workload . This method has closely combined business accounting and accounting, accountants have regularly checked the recording and storage in the warehouse of the storekeeper. Work is spread evenly throughout the month .


Disadvantages : Because accounting only records according to value indicators , it will not be known about the fluctuations of each material. In addition , when checking and comparing , if there are errors, it will be difficult to detect errors.


Conditions of application : Suitable for businesses with large import and export volume, many types of materials, building a material catalog system and using accounting prices for daily accounting with relatively high materials and accounting level .


Document

enter

Import document delivery note

Export documents

Export document delivery note

NXT material warehouse cumulative table

Warehouse card

Balance book

NXT material warehouse summary table

General Accounting

Note


Daily Record Monthly Record


Compare, check


Figure 1.2: Balance recording method


 Rotating reconciliation method


* Procedure: Every day when receiving import and export documents, the accountant will check and complete the documents. Then, classify the documents according to each type of material, separate import documents, or can create an "import list", "export list". At the end of the month, summarize the data from the documents (or lists) to record

into the "book"

Check the rotation column and calculate the number.

last

month.Conduct data reconciliation in the same way as the parallel card recording method.


Advantages : Compared with card recording method

parallel then book method

opposite to

The advantage of rotating journals is that they reduce the amount of accounting work required by accountants because they only record once at the end of the month.

Disadvantages : But still cannot overcome the limitation of parallel card recording method, which is that there is still duplicate recording between the warehouse and the accounting department regarding the index .

quantity, on the other hand, checking and comparing between procedures

warehouse and planning

math only

conducted at the end of the month, thus limiting the effectiveness of accounting audits.


Conditions of application : In theory , this method is only suitable for

Enterprises with limited supplies do not have the conditions to record and monitor the situation.

Document

enter

Material import list

Daily import and export, but in reality this method is rarely applied.


Export documents

Bill of materials

Warehouse card

Circulating reconciliation book

General Accounting


Note: Record daily Record at the end of the month

Compare, check

Diagram 1.3: Rotating reconciliation book method

1.3.2 General accounting of raw materials

1.3.2.1. General accounting of raw materials according to the declaration method

regularly. a.Characteristics

The regular declaration method is an accounting method that must organize regular, continuous and systematic recording of the import and export of materials on inventory accounting accounts. Based on the import and export documents, raw materials are classified according to each material user and the value of inventory materials can be determined at any time during the period based on the data on the accounts and accounting books.

b. User account


* Content : Account 152 “ Raw materials ” . This account is used to reflect the current quantity and the increase and decrease of the enterprise's raw materials according to actual cost price .

Structure:

Debit : Reflects transactions that increase the original cost of raw materials in stock during the period .

Credit side : Reflects transactions that reduce the original cost of raw materials in stock during the period .

Debit balance : Reflects the original price of raw materials in inventory at the end of the period .

Account 152: can be opened to track details according to each level 2 account, according to each type of raw material in accordance with the classification according to economic content and business management requirements, it includes the following level 2 accounts:

+ Account 1521: Main raw materials

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