General Accounting of Imported Materials

Account 1522.2. Auxiliary materials. Account 1523. Fuel

Account 1524. Repair and replacement parts. Account 1526. Other spare parts.

Account 1527. Scrap.

In addition, during the accounting process, accountants also use a number of other related accounts such as: 111,112,133,331...

3.2. Accounting method

3.2.1 General accounting of imported materials

Along with the detailed accounting of imported materials, accountants must also conduct daily general accounting of imported materials. This is an important and necessary task because through this, accountants can reflect the value of imported materials, thereby clearly understanding the circulation of each type of material according to value criteria.

Every day, the accountant collects documents for importing and exporting materials and classifies the importing and exporting documents. Based on the import documents, the material accountant compares, checks, makes provisions, and then enters the data into the computer. After entering the data into the computer, the material accountant sends the import receipt and financial invoice to the payment accountant to track the amounts payable and paid to suppliers on "Detailed Book No. 2" and other related document logs such as NKCT No. 1, No. 2, No. 4, No. 10.

Each voucher is tracked in a line on "Detailed Ledger No. 2" with full information on the invoice about the supplier and the amount to be paid.

Principle of opening detailed ledger number 2: This ledger is opened monthly. For sellers who have regular relations with the company, a separate ledger is opened, while for irregular suppliers, it is monitored through a general ledger of the company.

- Data base: from warehouse receipts, invoices and payment documents

- Recording method:

Based on the material receipt and invoice, the accountant records the date column and document number.

Content column: Record the beginning balance of each supplier taken from "Detailed book No. 2" of the previous month. And record the material import transactions (Material name, imported quantity, unit price), and payment transactions with the seller.

Corresponding account column: Based on the warehouse receipt, the invoice for purchasing any material, the details are according to the account of that material based on the VAT invoice recording the tax (TK133). Payment to the seller in any form, for example, payment in cash (TK111), by bank deposit (TK112), by short-term loan (TK311), and for the seller who purchases goods from the enterprise, it is possible to make a payment offsetting (TK131)...

Generation column:

+ Credit generated number: Based on the invoice and warehouse receipt for the quantity of materials according to that invoice, the accountant will record in the payment detail book with the seller the following contents: invoice, receipt and amount in the appropriate columns according to the provisions:

Debit account 152

Debit account 133

Have account 331

+ Debt Amount: Based on payment documents, depending on the payment method, the accountant checks and determines the payment amount to each seller for each shipment and records it in the appropriate columns.

If payment is made in cash, the accountant debits account 331.

Have account 111

If payment is made by barter method, the accountant records: Debit account 331

Have account 131

If payment is made by short-term bank loan, accountants record Debit account 311

Have account 311

Balance column: Accounting reflects the amount the company still owes the seller or the amount the company paid in advance to the seller but the goods have not arrived in the month or the amount the company overpaid to the seller in the balance column.

(Sample payment details book with seller is quoted on the next page)

Table 3.2 PAYMENT DETAILS BOOK WITH SELLER

August 2002 - Ms. Phan Hong Lien

Document

Content	Account corresponding	Arise		Balance
SH	NT			In debt	Have	In debt	Have
111	2/8	Advance payment for pineapple sacks	111	345000			61124315
125	15/8	Always	1524 133		140000 14000
130	8/29	Industrial oil	1523 133		520000 52000
		Add		345000	726000
		Add account 1524			140000
		Add account 1523			520000
		Add TK133			66000
		End of month balance

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In the company, the purchase of materials with advance payment is not tracked in the detailed account book 141, but when the supply staff makes an advance payment to buy materials, it is tracked in the detailed payment book with the seller. In the detailed payment book with the seller, in addition to the number of pages opened for the seller, there are also pages opened for each supply staff to make an advance payment to buy materials.

When the person who purchases materials writes an application for an advance payment, he must clearly state what materials are being purchased and how much is being purchased, then submit it to the planning department. The planning department will review and approve it to be sent to the finance and accounting department, where the chief accountant will sign and approve before writing a payment voucher and recording it in the payment detail book with the seller, on the page of the book recording the name of the supply and consumption officer. This advance payment is recorded in the detail book of account 331 according to the following entry: Debit account 331

Have account 111

This reflection is similar to the case of prepayment for goods to the seller, in fact this is not an advance payment to the seller but is tracked in the detail book of account 331 as an advance payment to the seller. This does not reflect the true economic meaning of the arising economic transaction.

And when the person who advances the purchase of materials to the warehouse, the accountant records in the detailed book as follows: Debit account 152

Debit account 133

Have account 331

At the end of the month, the accountant closes the detailed payment books with the seller, for each supplier, the data in the total line on each detailed book of account 331 is the basis for recording in NKCT number 5 with the principle that each supplier records a line of books including the arising credit of account 331/debit of related accounts and the arising debit of account 331/credit of related accounts.

NKCT No. 5 is a type of general accounting book used to track the payment status with suppliers of the entire company. Principles for opening NKCT No. 5:

- Data base: Based on NKCT No. 5 of the previous month, detailed book No. 2

- Recording method:

+ Beginning balance column: Get data from the ending balance column of NKCT number 5 of the previous month.

Debt balance: Reflects the amount the company has paid in advance to the seller but the goods have not been imported into the warehouse during the month.

Credit balance: Reflects the amount the company owes to the seller.

+ Number of occurrences

In the Credit section of account 331, debit accounts (152,1521....) take the total data of each type of material of the seller and record it in the corresponding accounts.

Debit account 331, credit accounts (111,112....) take the total data in the accounts depending on the payment method to record the amount into the corresponding account.

+ End of month balance: Based on beginning of month balance and amount generated during the month

to calculate the end of month balance of each seller.

At the end of the month, close the NKCT No. 5 book, determine the total arising on the Credit side of Account 331 corresponding to the Debit side of related accounts, and take the total data of NKCT No. 5 to record in the general ledger Account 152 (Debit Account 152, Credit Account 331).

3.2.2 General accounting of material output.

Materials management not only manages the purchasing, storage and inventory situation.

storage of materials but also management of material output. This is a very important final management step before materials transfer their value to the value of manufactured products. Material costs account for a large proportion of production costs, so accountants must accurately determine the value of each type of material used and track the output materials used for each object. Therefore, the general accounting of materials must reflect timely calculations and accurate allocation to the correct objects. Therefore, the general accounting of materials must reflect timely calculations for each department as well as output for other objects. Organizing well the accounting stage of material output is a basic premise for accurately and fully accounting for product costs, especially the stage of calculating prices.

Accounting sequence for general accounting of exported materials:

Every day, from the warehouse receipt, the accountant enters data into the computer. The material price recorded on this receipt is the accounting price. At the end of the month, the computer automatically synthesizes the data, showing the quantity and value of materials used in each warehouse and each account according to the accounting price. Then, based on table number 3, the actual value of the materials issued from the warehouse will be determined as follows:

Actual price of materials issued from warehouse = Accounting price of materials issued from warehouse x Difference coefficient

The accountant makes list number 3 based on the material input summary tables to enter the accounting column, and based on the price listed on the invoice plus other actual costs incurred such as transportation, loading and unloading costs... to enter the actual column.

Table 3.4 ACTUAL COST CALCULATOR OF MATERIALS AND TOOLS IN SEPTEMBER 2002

TK1521		TK1522
TT	HT	TT	HT
1. Beginning balance	1,548,941,455	1,385,368,012	2,472,801,998	2,424,987,936
2. Debt incurred	19,563,286,107	19,147,493,513	971,804,697	964991771
1111H	1,617,050		109,273,613
1121H1	51,350,635		11,394,460
1121H5	2,182,942
1521V	3,767,837,361	3,767,837,361
331H	165,322,763	165,322,763	33,064,553	33,064,553
………..
3. Opening balance + Debt	21,112,227,562	20,532,861,526	3,444,606,695	3,389,979,707
4. Difference coefficient	1,028,217		11,061,143
5.Used in the month	2029668140	19735783536	3175673128	3125310930
6. Ending inventory

Based on the "Summary of material output" of each warehouse and the "Actual material price calculation table", at the end of the month, the accountant summarizes and provides the "Material allocation table". This table is effective in providing information in calculating product cost.

Departments using materials in the company: Materials exported for production in factories:

Direct material cost Ha Dong: 621D Direct material cost Hanoi: 621H Direct material cost Vinh: 621V

Materials exported to factory management: Vinh material cost: 627 V2

Table 3.5 TABLE OF DISTRIBUTION OF MATERIALS AND TOOLS

August 2002

TK has

Debit Account

TK1521		TK1522
TT	HT	HT	TT
Account 1388H			20168946	18738946
TK 1521 V	3675585925	3675585925
Account 621			318029804	305176301
TK 621 H1	10619544098	9802999313	203363957	190863256
Account 627 D2			15986513	15057600
Account 627 H12			318921738	314456456
Account 627 H321			16322294	16093763
Account 627 H33			2397806102	2316573821
…………
Add	20292668140	19735783536	3175673128	3125310930

Table 3.6 GENERAL LEGAL ADDRESS 1521

Beginning balance: 15864325632

Debit account

152/Have accounts

January	February	…...	November	December	Add
Account 111					1617050
Account 152					3767837361
Account 331					165322763
…….					……….
PS Debt					19563286107
PS Yes					20292668140

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