- Overtime payment table (Form No. 06 - LĐTL)
- Outsourcing payment table (Form 07 - LĐTL)
- Confirmation of product or work completion (Form 05–LĐTL)
- Salary and social insurance allocation table (Form 11-LĐTl)
+ Accounting for production costs and product prices:
- Material and equipment allocation table
- Salary and social insurance allocation table
- Depreciation calculation and allocation
- Cost sheet
2.3.2.2 Organizing the application of the accounting system at the company
The company's accounting system is applied in compliance with Decision 15/QD-BTC issued on March 20, 2006. However, due to the medium scale of production, during the application process, the company only applies a number of accounts suitable for management requirements, and at the same time, the company also builds additional level 2 and 3 accounts for easy monitoring.
To effectively use the accounting system, the Company has made some minor changes based on the specific characteristics of production and business:
- Account 151: Goods in transit (not used because purchased materials always have accompanying invoices, there are no cases where invoices are received for goods that have not arrived and vice versa)
- Account 157: Goods on consignment (not used because the company mainly produces according to orders, the quantity of retail goods is not much, consumed directly at the company's product sales and introduction stores)
- Account 159: Provision for inventory price reduction (not used because the company does not make provisions for inventory price reduction)
- Accounts 121, 128, 129, 229: Not yet used in the company's accounting system.
2.3.2.3 Accounting system applied at the company
All transactions arising at My Hao Joint Stock Company are established with valid original documents. The original documents are the basis for accountants to enter data into detailed books (cards), detailed summary tables, and general ledgers. The detailed book system includes several main types that My Hao Joint Stock Company uses:
- Material detail book, CCDC
- Payment details book with seller
- Cash book, bank deposits
- Detailed account book
To provide accounting information for internal management requirements and for authorities, the company establishes a reporting system including:
Internal report
- Monthly:
+ Fund report
+ Labor timekeeping report
- Quarterly:
+ Profit and loss report on product and goods consumption
+ Report on cash and foreign currency receipts and expenditures
+ Debt report
+ Report unusual expenses and income
Financial reports: include 04 types according to the provisions of the accounting regime. According to current regulations (Decision 15/QD-BTC issued on March 20, 2006). The financial reporting system includes:
+ Balance sheet (B01-DN)
+ Business performance report (B02-DN)
+ Cash flow statement (B03-DN)
+ Notes to financial statements (B09-DN)
2.3.2.4 Accounting methods applied at the company
To suit the production and business situation, the company applies an accounting system in the form of "General Journal".
Accounting procedures in general journal form
Detailed accounting ledger
GENERAL LOG
Original document
Warehouse card
Ledger account 152
Balance sheet of arising numbers
FINANCIAL REPORT
Detailed summary table
Note: daily recording, end of month recording
check
Every day, based on the checked documents, accountants will reflect the arising economic transactions into the related detailed accounting books and cards. Then, these documents will be transferred to the general accountant to record the arising transactions into the NKC book, based on the data recorded in the NKC book to record in the book according to the general accounting accounts. At the end of the period, the detailed accountant will base on the detailed accounting books and cards to create a detailed summary table. The general accountant will add the data in the general ledger to create a balance sheet of arising numbers and check and compare the data recorded in the general ledger to create a financial report.
In addition to the general journal, accountants can open special journals such as: cash receipt journal, purchase journal, etc. Periodically every 5-10 days or at the end of the month, the volume of transactions arising, summarize the vouchers of the special journal, take data to record in the appropriate accounts on the ledger. The ledger after eliminating the
duplication of transactions recorded simultaneously in many other special books (if any).
2.4 Current status of material accounting work at My Hao Joint Stock Company
2.4.1 Characteristics of raw materials at My Hao Joint Stock Company
My Hao Joint Stock Company is a company specializing in the production of nylon packaging. This type of packaging has the characteristics of being odorless, tasteless, high hardness, effective resistance to mechanical impact, and gas-proof, thus ensuring high pressure in the food storage environment. There is a transparent type of packaging that can clearly see the product inside, and can withstand high temperatures above 100 0 C or cold temperatures below 0 0 C. Ink can be sprayed on the surface to mark the product. The type of plastic used for food packaging is thermoplastic, the higher the temperature, the more flexible it becomes, and when the temperature drops, it will return to its original properties.
Therefore, the raw materials used for production must meet the specific and high requirements of production technology and the list of materials must be very rich and diverse in types and specifications. The following are some characteristics of the company's raw materials:
+ Plastic beads : white, slightly transparent, non-conductive and non-heat-conducting, impermeable to water and air, unreactive to acid and alkaline solutions, with high printability.
+ PVC powder (Polyvinyl chloride) : is an amorphous powder, colored, durable to acid and alkaline solutions.
+ Color masterbatch : is an additive produced on a high-tech production line, designed to replace the use of color powder to improve the environment.
+ Solvent: is a solid liquid that is a solution used to dissolve other solids such as plastic.
+ Titanium: in its pure state, titanium can be easily drawn into fibers. The melting point of titanium is relatively high, so it is used to withstand heat. Titanium can create a protective layer of oxygen on the outside, is less conductive, and does not dissolve in acid solutions.
2.4.2 Classification of raw materials at the company
For convenience in management, raw materials are classified as follows:
+ Main materials: Plastic granules, PVC powder,..
+ Auxiliary materials: Color masterbatch, color, printing ink, solvent, titanium, wax 110,... Raw material costs account for a large proportion in the product manufacturing process.
of the company (accounting for 65%) and is formed from many different sources. Raw materials
Purchased materials include both domestic and imported materials. Imported materials are usually materials that require high technical specifications and quality that cannot be produced domestically, such as colorants, plastic beads, etc. These materials have quite high prices and are imported from countries such as Korea, Thailand, Taiwan, etc.
The company's material list system is built by the material department and the technical department. This list is linked to the type and is used consistently throughout the company. With this list, when there is an import and export of materials during the period, the computer will quickly identify the type of material, helping to manage materials more effectively, avoiding loss, shortage, damage, etc.
Table 01: List of raw materials
STT
Scoreboard | Brand name, specification way | Unit | Unit price | Note | |
1 | CV 01 | Plastic beads | kg | ||
2 | CV 02 | Color beads | kg | ||
3 | CV 03 | PVC Powder | kg | ||
4 | CV 04 | Solvent | kg | ||
5 | CV 05 | Titanium | kg | ||
6 | CV 06 | Wax 110 | kg | ||
7 | CV 07 | Calcium | kg | ||
8 | NLN01 | Orange ink 305 | kg | ||
9 | NLN02 | Ink 302 red flag | kg | ||
10 | NLN03 | Blue ink | kg | ||
11 | NLN04 | Black ink | kg | ||
12 | NLN05 | Yellow ink | kg | ||
13 | NLN06 | Purple ink | kg |
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2.4.3 Calculating raw material prices at My Hao Joint Stock Company
2.4.3.1 Calculating the price of raw materials in stock
My Hao Joint Stock Company calculates VAT using the deduction method.
For raw materials supplied at the company's warehouse, the import price is the price stated on the invoice (excluding input VAT) plus related costs including: transportation, loading, unloading, storage, insurance for materials, and working costs for staff purchasing raw materials.
For raw materials imported from abroad
Warehouse price =
Purchase price stated on invoice (including import tax)
if any)
Purchase cost + actual incurred
Non - refundable taxes
again
CKTM, discount on purchased goods enjoyed
- Purchasing costs : are costs incurred during the purchasing process: loading, unloading, installation, transportation, natural loss within the norm, and warehousing costs during the purchasing process.
- Non-refundable taxes: usually import tax, special consumption tax on imported goods, etc.
- Trade discounts, purchase discounts: are understood as amounts enjoyed and deducted when purchasing goods arising after the invoice has been issued.
For raw materials that are processed and imported by the enterprise itself
warehouse
Warehouse price =
Actual value of the object
processing materials +
Costs incurred for processing and manufacturing
For raw materials outsourced for processing and manufacturing
Warehouse price =
Value of exported materials + processing
Cost + delivery
Processing fee
For raw materials imported from capital contribution sources: Value is assessed and accepted by the capital contributing parties.
For recovered scrap imported into warehouse: is the estimated actual price that can be used or sold.
2.4.3.2 Calculating the price of raw materials in stock
For raw materials issued in the accounting period, the weighted average method for the whole period is used to calculate. According to this method, raw materials issued in the period can only be calculated at the end of the month to calculate all materials issued in the warehouse. During the period, only physical items are monitored, at the end of the period, materials are evaluated according to average prices.
inventory material account balancing principle
Average price of raw materials for the whole period =
storage
Actual price of raw materials in stock at the beginning of the period +
Number of raw materials in stock + beginning of period
Actual price of imported materials during the period
Number of imported raw materials during the period
Average price of raw materials issued from warehouse of each type calculated as of the end of the period
Quantity of each type of raw material used
Average price
= x End of period raw materials
2.4.4 Procedures for importing raw materials at My Hao Joint Stock Company
2.4.4.1 Documents used and procedures for circulating warehouse import documents
Warehouse receipt:
- Value Added Tax Invoice
- Shipping bill
- Warehouse receipt (form 01–VT)
- Minutes of inspection of materials, tools, products, goods (Form 05- VT)
Warehouse document circulation process
Based on production needs and consumption standards set by the technical department. At the unit, production workshop, and material department, the raw material import plan should be made.
materials, prepare a request for purchase of raw materials and submit it to the board of directors for approval. Once approved by the director, the sales department requests price quotes from the stores and submits them to the director for approval. After the director approves the appropriate price, the purchase contracts are signed.
The material supply department will make the purchase based on the purchasing plan and the signed purchasing contract. When the goods arrive, a material inspection committee will be established to evaluate the materials in terms of quantity, quality, type and specifications. After checking the reasonableness and legality of the VAT invoice and based on the inspection results, a "Material inspection report" will be made. The material supply department will make a warehouse receipt. The warehouse receipt is made in 2 copies.
- Copy 1: kept at the place where the ballot is drawn up
- Copy 2: The warehouse keeper keeps it to record on the warehouse card and then transfers it to the accounting department.
In case of detecting any excess, shortage or incorrect quality, the warehouse keeper must notify the supplier department and make a record with the delivery person. Every 3-5 days, the warehouse keeper transfers the receipt to the material accountant as a basis for accounting entries.
2.4.4.2 Illustrative example:
I would like to quote some business activities in December 2012 as follows :
1. On December 3, 2012, My Hao Joint Stock Company purchased the following raw materials from Plastic Chemical Joint Stock Company:
Plastic granules 2,500 kg, unit purchase price 27,740 VND/kg Color granules 500 kg, unit purchase price 20,910 VND/kg Titan 325 kg, unit purchase price 20,000 VND/kg
PVC powder 1000 kg unit price 10,545 VND/kg