MINISTRY OF FINANCE
ACADEMY OF FINANCE
----------
THAI LE PHUONG THAO
CQ56/21CL.02
GRADUATION THESIS
TOPIC:
“ACCOUNTING FOR SALES AND DETERMINING
BUSINESS RESULT AT TRANG THI COMMERCIAL
SERVICE JOINT STOCK COMPANY”
Major : Corporate Accounting
Code
: 21
Mentor : PhD. Thai Ba Cong
MSc. Nguyen Ba Linh
Hanoi – 2022
Graduation Thesis
Academy of Finance
DECLARATION
I hereby declare that this thesis is my own work and effort and that has
not been submitted anywhere for any awards. Where other sources of
information have been used, they have been acknowledged.
The data and results described in the thesis are come from the actual
position of the internship company.
Thesis: “Accounting for sales and determining business result at Trang
Thi Commercial Service Joint Stock Company”.
Ha Noi, January 6th, 2022.
Student
Thai Le Phuong Thao
ST: Thai Le Phuong Thao
i
Class:CQ56/21.02CLC
Graduation Thesis
Academy of Finance
ACKNOWLEDGEMENT
Firstly, I would like to express my very great thankfulness to all
lectures in Accounting Faculty at Academy of Finance for their professional
guidance and valuable support.
Especially, I would like to show my deep gratitude to my supervisors,
PhD. Thai Ba Cong and MSc. Nguyen Ba Linh, for their patient guidance,
enthusiastic encouragement and useful critiques during the planning and
development of my Graduation Thesis and for his assistance in keeping my
progress on schedule.
I also want to thank Trang Thi Commercial Service Joint Stock
Company for giving me permission to commence this thesis in the first
instance, to do the necessary research work and to use departmental data. I
have furthermore to thank the Director and Chief Accountant as well as all
seniors at the company who gave and confirmed this permission and
encouraged me to go ahead with my thesis.
Finally, because of the limitation of time and knowledge, mistakes are
avoidable, so I wish so receive more contribution and suggestions to make my
thesis better.
ST: Thai Le Phuong Thao
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Class:CQ56/21.02CLC
Graduation Thesis
Academy of Finance
TABLE OF CONTENT
DECLARATION ............................................................................................... i
ACKNOWLEDGEMENT ................................................................................ ii
LIST OF TABLE ............................................................................................ vii
LIST OF FLOWCHART ............................................................................... viii
LIST OF SCREEN .......................................................................................... ix
LIST OF IMAGE .............................................................................................. x
PREFACE ......................................................................................................... 1
CHAPTER 1: GENERAL THEORY OF ACCOUNTING FOR SALES AND
DETERMINING BUSINESS RESULTS IN COMMERCIAL ENTERPRIES ..4
1.1. Concepts and the role of accounting for sales and determining business
results in the enterprise...................................................................................... 4
1.1.1. Nature and meaning of sales, determination of business results ............ 4
1.1.2. Management requirements for sales, determination of business results ......... 5
1.1.3. The necessity and mission of accounting for sales, determining business
results ................................................................................................................ 6
1.2. General theory of accounting for sales, determining business results in
commercial enterprises..................................................................................... 7
1.2.1. Accounting standards applied in sales accounting and in determining
business results .................................................................................................. 7
1.2.2. Accounting for sales revenue and revenue deduction .......................... 10
1.2.3. Accounting for costs of goods sold ....................................................... 15
1.2.4. Accounting for financial income and financial expenses ..................... 20
1.2.5. Accounting for selling and administration expenses ............................ 22
1.2.6. Accounting for other incomes and other expenses ............................... 25
1.2.7. Accounting for corporate income tax expense...................................... 27
1.2.8. Accounting for determining business results ........................................ 29
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1.2.9. Present information on financial statements for sales accounting and to
determine business results. .............................................................................. 31
1.3. Management accounting for sales and determining business result ........ 33
1.3.1. Management accounting ....................................................................... 33
1.3.2. Management accounting for sales and determining business results. 35
1.4. Accounting for sales and business results in terms of accounting software
application ....................................................................................................... 41
CONCLUSION OF CHAPTER 1................................................................... 43
CHAPTER 2:
THE ACTUAL ACCOUTING FOR SALES AND
DETERMINING BUSINESS RESULTS AT TRANG THI COMMERCIAL
SERVICE JOINT STOCK COMPANY ......................................................... 44
2.1. Overview about Trang Thi Commercial Service Joint Stock Company .. 44
2.1.1. Establishment and development of the Trang Thi Commercial Service
Joint Stock Company ...................................................................................... 44
2.1.2. Business organizational characteristics of the company ...................... 49
2.1.3. Organization and managerial characteristics at the company:.............. 50
2.2. The actual situation of accounting for sales and determining business
results at Trang Thi Commercial Service Joint Stock Company .................... 64
2.2.1. Actual situation of methods of sales and payment at the company ..... 64
2.2.2. Accounting for sales revenue and revenue deductions ......................... 64
2.2.3. Accounting for costs of goods sold ....................................................... 81
2.3.4. Accounting for financial expenses and financial income ..................... 87
2.2.5. Accounting for selling and administration expenses ............................ 94
2.2.6 Accounting for other incomes and other expenses ............................. 101
2.2.7 Accounting for corporate income tax expense.................................... 103
2.2.8 Accounting for determining business results ...................................... 104
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2.3. Management accounting for sales and determine business result at Trang
Thi Commercial Service Joint Stock Company ............................................ 114
2.3.1. Accounting management organization at the company ..................... 114
2.3.2. Accounting management of sales and determining business results. 114
2.4. General comments about the accounting for sales and determining
business results at Trang Thi Commercial Service Joint Stock Company. .. 116
2.4.1. The advantages .................................................................................... 116
2.4.2. The disadvantages ............................................................................... 118
CONCLUSION OF CHAPTER 2................................................................. 121
CHAPTER 3. PROPOSALS TO IMPROVE ACCOUNTING FOR SALES
AND
DETERMINING
BUSINESS
RESULTS
AT
TRANG
THI
COMMERCIAL SERVICE JOINT STOCK COMPANY .......................... 122
3.1. Requirements, principles of perfecting accounting for sales and
determining business results at Trang Thi Commercial Service Joint Stock
Company ....................................................................................................... 122
3.1.1. Requirements ..................................................................................... 122
3.1.2. Perfecting principles............................................................................ 123
3.2. Some proposals to improve accounting for sales and determining business
result at Trang Thi Commercial Service Joint Stock Company. .................. 123
3.3. Suggestion to improve the efficiency of management accounting for sales
in Trang Thi Commercial Service Joint Stock Company. ............................ 130
CONCLUSION FOR CHAPTER 3 .............................................................. 134
CONCLUSION ............................................................................................. 135
REFERENCE ................................................................................................ 136
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LIST OF ABBREVIATIONS
Abbreviation
Full phrase
Acc
Account
CIT
Corporate income tax
COGS
Cost of goods sold
JSC
Joint Stock Company
No.
Number
VAT
Value added tax
VND
Vietnam Dong
GDNs
Goods dispatch notes
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LIST OF TABLE
Table 2.1 - Subsidiary ledger of Account 511 – Revenue (Extract for example) . 77
Table 2.1 - Subsidiary ledger of Account 511 – Revenue (Extract for example
- continue) ....................................................................................................... 78
Table 2.2 - Voucher Diary No. 10 of Account 511 (Extract for example) ..... 78
Table 2.2 - Voucher Diary No. 10 of Account 511 (Extract for example continue)........................................................................................................... 79
Table 2.3 - Ledger Book of Account 511 ....................................................... 80
Table 2.4 Subsidiary ledger of Account 521................................................... 80
Table 2.5 - Subsidiary ledger of Account 632 (Extract for example)............. 85
Table 2.6 - Voucher Diary No. 10 of Account 632 (Extract for example) ..... 86
Table 2.8 - Subsidiary ledger of Account 635 (Extract for example)............. 89
Table 2.9 - Ledger Book of Account 635 ....................................................... 89
Table 2.10 - Voucher Diary Account 635 (Extract for example) ................... 90
Table 2.11 - Subsidiary Ledger of Account 515 (Extract for example) ......... 93
Table 2.12 - Ledger Book of Account 515 ..................................................... 93
Table 2.13 - Subsidiary Ledger of Account 641 (Extract for example) ......... 96
Table 2.14 - Ledger Book of Account 641 ..................................................... 97
Table 2.15 - Subsidiary Ledger of Account 642 (Extract for example) ....... 100
Table 2.17 - Subsidiary Ledger of Account 711 ........................................... 101
Table 2.18 - Subsidiary ledger of account 811 ............................................. 102
Table 2.19 - Automatic transferring entries ................................................. 107
Table 2.20 - Subsidiary Ledger of Account 911 ........................................... 108
Table 2.22 – Balance sheet Quarter 4 ........................................................... 110
Table 2.22 – Balance sheet Quarter 4 (continue) .......................................... 111
Table 2.22 – Balance Sheet Quarter 4 (continue) ......................................... 112
Table 2.23 – Statement of income Quarter 4 ................................................ 113
ST: Thai Le Phuong Thao
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LIST OF FLOWCHART
Flowchart 1.1 – Accounting entry for direct sales (for company applying
deductible/subtraction VAT method).............................................................. 12
Flowchart 1.2 – Accounting entry for direct sales (for company applying
direct VAT method) ........................................................................................ 12
Flowchart 1.3 – Accounting entry for sales through agents ........................... 13
Flowchart 1.4 – Accounting entry for sales in case of deferred or instalment
payment ........................................................................................................... 13
Flowchart 1.5 – Accounting entry for revenue deductions ............................. 15
Flowchart 1.6 – Accounting entry for cost of goods sold under perpetual
inventory method............................................................................................. 18
Flowchart 1.7 – Accounting entry for cost of goods sold under periodic
inventory method............................................................................................. 19
Flowchart 1.8 – Accounting entry for financial expenses .............................. 21
Flowchart 1.9 – Accounting entry for financial incomes ............................... 22
Flowchart 1.10 – Accounting entry for selling and administration expenses . 24
Flowchart 1.11 – Accounting entry for other expenses .................................. 26
Flowchart 1.12 – Accounting for other incomes ............................................ 27
Flowchart 1.13 – Accounting entry for income tax expenses......................... 28
Flowchart 1.14 – Accounting entry for business result .................................. 30
Flowchart 2.1 – Organization of company management ................................ 51
Flowchart 2.2 – Accounting system ................................................................ 54
Flowchart 2.3 – Order of bookkeeping in the form of voucher register ......... 59
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Academy of Finance
LIST OF SCREEN
Screen 2.1 - FAST software interface ............................................................. 61
Screen 2.2 - Screen of list customers encoded ................................................ 61
Screen 2.3 - Several accounts used in FAST accounting software ................. 62
Screen 2.4 - FAST accounting software screen of subsidiary ledger of account
112 ................................................................................................................... 70
Screen 2.5 - The sceen interface of FAST accounting of revenue document. 74
Screen 2.6 - The screen inteface of revenue enumeration .............................. 74
Screen 2.7 - The interface of FAST accounting of account 3368................... 75
Screen 2.8 – The screen interface after entering Account 112 ....................... 76
Screen 2.9 - The interface screen of entering data when calculating cost of
goods sold by this method ............................................................................... 83
Screen 2.10 - The screen interface of accounting note of Account 635 ......... 88
Screen 2.11 - The screen interface of entering data for account 515.............. 92
Screen 2.12 - The screen interface of entering data for account 641.............. 95
Screen 2.13 - The screen interface of entering payment voucher ................... 99
Screen 2.14 - The main screen of when determining results ........................ 105
Screen 2.15 - The screen interface of entering accounting year to transfer
automatically ................................................................................................. 105
Screen 2.16 - The screen interface when selecting entries ........................... 106
Screen 2.17 - The screen interface when entering data of transferring entries
....................................................................................................................... 106
ST: Thai Le Phuong Thao
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Academy of Finance
LIST OF IMAGE
Image 2.1 - Registration certificate ................................................................. 46
Image 2.2 – VAT Invoice of TOYOTA transaction.......................................... 69
Image 2.3 – Credit note from bank of TOYOTA Company transaction ........ 71
Image 2.4 – Sales report (Extract for TOYOTA Company) ........................... 72
Image 2.5 - Credit note from bank of remaining amount ............................... 76
Image 2.6 - Accounting note ........................................................................... 88
Image 2.7 - Credit note of financial income ................................................... 92
Image 2.8 - Credit Note of selling expense..................................................... 96
Image 2.9 - Payment voucher.......................................................................... 99
ST: Thai Le Phuong Thao
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Academy of Finance
PREFACE
1. Urgency of the topic
In the current context of international economic integration, especially
since Vietnam joined frameworks such as the WTO, ASEAN, APEC, ASEM
and the Free Trade Agreement (FTA), domestic enterprises said, in general
and commercial enterprises in particular, have more opportunities and
challenges. One of the biggest challenges that is now facing to Vietnamese
commercial enterprises is the competitive pressure not only with domestic
companies but also with foreign companies, multinational corporations and
companies. Strong companies with high economic potential are becoming
more and more acute.
Facing such situation, in order to survive and develop, it is required that
commercial enterprises have to take practical measures to improve business
efficiency, especially in the consumption stage. Because only through sales
and product consumption will a business generate revenue to offset the costs
spent and achieve profitability goals. One of the most effective measures is
the good implementation of sales, product sales, seizing opportunities and
making timely decisions to improve business efficiency. The premise for that
work is none other than accounting information. Therefore, businesses that
want to be sustainable require a good and efficient accounting system.
Recognizing the importance of organizing sales accounting and
determining business results, applying the knowledge learned and researched at
the school, I have studied in-depth the sales process and determined the results at
the internship unit. With the help of officials and employees in the company in
general, the accounting staffs in particular and the guidance of PhD. Thai Ba
Cong and MSc. Nguyen Ba Linh, I chose the topic: “Accounting for sales and
ST: Thai Le Phuong Thao
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determining business result at Trang Thi Commercial Service Joint Stock
Company”.
2. Research purpose
-
Purpose of the research: To gain insight into sales accounting and
determining business results, and at the same time to give an overview
of the achievements and shortcomings in the accounting for sales and
determining the business results; from which, giving ideas and
suggestions to improve the acocunting of sales and determining
business results at Minh Duc Concrete and Construction Limited
Company.
3. Object and scope of the research
- Object: Accounting for sales and determining business results at Trang
Thi Commercial Service Joint Stock Company.
- Scope of content: Accounting for sales, revenues, expenses, and the
process of determining business results at the company.
- Scope of space: Trang Thi Commercial Service Joint Stock Company.
- Time range: 2021
- Accounting regime: Regime of Business accounting was issued in
accordance with Circular No. 200/2014/TT-BT dated December 22nd, 2014 of
the Ministry of Finance.
4. Research methods
Research is based on the methodoly of dialectical materialistic and
historical materialism, combined with the methods of analysis, statistics,
synthesis, comparison between theoretical basis and reality at Trang Thi
Commercial Service Joint Stock Company from there, propose solutions to
improve accounting for sales and business results at the company.
ST: Thai Le Phuong Thao
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Academy of Finance
5. The thesis structure
Apart from the introduction and conclusion, the main content of the
internship report consists of 3 chapters:
- CHAPTER 1: GENERAL THEORY OF ACCOUNTING FOR SALES
AND
DETERMINING
BUSINESS
RESULTS
IN
COMMERCIAL
ENTERPRIES.
- CHAPTER 2: THE ACTUAL SITUATION OF ACCOUNTING FOR
SALES AND DETERMINING BUSINESS RESULTS AT TRANG THI
COMMERCIAL SERVICE JOINT STOCK COMPANY.
- CHAPTER 3: PROPOSALS TO IMPROVE ACCOUNTING FOR
SALES AND DETERMINING BUSINESS RESULTS AT TRANG THI
COMMERCIAL SERVICE JOINT STOCK COMPANY.
ST: Thai Le Phuong Thao
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CHAPTER 1: GENERAL THEORY OF ACCOUNTING FOR
SALES AND DETERMINING BUSINESS RESULTS IN
COMMERCIAL ENTERPRIES
1.1. Concepts and the role of accounting for sales and determining
business results in the enterprise
1.1.1. Nature and meaning of sales, determination of business results
The nature of sales and determining business results:
Sale is the transfer of ownership of a product or goods associated with
most of the benefit, or risks to customers, and the customers make the
payment or accept the payment.
The essence of the sales process is the process of exchanging
ownership, between buyers and sellers in the operating market. Goods sold to
individuals and organizations outside the enterprise are called external sales,
while goods supplied to units within the same company or corporation are
referred to as internal sales. Sale is the final stage in the business operation of
a commercial enterprise.
- Revenue: Revenue is the total value of economic benefits earned by the
enterprise in the accounting period, arising from the normal production and
business activities of the enterprise, contributing to the increase of owners'
equity.
- Cost: Cost is the total value of the items that reduce economic benefits
in the form of out-of-pocket payments, asset deductions or incurring debts
leading to a decrease in equity, not including distributions to owners.
- Business results: Business results are the final results of the activities
of the enterprise in a certain period, expressed by the difference between the
total revenue and the total cost of economic activities.
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The meaning of sales activities and determining business results:
In the current trend of economic integration, consumption of goods is
becoming a vital issue of all commercial enterprises. Therefore, sales is one of
the most important strategies of all businesses today. Goods sold quickly will
help the speeding of capital turnover increase significantly. Sales results are
distributed to owners, improve the lives of workers and complete their
obligations to the state. Besides, the sales result is also an important financial
indicator clearly showing the operational and financial situation of the
business.
The determination of business results helps enterprises assess the
effectiveness of business activities in the period, from which there are
appropriate directions in the future. At the same time, it is an important basis
for the State to assess the ability of business operations of enterprises, thereby
building and examining the implementation of obligations to the State of
enterprises. Determining business results helps promote the use of human
resources and the allocation of resources effectively for the entire national
economy in general and for each business in particular.
1.1.2. Management requirements for sales, determination of business results
Managing the sales process and business results is a real requirement, it
comes from the profits of the business. If the enterprise manages well the
sales stage, it will ensure the target of completing the consumption plan and
assess the accuracy of the production and business efficiency of that
enterprise. Therefore, the problems for each business are:
Plans and situation management of implementation of consumption
plans for each period, each customer, each economic activity. Manage in
detail the quantity, quality, type and value of each type of goods, avoid loss,
damage, embezzlement of finished products for consumption.
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Quality management and brand building are the goals for sustainable
development of businesses.
Managing each sales method, each customer, payment situation of
customers. Request payment in the right form and on time to avoid loss of
stagnant capital and misappropriation of capital. Enterprises must choose the
form of consumption for each unit, each market, each customer in order to
speed up the consumption process while conducting exploration, market
research, and expanding trade relations.
Strictly managing capital, closely monitoring sales expenses, enterprise
management costs, checking the legality and reasonableness of data and
allocating to consumer goods, ensuring for determine consumption is accurate
and reasonable.
For the accounting of consumption, there must be strict and scientific
organization to ensure the final determination of the consumption process, reflect
and supervise the implementation of obligations to the State fully and promptly.
1.1.3. The necessity and mission of accounting for sales, determining
business results
1.1.3.1. The necessity of accounting for sales, determining business results
Sales and determining business results play an important role not only
for businesses but also for the entire national economy. For the enterprise
itself, it is possible to earn income to compensate for the costs and conditions
to expand the business, to improve the lives of workers, to create a source of
accumulation for the national economy. Accurate determination of business
results is the basis for determining the operational efficiency of enterprises
through the payment of taxes, fees and charges into the state budget;
determining the reasonable costing structure and highly effective using of the
profits earned to harmonize economic benefits.
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Accounting for sales and determining business result is an important
task of the enterprise in order to determine the quantity and value of sold
goods as well as the turnover and business results of the enterprise. However,
in order to play the role of well performing the tasks, it is necessary to
organize accounting work in a scientific way, and at the same time,
accountants must firmly grasp the contents of sales accounting and
determination of business results in enterprises.
1.1.3.2. The missions of accounting for sales, determining business results
With a view to managing sales and evaluating business result,
accounting for sales and business result has to execute some following
missions below:
- Fully, timely, accurately reflecting and recording occurred transactions
and movements of each type of goods and products under quantity, quality,
model and value.
- Accurately calculating and reporting results of each transaction.
- Monitoring the implementation of state obligations and division
process of business result.
- Interpreting accounting reports to information users. Accounting
information must be reliable, easy-to-read and useful.
Accounting for sales and determining business result must follow the
accounting standards and able to adapt to the status of the company’s
accounting system.
1.2. General theory of accounting for sales, determining business results
in commercial enterprises
1.2.1. Accounting standards applied in sales accounting and in
determining business results
Standard
Standard 01: General standards (Issued and announced according to
Decision 165/2002/QD-BTC dated December 31st, 2002 of the Minister of
Finance).
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Standard 02: Inventories (Issued and announced according to Decision
No. 149/2001/QD-BTC dated December 31st, 2001 of the Minister of
Finance)
Standard 14: Revenue and other income (Issued and announced
according to Decision No. 149/2001/QD-BTC dated December 31st, 2001 of
the Minister of Finance)
Methods of sales and payment in the enterprises
Methods of sales
Sales are the activity or business of selling products or services to
customers. There are two typical methods of sales, including direct sales and
sales through agents (consignment sales).
-
Direct sales: Direct sale refers to selling goods directly to the customers
in a non-retail environment. This method includes wholesale and retail.
Wholesale: is the method of distributing goods to specific customer types
such as domestic or foreign or join-venture manufacturers, traders, or even
private enterprises. Wholesale often occurs when large quantities of goods
are purchased. Due to the volume of the purchase, the price of the goods is
often lower than the price offered to retail customers. Wholesale usually
has two forms:
+ Wholesale from warehouse
+ Direct shipping wholesale
Retail: is the method of distributing goods directly to the final customers,
not for resale, but for use and consumption by the purchaser. In this
method, the quantity of goods is small and the price of the goods is stable.
Retail often applies the following forms:
+ Collective encashment
+ Direct encashment
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+ Installment payment
+ Automatic vending
+ Goods in transit
-
Sales through agents (consignment sales):
It is the method of distributing goods through the channel of agents.
The company only records sales revenue when the agent reports to sell goods.
When goods sold, the company must pay commissions for the agent, which
considered as a selling expense. Sales of goods on consignment for agents is
recorded as sales revenue only when:
The company has received money payment from the customers.
The customer has received goods and agreed to pay.
The customer has advanced the amount of purchase payment of goods.
The goods on consignment is paid via bank.
Methods of payment.
A payment is the transfer of one form of good, service or financial asset
in exchange for another form of good, service or financial asset in proportions
that have been previously agreed upon by all parties involved. Payment can
be made in the form of funds, assets or services. There are 2 main payment
methods:
(a) Cash payment
Cash payment is a form of payment that, after selling goods, the buyer
makes a payment - immediately pays the seller.
(b) Non-cash payment
- Payment via bank:
According to Clause 10, Article 1 of Circular 26/2015/TT-BTC
amending and supplementing Clause 3, Article 15 of Circular 219/2013/ TTBTC has the following provisions regarding via-bank payment documents:
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Bank transfer voucher is a transaction document to prove the money
transfer between the buyer and the seller
Account used for transactions between two parties must be registered or
notified to the tax authorities.
Can the two parties transfer or transfer money to the private enterprise
owner's personal account if that account is registered with the tax
authorities.
- Other non-cash payments:
According to Clause 10 Article 1 of Circular 26/2015/TT-BTC
amending and supplementing Clause 4 Article 15 of Circular 219/2013/TTBTC regulating other cases of non-cash payments including payment cases as
follows:
The two parties implement the method of clearing the value between
purchased goods and services with the value of sold or borrowed goods or
services. Accounting for sales revenue and revenue deductions.
1.2.2. Accounting for sales revenue and revenue deduction
1.2.2.1. Accounting for sales revenue
Definition:
Sales revenue is the amount realized from selling goods in the normal
operations of a company in a specified period.
Net sales is determined by sales revenue after deducting sales deductions
including trade discounts, cash (or settlement) discounts, and sales returns.
Revenue recognition::
According to the VAS 14, sales from sale of goods will be determined
only when it satisfies the following five (5) conditions:
- The enterprise has transferred the major of risks and benefits associated
with the right to own the products or goods to the buyer.
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Academy of Finance
- The enterprise no longer holds the right to manage the goods as the goods
owner, or the right to control the goods.
- Turnover has been determined with relative certainty.
- The enterprise has gained or will gain economic benefits from the good sale
transaction.
- Determining costs related to sales transactions.
Accounting vouchers, documents used
- VAT invoice
- Receipt voucher
- Contracts and related documents
- Debit note, Request for payment
- Credit notes, bank statements and other similar documents.
Accounting accounts used
- Account 511: Revenue from sales of goods and services
+ Account 5111: Revenue from sales of goods
+ Account 5112: Revenue from sales of finished goods
+ Account 5113: Revenue from service provisions
+ Account 5118: Other revenues
+ Account 3331: Payable VAT
+ Account 33311: Output VAT
+ Account 33312: VAT of imported goods
+ Account 3387: Unrealized revenue
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Accounting entry
Flowchart 1.1 – Accounting entry for direct sales (for company applying
deductible/subtraction VAT method)
Acc 511
Acc 111,112,131
Price without VAT
Total price with VAT
Acc 3331
VAT payable
Flowchart 1.2 – Accounting entry for direct sales (for company applying
direct VAT method)
Acc 3331
Acc 511
VAT payable
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Acc 111,112,131
Total price with VAT
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Academy of Finance
Flowchart 1.3 – Accounting entry for sales through agents
Acc 511
Acc 111,112,131
Price without VAT
Acc 6421
Commissions for agents
Acc 133
Acc 3331
VAT of commissions
Output VAT
Flowchart 1.4 – Accounting entry for sales in case of deferred or instalment
payment
Acc 511
Acc 111,112,131
Price without VAT
Total price with VAT
Acc 3331
VAT payable
1.2.2.2. Accounting for revenue deductions
Definition
Revenue deductions are used to reflect the set of discounted money for
shoppers to be deducted from the business's operating revenue.
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Academy of Finance
According to Circular 200 issued in 2014, the revenue deductions are
recorded in Account 521 and then at the end of the term are transferred to
Account 511, reducing sales revenue.
Revenue deductions include: Trade discount, Sale return and Sale
allowance:
- Trade discount is the amount of money that enterprise credited or paid
to customers who bought goods and services in large volume in accordance with
the agreement that the seller will give trade discount to the buyer.
- Sales return is the amount of goods sold which have subsequently
been returned due to the following reasons: breaching the commitment or the
economic contract, or in a wrong quantity, quality or specifications.
- Sales allowance is a reduction in the price charged by a seller, due to
a problem with the sold product or service, such as a quality problem, a short
shipment, or enterprise wants to sell out inventories. Sales allowance also
reduces the revenue from selling goods and services provision of enterprise.
Accounitng vouchers, documents used
- VAT invoice
- Receipt voucher, payment voucher
- Other related documents
Accounting accounts used
- Account 511: reflecting revenues and revenue deductions arising in the
accounting period.
- Other accounts: Acc 3331, Acc 3332, Acc 3333, Acc 111, Acc 112, Acc
131,...
ST: Thai Le Phuong Thao
14
Class:CQ56/21.02CLC
