Organization of Accounting Department at Sanofi-Aventis Vietnam Company Limited.

 Sales Department: Draft sales contracts for agents, treatment lines, and gold pharmacies. Receive and process orders. Create and send monthly and quarterly sales tables for agents and gold pharmacies to customers. Check invoices for discounts for treatment lines and bonuses for gold pharmacies purchasing through agents according to the company's sales conditions.

 Purchasing Department: Conduct purchasing according to purchasing procedures, report to competent authorities as required. Head of purchasing department of distribution channel block has the right to approve the value of the purchase depending on authorization. Receive and resolve all customer complaints.

 Production planning department: Ensure packaging materials for planned production as well as other needs of departments and workshops according to plan. Prepare production orders, packaging orders, raw material and packaging delivery notes for workshops according to the production plan of the technology director. Responsible for importing, preserving and distributing all items directly serving the production of drugs such as: Raw materials, packaging according to pharmaceutical regulations. Responsible for managing according to the plan and costs of chemicals used for water treatment, chemicals used for industrial cleaning and office supplies.

Maybe you are interested!

 Pharmaceutical technology development department: Develop formulas, production methods, analysis methods, and appropriate quality indicators. Produce trial batches, evaluate production processes, analysis methods, evaluate product quality and stability through research stages and transfer to production units. Prepare documents on production processes, check packaging materials, check finished products, and check the stability of domestic and foreign products. Change formulas and production processes to improve product quality, meet market demand, and reduce product costs; Provide technical assistant for mixing in workshops.

 Quality Assurance Department: Ensure that quality system elements and records are consistent with the company's quality policy and quality objectives. Identify and propose quality improvement plans to the Board of Directors. Review and issue regulations related to production, management, inspection, testing, internal quality assessment, etc. on the basis of good manufacturing practices and ISO 9002 standards. Issue factory certificates for each batch of products.

are entered into the distribution center warehouse.

Student: Nguyen Thi Tra Mi 28

 Technical Department: Technical research, maintenance and technical project planning. Monitoring the status of the factory, packaging and machinery repair. Forecasting and providing spare parts and technical materials, coordinating with the planning department and purchasing department in purchasing and selecting equipment in the company, and managing the warehouse of materials and machinery equipment.

 Human Resources Department: Plan salary and bonus for the entire company annually and make monthly payments. Coordinate with the accounting department in implementing salary and bonus plans and settling personal income tax.

 Administrative Department: Undertakes all administrative work, receives and classifies documents and delivers them to functional departments for implementation and storage.

 Liquid medicine workshop: Prepare and package liquid medicine products according to production orders. Support and facilitate other workshops when required.

 Pill workshop: Produce pill products according to production orders from the planning department. Prepare detailed weekly production plans for other workshops when required.

 Packaging workshop: Packages all semi-finished products delivered by the blending workshops.

2.1.5. Accounting organization structure at the company:

Currently, the accounting department is performing accounting work for both Sanofi legal entities in Vietnam, namely Sanofi - Synthelabo Vietnam Pharmaceutical Joint Stock Company (abbreviated SSV) and Sanofi - Aventis Vietnam Company Limited (abbreviated SAV).

2.1.5.1. Organization of accounting apparatus:

2.1.5.1.1. Organizational chart of accounting department:

Diagram 2.2. Organization of accounting apparatus at Sanofi-Aventis Vietnam Company Limited.

Student: Nguyen Thi Tra Mi 29

Graduation thesis Supervisor: Ths. Thai Tran Van Hanh

CHIEF ACCOUNTANT

SAV GENERAL ACCOUNTING

ACCOUNTS PAYABLE ACCOUNTING BUDGET ACCOUNTING REPORTING ACCOUNTING

SAV FINANCE

SSV GENERAL ACCOUNTING

TAX ACCOUNTING

SALES ACCOUNTING

ACCOUNTING FOR INVENTORY PAYABLES

PAYROLL ACCOUNTING

PRESCRIPTION DRUG PAYABLES ACCOUNTING

SAV TREASURER

SSV TREASURER/ PAYMENT DOCUMENT KEPTOCKER

SSV FINANCIAL REPORTING ACCOUNTING

FIXED ASSET ACCOUNTING

ACCOUNTING FOR NON-PRESCRIPTION DRUG PAYABLES

ACCOUNTS PAYABLE SAV

ACCOUNTING PAYABLE SSV

* Source of establishment of "Accounting Department"

Student: Nguyen Thi Tra Mi 30

2.1.5.1.2. Functions and tasks of each part:

 Chief Accountant: Report to the Board of Directors, Sanofi Aventis France Group, report to Vietnamese government agencies and be responsible to tax authorities according to Vietnamese accounting law. Check and approve financial reports, statistics, cash and bank documents, and related internal control procedures. Propose the company's financial and tax policies to the Board of Directors, and be responsible for the effective operation of the entire accounting department. Build the company's accounting apparatus in accordance with the accounting and statistics ordinance and international practices.

 General Accountant: Work with other departments on financial issues and accounting procedures at the enterprise. Responsible for preparing reports according to the provisions of Vietnamese accounting law, of the group. Record data from financial controllers in the technology sector and allocate production cost differences to cost of goods sold and finished goods inventory, determine production and business performance results. Summarize payable amounts, paid budget monthly, yearly. Print general ledgers, detailed cost books of department usage each month.

 Fixed asset accounting (Tools and equipment): Enter and update documents on fixed assets, check and confirm fixed assets when entering into SAP software. Reflect accurately and promptly the quantity and value of existing fixed assets; the increase and decrease situation and current status of fixed assets within the entire unit as well as in each department using fixed assets, creating conditions for providing information to regularly check and monitor the preservation and maintenance of fixed assets and investment plans for renewing fixed assets in each unit. Create fixed asset cards, fixed asset codes, fixed asset records and store documents related to fixed assets. Provide documents related to fixed assets when requested by the accounting department. Inventory fixed assets and monitor fixed assets in terms of quantity, quality and value.

 Tax accounting: Relationship with tax authorities, prepare tax reports according to regulations of the Ministry of Finance of Vietnam.

 Sales accounting: Prepare sales reports, declare VAT and classify revenue subject to corporate income tax. Prepare finished product inventory reports, compare with warehouse keeper. Account receivables, analyze overdue debts to set up bad debt provisions. Monitor and reverse the provision for finished product inventory and bad debt.

Student: Nguyen Thi Tra Mi 31

 Accounts payable accountant (7 people): Daily update of domestic and foreign purchase invoices. Plan weekly payments to suppliers. Monitor and archive import tax declarations. Compare and confirm the difference between actual purchase price and standard price. Summarize payables and monthly budget payments. Accounts payable accounting includes:

 Salary accounting: Accounting for salary and social insurance expenses according to the allocation assigned by the HR department. Tracking the remaining personal income tax payable and refunded, periodically reconciling with the HR department. Accounting for advances to employees in the company.

 Accounting for inventory and payables related to inventory: Update daily receipts and delivery notes of materials. Measure the difference between actual purchase price and planned purchase price. Compare inventory on books with actual inventory at warehouse with warehouse keepers at the end of the month. Conduct periodic inventory of warehouse twice a year. Monitor provision reversal.

Accountants must pay for prescription drugs, non-prescription drugs, and other drugs, etc.

 Treasury accounting: Report to the chief accountant, deal with the bank, work closely with the payment accountant. Update treasury procedures, establish and review the company's treasury situation every month. Responsible for domestic and international payment procedures, purchase foreign currency for payment, risk management. Manage weekly and monthly supplier payment collection and payment plans, provide data to the treasury.

 Company Treasurer: Responsible for depositing and withdrawing money from the bank. Paying cash for payments and advances to employees in the company. Updating the cash book and regularly reconciling it with the cash fund under management responsibility. Storing documents related to payments.

 Financial reporting accountant: Responsible for preparing financial reports and management reports as required by the company and the state.

2.1.5.2. Accounting information system at the company:

2.1.5.2.1. Brief introduction to e-AED and SAP system:

In a company, an e-AED is an internal online approval of the company created by the requesting department to request funding or approve certain activities as prescribed by the law.

Student: Nguyen Thi Tra Mi 32

company. Approvers only need to log in to the internal system with their account to view the relevant information attached to the e-AED that needs approval before clicking on the “APPROVED” approval icon.

SAP (Systems Applications and Products in Data Processing) is a standard enterprise application software system, integrating all production and business processes into a smooth and efficient platform. This is an integrated software solution based on the Client/server model, an open system and is most commonly used in large enterprises in the world according to the Client/Server computing model. SAP system helps connect departments in different areas into a common operation, ensuring that information needs are met promptly, clearly and completely. Inside the SAP system is built according to a three-part structure including:

- Server interface part: is the interface part that will receive input requests from users via mouse, keyboard and send requests to the application part.

- Application part: this part collects all executable commands and manages their input and output contents. If the input information request uses information from the data part, the application part will format the data and send it to the data part.

- Data part: is a set of executable commands, accepting data requests from the application part.

Currently, the company is using the SAP system which includes many subsystems that can be used independently or in combination with each other. Some of the main subsystems in the SAP system include:

- Materials Management subsystem.

- Sales and distribution subsystem (Sales&Distribution).

- Production subsystem (Production Planning and Control).

- Financial Accounting subsystem.

- Controlling subsystem.

2.1.5.2.2. Accounting regime applied at the company:

 Accounting year: is a year, starting from January 1 and ending on December 31.

 Currency used at the company: VND. And all other currencies must be converted to VND based on the actual exchange rate on the transaction date and place.

The company uses the symbol K to denote 1K = 1000 units. K(LC) is K(Local Currency)

Student: Nguyen Thi Tra Mi 33

that is local currency. In Vietnam it is VND. K(GBP) is British Pound Sterling.

For example: Instead of writing 1,000,000 VND, we can write 1,000 K(LC).

 Form of organization of accounting work at the company: is the form of centralized accounting. According to this form, all documents are sent to the accounting department for synthesis, accounting, business summary and financial reporting.

 Applicable accounting regime: The Company applies the accounting regime prescribed by the Ministry of Finance, according to Decision No. 15/2006 and Circular 244/2009 of the Ministry of Finance.

 Accounting book form: The company uses the form of computer accounting (Using SAP software). When accessing the accounting books, the form of books issued in the form of General Journal is used. At the same time, the company also uses a number of additional Journals to meet the internal control needs of the company. This form is associated with financial and management accounting.

ACCOUNTING DOCUMENTS

ACCOUNTING BOOKS

- General ledger

- Detailed ledger

- General journal

Diagram 2.3. Accounting entry sequence in computerized accounting form.

SAP ACCOUNTING SOFTWARE

SUMMARY TABLE OF ACCOUNTING DOCUMENTS OF THE SAME TYPE

FINANCIAL REPORT

Note:

Enter data daily

Print monthly and yearly reports. Check against

- Every day, based on the original documents, the accountant will record the arising economic transactions and then enter them into the accounting software according to each subsystem. The computer will process the data according to the designed software and record them into accounting books such as: Special Journal, General Journal, etc.

Student: Nguyen Thi Tra Mi 34

- The accountant will base on the original documents to enter data into the detailed books on Microsoft Excel. At the end of the month, from the detailed accounting books, the General Accountant will create a detailed summary table.

- Periodically, accountants check and compare data on the software with detailed books and detailed summary tables on Excel, then print reports according to regulations of the Ministry of Finance.

2.1.5.2.3. Accounting methods applied at the company:

Inventory accounting method:

- Inventory accounting method: Perpetual inventory method.

- Method of calculating warehouse price: According to the Weighted Average method.

 VAT calculation method: According to the deduction method .

Fixed asset depreciation method:

- Valuation principle: based on original price and remaining value.

- The Company applies the straight-line depreciation method for fixed assets according to the usage time frame within the fixed asset depreciation time frame according to Circular 45/2013/TT-BTC of the Ministry of Finance and according to the regulations of the Sanofi Group. Fixed asset depreciation is calculated monthly to allocate to costs according to the usage object.

 Method of evaluating unfinished products: according to standard price method.

 Product costing method: according to the standard price method (Synthesize and allocate cost differences, price differences, usage differences, monthly operating differences).

2.1.5.2.4. Accounting system applied at the company:

The company uses the Vietnamese accounting system table in accounting according to Decision 15/2006/QD-BTC dated March 20, 2006. However, to unify and easily track the accounting of transactions arising from companies in the same Sanofi group, the company has used it with the Sub-Code Table agreed upon in a group (See Appendix 2.1).

2.1.5.2.5. Financial reporting system:

As a general rule, the Company uses the following consolidated financial reporting system:

- Balance sheet.

Student: Nguyen Thi Tra Mi 35

Comment