Electronic Bilateral Payment Accounting Between Kbnn And NHtm

If the difference result of the member unit is payable, the accountant records (GL): Debit account 3932 - Collection and payment on behalf of LNH (details of each member unit)

Credit account 3931 - LNH clearing

+ Based on the aggregated data on the Clearing and Payment Results Table transferred by the State Bank to the entire system (Form No. TTLNH-21 - details of Low Value service type) , the TTLNH interface system automatically creates accounting entries, creates a Transfer Slip (Form No. 06-08/KB) and after the Chief Accountant signs the electronic signature , the system automatically accounts for the low value clearing and payment settlement results of the entire system as follows:

If the difference is receivable, the accountant records:

Debit account 1132 - General payment in Vietnamese Dong at the State Bank Credit account 3931 - LNH clearing payment

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If the difference is payable, the accountant records: Debit account 3931 - LNH clearing payment

Credit account 1132 - General payment in Vietnamese Dong at the State Bank

c) Accounting for cash withdrawals at the provincial State Bank

- Based on the cash withdrawal request of the provincial Treasury approved by the Provincial Treasury's leadership, the accountant bases on the Transfer Slip (Form No. C6-08/KB) prepared according to regulations and records (TABMIS-AP):

+ For High Value Payment Orders:

Debit account 1339 - Receivables from State Treasury operations (details according to the unit code of the provincial State Treasury)

Credit account 3392 - Payable to intermediaries AP Simultaneous payment (AP):

Debit account 3392 - Intermediary payables AP

Credit account 3932 - Interbank collection and payment

+ For Low Value Payment Orders:

Debit account 1339 - Receivables from State Treasury operations (details according to the unit code of the provincial State Treasury)

Credit account 3392 - Payable to intermediaries AP Simultaneous payment (AP):

Debit account 3392 - Intermediary payables AP

Credit account 3931 - Interbank clearing

- Based on the Payment Voucher sent by the Provincial State Bank to the Provincial Treasury, the accountant prepares a Receipt Voucher (Form No. C6-05/KB) for the amount withdrawn from the Provincial State Bank to the cash fund at the Treasury, the accountant records (GL):

Debit account 1112 – Cash in Vietnamese Dong

Credit account 1339 - Receivables from State Treasury operations (details according to the provincial State Treasury unit code)

Example 4: At the Provincial Treasury (BL), the following transactions occurred during the day:

1. Based on the cash withdrawal request approved by the Director of the Provincial Treasury (BL), the accountant shall prepare a transfer slip and create a High Value payment order to send to the Provincial State Bank to withdraw cash in the amount of VND 600,000,000.

2. Receiving the payment voucher sent by the State Bank, the accountant prepares a receipt for the cash fund withdrawn from the State Bank in the amount of 600,000,000 VND.

Requirement: Record the above economic transactions.

d) Accounting for interest and fees of TTLNH:

* Accounting for interest on the consolidated payment account of the State Treasury at the State Bank of Vietnam Transaction Office

Based on the Deposit Interest Payment Schedule and Credit Notification Document sent by the State Bank, the accountant of the State Treasury Transaction Office records (TABMIS-GL):

Debit account 1399 - Other intermediary receivables (detail code QHNS 9888888 - Collection and payment on behalf of the State Audit Department

Yes 3713 – Other deposits

- At the end of the day, the State Treasury Department transfers the interest to the State Accounting Department: The accountant prepares a transfer slip and records:

Debit account 3862 - Payment for LKB going to other provinces, transfer order Debit

Credit account 1399 - Other intermediary receivables (detail code QHNS 9888888 Collection and payment on behalf of the State Audit Department)

Note : At the inter-treasury information screen, the accountant records account 1132 associated with Treasury code 0002 - Payment center

At the State Accounting Department:

Debit account 1132 - General payment in Vietnamese Dong at the State Bank of Vietnam Credit account 3865 - Payment of LKB to other provinces transfer order Debit

* Accounting for Interbank Payment fees

At the State Treasury Transaction Office:

- Based on the Fee Schedule and Debit Notification Document sent by the State Bank, the accountant of the State Treasury Transaction Office records (TABMIS - GL):

Debit account 3713 – Other deposits

Credit account 3999 - Other payables (detail code QHNS 9888888 - Collection,

(payment on behalf of the State Audit Office)

- At the end of the day, the State Treasury Department transfers the TTLNH fee to the State Accounting Department: The accountant prepares a transfer slip and records:

Debit account 3999 - Other payables (detail code QHNS 9888888 - Collection and payment on behalf)

State Audit Office of Vietnam)

Credit account 3863 - Payment for LKB going to other provinces, transfer order Credit

Note : At the inter-treasury information screen, the accountant records account 1132 associated with Treasury code 0002 - Payment center

At the State Accounting Department:

Debit account 3866 - Payment of LKB to other provinces transfer order Credit

Credit account 1132 - Bank deposits in VND at the State Bank

Note:

For some payments transferred by the State Bank Transaction Office to the State Treasury Transaction Office using paper documents, the State Treasury Transaction Office records the accounting through accounts 1399 and 3999 associated with the code of the State Treasury 9888888 - Collection and payment on behalf of the State Treasury Department. At the end of the day, the State Treasury Transaction Office transfers these payments to the State Treasury Department similar to the transfer regulations for accounting for interest and fees for TTLNH mentioned above. In case the detailed book of account 1132 - Bank deposits in VND at the State Bank has a difference because the State Bank returns documents on the following day, the State Treasury Transaction Office does not have time to transfer these payments to the State Treasury Department, the State Treasury Department explains the difference.

d) Accounting for inter-bank collection and payment settlement between the State Accounting Department and the State Treasury Department and provincial State Treasury.

* Accounting for interbank collection and payment settlement at provincial Treasury

On the last working day of each month or at the latest on the first working day of the following month, based on the balance in the collection and payment account, the provincial State Treasury shall transfer this account via inter-treasury electronic payment (TABMIS-LKB) to the State Accounting Department, specifically:

- Transfer of interbank collection and payment:

+ In case the account has a Debit balance, the accountant creates a transfer slip recording: Debit account 3862 - Payment for LKB going out of province Debit transfer order

Credit account 3932 - Collection and payment on behalf of LNH

+ In case the account has a Credit balance, the accountant makes a transfer slip and records: Debit account 3932 - Collection and payment on behalf of LNH

Credit account 3863 - Payment for LKB going to other provinces, transfer order Credit

Note : At the inter-treasury information screen, the accountant records account 3932 (details of the member unit's location code associated with the State Treasury code 0002 - Payment Center)

* Accounting for inter-bank collection and payment settlement at the State Accounting Department

Based on the incoming LKB data, the Payer checks and compares it with the data on the TTLNH reports, then closes the detailed collection and payment account for each unit:

Debit account 3932 - Collection and payment on behalf of LNH (details according to unit location code)

member)

Or:

Credit account 3865 - Payment of LKB to other provinces Debit transfer order

Debit account 3866 - Payment of LKB to other provinces transfer order Credit

Credit account 3932 - Collection and payment on behalf of LNH (details according to single location code)

member)

2.3. Electronic bilateral payment accounting between the State Treasury and commercial banks

Electronic bilateral payment is an application program to perform electronic payment transactions between State Treasury units and commercial banks where the State Treasury opens accounts.

2.3.1. General provisions

- Regulations on the electronic bilateral payment (TTSPĐT) business process between the State Treasury (KBNN) and commercial banks (CBs), ensuring payment is quick, accurate, safe and effective.

- Applicable objects

+ State Treasury units participating in the electronic revenue collection system and coordinating the collection of state budget with commercial banks where the State Treasury opens general payment accounts, payment accounts, and specialized collection accounts, include: State Treasury Transaction Offices; State Treasury of provinces and centrally run cities; State Treasury of districts, towns, and cities under provinces, and Transaction Offices under provincial State Treasury.

+ Units under the State Treasury, including: State Accounting Department, Information Technology Department, Treasury Management Department.

- Scope of application

+ Detailed regulations on the accounting, settlement and reconciliation process of electronic payment transactions in Vietnamese Dong and foreign currencies between the State Treasury and commercial banks; inspection, reconciliation and storage of State Treasury units participating in the electronic payment system.

+ Electronic payment transactions include: State budget revenues and expenditures; other revenues and expenditures.

Check transactions.

Interest and fee transactions.

Transactions reporting credit and debit exchange rate differences. Reconciliation transactions.

End of day settlements.

* The State Treasury's accounts opened at commercial banks include:

- General payment account: Is a non-term deposit account of the State Treasury opened at HSC Commercial Bank, used to ensure the common payment capacity for all State Treasury units that have opened accounts at the same commercial bank system via the electronic payment channel; at the same time, it concentrates the final settlement of revenue and expenditure at the end of the day from the payment account, the specialized collection account of the State Treasury Department and the provincial/district State Treasury unit. The general payment account of the State Treasury is opened in VND and foreign currency (details of each foreign currency).

- Payment account: is a non-term deposit account of State Treasury units opened at 01 commercial bank to concentrate revenues (State budget revenues and other revenues), make payments, and pay for state budget expenditures. Payment accounts are opened for State Treasury units according to currency, specifically:

district;

+ Payment account (VND currency): opened for State Treasury and State Treasury

+ Payment account (settlement foreign currency): opened for the State Treasury and

Provincial Treasury, details of each foreign currency.

+ Payment account (non-settled foreign currency): opened for the provincial Treasury, detailing each type of foreign currency.

- Specialized collection account: is the payment account of provincial and district Treasury units opened at commercial banks in the same province or district to concentrate State budget revenues through the State Treasury. Specialized collection accounts are opened for the provincial Treasury and district Treasury units in VND.

2.3.2. Accounting method

2.3.2.1. Documents used

- Outgoing payment order (Form No. C8-21/KB)

- Incoming payment order (Form No. C8-22/KB).

- Payment order in other foreign currencies (Form No. C8-23/KB).

- Fee collection order (Form No. C8-24/KB).

- Collection settlement order (Form No. C8-25/KB).

- Foreign exchange rate difference debt notification order (Form No. C8-26/KB).

- Interest payment order (Form No. C8-27/KB).

- Payment settlement order (Form No. C8-28/KB).

- Order to report foreign exchange rate differences (Form No. C8-28/KB).

- POS Notification Order (Form No. C8-30/KB).

- List of payment settlement orders to the consolidated payment account of the State Treasury at the Commercial Bank's HSC (Form No. C8-31/KB).

- List of Settlement Orders collected to the General Payment Account of the State Treasury at HSC Commercial Bank (Form No. C8-32/KB).

- List of incoming payment orders (Form No. C8-33/KB).

- List of cash withdrawal payment orders at the Bank (Form No. C8-34/KB).

2.3.2.2. User account

Accounting uses the following main accounts:

Account 1190 - Bilateral payment at banks: used to concentrate revenues, make payments and disbursements of the state budget through the electronic payment channel of the State Treasury units with the commercial banks where the accounts are opened before transferring the payment results to the General Payment account of the State Accounting Department at each commercial bank system.

Account 1190 - Bilateral payment at banks is opened at the State Treasury Transaction Office, provincial State Treasury, district State Treasury.

2.3.2.3. Accounting for electronic payment transactions in VND currency

a) Accounting for expenditures of the State Treasury unit on the payment account

- Based on the payment vouchers, the accountant records:

Related account debt (8113, 8116, 3711, 3712,...)

Credit account 3392 - Intermediary payables - AP

- Simultaneously:

Debit account 3392 - Intermediary payables –AP

Credit account 1191, 1192, 1193, 1194, 1195 – Payment account

b) Accounting for the revenue of the State Treasury unit Based on the incoming LTT, the accountant records:

Debit account 1191, 1192, 1193, 1194, 1195, 1153, 1154, 1155, 1156, 1159 –

Payment account, collection account

There are accounts 7111, 3711, 3712, 3713, 3938 …. – Related accounts

c) Accounting for cash withdrawals at commercial banks on the electronic payment system:

- For customers' cash withdrawal transactions at commercial banks:

+ Based on the customer's documents, the accountant records: Debit related accounts (8113, 8116, 3711, 3712,...)

Credit account 3392 - Intermediary payables - AP

+ At the same time:

Debit account 3392 – Intermediary payables - AP

Credit account 3911 – Payable for cash payment via bank

+ At the end of the day, based on the results of the correct comparison of the LTTs (including cash withdrawal orders), the accountant prints the LTT Cash Withdrawal List at the Bank (C8-34/KB), and records the total amount of LTT Cash Withdrawals:

Debit account 3911 - Payable for cash payment via bank Credit account 1191, 1192, 1193, 1194, 1195 - Payment account

+ Regulations on procedures for presenting ID cards and cash withdrawal letters at commercial banks are implemented according to the instructions of each commercial bank system.

In case the LTT withdraws cash successfully sent by the State Treasury to the commercial bank, but the customer does not come to the commercial bank to receive the cash: after 02 working days, the commercial bank will transfer the LTT back to the State Treasury unit. Upon receiving the incoming LTT, based on the Incoming LTT List, the accountant records:

Debit account 1191, 1192, 1193, 1194, 1195 – Payment account

Credit account 3911 - Payable for cash payment via bank. Then, TTV prints 02 copies of the Payment Order to be restored, 01 copy of the Customer Credit Notice,

01 copy as basis for accounting as follows:

Debit account 3911 – Payable for cash payment via bank Credit account 8113, 8123, 8211…..

- For the Treasury unit's business of withdrawing cash to the fund:

+ Based on the request for cash withdrawal to the fund approved by the Head of the State Treasury unit, the accountant prepares a Transfer Slip (C6-08/KB), recording AP:

Debit account 1339 - Other receivables from Treasury operations (Unit code: District Treasury)

Credit account 3392 – Intermediary payables – AP

+ At the same time:

Debit account 3392 – Intermediary payables – AP

Credit account 1191, 1192, 1193, 1194, 1195 – Payment account

Accounting entries are interfaced to the electronic accounting system and form LTT.

+ When receiving cash from a commercial bank, based on the payment voucher of the commercial bank, the accountant prepares a receipt voucher (Form No. C6-05/NS), recording (GL):

Debit account 1112 - Cash in VND

Credit account 1339 - Other receivables from State Treasury operations (Unit code of District State Treasury).

+ At the end of the day, 01 copy of the outgoing LTT of this transaction is printed, checked and saved with the Transfer Paper in the daily document set.

d) Cash deposit from the Treasury unit's fund into the payment account at a commercial bank:

- Cash deposit before "cut off time": After completing the cash receiving procedure, the commercial bank sends LTT to the electronic payment center for the State Treasury unit before "cut off time", this payment data is electronically reconciled during the working day.

- Cash deposit after "cut off time", after completing the cash receipt procedure, the commercial bank sends LTT to the electronic payment center for the State Treasury unit on the next working day (like other receipts after "cut off time"), this data is electronically reconciled on the next working day.

- The accounting process is performed as follows:

+ Based on the Payment Voucher, the accountant records: (TABMIS – GL) Debit account 1171 – Money in transit in VND

Credit account 1112 – Cash in VND

+ When receiving the incoming LTT (credit report) from the commercial bank to the Treasury unit, based on the credit report, the accountant records (GL):

Debit account 1191, 1192, 1193, 1194, 1195 – Payment account

Credit account 1171 – Money in transit in VND

Note: The finalization of the Money in Transfer account is only performed when the State Treasury receives the incoming LTT from the commercial bank on the Electronic Payment Center, and at the same time the payment slip with the confirmation of "Received money" from the commercial bank is saved with this incoming LTT in the daily document set.

d) Accounting for settlements of Payment Accounts and Collection Accounts

- At the State Treasury Department, Provincial State Treasury, District State Treasury:

+ Based on the payment settlement order of the commercial bank on transferring all arising payments on the payment account to the consolidated payment account of the State Treasury, the accountant records:

Debit account 1191, 1192, 1193, 1194, 1195 – Payment account

Credit account 3934, 3935, 3936, 3937, 3939 - Collection and payment in TTSP

+ Based on the Commercial Bank's Revenue Settlement Order on transferring the excess revenue on the payment account and all revenue on the specialized collection account to the State Treasury's consolidated payment account, the accountant records:

Debit account 3934, 3935, 3936, 3937, 3939 - Collection and payment in TTSP

There are accounts 1191, 1192, 1193, 1194, 1195, 1153, 1154, 1155, 1156,

1159 – Payment account, collection account

- At the State Audit Office:

+ Based on the list of payment settlement orders to the consolidated payment account exported from the TTSPĐT regarding the transfer of the arising payment amount on the payment account of the State Treasury and district State Treasuries to the consolidated payment account of the State Treasury, the accountant records:

Debit accounts 3934, 3935, 3936, 3937, 3939 - Collection and payment in TTSP, detailed by each Treasury unit according to locality code.

Credit account 1133, 1134, 1135, 1136,1139 - General account of State Treasury

+ Based on the list of payment orders for the consolidated payment account exported from the TTSPĐT regarding the transfer of excess revenue on the payment account of the district Treasury and all revenue on the specialized collection account of the provincial and district Treasury to the consolidated payment account of the Treasury, the accountant records:

Debit account 1133, 1134, 1135, 1136, 1139 - General account of State Treasury

There are accounts 3934, 3935, 3936, 3937, 3939 - Collection and payment in TTSP, detailed by each Treasury unit according to locality code.

Note: For accounts 1139, 1195, 1159, 3939, the State Treasury and the State Audit Department monitor according to the National Payment Service code corresponding to each commercial bank system.

e) Interest/fee accounting

- Accounting at the district Treasury:

+ Accounting for interest on payment accounts and collection accounts:

Based on the Interest Payment Order sent by the Commercial Bank on the Electronic Payment Information Center, the accountant records (GL):

Debit account 1191, 1192, 1193, 1194, 1195, 1153, 1154, 1155, 1156, 1159 –

Payment account, collection account

Credit account 3999 - Other payables (Code of District Treasury, N=9)

+ Payment fee accounting:

Based on the Fee Collection Order sent by the Commercial Bank, the accountant records (GL):

Debit account 1339 - Other receivables from Treasury operations (Unit code of District Treasury, N=9)