In case of selling by this method, the company will issue a sales invoice or not. If the business issues a sales invoice, at the end of the shift or at the end of the day, the salesperson will make a list of sales invoices and create a sales report. If the sales invoice is not issued, the salesperson will base on the amount of sales revenue and inventory, counter inventory to determine the amount of goods sold during the shift, during the day to create a sales report. The sales report and sales payment slip are documents for accounting.
4.1.3. Payment methods at the company:
Payment is a term that describes the transfer of financial means from one party to another. Money is the means of carrying out the exchange of goods, and at the same time, it is the end of the exchange process. At this point, money performs the function of a means of payment.
The company has the following payment methods:
* Payment in cash
Is a form of cash on delivery, meaning that when the goods are delivered to the buyer, the buyer immediately pays the cashier.
At the company, this form of payment appears the most, because it is quick and convenient for both the company and the customer.
* Non-cash payment: is a payment method made by transferring accounts in the banking system or offsetting debts without using cash. Specific forms of non-cash payment at the company:
Payment authorization: includes salary payment into workers' accounts, payment of insurance premiums...
Collection order: collection order is created by the beneficiary and sent to the bank serving him/her to collect money for delivered goods or provided services, usually electricity, water, and telephone services.
Types of payment cards: Payment cards issued by banks, used by companies to pay for goods, services, and other payments.
Documents used: receipt, collection order, payment order, VAT invoice.
4.2. Accounting for revenue and other income:
4.2.1. Sales revenue accounting:
4.2.1.1. Revenue content:
Sales revenue is recognized only when it is certain that the business receives economic benefits from the transaction. In cases where the economic benefits depend on uncertain factors, revenue is only recognized when the uncertain factors have been resolved. This means that when establishing a sales contract, the contract is performed based on the signature of both parties, meaning that the delivered goods are no longer owned by the company, the payment for the goods is guaranteed, the customer does not cancel the purchase contract,... then sales revenue is recognized.
The company's revenue comes from the purchase and sale of goods for construction purposes. The revenue of Chau Thien Nhu Company Limited is determined as follows: Based on the contract signed between the company and the customer, based on the delivery period of the goods stated in the contract.
The company sells mainly by direct method based on signed contracts with customers. The form of payment for customers is cash payment or payment by bank transfer.
When delivering goods to customers according to the terms stated in the contract. The contract is executed, the customer pays or accepts payment, the accounting department records revenue. When recording revenue, the company uses value-added invoices (red invoices).
4.2.1.2. Documents and records used:
The required accounting documents are:
Warehouse delivery note, receipt note.
Value added tax invoice is made in 3 copies:
Link 1: Save
Copy 2: Deliver to customer
Link 3: Internal use
In addition, accountants also use books such as: sales books, daily cash receipt books, and lists of invoices and documents.
4.2.1.3. User account:
When accounting for revenue, the company uses the following accounts:
Account 511-Sales revenue and service provision.
Account 5111-Revenue from sales of goods
Account 5113-Revenue from providing services.
4.2.1.4. Accounting method (accounting operations):
In 2015, the company's sales revenue reached 21,060,118,630 (VND).
Including sales revenue arising in the period based on economic contracts with customers of 11,006,785,259 (VND) and sales revenue and service provision collected immediately in cash arising in the period of 10,053,333,371 (VND).
At the end of the period, transfer revenue to account 911 to determine business results: Debit 511: 21,060,118,630
There are 911: 21,060,118,630
Some actual transactions arising during the fiscal year:
On January 1, 2015, the company sold an order of construction materials with a total value of 134,443,636 (VND) to An Phuoc Company Limited. VAT rate is 10%, An Phuoc Company Limited has not paid for the goods. After receiving the delivery order, the warehouse keeper creates a warehouse delivery note (Appendix 1) and transfers the data to the accounting department, the accountant will
Create sales invoice (VAT invoice) (Appendix 2) , give 1 copy to customer, keep 2 copies.
At the same time, based on the sales invoice (January 1, 2015, invoice number 223), the accountant enters the sales voucher summary table (Appendix 3).
If the customer has not paid, the accountant will enter the customer receivables detail book (Appendix 4).
When the customer pays based on the cash receipt, the accountant enters the voucher into the book. At the end of the quarter, the voucher is recorded into the book, the accountant enters into account 511.
In this case, the accountant records the following entries:
Revenue recognition:
Debt 131 (An Phuoc): 147,888,000
There are 511: 134,443,636
There are 3331: 13,444,364
When the customer pays: Debit 112: 147,888,000
There are 131 (An Phuoc): 147,888,000
4.2.1.5. Accounting books:
Accounting voucher No: 01
Abstract
Account Number | Amount | Note | ||
In debt | Have | |||
An Phuoc Company Limited pays for goods | 112 | 131 | 147,888,000 | |
Total | 147,888,000 | |||
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(Source: Company documents)
Ledger account 511 Year 2015
Date of recording
Document | Interpretation | TK corresponding | Amount | |||
Number | Day | In debt | Have | |||
Beginning balance | ||||||
Occurred during the period | ||||||
01/01/2015 | 223 | 01/01 | An Phuoc Company Sales | 131 | 147,888,000 | |
Sales and service revenue | 131 | 10,912,897,259 | ||||
Sales and service revenue | 111 | 10,053,333,371 | ||||
Net revenue transfer | 911 | 21,060,118,630 | ||||
Co-arising | 21,060,118,630 | 4,168,191,053 | ||||
Ending balance | ||||||
(Source: Author's own work - extracted from company documents)
4.2.1.6. Sales revenue accounting process is performed on computer.
Accountants enter the sales revenue accounting process into the computer in the following order:
after:
After receiving the signed contract including the types of goods requested by the customer, the delivery location and delivery time are established. After receiving the delivery order, the warehouse keeper creates a warehouse delivery note and transfers the data to the accounting department. The accountant will create a sales invoice (VAT invoice), 1 copy is given to the customer, and 2 copies are kept.
Based on the warehouse delivery note, the accountant enters data into the machine to generate transactions and retains the warehouse delivery note. The transaction is entered into the "Sales" section (Appendix 5) .
All transactions in the "Sales" section are automatically stored and distinguished by customer name, arranged in order by transaction date and automatically summarized into the purchase summary table in the system.
When the customer pays based on the cash receipt, the accountant enters it into the "Receipt" section (Appendix 6) . This section is automatically stored and will be saved in the customer's accounts receivable. Based on the summary accounts receivable table, the accountant will know how much the customer has paid and how much still needs to be collected from the customer.
In case the customer has not paid, the accountant will not enter any revenue data into the software.
At the end of the period, based on customer debt (Appendix 7) and the summary of goods delivery, the accountant will confirm the realized revenue and the amount of customer debt collected, to be collected, etc. In addition, based on the "Export - import - inventory" section on the computer, the accountant will determine the quantity of goods imported, sold and in stock (Appendix 8) .
The accountant prints out a summary table comparing with the documents on the quantity of goods sold and the revenue realized. Then use excel software to summarize according to the report template, set up summary templates according to the existing occurrences and compare the results with account book 511.
4.2.2. Accounting for financial activity revenue:
4.2.2.1. Contents of recording financial activity revenue
In addition to revenue from the sale of goods and provision of services, the company also has revenue from financial activities.
The company's financial revenue is mainly from interest on bank deposits.
In 2015, the company's financial operating revenue was VND 531,688.
4.2.2.2. Documents and records used:
Recorded vouchers, credit notes.
Ledger.
4.2.2.3. User account:
Account 515-Financial activity revenue.
4.2.2.4. Accounting method:
Interest income from bank deposits in Vietnamese currency: Debit 112: 531,688
There are 515: 531,688
Transfer of financial income: Debit 515: 531,688
There are 911: 531,688
4.2.2.5. Accounting books:
Ledger account 515 Year 2015
Date of recording
Document | Interpretation | Corresponding account | Amount | |||
Number | Day | In debt | Have | |||
31/1 | BK | January 31, 2015 | Capital gains | 112 | 25,129 | |
28/2 | BK | February 28, 2015 | Capital gains | 112 | 63,020 | |
31/3 | BK | 313/2015 | Capital gains | 112 | 57,924 | |
31/3 | BK | March 31, 2015 | Capital gains | 112 | 15,738 | |
April 28 | BK | April 28, 2015 | Capital gains | 112 | 48,192 | |
30/5 | BK | May 30, 2015 | Capital gains | 112 | 47,719 | |
June 30 | BK | June 30, 2015 | Capital gains | 112 | 24,809 | |
31/7 | BK | July 31, 2015 | Capital gains | 112 | 73,452 | |
31/8 | BK | August 31, 2015 | Capital gains | 112 | 9,431 | |
September 30 | BK | September 30, 2015 | Capital gains | 112 | 56,410 | |
October 31 | BK | October 31, 2015 | Capital gains | 112 | 47,190 | |
11/30 | BK | November 30, 2015 | Capital gains | 112 | 34,597 | |
BK | 42369 | Capital gains | 112 | 28,077 | ||
Transfer of financial activity revenue | 911 | 531,688 | ||||
Co-arising | 531,688 | 531,688 | ||||
(Source: Author's own work - Extracted from company documents)
4.2.3. Other income accounting:
4.2.3.1. Other income accounting content:
Other income is income other than the above income. For the company, it is mainly income such as: income from debt settlement, income from inventory difference, provision reversal,... This income only accounts for a small value in the total income of the company.
4.2.3.2. Documents and records used:
Receipt, payment receipt.
Ledger.
4.2.3.3. User account:
Account 711 – Other income.
In 2015, this revenue was 174,193,182
4.2.3.4. Accounting method:
In 2015, the company's other income was 174,193,182 (VND). This included other income from customer receivables of 164,109,091 (VND) and other income in cash of 10,084,091 (VND).
Transfer of other income: Debit 711: 174,193,182
There are 911: 174,193,182
Some economic transactions arising in fiscal year 2015:
Transaction 1: On May 4, 2015, the company carried out the debt collection process of customer An Phuoc Company Limited (XM KM) with the invoice amount of 47,175,000 (VND). The company made the following entries:
Debt 131: 47,175,000
There are 3331: 4,288,636
There are 711: 42,886,364
Transaction 2: On October 19, 2015, the Company generated other income from sales revenue. The Company made the following entries:
Debt 111: 11,092,500
There are 3331: 1,008,409
There are 711: 10,084,091
4.2.3.5. Accounting books:
Ledger account 711 Year 2015
Date of recording
Document | Interpretation | TK corresponding | Amount | |||
Number | Day | In debt | Have | |||
04/05 | 459 | 05/04/2015 | An LLC Blessing | 131 | 42,886,364 | |
08/05 | 466 | 05/08/2015 | Investment Consulting and Construction Company No. 5 | 131 | 24,204,545 | |
05/07 | 594 | 05/07/2015 | 621 LLC | 131 | 21,127,273 | |
04/08 | 653 | 04/08/2015 | CN Food Joint Stock Company BIM products at KG | 131 | 18,200,000 | |
06/08 | 657 | 06/08/2015 | 621 LLC | 131 | 9,327,273 | |
21/08 | 688 | August 21, 2015 | Investment and Construction Consulting Company No. 5 | 131 | 2,045,455 | |
25/08 | 695 | August 25, 2015 | XN 296 CN TOAN CTY 319 | 131 | 1,363,636 | |
17/09 | 742 | September 17, 2015 | Investment and Construction Consulting Company No. 5 | 131 | 1,363,636 | |
23/09 | 754 | September 23, 2015 | Investment and Construction Consulting Company No. 5 | 131 | 2,727,273 | |
10/19 | 252 a/pt | October 19, 2015 | Sales revenue (other income) | 111 | 10,084,091 | |
10/22 | 826 | October 22, 2015 | Dam Company Limited Currently (other TN) | 131 | 40,863,636 | |
Other income transfer | 911 | 174.193.182 | ||||
Co-arising | 174.193.182 | 174.193.182 |
(Source: Author's own work - Extracted from company documents)
4.3. Costs incurred during the sales process:
4.3.1. Cost of goods sold:
4.3.1.1. Contents of cost of goods sold:
Currently, the company calculates the cost of goods sold in the warehouse by calculating the average unit price after each import. With this method of determining the cost of goods sold, accountants still ensure the correct assessment of sales results in each period. However, due to the characteristics of the commercial business, operations are not always stable because they are affected by many different factors. Therefore, determining the cost of goods sold affects the accuracy of business results. The disadvantage of this method is that it takes a lot of effort and is calculated many times.
Average unit price after each import = Actual inventory price after each import / Actual inventory quantity after each import
4.3.1.2. Documents and records used:
Documents: warehouse delivery note, goods records, warehouse receipt, sales invoice.