General Accounting for Import - Export of Materials

After receiving the import and export documents of raw materials and fixed assets, the detailed accountant checks the reasonableness and validity of the documents and then records them in the detailed book of raw materials and fixed assets according to both quantity and value criteria.

Value index of raw materials and supplies entered in the month in the detailed book of each type of raw materials

– CCDC is calculated by purchase price plus shipping and unloading costs.

The value index of materials issued in the month in the material detail book is determined according to the weighted average unit price.

At the end of the month, the accountant calculates the inventory value of raw materials and construction materials, both in terms of quantity and

value.

Material detail books are opened for each type of material.

Cao Minh Construction and Trading Company Limited

192 – Nguyen Thai Son – Go Vap District

Model No.: S10-DN

(Issued under Decision No. 15/2006/QD-BTC dated March 20, 2006 of the Minister of Finance)

2012

BILL OF MATERIALS

Account: 152 Unit: Ton

Specification name: Steel

Document

Interpretation	TK DU	Unit price	Enter		Export		Existing
Interpretation	TK DU	Unit price	Number	Day	Number quantity	Wall money	Number quantity	Wall money	Number quantity	Total amount
		Head period							634	11,285,200
262/PN	12/14	Purchase import warehouse	111	18,500	941	17,408,500			1575	28,693,700
264/PX	12/14	Export for use project	621	18,218			850	15,485,300	725	13,208,400

…	…	…	…	…	…	…	…	…	…	..
		Balance end of period			x		x		x

Maybe you are interested!

(Source: Finance - Accounting Department of Cao Minh Construction - Trading Co., Ltd.)

Cao Minh Construction and Trading Company Limited

192 – Nguyen Thai Son – Go Vap District

Model No.: S38-DN

(Issued under Decision No. 48/2006/QD-BTC dated September 14, 2006 of the Minister of Finance)

2012

TOOLS AND EQUIPMENT DETAIL BOOK

Account: 153 Unit: Piece

Specification name: Compactor

Document

Interpretation	TK DU	Unit price	Enter		Export		Existing
Interpretation	TK DU	Unit price	Number	Day	SL	Total amount	SL	Total amount	SL	Total amount
	…	….	…	…	…	…	…	…	…	…
201	11/25	Purchase import warehouse	1111	28,000,000	1	28,000,000			2	56,000,000
205	11/25	Export for public use program	142	28,000,000			1	28,000,000	1	28,000,000
…	…	….	..	…	…	…	…
		Closing balance period							1	28,000,000
		Inventory end of the year							1	28,000,000

(Source: Finance - Accounting Department of Cao Minh Construction - Trading Co., Ltd.)

At the end of the period, after recording all import and export transactions in the accounting book, calculate the total import, export and inventory of each type of material. Then the accountant and the warehouse keeper compare the data on the warehouse card with the detailed material book. If the data is correct, the accountant signs the confirmation on the warehouse card. The next job is for the accountant to base on the detailed accounting book to create a summary table of import - export - inventory.

The import, export, and inventory summary table is created for all types of materials, each type of material is recorded on a line of this table. From the detailed material accounting book, the accountant calculates the total import, total export, and ending inventory of each type of material to put on a line of the import, export, and inventory table. Looking at this table, we can see the fluctuation of all types of materials in the company's month clearly and completely.

Cao Minh Construction and Trading Company Limited

192 – Nguyen Thai Son – Go Vap District

Model No.: S38-DN

(Issued under Decision No. 48/2006/QD-BTC dated September 14, 2006 of the Minister of Finance)

SUMMARY TABLE OF IMPORT - EXPORT - INVENTORY MATERIALS

VT Code

Material name	Unit	Beginning balance		Enter in period		Export during the period		Ending balance
Material name	Unit	Number quantity	Value	Quantity	Value	Quantity	Value	Number quantity	Value
	I. Main materials
XIMANGH	Ha Tien Cement	Ton			95	128,915,908	95	128,915,908
CIMANGHO	Holcim Cement	Ton			260	343,922,726	260	343,922,726
SAT	Iron 20mm	Kg			1,662	26,625,240	1,662	26,625,240
PHOTO	Round steel billet	Kg			13,305	169,750,300	13,305	169,750,300
THEP	Steel pipe	Kg			75,603	1,118,957,439	75,603	1,118,957,439
SKIN	Stone 1x2	Ton			21	4,100,000	21	4,100,000
…	…	…			…	...	…	...

II. Auxiliary materials
DINH	Nail	Kg			330	5,757,600	330	5,757,600
DINHD	Disc stud	Female			48	67,296	48	67,296
NEP	PE 5x6 strip	Kg	34	684,000					34	684,000
BOLTS	Bolt M12x30	Set			3,000	5,700,000	3,000	5,700,000
…	…	…			…	…	…	…
	III. Fuel
DAU	Diesel Oil	Liter			718	3,374,600	718	3,374,600
PLASTIC	Asphalt	Bin			5	94,500	5	94,500
…	…	…			…	…	…	…
	Total		2,345	87,290.0 00	368,942	6,864,827,965	368,839	6,849,311,295	2,448	102,806,670

Preparer Chief Accountant Director

(Signature, full name) (Signature, full name) (Signature, full name)

(Source: Finance - Accounting Department of Cao Minh Construction - Trading Co., Ltd.)

Detailed accounting of raw materials and fixed assets is very important. It helps provide complete and detailed information for each type of raw materials and fixed assets, including both physical and value indicators, not only for each warehouse but also for each type, specification, and quality depending on the company's management requirements. In fact, the detailed accounting of raw materials and fixed assets at the company is also very complete and scientific.

2.2.5 General accounting for import - export of raw materials - fixed assets at the company

2.2.5.1 Accounting method used

Cao Minh Construction - Trading Company Limited applies the method of calculating VAT by deduction method, accounting for inventory by regular declaration method. Therefore, the situation of import - export - inventory of raw materials - construction materials is reflected regularly and continuously.

2.2.5.2 Accounts used for accounting of raw materials and fixed assets

Currently, the company is applying the accounting regime according to Decision No. 15/2006/QD/BTC dated March 20, 2006 of the Ministry of Finance. To be consistent with the accounting process at the company, the accounting work of materials and equipment uses the following general accounts: TK152, TK153, TK111, TK112, TK133, TK331, TK621, TK627, TK641, TK642.

2.2.5.3 General accounting of import and export of raw materials

 Raw material warehouse

Based on the original documents for importing raw materials in the detailed accounting section and the original documents in December 2012, the accountant makes provisions for a number of major economic transactions arising during the process of importing raw materials.

The company usually buys raw materials in two forms.

+ Pay now: This form applies to customers who have infrequent transactions with the company.

Transaction 1 : Based on Contract No. 0000590, code PP/11P, dated December 14, 2012, the company imported round steel pipes and paid in cash from Hoang Phong Phu Private Enterprise with the amount:

19,149,350 VND (VAT 10%). According to receipt No. 258/PN dated December 14, 2012 with a value of 17,408,500 VND (price excluding tax). The accountant records the following: (Appendix 1,2)

:	17,408,500	copper
:	1,740,850	copper
:	19,149,350	copper

Debit account 152

Debit account 133

Have account 1111

+ In case the business purchases and pays the seller in installments: Most businesses use this form of payment to purchase raw materials from agents that have regular relationships with the company.

Transaction 2 : Based on Contract No. 0037323, code DT/11P, dated December 17, 2012, the company imported Holcim multi-purpose cement from Duc Toan Trading & Service JSC and has not paid the seller VND 19,125,000 (VAT 10%). The cost of transporting 12.5 tons of cement is

1,000,000 VND excluding tax, paid in cash (VAT 10%). According to Receipt No. 262/PN dated December 17, 2012 with a value of 18,386,364 VND (price excluding tax). The accountant records as follows:

:	17,386,364	copper
:	1,738,636	copper
:	19,125,000	copper
:	1,000,000	copper
:	100,000	copper
:	1,100,000	copper

Debit account 152

Debit account 133

Have account 331

Debit account 152

Debit account 133

Have account 331

Transaction 3: Based on the factory invoice for completed processing on December 28, 2012, the truss is made of 5mm thick corrugated iron, welded into a finished structure with dimensions of 200mm x 105mm x 100mm, unit price of 14,500 x 200 pieces = 2,900,000 and processing of pile connector details 150mm x 150mm, unit price of 6,000 VND x 1,500 pieces = 9,000,000 VND, totaling 11,900,000 VND, together with the amount of steel the company purchased for processing, worth

18,900,000 VND. Attached with the warehouse receipt of the processing unit for the materials department to write warehouse receipt No. 260/PN dated December 28, 2012, the Accountant records as follows:

:	30,800,000	copper
:	30,800,000	copper

Debit account 152

Have account 154

Transaction 4: On December 24, 2012, the company re-imported excess Vicem Ha Tien multi-purpose cement. According to Import Form No. 265/PN dated December 24, 2012, the accountant determined the excess value.

:	13,500,000	copper
:	13,500,000	copper

13,500,000 VND. The accountant records the following: Debit account 152

Have account 621

Transaction 5: Based on Contract No. 0000059, code VK/12P, dated December 30, 2012, the company imported various types of round steel bars from Vinh Ky Private Enterprise and paid by bank transfer with the amount

18,697,140 VND (VAT 10%). Steel purchase price: 14,200 VND/Kg. Quantity stated on invoice is 1,197 Kg, actual quantity imported: 2,100 Kg. According to Import Receipt No. 277/PN dated December 30, 2012 with value of 16,997,400 VND (price excluding tax). Accountant records as follows:

:	16,997,400	copper
:	1,699,740	copper
:	18,697,140	copper

Debit account 152

Debit account 133

Have account 112

:	12,822,600	copper
:	12,822,600	copper

Import excess raw materials into warehouse: Debit account 152

Have account 3381

 In addition, in 2012, Cao Minh Construction and Trading Company Limited also incurred some transactions to purchase raw materials with a total amount of: 6,864,827,965 VND. Accounting records are as follows:

:	6,864,827,965	copper
:	6,864,827,965	copper

Debit account 1521

Have account 1111

 Raw material export

When there is a need for material supply, the construction manager writes a request for material release from the warehouse and transfers this request to the material department, after it has been approved by the construction commander. Based on that request, the material accountant writes a warehouse release form (the form is presented in the detailed accounting section of raw materials).

Transaction 1 : Based on warehouse delivery note No. 260/X dated December 14, 2012, delivering 850 kg worth VND 15,485,300 (detailed price calculation method presented above) of steel pipes for the Rach Gia Metro project, the accountant makes the following entries:

:	15,485,300	copper
:	15,485,300	copper

Debit account 621

Have account 152

Transaction 2: Based on warehouse delivery note No. 264/X dated December 17, 2012, delivering 12.5 tons of Holcim multi-purpose cement to Nguyen Huy Tuong House project, the accountant records as follows:

:	18,386,364	copper
:	18,386,364	copper

Debit account 621

Have account 152

Transaction 3 : On December 24, 2012, the company exported all the surplus Vicem Ha Tien multi-purpose cement. According to Export Form No. 274/X dated December 24, 2012, the accountant determined the surplus value to be 13,500,000 VND. The accountant made the following entries:

:	13,500,000	copper
:	13,500,000	copper

Debit account 621

Have account 152

….

 In addition, in 2012, the company also had some transactions of exporting raw materials with a total amount of: 6,849,311,295 VND. The accounting entries are as follows:

:	6,849,311,295	copper
:	6,849,311,295	copper

Debit account 621

Have account 1521

After accounting data, accountants monitor accounting books on the computer, print books monthly to facilitate the management of documents and books. Because the company applies the General Journal accounting form, accounting for materials and equipment is performed by accountants using the following books: related account ledgers, detailed seller payment books to facilitate the management of documents and books, and print books monthly, monitor accounting books on the computer.

General Accounting for Import - Export of Materials - CCDC at the Company

Comment