The Role, Duties of Revenue Accounting and Determining Business Results

1.1.1.3. Determine business results

According to Article 96. Account 911 - Determining business results in Circular 200/2014/TT_BTC. This account is used to determine and reflect the business results and other activities of the enterprise in an annual accounting period. The business results of the enterprise include: Production and business results, financial results and other results .

- The result of production and business activities is the difference between net revenue and cost of goods sold (including products, goods, investment real estate and services, production cost of construction products, costs related to investment real estate business activities, such as: depreciation costs, repair and upgrade costs, operating lease costs, liquidation costs, transfer of investment real estate), selling costs and business management costs.

Maybe you are interested!

- Financial performance is the difference between financial income and financial expenses.

- Other operating results are the difference between other income and other expenses and corporate income tax expense.

This account must fully and accurately reflect the business results of the accounting period. Business results must be accounted for in detail for each type of activity (production, processing, trade, service, financial activities, etc.). Each type of business activity may require detailed accounting for each type of product, each industry, each type of service.

The revenues and income transferred to this account are net revenues and net income.

1.1.2. The role and tasks of revenue accounting and determining business results

1.1.2.1. The role of revenue accounting and determining business results

For a business, organizing revenue accounting and determining business results plays an important role in each step of limiting remaining limitations.

exist to have appropriate handling measures to promote the capital circulation process. The data provided by revenue accounting and business results determination help enterprises grasp the level of completion of this accounting work. From the data on the financial statements provided by revenue accounting and business results determination, the state grasps the business situation and financial situation of the enterprise, thereby performing the function of macro-economic control management, at the same time the state can check the compliance with economic and financial matters and fulfill obligations to the state. In addition, through the data provided by revenue accounting and business results determination, the enterprise's partners know the business capacity of the enterprise, thereby deciding to invest, lend capital or have business relations with the enterprise.

1.1.2.2. Tasks of revenue accounting and determining business results

To best manage the production and business activities of an enterprise, regardless of the enterprise's component, type, ownership type or field of operation, a series of different tools must be used simultaneously, of which accounting is considered an effective tool. Especially in the economy, revenue accounting and determining business results are used by accountants as an indispensable tool for each enterprise as well as for the macro management of the state. Therefore, revenue accounting and determining business results need to perform the following basic tasks:

- Record fully and promptly the volume of finished goods and services sold and consumed internally, accurately calculate the cost of goods sold, sales expenses, business management expenses and other expenses to determine business results.

- Check and supervise the implementation progress, sales plan, profit plan, profit distribution and fulfillment of obligations to the state.

- Provide accurate, honest and complete information on revenue situation, determine results and distribute results, serving the preparation of financial reports and business management.

Thus, revenue accounting and determining business results are important tasks of enterprises to determine the quantity and value of goods and services sold as well as revenue and determine business results of enterprises. However, to promote the role and perform well the above-mentioned tasks, it is required to organize accounting work scientifically and reasonably, at the same time, accounting staff must have a firm grasp of the content of organizing revenue accounting and determining business results well.

1.1.3. The meaning of revenue accounting and determining business results

1.1.3.1. Meaning of revenue accounting

Business revenue is of great significance to the entire business operation. First of all, revenue is an important financial source to ensure the coverage of business operating expenses, ensuring that businesses can re-operate simply as well as re-operate to expand. Revenue is also a source for businesses to fulfill their obligations to the state such as paying taxes according to regulations, and is a source to participate in equity capital contributions, joint ventures, and partnerships with other units. In case revenue does not cover the expenses, businesses will face financial difficulties. If this situation persists, businesses will not be competitive in the market and will go bankrupt.

1.1.3.2. The significance of accounting for determining business results

Business results are the final results of a company's production, business and other activities after a certain period, expressed in terms of profit or loss.

Accounting determines the business results of the enterprise which is very important in the existence and development of the enterprise in general as well as in determining the actual revenue and actual expenses incurred in the period in particular. Knowing the development trend of the enterprise, the enterprise will then come up with specific business strategies in the next production and business cycles. Therefore, accounting in the enterprise is required.

Enterprises must determine and accurately reflect their business results in each period.

1.1.4. System of documents and books used in revenue accounting and determining business results

1.1.4.1. Document system

According to Circular No. 200/2014/TT - BTC, accounting documents applied to enterprises must comply with the provisions of the Accounting Law, Decree No. 129/2004/ND-CP dated May 31, 2004 of the Government and amendments and supplements.

The types of accounting documents in Appendix 3 of this Circular are all guidance types. Enterprises are proactive in developing and designing accounting document forms that are suitable for their operational characteristics and management requirements, but must meet the requirements of the Accounting Law and ensure the principles of clarity, transparency, timeliness, ease of inspection, control and reconciliation.

In case the enterprise cannot build and design its own voucher forms, it can apply the system of forms and instructions on the content of accounting voucher recording according to the instructions in Appendix 3 of this Circular.

- VAT invoice (01GTKT-3LL)

- Sales invoice (02GTGT-3LL)

- Receipt (01-TT)

- Payment voucher (02-TT)

- Warehouse receipt (01-VT)

- Warehouse delivery note (02-VT)

1.1.4.2. Bookkeeping system

According to Circular No. 200/2014/TT - BTC, Accounting books are used to record, systematize and store all economic and financial transactions that have arisen according to economic content and

in chronological order relevant to the business. Each business has only one accounting system for one accounting period.

Depending on the characteristics of the operation and management requirements, enterprises are allowed to develop their own accounting forms on the basis of ensuring that information on transactions must be fully reflected, timely, easy to check, control and compare. In case they do not develop their own accounting forms, enterprises can apply the accounting forms guided in Appendix 4 of this Circular to prepare Financial Statements if they are suitable for their management characteristics and business activities.

According to Circular No. 200/2014/TT - BTC, companies can choose 1 of the following 5 accounting forms: General Journal, Journal - Ledger, Bookkeeping vouchers, Voucher journals, computerized accounting.

Each form of accounting has its own characteristics and uses different types of books, has its own advantages and disadvantages and is applicable to different businesses. For the convenience of research at Huong Giang Tourism Joint Stock Company, here I only present the form of accounting on the computer.

The basic characteristics and recording sequence of computerized accounting is that accounting work is performed according to a computerized accounting software program. Accounting software is designed according to the principles of one of the four accounting forms or a combination of the following prescribed accounting forms: Accounting software does not fully display the accounting recording process, but must be able to print complete accounting books and financial reports according to regulations.

Types of books of computerized accounting form: Software designed according to which accounting form will have types of books of that accounting form but not exactly the same as manual accounting book form.

1.2. Revenue accounting content and determining business results

1.2.1. Revenue accounting

According to Article 79 on account 511 - Sales revenue and service provision in Circular 200/2014/TT-BTC

- Account structure:

Account 511 – Sales and service revenue

Debit side:

+ Indirect taxes payable (VAT, special consumption tax, export tax, environmental protection tax)

+ Revenue from returned goods transferred at the end of the period

+ Sales discount carried forward at the end of the period

+ Trade discount carried forward at the end of the period

+ Transfer net revenue to account 911 "Determining business results"

Credit: Revenue from sales of products, goods, investment real estate and provision of services of the enterprise during the accounting period.

Account 511 has no ending balance.

- Accounting chart

Account 333 Account 511Account 111,112,131

(1)

(6) Account 3331

Account 111,112,131 (2a)

Account 521 Account 515 Account 3387 (2c) (2b)

(7) Accounts 111,112,131

(3)

Account 911

Account 151,156,157

Account 131,1368 641,642… (4a) (4b)

(8) Account 3331 Account 133

Account 641,111,112

(5)

Diagram 1.1. Revenue accounting diagram

Diagram explanation

(1) Sales revenue and provision of services subject to VAT under the deduction method of immediate cash collection or payment acceptance by the buyer

(2) Sales by installment payment (2a) Cash price

(2b) Difference between installment price and immediate payment price (2c) Allocation of installment interest

(3) Sales revenue and provision of services subject to VAT under the direct method

(4) Sales by barter method (4a) Revenue from finished products and goods exchanged (4b) Value of goods and services received

(5) Payment of agent goods after deducting agent commission

(6) VAT payable

(7) Carryover of trade discounts, sales returns and sales allowances

(8) Transfer revenue to determine business results

1.2.2. Accounting for revenue deductions

According to Article 81 on account 521 - Revenue deductions in Circular 200/2014/TT-BTC.

- Account structure

Account 521 - Revenue deductions

Debit side:

+ Amount of trade discount accepted for payment to customers

+ Number of sales discounts approved for buyers

Comment