TRAN DINH NHAT PHONG
NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAM
BACHELOR THESIS
Major: Advanced Accounting
ADVANCED ACCOUNTING
Topic: ACCOUNTING FOR IMPORTING GOODS
AT HIEP NGA TRADING SINGLE MEMBER
LIMITED LIABILITY COMPANY.
Tran Dinh Nhat Phong
2021
HANOI, 2021
NATIONAL ECONOMICS UNIVERSITY
SCHOOL OF ADVANCED EDUCATION PROGRAMS
BACHELOR THESIS
Advanced Accounting Major
Topic: ACCOUNTING FOR IMPORTING GOODS AT HIEP
NGA TRADING SINGLE MEMBER LIMITED LIABILITY
COMPANY.
Student: Tran Dinh Nhat Phong
Major: Advanced Accounting
Class: Advanced Accounting 59A
Student ID: 11173697
Supervisor: Assoc. Prof. Nguyen Huu Anh
Hanoi, 2021
ACKNOWLEDGEMENT
First and foremost, I would like to indicate my gratefulness to Assoc. Prof.
Nguyễn Hữu Ánh for participating in this internship period and supporting me with
precious guidance. His instructions are very important in the completing process of
this thesis.
Afterward, I would also like to thanks Mr. Tran Quang Hiep, president of Hiep
Nga Trading Single Member Limited Liability Company and Mrs. Huong, the chief
accountant. Although they are very busy due to the massive workload at the company,
they still spend their priceless time helping me overcome the technical difficulties of
the job as well as giving valuable feedback plus suggestions, so that I would be able to
finish the bachelor thesis appropriately.
Last but not least, this bachelor thesis would have been impractical without the
assistance of the School of Advanced Educational Programs during the internship
period. On the side of AEP’s students, I would like to thanks our school for providing
students with an incomparable occasion to acquire practical working experience as
well as valuable knowledge throughout this student internship program.
1
TABLE OF CONTENTS
ACKNOWLEDGEMENT ............................................................................................... 1
STATUTORY DECLARATION..................................................................................... 4
LIST OF FIGURES ....................................................................................................... 5
ABBREVIATION ........................................................................................................... 6
INTRODUCTION .......................................................................................................... 7
CHAPTER 1: GENERAL VIEW OF HIEP NGA TRADING SINGLE MEMBER
LLC’S FEATURES OF GOODS IMPORTS, MANAGEMENT OF GOODS
IMPORTED AT THE COMPANY ........................ Ошибка! Закладка не определена.
1.1. Features of import activities .............................................................................. 8
1.1.1. Characteristics of imported merchandises................................................ 8
1.1.2. The importing market ................................................................................. 8
1.1.3. The import and payment method .............................................................. 9
1.2. Goods imports management at Hiep Nga Trading Single Member Limited
Liability Company ................................................................................................... 10
CHAPTER 2: CURRENT SITUATION OF ACCOUNTING FOR GOODS
IMPORTED AT HIEP NGA TRADING SINGLE MEMBER LIMITED
LIABILITY COMPANY.. ............................................................................................. 11
2.1 General accounting document for goods imported in Hiep Nga Trading
Single Member Limited Liability Company ......................................................... 11
2.2 Detailed accounting for imported merchandises in Hiep Nga Trading Single
Member Limited Liability Company..................................................................... 26
2.2.1
Accounting Principles ................................................................................. 26
2.2.1.1 Form of pricing imports .............................................................................. 26
2.2.1.2 Accounting policies for foreign exchange gain and losses ....................... 26
2.2.2
Accounting accounts .................................................................................... 26
2.2.3 Accounting procedure for purchasing imported merchandises ................ 27
2.3. Accounting for sales of imported merchandises ............................................ 44
2.3.1. Accounting of sales and Trading discount of imported merchandises ..... 44
2
2.3.1.1. The system of vouchers, accounts and accounting books ......................... 44
2.3.1.2. Accounting procedure ............................................................................ 45
2.3.2. “Cost of goods sold” ...................................................................................... 54
2.3.2.1 Organization of vouchers, accounts and used accounting books ............ 54
2.3.2.2. Accounting procedure: ............................................................................... 55
2.3.3 Accounting for selling expenses ..................................................................... 59
2.3.3.1 The system of vouchers, accounts and accounting books used: .............. 59
2.3.3.2 Accounting procedure ................................................................................. 59
CHAPTER 3: IMPROVING THE ACCOUNTING PROCEDURES FOR GOODS
IMPORT AT HIEP NGA TRADING SINGLE MEMBER LIMITED LIABILITY
COMPANY .................................................................................................................... 62
3.1. Assessment of the accounting system of imported merchandises at Hiep
Nga Trading Single Member Limited Liability Company .................................. 62
3.1.1. Advantages ..................................................................................................... 62
3.1.1.1. Organization of management .................................................................... 62
3.1.1.2. Organization accounting procedure ......................................................... 63
3.1.2. Disadvantages ................................................................................................ 64
3.2. Recommendations to improve accounting for goods imports at Hiep Nga
Trading Single Member Limited Liability Company .......................................... 66
CONCLUSION ............................................................................................................. 70
REFERENCES ............................................................................................................. 71
3
STATUTORY DECLARATION
I do declare as follow: This bachelor thesis is an individual work of mine and it
is not copied from anyone’s work. The report is the result of serious exploring and
studying during my internship at Hiep Nga Trading Single Member Limited Liability
Company. All elements applied to complete this report are evidently cited and
reference under the required policies. I take full responsibilities and accept all
consequences of my actions.
Tran Dinh Nhat Phong
4
LIST OF FIGURES
Figure 2.1 Entrusted import contract of Hiep Nga Trading Single Member Limited
Liability Company ......................................................................................................... 17
Figure 2.2 Declaration of imported merchandises ....................................................... 20
Figure 2.3 Bill of lading ................................................................................................ 22
Figure 2.4 Commercial invoice of the entrusted party ................................................. 23
Figure 2.5 Commercial invoice of the entrusted expenses ............................................ 25
Figure 2.6 Goods received note .................................................................................... 28
Figure 2.7 General Journal ........................................................................................... 37
Figure 2.8 General ledger of account 112 .................................................................... 38
Figure 2.9 Detailed book of goods of account 156 ....................................................... 39
Figure 2.10 General ledger of account 1331 ................................................................ 40
Figure 2.11 Detailed book of 2020 VAT ....................................................................... 41
Figure 2.12 General ledger of account 331 .................................................................. 42
Figure 2.13 General ledger of account 331 .................................................................. 43
Figure 2.14 General ledger of account 007 .................................................................. 44
Figure 2.15 Value added tax invoice ............................................................................. 48
Figure 2.16 Detailed book of July 2020 VAT ................................................................ 49
Figure 2.17 General Journal of 2020............................................................................ 51
Figure 2.18 General ledger of account 131 .................................................................. 51
Figure 2.19 General ledger of account 5111 ................................................................ 52
Figure 2.20 General ledger of account 333 .................................................................. 52
Figure 2.21 General ledger of account 112 .................................................................. 53
Figure 2.22 Detailed book of account receivable for client.......................................... 54
Figure 2.23 Goods delivery note ................................................................................... 57
Figure 2.24 General ledger of account 632 .................................................................. 57
Figure 2.25 Detailed book of goods of account 156 ..................................................... 58
Figure 2.26 General ledger of account 156 .................................................................. 58
Figure 2.27 Payment of freight cost .............................................................................. 60
Figure 2.28 General ledger of account 641 .................................................................. 61
5
ABBREVIATION
No: Number
LLC: Limited liability company
VND: Vietnam Dong
USD: US Dollar
Dr: Debit
Cr: Credit
6
INTRODUCTION
With the orientation of developing the automobile and auto parts industry in
Vietnam to become an important industry of the economy, meeting most of the
domestic demand, and participating deeply in the automobile production network. In
the world, the government has set out an action plan to develop the auto and auto parts
industry identified from 2015. In which, the automobile and parts industry is added to
the list of priority areas. investment incentives in the Decree guiding the
implementation of the new Investment Law. At the same time, to simplify import and
export procedures and to transport components and spare parts from export processing
suppliers to serve the domestic market, as well as reduce import duties on auto parts and
components. It can be produced domestically, in addition to periodically reviewing and
adjusting the list of auto parts and components for import tax reduction. The State will
accompany businesses to research and implement appropriate solutions and policies to
solve the problem of high production costs of the domestic auto industry.
It can be seen that the state has created great conditions for businesses to easily import
and export auto spare parts. This is aimed at promoting the development of the
automobile industry in general and the auto parts industry in particular. And for
businesses having import and export activities, the accounting system is one of the very
important factors. For those companies, accounting is a tool for management and
calculation to help the board of directors make reasonable decisions to buy and sell
products. In order to clarify the importance of accounting in the process of importing
goods as well as practical application at Hiep Nga Trading Single Member LLC, under
the guidance of Assoc. Prof. Ph.D. Nguyen Huu Anh, I decided to choose the following
topic for my bachelor thesis: “ACCOUNTING PROCEDURES FOR GOODS
IMPORTS AT HIEP NGA TRADING SINGLE MEMBER LIMITED
LIABILITY COMPANY.” This bachelor thesis has three main chapters:
Chapter 1: General view of Hiep Nga Trading Single Member LLC’s features
of goods imported and management goods imported at the company
Chapter 2: Current situation of accounting for goods imported at Hiep Nga
Trading Single Member Limited Liability Company.
Chapter 3: Improving the accounting procedures for goods import at Hiep Nga
Trading Single Member Limited Liability Company.
7
CHAPTER 1: GENERAL VIEW OF HIEP NGA
TRADING SINGLE MEMBER LLC’S FEATURES OF
GOODS IMPORTS, MANAGEMENT OF GOODS
IMPORTED AT THE COMPANY
1.1. Features of import activities
1.1.1. Characteristics of imported merchandises
Import activity is the operation of getting foreign products into the nation in
order to diversify the domestic market and improve the competitiveness of commodities
both at domestically and overseas. Basically, the import activities of the company
consist of two main steps, that is: importing goods from foreign partners and then
distributing them to domestic customers.
The main imported products of Hiep Nga Trading LLC are auto parts and
accessories such as car perfumes, car floor mats, car decorations, interior lights; car
cleaning solution; film insulating glass paste and other things else.
There are some details about the enterprise's imports:
-
-
Auto parts and accessories like car perfumes, car floor mats, car decorations,
interior lights are completed with high sophistication, modern design, giving
customers satisfaction when equipping their cars.
Car cleaning solution; film insulating glass paste are made up of premium and
health-friendly ingredients for the users. They are all high-end products from
reputable partners to help customers feel secure when choosing a car protection
solution.
1.1.2. The importing market
The demand for car parts is currently growing as the domestic auto industry
develops. Since domestic manufacturing does not follow quantity and quality
requirements, imports of auto parts are also required.
Importation from Western countries faced multiple obstacles due to tariff
policies from the company's inception, so the company's leaders concentrated on the
Asian industry. China and Taiwan are the first two countries that the company imports
products to Vietnam due to factors such as their near geographical position, varied
styles, and low costs. Domestic consumers choose products with fair pricing and high
quality that come from these markets. Following that, the group signed further contracts
8
with Korean firms, widening import markets and increasing client alternatives. Since
the government has provided favorable conditions in recent years, HN Company has
signed a contract with a US partner to import high-quality insulation films in order to
provide the best experiences to Vietnamese customers.
1.1.3. The import and payment method
Currently, Hiep Nga company mainly uses the import consignment process. The direct
import method is used by the corporation for only a few orders.
 Direct import method:
Hiep Nga Trading LLC is a company that perform import operation, which
has been authorized by the authorities. After the Valuation Department has
finished evaluating the target product as well as the potential partner, the
company will negotiate and prepare a commodity import contract. This will
be handled by the Contract Management Department, to ensure the import
and purchase activities are in accordance with the laws of Vietnam as well as
the host country. Then, the company leaders will go abroad and directly sign
contracts with partners. The direct method is quite expensive, and requires
businesses to meet many criteria with a number of special goods such as
chemicals, so that the company does not apply it frequently.
 Import consignment method:
When the enterprise is not eligible to directly import merchandises to Vietnam,
Hiep Nga company will sign a contract with a third party capable of importing
that kind of items. The Valuation Department has to analyze the intermediary
responsible for the import carefully. After signing the contract, that third party
will be in charge of all importation. The enterprise will pay the specific ratio
base on the import contract for that third party. This form of import is the main
procedure of the businesses due to the fact that it offers more convenience than
the above method.
 Payment method:
To pay the partner companies, Hiep Nga Trading LLC mainly use two forms of
payment: letter of credit and international money transfer. The process and
related parties of each payment method include the steps below:
-
Letter of credit (L/C): L/C refers to a contract provided by an importing bank
agreeing to pay the exporter upon presentation of a legitimate collection of
9
documentation. As a result, this L/C is also known as the commercial L/C or L/C
book. L/C is defined on the basis of the contract's terms but is fully independent
of the contract. There are various kinds of L/C such as: Revocable L/C,
Irrevocable letter of credit (Irrevocable L/C), Confirmed letter of credit
(Confirmed L/C).
-
Remittance: This is the process in which Hiep Nga company requests that their
bank send a certain sum of money to the exporter through an overseas
correspondent bank.
1.2. Goods imports management at Hiep Nga Trading Single Member Limited
Liability Company
Each department at Hiep Nga has its own duties and plays a specific role in the
management of imported products.
First of all, Valuation Department need to conduct a market research in order to
estimate the import market, in order to determine the right markets and partners. From
that step, this department will consider choosing the appropriate import method. If the
company utilize the import consignment, the department will evaluate and recommend
the most suitable entrust partners. Along with Valuation Department, Sales Department
also needs to survey the consumption of the target product in the domestic market. This
action is to estimate the purchasing power of customers, is the bridge between
businesses and consumers to understand and satisfy their needs. This is a vital
mechanism that helps the business decide on the form or partner to purchase from and
the amount of goods to purchase in order to offset the cost of import and the product's
sale price in the future. At the next point, Contract Management Department will set up
all the required legal documents to promote cooperation between the parties and
proceed with the import process. Finally, the Transportation and Inventory Management
Department will be in charge of delivering plus handling the items to the warehouse
after they arrive in Vietnam and are turned over after the protocols are completed.
Moreover, at the beginning of the year, Hiep Nga Trading LLC always has
sessions to review the year's operating plans. At the conference, teams will evaluate and
review the unanswered points, benefits, and weaknesses of the previous year's company
performance, and then forecast the market's patterns and demands for the coming year.
Since then, industry owners have had a foundation to consider importing the best
commodities. This would improve consistency in the organization, as well as reduce
risks and enhance work performance.
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CHAPTER 2: CURRENT SITUATION OF ACCOUNTING
FOR GOODS IMPORTED AT HIEP NGA TRADING
SINGLE MEMBER LIMITED LIABILITY COMPANY.
2.1 General accounting document for goods imports in Hiep Nga Trading Single
Member Limited Liability Company
As previously stated, the company's primary methods of importation are
consignment imports and direct imports. Here is the process of each method:
 The procedure of consignment imports:
- Step 1: Sign an import consignment contract.
To import the products it requires, Hiep Nga Trading Single Member
LLC will engage into an import entrustment deal with a qualified third party.
The remaining parts will be included in the company’s consignment
import contract:
+ Subjects of the contract: including related parties and imported merchandises
+ Commodity prices: Price of imported merchandises
+ Specifications and quality of imported merchandises: special notes about the
item (if any) with the quality of the goods
+ Trust remuneration: the fee paid to the partner for carrying out the contract
(based on the order placed)
+ Payment method and deadline: type of payment and date
+ Rights and obligations of the parties: mandatory terms of commitment between
the trustor and the trustee
+ Effect and termination of contract: the circumstances and conditions for the
parties to be able to legally terminate the contract
+ Import consignment contracts must be made in writing or in another form of
equivalent legal validity.
For example, this is the form of entrusted import contract of Hiep Nga Trading
Single Member Limited Liability Company:
IMPORT AUTHORIZATION CONTRACT
No. 01 / AST-HN/2020
-
Pursuant to Article 155 of the 2005 Commercial Law of the Socialist Republic of
Vietnam
11
-
Pursuant to Article 156 of the 2005 Commercial Law of the Socialist Republic of
Vietnam
-
Pursuant to Article 16 of Decree 187/2013 / ND-CP of the Socialist Republic of
Vietnam
Pursuant to Article 17 of Decree 187/2013 / ND-CP of the Socialist Republic of
-
Vietnam
Today date 10 month 02 year 2020 at Hanoi we include:
THE AUTHORIZATION
- Company's name: Hiep Nga Trading Single Member Limited Liability
Company
- Head office address: No. 11A Tran Cao Van Street, Pho Hue Ward, Hai Ba
Trung District, Hanoi, Viet Nam
- Phone: +84.24.348.162.163
Fax: 04.39784146
- Tax code: 0104386326
- Account number: 020006152199 opened at SACOMBANK Hanoi
- Represented by: Mr. Tran Quang Hiep Position: President
Write at date 10 month 02 year 2020
In this contract, it is called party A for short
MANDATORIES
- Company's name: Anh Son Thuy (AST) Limited Liability Company
- Head office address: Hung Vuong Street, Area 8, Hai Hoa Ward, Mong Cai
city, Quang Ninh, Viet Nam
- Phone: 02033608881
Fax: 02033886514
- Account number: 44410000016899 opened at BIDV Mong Cai
- Represented by Mr. Do Van Thang
Position: President
Write at date 10 month 02 year 2020
12
In this contract, it is referred to as Party B for short
The two parties agree to agree on the contents of the contract as follows:
Article 1: Contents of the entrustment
1) Party A authorizes Party B to import the following items:
No
Name of Unit
goods
Amount
Unit
price
Total
1
Auto
spare
789
21,85
USD
17.241,45
USD
Piece
Note
parts
Total 17.241,45 USD
2) Write in words: Seventeen thousand two hundred forty-one point forty-five
dollars
Article 2: Price
- The unit price of the item is the price 21,85 USD (regulated or agreed with
foreign countries)
- If there is any change in the price, Party B must immediately notify Party A
when he knows about the price for handling.
Article 3: Specifications and quality of imported merchandises
1) Party B is responsible for sourcing the imported merchandises according to
the specifications, quality and packaging requirements of Party A as follows:
- Type of goods 1: Required not to damage the original goods, with intact seals
2) Party A is invited by Party B to participate in the purchase transaction with the
foreign party on April 17th
Party B is responsible for guiding Party A to choose to buy the imported
merchandises on the most favorable conditions for Party A.
Article 4: Procedures for the importation of goods
1) Party A is responsible for transferring to Party B the following necessary
documents:
- Import quotas.
13
- Confirmation of the foreign trade bank … (where Party A opens a foreign
currency account) of solvency.
2) Party B is responsible for transactions with the foreign party to import
merchandises with the most favorable conditions for Party A (such as cheap price, good
quality, fast time, etc.)
3) Party A is responsible for receiving goods to be imported by Party B at the
place and time notified by Party B when the goods return.
Article 5: Payment of trust costs
a) Party A is responsible for paying Party B the import entrustment cost,
including the following items:
1 / Auto spare parts pay the cost 862 USD
b) Total total of the trust costs that Party A is responsible for paying to Party B
is: 862 USD
c) Agree to make payment by the method bank transfer
Article 6: Responsibility to settle complaints with foreign countries
1 / In case Party A brings the imported merchandises back to the warehouse,
within 30 days, when opening the packaging, detecting that the goods are not of the
right quality, lack of quantity, etc., leave it as is and invite experts come to check and
make a public record confirming the status of imported merchandises, send it to Party B
as a legal basis to claim the foreign selling party for compensation.
2 / For Party B, when receiving the written confirmation that the imported
merchandises for Party A do not comply with the committed requirements with the
foreign party, they must immediately proceed with measures to limit losses and take
responsibility for contact. claim to the foreign party within the prescribed time limit of
60 days.
Article 7: Responsibilities of the parties in contract performance
1 / If a party violates the contract, on the one hand, it must pay the aggrieved
party a fine of 2% - 12% of the breached contract value, on the other hand, it must also
compensate the Damage caused by breach of contract leads to such as: loss of property
damage, costs to prevent and limit damage caused by violation, fines for breach of
14
contract are different from compensation. Damage that the offending party had to pay a
third party was a direct result of this breach.
2 / When Party A has unclear problems, specific requirements on standards of
goods to be imported to Party B, it is sold by foreign parties of inferior quality, outdated
in technology and technology, at high price then Party A have to bear the consequences.
If Party A intentionally does not come to receive the goods, it will be fined 15% of the
value of the goods, also obliged to receive the goods and must pay all fines and
compensations for damage from foreign or third parties violation given.
3 / Party B, when performing transactions to import merchandises entrusted by
Party A, acts of linking with the foreign party, causing damage to Party A or not
inviting Party A to negotiate and select goods with When the foreign party receives the
goods, again pressures Party A to receive under unfavorable conditions for Party A,
Party A has the right not to receive the goods, if Party A agrees to accept the goods,
Party B must compensate for any damage. for the difference in the price of the goods
compared to the actual price, Party B will also be fined up to 15% of the total value of
the agreed trust.
4 / In the event that Party A arrives to receive the goods later than the specified
time, it will be subject to fines due to the transferee transporting, transporting the goods
and compensating for the costs of storage, storage, and port. fees and other penalties.
5 / When Party A has a complaint about the imported merchandises but Party B
does not fulfill its responsibility in the acceptance and settlement of the complaint to the
foreign party for actual results to protect the interests of Party A, it will be fined 30% of
the value of the trust money, and at the same time have to bear the compensation for the
goods for Party A on behalf of the foreign party who sold the goods.
6 / If Party A pays the foreign party slowly, causing damage to the reputation
and other transaction activities of Party B with that foreign party, Party A must bear the
penalties and compensate on behalf of Party B. when being complained by a foreign
party, at the same time, the foreign party must also pay the full amount for the imported
merchandises and the late payment amount requested by the foreign party.
7 / In case of payment of import entrustment expenses compared to the
prescribed time limit, they will be fined according to the overdue credit interest rate
according to the current regulations of the State which is 15% of the total value of the
entrustment cost.
15
8 / The party that has signed the contract but fails to perform or unilaterally
suspends the performance of the contract without plausible reason will be fined for 50%
of the total value of the trust fee and compensate the fines. and other actual costs that
the aggrieved party may incur as a result of the breach of this contract caused by the
other party.
9 / If there is a case where one party at the same time causes many types of
violations, only one type of fine with the highest amounts of fines will be imposed
according to the fine levels agreed by the two parties in this contract.
Article 8: Procedure to resolve disputes in the contract
1 / The two parties commit to strictly comply with the terms agreed, not
unilaterally change or cancel the contract.
2 / The two sides need to actively inform each other the progress of the contract.
If any adverse problem arises, the parties must promptly notify each other and actively
discuss and settle on the basis of agreement, equality, and mutual benefit. (It is
necessary to make a written record of the entire content of the incident and the applied
resolution method).
3 / If the parties cannot resolve the dispute by themselves, the Court shall be the
agency competent to settle the disputes in this contract.
4 / Costs for inspection and verification activities and court fees are borne by the
party at fault.
Article 9: Other agreements (if necessary)
Article 10: Validity of the contract
This contract takes effect from date 10 / 02 / 2020 to date 30 / 09 / 2020
The two parties will hold a meeting and make a minute of liquidation of this
contract at 10 am, date 30/09/2020 (The place is agreed upon by the parties)
This contract will be made into 5 copies, of equal value, each party keeps 2
copies. Send to agency 1 copy
REPRESENTATIVE TO PARTY A
REPRESENTATIVE TO PARTY B
Position
Position
16
(Sign and stamp)
(Sign and stamp)
Figure 2.1 Entrusted import contract of Hiep Nga Trading Single Member Limited
Liability Company
- Step 2: Open L/C (if necessary):
+ Under the usual framework, the coordination of the execution of the company's
import contract as well as y other export business enterprises is also carried out
progressively. Hiep Nga Trading LLC normally imports under the CIF scheme if
the goods are shipped by sea (CIF Hai Phong). Business official shall
specifically mention the following requirements in the application for the
opening of L / C:
 The form of letter of credit to be opened
 The name and address of the person requesting the letter of credit
 Beneficiary's name and address
 The quantity of money in L / C is specified in both numbers and letters
 The percentage difference in the sum of money whether
 Shipping service conditions
 L / C expiry date and venue
 Delivery concept
 When the transport is convey-shipped and the delivery is partial or
complete.
 Description of goods:
During the transport process, Sacombank performs a study of the application
for the opening of a L / C after obtaining it and prepares a letter of credit at Hiep
Nga Trading LLC's call. The seller then notifies the business of the opening of
the L / C while also notifying the bank to send mail to the exporter. L / C
inspection is carried out by the exporter. If the items are delivered in compliance
with the deal, a series of documents will be arranged at resented through their
bank to send to Sacombank to warrant payment. Sacombank examines payment
documents and, if they are compatible with the import agreement, proceeds to
pay the supplier; if they are not compatible, Sacombank will deny payment and
transfer the documents to the exporter.
-
Step 3: Customs clearance
17
+ The entrusted party will send a customs clearance official for that shipment to
arrange for arrival when the items arrive at Hai Phong port. Customs operations
must be carried out in the following order: When completing the customs
declaration form, the organization must thoroughly report, correctly, the name,
amount, and condition of the products imported on the declaration in order for
the customs office to review the procedures and documents. Customs
declarations provide information such as product names, quality requirements,
product codes, supplier and consignor names and addresses, and so on.
Simultaneously, the company uses the import tariff and VAT imported
merchandises to register and assess the product codes, duty rates, and taxable
values in accordance with legislation in order to measure the tax sum owed on
each tax and each commodity imported by the company.
+ The documentation required for customs clearance, as specified by customs
laws and existing regulations of the General Department of Customs, are as
follows:
 Customs declaration of imported products with the customs appendix
used to announce specifics of goods where the customs declaration does




not completely display the provisions of the declaration): 2 originals
Commercial agreement (Invoice) 1 primary and 2 duplicates
Sea waybill (B / L): one copy
Detailed products list (packing list): 1 main and 1 replica
1 original certificate of origin
 1 initial certificate of study
 1 copy of the letter of credit
+ Documents needed to be presented:
 Certificate of company registration
 Imported business registration code
+ The company will cover the expenses of the freight investigation, and after the
customs inspection, the company will recalculate the tax sum that it measured
itself to determine if the shipment was valid or not, and give the company a "tax
note " to remind the amount of tax owed by the company. Following the
completion of the processes, the corporation pays the import tax (if immediate
tax payment is made) and the goods are issued under customs control.
+ Importing and inspecting products:
18
The goods are normally transported by sea by the corporation.
 Receiving supplies by sea:
 The corporation arrives to collect distribution orders after
receiving notification from the freight carrier or the shipping
agent. The distribution firm will retain the initial bill and
provide the receiver with three copies of the delivery orders.
 The corporation must pay full storage fees (if applicable),
processing fees, and obtain the record.
 The firm takes the payment record, three delivery orders with
invoices and packaging lists to the port's ship administration
office to sign and collect the delivery orders, locate the
location, and save a delivery order.
 The remaining two copies of distribution orders were delivered
to the warehouse department by the corporation.
 After the above processes for opening a customs declaration
have been completed, the corporation will inspect the products
for condition and form, as well as whether they were defective
or missing during shipment.
 For popular and traditional products, the firm often employs
trained personnel at the import-export office as well as customs
officers to examine the goods. Since the danger in the process
is very high for products that are not full of a crate, there are
more Vietnamese enforcement agencies on manufactured
goods. In the event of failure or injury, the inspection
department must keep a report of the merchandise inspection,
which would act as a legal precedent for the prosecution if a
disagreement arises.
19
Figure Ошибка! Текст указанного стиля в документе отсутствует..2
Declaration of imported merchandises
0104386326
Công ty TNHH Một thành viên Thương Mại Hiệp Nga
-
Step 4: Payment for the products
+ After the international client has paid for the goods, the company must make a
report of the trust contract's liquidation and inform the trustee of the agreed
20
payments and commission paid by corporation. The following papers must be
transferred to the trustee through Hiep Nga limited liability company:
 Contract termination
 Commercial bill (1 copy)
 Declaration of imported products with approval of real shipment and
border-gate customs office seal (1 copy)
 Committee VAT invoice
 After all parties have signed the record liquidation deal, Hiep Nga
Company pays the trustor through the bank.
 The procedure of direct import method:
With some orders that can be imported directly, Hiep Nga company will sign a
sale and import contract with a foreign partner and then carry out the import
procedure. The process also has similarities with the method of importing
consignments:
-
Step 1: Concluding trade agreements with import partners
+ Trading deals that lead to contract signings are the most dynamic and
complicated aspect of international exchange. Negotiation and transactions are
mandatory in order to accept the agreement and guarantee the company's
benefits. Good negotiating and negotiating would offer the business more
revenue, raise revenues, and reduce risks in the import sector. The strategy and
foreign Cooperation office would include the trading firm that signed and
completed the deal. - The following items are usually included in the contract: a.
Product terms
b. Package terms of the unit price and gross contract value
c. Payment methods
-
d. Insurance
e. Delivery terms
f. Inspection and restitution for violations of contract
Each party will keep one 2 copies of the contract, one made in English and one
translated into the local language.
Step 2: Open L/C (if necessary)
Step 3: Perform custom process
Step 4: Receive and inspect goods
-
Step 5: Payment
21
-
Step 6: If there is a dispute, Hiep Nga will submit a grievance to the partner so
that it can be resolved.
Figure Ошибка! Текст указанного стиля в документе отсутствует..3 Bill of
lading
HA
BILL OF LADING
SHIPPER (principle or Seller license and PAGE
full address)
1 OF 2
B/L NUMBER
140420NSSLHGHPC2000450
HANGZHOU XULING TRADING CO., LTD
EXPORT REFERENCES
BUILDING 3, AIHUA CREATIVE
VALLEY, XIAO SHANG HUANG ZHOU
CULTURAL INDUSTRIAL PARK CONSIGNEE (Name and full Address/Non- FORWARDING AGENT
Negotable Unless Consigned to Order.)
(Unless provided otherwise, a consigment
"To order of Shipper".)
TO ORDER OF AST - MONG CAI CTIY
POINT AND COUNTRY OF ORIGIN OF GOODS
HUANG PU, CN
NOTIFY PARTY (Name and full address)
Hiep Nga Trading Single Member Limited
Liability Company
No. 11A Tran Cao Van Street, Pho Hue
Ward, Hai Ba Trung District, Hanoi, Viet
Nam
INITIAL CARRIAGE
(MODE)
EXPORT CARRIER
(Vessel, voyage,& flag)
HEUNG-A
PORT OF DISCHARGE
HAI PHONG **
PLACE OF ALSO NOTIFY (Name and Full Address)/DOMESTIC
ROUNTING/EXPORT INSTRUCTION/PIER-TERMINAL/ONWARD
RECEIPT
HUANG PU, ROUNTING FROM POINT OF DESTINATION
*CHINA PORT
CN
** VIET NAM PORT
PORT OF
LOADING
HUANG PU
PLACE OF
DELIVERY
HAI PHONG
**
Excess Valuation Please refer to Clause 7ii) on Reverse Side PARTICULAR FURNISHED BY SHIPPER. Payment
by Cheque must be made to the order of HA Co.Pte.Ltd
MKS & NOS/CONTAINER NO. OF
H.M
DESCRIPTION OF
GROSS WEIGHT MEASURE
NOS
PKGS
PACKAGES AND
_MENT
GOODS
22
Figure Ошибка! Текст указанного стиля в документе отсутствует..4
Commercial invoice of the entrusted party
23
24
Figure Ошибка! Текст указанного стиля в документе отсутствует..5
Commercial invoice of the entrusted expenses
25
2.2 Detailed accounting for imported merchandises in Hiep Nga Trading Single
Member Limited Liability Company
2.2.1 Accounting Principles
2.2.1.1 Form of pricing imports
The VAT deduction approach is the enterprise's means of assessing the price of
imported merchandises. This means that VAT will not be included in the item's price,
and the approach is shown below:
Which includes:
-
Purchase price: The CIF and C&F costs already stipulated in the import deal and
commercial bill
Purchase cost: Includes all costs from the moment the items are shipped to a
Vietnamese port, transportation costs to the enterprise's warehouse, import
consignment costs, customs expenses, and many other charges.
2.2.1.2 Accounting policies for foreign exchange gain and losses
Since the organization has yet to open a foreign exchange account, all
international payments are made using local currency accounts. Until exchanging funds
under the import deal, the Organization must first purchase foreign currencies in the
local currency account. Any exchange rate differential is the discrepancy between the
exchange rate used to purchase commodities and the exchange rate used to produce
manufactured goods. In this regard:
-
The foreign currency purchasing rate expressed on the company's accounts 112
and 331 is the bank's real selling rate at the time of sale.
The exchange rate reported in account 156 is the customs taxable exchange rate
(the average inter-bank exchange rate at the time of customs declaration).
Foreign exchange discrepancies are registered in accounts 515 (if a gain) or 635
(if a loss).
2.2.2 Accounting accounts
-
Account: 111, 112, 1331, 244, 156, 331, 341, 33312, 515, 635.
General Journal
26
-
-
Ledger of accounts: Account 111, Account 112, Account 1331, Account 244,
Account 156, Account 331, Account 341, Account 33312, Account 515, Account
635.
Comprehensive document: Detailed book of bank deposit, Detailed book of
goods, Detailed book payable.
2.2.3 Accounting procedure for purchasing imported merchandises
The billing and payment identification process will begin after the accounting
department receives the import entrustment contract from the contract management
department. Typically, the organization would pay the associate by a money transfer or
a L /C. (in case of need). Payment may be made directly or in two or three installments
depending on the type of merchandise and the time of arrival.
For example: On February 10, 2020, Hiep Nga LLC signed an entrusted import
contract with a partner in order to bring auto spare parts to Vietnam. The specifics are
as follows:
No
Name of Unit
Amount
goods
1
Auto
spare
parts
Unit
Total
Note
price
Piece
789
21,85
USD
17.241,45
USD
-
Total delivery time: 60 days from the date of L / C receipt.
-
Payment is made in cash at the time of service. The L / C must be opened within
10 days of entering the deal. The business plans to borrow from Sacombank
Hanoi in order to open a Documentary credit (D / C). Before establishing a D/C,
the business must deposit 20% of the D/C volume. A business loan contract was
signed by 80 percent of D / C group. When making a deposit, the corporation
would debit a local currency account and pass the funds to a bank deposit
account. In this case, since the D / C value equals the entire contract value, the
balance to be deposited is: 20% x 17.241,45 = 3.448,29 USD. On February 10,
2020, the bank accountant entries the following information into the deposit data
book of cast in bank relying on the Voucher of Good earned notice and the
banking memos:
27
Figure Ошибка! Текст указанного стиля в документе отсутствует..6 Goods
received note
28
29
Then, the bank and payable accountant will record in the journal ledger and
ledger of Account 112 plus 244 (base on the foreign exchange rate of Sacombank at
February 10th, 2020 is 23.189 VND/USD )
Dr Account 244: 79,962,397 (23.189 x 3448,29)
Cr Account 112: 79,962,397
Then, the corporation received a series of legal documentation on March 2, 2020.
The organization performs D/C payment processes and requests that the bank endorse
the bill of lading so that customs procedures and supplies can be completed easily.
Following the verification and use of documentation with L / C, the bank disburses the
balance of the D / C value in accordance with the credit arrangement agreed with the
firm to pay D / C to the bank of the trusted imports affiliate. (AST Ltd. Co) on March 3,
2020
As mentioned above, in April, after the goods arrived at the port, AST company
carried out the customs procedures and paid VAT for the consignment they were
responsible for the import consignment. After receiving the goods at the warehouse of
the enterprise, the accountant of Hiep Nga company will record the value of the
shipment (with the exchange rate at the time of payment is 23.370 VND/USD and in the
past was 23.189 VND/USD) as follows (see Figure 2.9 & 2.12):
Dr Account 156: 402.932.687 (17.241,45 USD x 23.370 VND/USD)
Cr Account 331: 399.811.984 ( 7.241.45 USD x 23.189 VND/USD)
Cr Account 515: 3.120.703 ( 402.932.687 - 399.811.984)
Because the partner in charge of import has paid VAT to the business right from
the moment the goods arrived, so the accountant after receiving the invoice as well as
the minutes from the AST, the accountant will account as follows (see Figure 2.9;
Figure 2.13; Figure 2.14) to record the amount of Hiep Nga payable taxes and AST
remuneration (including the amount of tax paid by AST and VAT from the service
provider of AST, with the exchange rate at the time of payment are 23.370 VND/USD
and 23.395 VND/USD):
 Dr Account 156: 20.127.700 (862 USD x 23.350 VND/USD)
Dr Account 1331: 1.006.385 (5% x 862 USD x 23.350 VND/USD)
Cr Account 331: 21.134.085
 Dr Account 156: 9.367.065 (401 USD x 23.370 VND/USD)
30
Dr Account 1331: 468.353 (5,2% x 401 USD = 20,05 USD x 23.370 VND/USD)
Cr Account 331: 8.898.712 (401 USD + 20,05 USD = 421,05 USD x
23.370 VND/USD)
At the same time, they present the deducted VAT amount:
 Dr Account 1331: 2.182.946
Cr Account 138: 2.182.946
The commission of the import trustee is recorded by the accountant of Hiep Nga
company in accounts 156, 331, and 133 (VAT has been demonstrated in Figures 2.9,
2.13 and 2.14 above. ). In addition, the enterprise also recognizes the expenses payable
to the AST party after being paid by them with the exchange rate 23.350 VND/USD
and 23.189 VND/USD at the payment days as follows (see Figures 2.15, 2.16 and
2.17):
 Dr Account 156: 13.190.101 (563,8 USD x 23.350 VND/USD)
Cr Account 331: 13.190.101
Finally, when making payment to the import consignee, the accountant shall
record:
 Dr Account 331:
486.859.642 (20.850,52 USD x 23.350 VND/USD)
Cr Account 112: 483.502.708 ( 20.850,52 USD x 23.189 VND/USD)
Cr Account 515: 3.256.934
At the same time noted:
Cr Account 007: 483.502.708
GENERAL JOURNAL
31
YEAR 2020 (EXCERT)
Recorded
date
1
Voucher
Explanation
Code
Date
2
3
4
Account
number
Amount
Dr
Cr
Dr
Cr
5
6
7
8
February
10/2/2020
ASPN
10/2/2020
K
Deposit
for
opening L/C
Imported
contract
Short-term
deposit
244
79,962,397
Bank deposits
112
79,962,397
15/02/2020 BHPT
15/02/202
0
NHD pays the
contract
for
the first time
Bank deposits
112
26,721,345
Receivables
from
131
26,721,345
customers
….
April
9/4/2020
BHPT
9/4/2020
NHD pays the
contract
for
the
second
time
Bank deposits
112
106,885,38
32
0
Receivables
from
131
106,885,38
customers
12/4/2020
BHPT
12/4/2020
0
Sales
auto
spare parts for
QG corp
Receivables
from
131
259,160,73
customers
9
Sales
511
1
246,202,70
2
Output VAT
27/04/2020 ASPN
K
27/04/202
0
333
1
12,958,037
Payment
of
imports goods
Payment
the goods
for 156
Deduct
advance
payment
the
402,932,68
7
331
399,811,98
4
amount
according to
the exchange
rate
Foreign
exchange rate
difference
arises
Payment
515
3,120,703
156
33
entrusted
import fees
27/04/2020 TASP
27/04/202
20.127.700
VAT
1331
0
1.006.385
Entrusted
import
fees
331
21,134,085
payable
27/04/2020 TASP
27/04/202
0
Goods value
156
9,367,065
VAT
deduction
1331
468,353
The
amount
tax
must
331
8,898,712
pay
Expenses
related
consigned
imports
(exclusive
VAT)
156
to
13,190,101
of
The amount to
be paid to the
331
13,190,101
trustee
27/04/2020 ASPN
K
27/04/202
0
Payment
entrusted
imports
contract
for
The payable 331
amount
of
foreign
486,859,64
2
currency paid
at the book
34
exchange rate
The amount of
112
foreign
currency paid
483,502,70
8
at
the
bookkeeping
rate
Foreign
currency
515
3,256,934
exchange rate
difference
arises
Original
currency paid
28/04/2020 BHPT
28/04/202
0
007
483,502,70
8
Selling tubes
in
the
inventory
Cost of goods 632
sold
Goods
24,912,641
156
24,912,641
28/04/2020 CPBH
28/04/202
0
Payment
of
tubes delivery
Business
administration
expense
641
VAT
deduction
1331
Cash
1,237,893
123,789
111
35
1,361,682
28/04/2020 BHPT
28/04/202
0
Discount
LUXO
film
for clients
Discount sales
5213
43,217,892
Output VAT
3331
1
Receivables
2,160,895
131
from
customers
28/04/2020 BHPT
28/04/202
0
45,378,787
Transferring
sales discounts
Sales
5111
43,217,892
Discount sales
521
3
29/04/2020 GNT
29/04/202
0
VAT
on 1331
imported
merchandises
is deductible
VAT
Other
receivables
29/04/2020
29/04/202
0
43,217,892
2,182,946
138
2,182,946
Sales Revenue
Transfer
Sales
5111
823,456,12
3
Income
911
823,456,12
36
Summary
29/04/2020
29/04/202
0
3
Carried over
cost of goods
sold
Income
Summary
911
458,723,12
2
Cost of goods
sold
632
458,723,12
2
29/04/2020
29/04/202
0
Carrying over 911
of
expenses
for business
management
Income
911
Summary
179,237,62
3
Business
641
179,237,62
3
29/04/2020
29/04/202
0
Determine
sales results
Income
summary
Retained
earning
Total of the
911
214,723,02
3
421
214,723,02
3
…
…
month
37
…
Accumulated
…
at the end of
the month
Figure 2.7 General Journal
GENERAL LEDGER
ACCOUNT NAME: CASH IN BANK
ACCOUNT NUMBER: 112 (EXCERT)
Recorded
date
1
Voucher
Code
Date
2
10/2/2020 BHPT
15/2/2020 BHPT
3
Explanation
Reference
4
February
5
Balance at
the
beginning of
the month
Deposit for
opening L/C
Imported
10/2/2020 contract
NHD pays
the contract
for the first
15/2/2020 time
Total of
February
Accumulated
at the end of
February
Balance at
the end of
the month
…
April
Balance at
the
beginning of
the month
Amount
Dr
Cr
6
7
612,382,934
131
79,962,397
244 26,721,345
26,721,345
79,962,397
541,276,547
465,177,212
559,141,882
891,726,831
38
NHD pays
the contract
for the first
9/4/2020 BHPT
9/4/2020 time
QG corp pays
the contract
for the first
12/4/2020 BHPT
12/4/2020 time
Payment for
entrusted
imports
27/4/2020 ASPNK 27/4/2020 contract
Total of
April
Accumulated
at the end of
April
Balance at
the end of
the month
131 106,885,380
131 259,160,739
33312
483,502,708
366,046,119
483,502,708
1,243,261,918
1,032,783,217
774,270,242
Figure 2.8 General ledger of account 112
DETAILED BOOK OF GOODS
Account: 156 (EXCERT)
39
Explana
tion
Voucher
Recorde
d date
1
Co
de
Date
2
3
4
Unit
price
Import
Export
Balance
Note
Qu
Qu
Amou
Amou Qua
anti
ant
Amount
nt
nt
ntity
ty
ity
5
6
7
8
9
10
11
12
April
Total
value of
inventor
y,
includin
2000 876,423,76 g
4
different
types of
auto
spare
parts
Balance
at the
beginni
ng of
month
27/04/20
20
AS
PN
K
28/04/20
20
BH
PT
Auto
spare
27/04
parts
/2020
(code
LKLR)
Cooling
28/0
water
4/202
transport
0
tubes
Total of
April
510,68
8
789 402,93
2,687
789 402,932,68
7
20 24,912
0
,641
124,56
3
402,93
2,687
24,912
,641
Balance
at the
end of
month
0
0
789 402,932,68
7
2589 1,277,000,
976
Figure 2.9 Detailed book of goods of account 156
GENERAL LEDGER
ACCOUNT NAME: DEDUCTIBLE VAT
Account Code: 1331 (EXCERT)
40
Recorded
Vouchers
date
Code
Date
1
2
3
Explanation
Reference
4
5
Amount
Dr
Cr
6
7
April
Balance at the beginning
of the month
27/04/2020 TASP
27/04/2020 VAT on entrusted imports 331
1,006,385
fee
27/04/2020 TASP
27/04/2020 VAT
on
merchandises
imported 331
28/04/2020 CPBH 28/04/2020 VAT on selling goods
29/04/2020 GNT
111
29/04/2020 VAT
on
imported 138
merchandises is deducted
468,353
123,789
2,182,946
Carrying over of deductible
3,781,473
input VAT
Total of April
3,781,473
3,781,473
Ending balance
Figure 2.10 General ledger of account 1331
DETAILED BOOK OF VAT
YEAR OF 2020 (EXCERT)
41
Vouchers
Find VAT amount
Code
Date
1
2
BHPT
12/4/2020
TASP
TASP
CPBH
27/04/2020
27/04/2020
28/04/2020
BHPT
GNT
28/04/2020
29/04/2020
Explanation
3
Output VAT The input VAT progressive Amount
amount VAT amount for payable of VAT Still must pay Overpaid
paid
arising in arising in the
the period
period
4
5
6
7
8
9
April
Balance at the beginning of the month
VAT on auto spare parts for QG corp 12,958,037
VAT on auto spare parts entrusted
imports fee
VAT deduction on imported goods
VAT deduction on selling goods
VAT on auto spare parts discount selling 2,160,895
VAT on imported goods is deducted
Total of April
15,118,932
Ending balance
12,958,037
1,006,385
468,353
123,789
2,182,946
3,781,473
12,958,037 1,006,385
12,958,037 468,353
12,834,248
14,995,143
12,812,197
1,474,738
12,812,197
Figure 2.11 Detailed book of 2020 VAT
GENERAL LEDGER
ACCOUNT NUMBER: 331 (EXCERT)
42
Recorded
date
Vouchers
Amount
Code
Date
1
2
3
Explanation
4
Reference
5
Dr
Cr
6
7
April
Balance at the
beginning of the
month
298,635,278
27/04/2020 ASPNK 27/04/2020
Deduct the advance
payment amount
according to the
exchange rate
156
27/04/2020 ASPNK 27/04/2020
Entrusted import
fees payable
156, 133
The tax amount
must pay for
imported
merchandises
156, 1331
Expenses related to
consigned imports
(exclusive of VAT)
156
27/04/2020 TASP
27/04/2020
27/04/2020 ASPNK 27/04/2020
399,811,984
21,174,815
8,898,712
13,190,101
27/04/2020 ASPNK 27/04/2020
The payable amount
of foreign currency
112, 515
paid at the book
exchange rate
Total of April
Ending balance
486,855,565
785,490,843
443,075,612
342,415,231
Figure 2.12 General ledger of account 331
GENERAL LEDGER
ACCOUNT NUMBER: 156 (EXCERT)
43
Recorded date Vouchers
Code Date
1
2
3
27/04/2020
27/04/2020
27/04/2020
27/04/2020
28/04/2020
ASPNK
ASPNK
TASP
ASPNK
ASPNK
Explanation
5
Amount
Dr
6
331, 515
1331, 331
1331, 331
331
876,423,764
402,932,687
20.127.700
9,367,065
13,190,101
Reference
4
April
Balance at the beginning of the month
Payment for the goods
Payment entrusted import fees
Imports tax on goods value
Expenses related to consigned imports (exclusive of VAT)
Selling tubes in the inventory
Total of April
Ending balance
Cr
7
24,912,641
425,489,853 24,912,641
1,277,000,976
Figure 2.13 General ledger of account 331
GENERAL LEDGER
ACCOUNT NUMBER: 007 (EXCERT)
44
Recorded date Vouchers
Code Date
1
2
3
27/04/2020
ASPNK
Explanation
Reference
4
April
Balance at the beginning of the month
Original currency paid
Total of April
Ending balance
5
Amount
Dr
6
Cr
7
…
483,502,708
483,502,708
…
331, 515, 112
Figure 2.14 General ledger of account 007
2.3. Accounting for sales of imported merchandises
2.3.1. Accounting of sales and Trading discount of imported merchandises
2.3.1.1. The system of vouchers, accounts and accounting books
a, Vouchers: Delivery receipt, VAT invoice, bank sub-book
b. Account used: TK 511, 131, 112, 33311
c, Accounting book:
General Journal
Ledgers of Account 511, 131, 112, 33311, 521, 531, 532
Detailed accounting books:
+ Detailed sale books, used by accountants to monitor the sale situation for each type
of goods according to the origin of goods sold, and at the same time monitor the costs
of goods sold for each item or each shipment.
+ Detailed book receivable of customers to monitor the debt situation of each specific
customer.
+ Detailed book of bank deposits, VAT monitoring book.
2.3.1.2. Accounting procedure
The sales department should produce a storing note and a VAT invoice for the
products sold once the products have been properly stocked and inspected. The
company's delivery personnel carries the delivery note down to the storage, where the
45
storekeeper notes the exact amount of products transported. Customers received two
copies of delivery bills and VAT invoices from delivery workers. The accounting
department receives three copies of the delivery note and three copies of the VAT
invoice for bookkeeping. Following receipt of comprehensive records pertaining to the
number of sold items (delivery notes, added value invoices) sent by the ales department,
and following comprehensive accounting In the Sales Details Book, payment specific
ledger with the buyer, detailed book of VAT and making generalizations calculated on
the basis value that customers accept payment to account for customers' revenues and
receivables in the general diary. Accounting then moves data from the General Journal
to ledgers 511, 33311, and 131.
When a sale contract is signed with a domestic client, a small-value contract, or a
long-term familiar client, the new client must pay after payment (usually within 1-2
months). Customers must typically pre-order 30-50 percent of the contract value for big
value contracts. The remainder will be paid when the products have been handed over
and accepted.
On July 14, 2020, based on the delivery note (Figure 2.21) and the VAT invoice
(Figure 2.15), the accountant records the General ledger of sales revenue, the VAT
detail book (Figure 2.16) and the detailed book of Account Receivable.
Following that, the general accountant enters the sales turnover and output VAT
payable on the General Journal (Figure 2.17) and ledger accounts 131 (Figure 2.18),
5111 (Figure 2.19), and 33311 (Figure 2.20) as follows:
Dr Account 131: 239.065.438
Cr Account 5111: 227.681.370 (9.832,5 x 23.156)
Cr Account: 33311: 11.384.068
According to the figures, on 18 June 2020, the company received the first
payment for the contract of selling Spare parts to Ha Linh Trading Company (4271
USD), based on the credit notice of Sacombank Hanoi, the bank accountant shall enter
the details of the bank deposit book and the accountant shall enter the detailed book of
account receivable (Figure 2.22)
Afterwards, the accountant records General Journal (Figure 2.17) and Ledger Account
112 (Figure 2.21) and Account 131 (Figure 2.18)
Dr Account 112: 113.816.104 (4.916,25 x 23.151)
46
Cr Account 131: 113.816.104
On July 14, 2020, the company received the payment of Ha Linh Corp (=the amount on the
invoice - the first payment = 239.065.438- 113.816.104 = 125.249.334).
Based on the bank notice, the accountant details in the bank deposit details book (Figure 2.6)
and the detailed book of account receivable, the accountant records the General Journal (Figure 2.17)
and ledger of Account 112 (Figure 2.21) and Account 131 (Figure 2.18) according to the entry:
Dr TK 112: 125.249.334
Cr TK 131: 125.249.334
*) Sales deductions:
Because the company's products mainly assembled auto spare parts with many different types of
specifications, the quality is unstable, or there are technical errors leading to incorrectly imported
merchandises as required. demand of customers. So sometimes the item is returned or the company
must accept a discount. Moreover, the company's customers are familiar with and buy in large
quantities, so the company is also gradually applying a trade discount policy based on certain rates to
different customers. For example, in April 2020, the company received a letter from Viet Phat limited
liability company, a company complaining about a package of Luxo film that the company provided
from March 2020 does not meet the quality requirements. Because the goods have been put into use
and are consumed in excess of the permitted levelled they do not return the goods but only ask for a
discount for the above items. Moreover, customers have not yet paid the invoice for this shipment.
The company has accepted a 20% discount on the value of the shipment (without VAT) (Figure 2.7)
Specifically, the reduced amount is: 216.089.460 x 20%= 43.217.892
The corresponding output VAT amount (5%) is reduced: 2.160.895
On April 28, 2020, based on vouchers and detailed accounting, recording the detailed hook of
VAT. General accounting reflects this discount on account of deduction of 532 turnover, reducing the
output VAT amount on Account 33311 and recording the decrease of receivable debts of customers
on Account 131 (Figure 2.11)
Dr Account 521: 43.217.892
Dr Account 33311: 2.160.895
Cr Account 131: 45.378.787
At the end of the month, carry over to sales account:
Dr Account 5111: 43.217.892
47
Cr Account 521: 45.378.787
Sample of Value-Added Invoices issued by Tax Department
(Issued together with Circular No. 39/2014/TT-BTC dated March 31, 2014 of the
Ministry of Finance)
48
Figure 2.15 Value added tax invoice
DETAILED BOOK OF VAT
JUNE 2020 (EXCERT)
49
Vouchers
Find VAT amount
Code
Date
1
2
Explanation
3
Output VAT The input VAT progressive Amount
amount VAT amount for payable of VAT
Still must pay Overpaid
paid
arising in arising in the
the period period
4
5
6
7
8
9
July
Balance at the beginning of the month
BHPT 14/7/2020
VAT on auto spare parts for Ha Linh Corp
Total of July
Ending balance
11,384,068
11,384,068
11,384,068
11,384,068
11,384,068
Figure 2.16 Detailed book of July 2020 VAT
GENERAL JOURNAL
YEAR 2020 (EXCERT)
Recorded Voucher
Explanation
Account
Amount
50
date
1
Code
2
18/6/2020 BHPT
14/7/2020 BHPT
Date
3
4
June
Ha Linh Corp pays for
merchandises for the
18/6/2020 first time
Bank deposits
Receivables from
customers
…
number
Dr
Cr
5
6
Dr
7
112
113,816,104
131
14/7/2020 HDGTGT 14/7/2020 Sales for Ha Linh Corp
Receivables from
customers
112
131
Output VAT
Selling spare parts in
14/7/2020 the inventory
Cost of goods sold
125,249,334
131
Sales
14/7/2020 CPBH
113,816,104
July
Ha Linh Corp pays for
the rest of the
14/7/2020 merchandises
Bank deposits
Receivables from
customers
14/7/2020 BHPT
Cr
8
239,065,438
51111
227,681,370
33311
11,384,068
632
Goods
Payment of tubes
14/7/2020 delivery
Business administration
expense
641
VAT deduction
1331
Cash
Total of the month
Accumulated at the
end of the month
125,249,334
207,726,434
156
207,726,434
2,090,000
110,000
111
…
2,200,000
…
…
…
51
Figure 2.17 General Journal of 2020
GENERAL LEDGER
ACCOUNT NAME: ACCOUNT RECEIVABLE
Account number: 131 (EXCERT)
Recorded
date
1
18/6/2020
Vouchers
Code
Date
2
3
BHPT
Explanation
Reference
4
June
Opening balance
5
Ha Linh Corp pays for the
18/6/2020
contract first time
Amount
Dr
6
Cr
7
156,172,382
112
113,816,104
Total of June
113,816,104
Accumulated at the end of
June
578,213,988
Balance at the end of the
month
42,356,278
345,834,422
July
Opening balance
14/7/2020
HDGTGT
42,356,278
51111, 33311
Revenue of Spare parts
14/7/2020
BHPT
Ha Linh Corp pays for the
rest of the contract
239,065,438
112
125,249,334
…
Total of July
Accumulated at the end of
July
Balance at the end of the
month
459,012,438
125,249,334
1,037,226,426
471,083,756
376,119,382
Figure 2.18 General ledger of account 131
GENERAL LEDGER
ACCOUNT NAME: SALES REVENUE
Account number: 5111 (EXCERT)
52
Recorded date
1
Vouchers
Code Date
2
3
14/7/2020
BHPT
Explanation
Reference
4
5
July
Balance at the beginning of the month
14/7/2020 Sales auto spare parts for Ha Linh Corp
Amount
Dr
6
Cr
7
131
227,681,370
…
...
28/7/2020
31/7/2020
28/7/2020 Sales discount number
31/7/2020 Sales revenue transfer
Total of July
521 27,913,791
911 1,263,513,682
1,291,427,473
1,291,427,473
Figure 2.19 General ledger of account 5111
GENERAL LEDGER
ACCOUNT NAME: VAT PAYABLE
Account number: 33311 (EXCERT)
Recorded
date
1
Vouchers
Code
Date
2
3
Explanation
Reference
4
July
Balance at the
beginning of the month
HD
VAT on Spare parts sales
14/07/2020
14/07/2020
GTGT
contract
5
Amount
Dr
6
131
Cr
7
11,384,068
…
5,183,700
Total of July
Ending Balance
…
24,945,918
Figure 2.20 General ledger of account 333
GENERAL LEDGER
ACCOUNT NAME: CASH IN BANK
ACCOUNT NUMBER: 112 (EXCERT)
Recorded
date
1
Voucher
Code
Date
2
3
Explanation
Reference
4
June
5
Amount
Dr
Cr
6
7
53
18/6/2020 BHPT
Balance at
the
beginning of
the month
Ha Linh Corp
first time pay
for the
18/06/2020 contract
461,801,281
131
113,816,104
…
…
14/7/2020 BHPT
14/7/2020
Total of June
Accumulated
at the end of
June
Balance at
the end of
the month
July
Balance at
the
beginning of
the month
Ha Linh Corp
pay the rest of
contract
Total of July
Accumulated
at the end of
June
Balance at
the end of
the month
230,488,909 82,736,490
1,791,596,447
1,423,892,166
609,553,700
609,553,700
131
125,249,334
…
…
366,046,119
157,902,823
2,157,642,566
1,581,794,989
817,696,996
Figure 2.21 General ledger of account 112
DETAILED BOOK OF ACCOUNT RECEIVABLE
54
Account: 131
Client name: Ha Linh Service and Investment Trading Corporation
Recorded date
1
Code
2
Voucher
Date
3
Explanation
Reference
4
5
Accrual
Dr
6
Balance
Cr
7
Dr
8
Cr
9
June
18/6/2020 BHPT
14/7/2020 HDGTGT
14/7/2020 BHPT
Opeing Balance
Ha Linh Corp pay for
112
18/6/2020 the first time
Total of June
0
Ending Balance
July
Opeing Balance
Sales of auto spare
14/7/2020 parts
5111, 33311 239,065,438
Ha Linh Corp pay for
14/7/2020 the rest of contract
112
….
….
Total of July
291,075,278
Ending Balance
177,239,653
113,816,104
113,816,104
63,423,549
63,423,549
63,423,549
302,488,987
125,249,334
177,239,653
151,797,357
229,249,493
Figure 2.22 Detailed book of account receivable for client
2.3.2. “Cost of goods sold”
2.3.2.1 Organization of vouchers, accounts and used accounting books
a. Accounting Vouchers
The sales department should produce a warehousing note and a VAT invoice for the products
sold once the products have been properly stored and verified. The company's delivery personnel who
carried the delivery will make notes to the storage, where the storekeeper notes the exact amount of
products transported. Customers received two copies of delivery receipts and VAT invoices from
delivery workers. The accounting department receives three copies of the delivery note and three
copies of the VAT invoice for processing.
b. Accounts:
" Account 632- Cost of goods sold" is used by corporate accountants to indicate the cost of
products sold. Account 632 represents the cost of products sold as well as the cost of products sold to
Account 911- Determination of sales results, for the purpose of calculating business outcomes.
Account 156- Merchandise is also used by accountants to indicate the position of merchandise
import and export. Because the corporation uses inventory accounting on a regular basis, when goods
55
are purchased, they are recorded in account 156, and when goods are sold, the accountant quickly
transfers the cost of goods sold from account 156 to account 632."
c. Accounting book: General Journal, ledger of accounts 156, 632, detailed book of
merchandises to monitor the situation of import-export-inventory of goods by each merchandises in
both quantity and value of goods. This book is the basis for accounting of sales to track and determine
the cost of goods sold.
2.3.2.2. Accounting procedure:
Currently, the company mainly applies the form of direct selling to customers. Upon receipt of
orders and signing of sales contracts with customers, the company signed an import contract.
Therefore, the company applies the method of accounting inventories according to the regular
declaration method. Due to the heterogeneous type of goods imported into each lot, the management
of the actual prices of out-of-stock goods shall be accounted for using the method of actual price:
Actual value of imported goods. Therefore, the actual capital value of the shipment is the actual
capital value of the shipment at the time of warehousing. According to this assessment, accountants
directly collect costs related to the purchase process such as shipping costs, delivery costs, import
taxes... on the value of that shipment.
Cost of goods
purchased
=
The actual
purchase value of
the purchased
goods
+
Costs incurred
during the
purchased
procedure
Or:
Actual cost of
imported goods
purchased for
inventory
=
CIF Price
+
Import Tax
+
Cost of
transportation,
loading, unloading,
delivery,…
"The real purchase price of the acquired products and the costs of each importation should be
allocated to the cost of goods sold instantly upon delivery of goods from the sale of goods."
According to the above information, on June 17, 2020, Company signed a contract to sell the
auto spare parts to Ha Linh Trading Corp, details are as follows:
No
1
Commodity and
Service
Quantities
Unit
Price
Amount
Auto spare parts
380 Pieces
25,875
9,832.5
Total
9,832.5
56
-
Delivery time: within 30 days after receiving the first payment
“Payment: by bank transfer at the selling rate of Saigon Thuong Tin Commercial Joint
Stock Bank at the time of payment and in 2 instalments.”
+ Stage 1: 50% of the contract value immediately after signing
+ Stage 2: 50% of the contract value within 30 days from the date of signing the
acceptance record.
Based on the Voucher of Warehousing, Delivery notes and the VAT Invoice (Figure
2.15)
Hiep Nga Trading Limited Liability Company
Form No.02 - VT
(Issued in compliance with Circular No.200/2014/TT-December 22,2014 of the Ministry of
Finance)
GOODS DELIVERY NOTE
Day 15 Month 07 Year 2020
No: PXK112
Dr 632
Cr 156
- Name of the deliver: Nguyen Van Cao
- Address: No. 11A Tran Cao Van Street, Pho Hue Ward, Hai Ba Trung District, Hanoi, Viet Nam
- Reason for ex-warehousing: Exporting for sale
- Exported from warehouse (compartment lot): Hiep Nga Trading Limited Liability Company
- Ex-warehousing at: No. 258 Bach Dang Street, Tran Khat Chan Ward, Hoan Kiem District, Hanoi, Viet Nam
No
A
1
Name, brand,
specification,
quality of supplies
and tools, products
and goods
B
Auto spare parts
Total
Number
Unit
C
SP14
D
Piece
Quantities
Requirement
1
380
380
Actual export
2
380
380
Unit price
Amount
3
546,649
4
207,726,434
207,726,434
“-The Total Amount (Written in words): Two hundred and seven million, seven hundred twenty six thousand four hundred and thirtry four”
“-The number of original documents attached: 01”
…..
Preparer
Deliver
Stocker
Chief Accountant
(Sign and write full name)
(Sign and write full
name)
(Sign and write full name)
(Sign and write full name)
Director
(Sign and write
full name)
57
Figure 2.23 Goods delivery note
“Detailed accounting valuates the cost of goods sold at the actual value of imported
merchandises using the formula:”
Purchase price
=
for imported
goods
=
192,538,267
=
207,726,434
And record in detail good (Figure 2.25)
Actual cost of
imported goods
+
Import Tax
+
Cost of imported
goods
+
9,626,913
+
5,561,254
Subsequently, the general accountant records the General Journal (Figure 2.17) and ledgers
Account 632 (Figure 2.24) and Account 156 (Figure 2.26) according to the following entries:
Dr Account 632: 207.726.434
Cr Account 156: 207.726.434
GENERAL LEDGER
ACCOUNT NAME: COST OF GOODS SOLD
Account Code: 632 (EXCERT)
Vouchers
Recorded
date
Code
Date
1
2
3
Amount
Explanation
4
Reference
5
Dr
Cr
6
7
July
14/7/2020 BHPT 14/7/2020
Exporting Spare Parts
warehouse
156
207,726,434
…
31/7/2020
31/7/2020
Converting cost of goods
sold
Total of August
911
882,491,269
882,491,269
882,491,269
Figure 2.24 General ledger of account 632
58
DETAILED BOOK OF GOODS
Account: 156 (EXCERT)
Recorded
date
1
Voucher
Code
Date
2
3
Explanation
Unit price
4
July
5
Import
Quantity Amount
6
7
Export
Balance
Quantity Amount Quantity Amount
8
9
10
11
Balance at the beginning of
month
14/7/2020
BHPT
14/7/2020
Auto spare parts (LKLR)
Total of July
Balance at the end of month
1922
546,649
380
207,726,434
207,726,434
409
409
1542
Note
12
Total value of inventory,
798,412,374 including different types of
auto spare parts
195,206,253
195,206,253
590,685,940
Figure 2.25 Detailed book of goods of account 156
GENERAL LEDGER
ACCOUNT NAME: INVENTORY
Account Code: 156 (EXCERT)
Recorded
date
1
Vouchers
Code
Date
2
3
Explanation
Reference
4
5
Amount
Dr
6
Cr
7
July
14/7/2020
BHPT
14/7/2020
Balance at the beginning
of the month
Exporting for sales auto
spare parts (LKLR)
…
Total of July
Ending balance
798,412,374
632
…
207,726,434
…
…
207,726,434
590,685,940
Figure 2.26 General ledger of account 156
59
2.3.3 Accounting for selling expenses
"The cost of business administration is essential for any commercial firm and accounts for a
considerable amount of the overall cost. Employee salaries, depreciation of fixed assets, power and
water expenditures, transactions, warranties, transhipment, per diem, and so on are examples of
these expenditures. This precision and reasonableness are critical since they have a direct impact on
the business's success."
2.3.3.1 The system of vouchers, accounts and accounting books used:
a. Initial documents: For accounting of business management expenses, it should be based on
cash payment notes, bank debit notices, payment bills of purchased services, payroll and social
insurance, health insurance, union funds, amortization allocation tables ...
b. Account used:
Account 641 - Selling expenses
The company also opened level 2 accounts of this account:
- Account 6411: Employee cost -Account 6412: Material, packing cost
- Account 6413: Tool cost
- Account 6414: Fixed asset depreciation
- Account 6415: Warranty cost
- Account 6417: Outside purchasing services cost
- Account 6418: Other cost
c. Accounting book: General Journal, ledger of account 641, 911, 111, 214, 334
2.3.3.2 Accounting procedure
Based on the original documents reflecting expenses incurred in connection with selling
expenses: Payment slip, Bank debit note, Salary allocation table and salary reduction, the accountant
should record it in the general journal and general ledgers. At the end of the quarter, transfer to
account 911 to determine sales results.
For instance, after selling items, the corporation delivers them to customers' warehouses. If the
client is in the city, the company's freight van will transfer them. If the commodities are in
significant numbers, the corporation will need to use public transportation to convey them.
Furthermore, the corporation frequently hires consumers in several regions and merchandises to
60
deliver by train in order to save money. Account on account 641 accounts for and monitors the
expenses of gasoline, unloading, and outsourcing.
Hiep Nga Trading Limited Liability Company
No. 11A Tran Cao Van Street, Pho Hue Ward, Hai Ba Trung District, Hanoi, Viet Nam
Form No.02 - TT
(Issued in accordance with Circular
No.200/2014/TT-BTC
December 22, 2014 of BTC
PAYMENT
Day 15 Month 07 Year 2020
Book number
No: 322
Dr 641
Cr 111
Name of the money receiver: Nguyen Van Thang
Address: Hiep Nga Trading Limited Liability Company
Reason to pay: Payment of freight cost
Amount of money: 2.200.000 Dong (Amount in words): two million and two hundred thousand VND
Attachment:
Vouchers: 01
Day 15 Month 07 Year 2020
Director
Chief Accountant
Treasurer
Preparer
Money receiver
(Sign and write full name)
(Sign and write
full name)
(Sign and write full name)
(Sign and write full name)
(Sign, full name)
Received the full amount (in words):
+ Foreign exchange rate (gold, silver, gemstones)
+ Amount to be converted:
(Sent outward must be sealed)
Figure 2.27 Payment of freight cost
61
GENERAL LEDGER
ACCOUNT NAME: SELLING EXPENSES
Account Code: 641
Vouchers
Recorded
date
Code
Date
1
2
3
Balance
Explanation
4
Reference
Dr
Cr
5
6
7
July
Balance at the beginning of
the month
Transportation costs: Spare
15/7/2020
26/7/2020
PC
PC
15/7/2020
parts
111
2,090,000
26/7/2020
Payment for customer
conference cost
111
9,234,723
…
…
31/7/2020
31/7/2020
Closing entry
Total of July
911
82,284,179
82,284,179 82,284,179
Figure 2.28 General ledger of account 641
As in the preceding example, the firm will transport the merchandise to Ha Linh
Trading Corp using the business's freight van. The Ha Linh Corp representative office
will manage the customer's receipt and delivery. The general accountant enters the
General Journal (Figure 2.17) and the ledgers of account 641 (Figure 2.28) based on the
bus station's loading and unloading invoice and the company's cash payment on July 15,
2020:
Dr Account 641(7): 2.090.000
Dr Account 1331: 110.000
Cr Account 111: 2.200.000
62
CHAPTER 3: IMPROVING THE ACCOUNTING
PROCEDURES FOR GOODS IMPORT AT HIEP NGA
TRADING SINGLE MEMBER LIMITED LIABILITY
COMPANY
3.1. Assessment of the accounting system of imported merchandises at Hiep Nga
Trading Single Member Limited Liability Company
Throughout the current financial environment, businesses must deal with a slew
of obstacles and uncertainties, including: competitive pricing, commodity efficiency,
concerns regarding state management regulations, and, most importantly, rising market
demand. Income and business security are thus often the priorities of every enterprise.
As a result, each company should have an acceptable business plan in order to capture
consumer demand. Aware of this, the organization's leadership has been attempting to
capitalize on its assets and resolve its challenges, grab consumer demand, pursue
corporate partners, and become a legally viable and rising enterprise in the market. To
accomplish that good outcome, the corporation needs a close relationship with the
management board and the divisions, with the accounting department making a
substantial contribution. With the new science and logical arrangement, the
corporation's accounting in principle, and accounting of the movement of manufactured
commodities in particular, have arrived. To be sure, regarding the theoretical material
coupled with the fact at the business, I would like to offer some remarks on accounting
work generally, the flow of imports, and evaluating the use of imported products in
common as follows:
3.1.1. Advantages
3.1.1.1. Organization of management
Taking a look at the corporation's organizational structure table, it would seem
that the administrative apparatus is neatly organized with individual operating units,
each with a separate role and responsibilities. The divisions also provide technical
guidance to one another and counsel the company's executives in business management.
The organisation of individual divisions also improves the firm's organizational
performance, making each department's obligation easier and faster to handle. In the
other perspective, the organisation of a compact framework assists the company's
monitoring system control system expenditures, reduce waste in business, and provide
63
requirements for the management system of the organization in operating flexibly and
economically, which is appropriate for a business economy.
3.1.1.2. Organization accounting procedure
The lightweight accounting scheme, as well as the accounting team, who have all
educated from university majoring in accounting, can still function successfully.
However, the firm's accounting department has constantly improved the knowledge and
administrative skills and be able to catch up with the latest in accounting regime in
order to satisfy the company's monetary opportunities, "In fact, the accounting cycle has
provided an understanding for the corporation's entrepreneurship as well as the
government financial management institutions such as Tax Department, Ministry of
Finance. Simultaneously point, the information given by the company's Accounting
department is frequently swift, reliable, timely, and fulfill; communication aids in
checking and comparing statistics between accountants, making accounting reports
simple, effective, and precise.
a) “ The vouchers system: The coordinated voucher scheme has mirrored the
evolving economic substance. The vouchers that have been used in manner
specified by the Ministry of Finance, as well as the amount and categories of
vouchers used in accordance with the market characteristics of the
organization. The vouchers of producing and distributing vouchers are fair
and lightweight, eliminating complicated but also very stringent control.
Vouchers are distributed to the accounting department after becoming created
to guarantee monitoring and assessment of market fluctuation, asset
depletion, and financing. All invoices, notes payable, and distribution bills
are prepared in accordance with the prescribed format, thoroughly checked,
and immediately moved to bookkeeping.”
b) “The accounts system: the application of the public accounting accounts
system" Officially, the organization uses the Account scheme prescribed by
the Circular (Circular 200/2014 / TT-BTC governing the enterprise
accounting mode) rather than the enterprise accounting framework prescribed
by Decision 15/2016 / QD- BTC. For particular, the company's accounting
accounts scheme is currently used in reporting in a fair and empirical
manner.”
c) “ The firm ’s accounting ledger structure, which is structured in the style of a
General Journal, the book design is straightforward, easy to log, and meets
64
the needs of supplying reports to the appropriate departments efficiently. In
accounting practice, the organization uses the general diary format. This
method has the benefits of being concise and convenient to use, with arising
economic activities explicitly expressed in the General Journal, ledger, and
expense book written in sequential sequence and numbers. This method,
however, has the downside of requiring a significant volume of
documentation work due to the emergence of financial transactions which
must be documented in several forms of books simultaneously time.
d) Accounting: The business's accounting has thoroughly and correctly
represented the products value and importing progress. The company's items
are detailed monitored by of form of configuration, which would be very
useful in unique administration for the features of the firm's products are
attachments for several different types of requirements. Credit monitoring is
also comprehensive for each individual client. Concerning the accounting of
the cost of goods sold, the accountant has measured and accurately
represented the cost of goods sold, as well as cost accounting of company
management, the costs are thoroughly and urgently reported.
e) The accounting reporting system: In accordance with state laws, the
corporation prepares three full accounts, along with the accounting balance
sheet, revenue statement, and financial statement description. In addition to
the benefits listed above, it is unavoidable that some shortcomings in the
business's accounting practice and calculating the company's sales
performance must be learned and resolved in order to master the accounting
activities."
3.1.2. Disadvantages
+The First: During the importation process, the organization normally receives
the collection of documentation rushed at the same time. However, the organization
does not create account 1561 to monitor the line purchasing. Such invoices are
vulnerable to going lost, and the items are not carefully tracked.
+The Second: The overall purchasing operations are mostly import; pending
payments to international vendors are made on a daily basis; however, the organization
does not permit the establishment of foreign currency deposits. Whenever a transaction
process occurs, the organization often borrows foreign money from the bank, converts
country's currency after manual translation, or extracts national currency to require
65
foreign currency Even so, the bank still opens a foreign cash account as an agent to
carry out the corporation 's monetary remittances overseas. Accountants, on the other
hand, do not monitor this form of account and instead allocate the account in the
payment currency in local currency.
+The Third: Typically, Hiep Nga LLC, like most other importers, imports
manufactured products at CIF prices. While a third party is charged with the import
duty, the origin of the merchandise, shipping, and insurance work is performed by an
international corporation. Domestic importers also fail to check the products, further
undermining the aspirations of a government that is unable to improve these facilities.
Furthermore, the rate of importing supplies from the harbor to the factory increases as a
result of the firm needing to collect service rates for many outside freight lines' operator
levels.
+The Fourth: The company's main form of import is now entrusted import. The
accounting of these procedures is quite complicated and easy to cause confusion for
new accountants. In addition, the interpretation of the transactions is not detailed
enough.
+The Fifth: The company's accounting software is not convenient, because it is
an outdated version. Maintaining use of such software is both time consuming for
accountants, both inconvenient and easy to lead to errors. For instance, nowadays, Hiep
Nga LLC is using MISA accounting software. This kind of accounting software is
commonly applied by small and medium enterprises, however, it still has disadvantages
like must be accompanied by scientific and optimal utilities and information systems,
Misa's accounting software at the same time requires the computer to be installed with a
relatively high configuration to ensure the software's program runs smoothly. ; often
maintain or upgrade the system, so sometimes failure or slowness occurs; the cost
calculation module has not been developed by the manufacturer. In particular, the
reports when exporting from MISA to excel files are not arranged in the same order as
before, this is a disadvantage that takes time and effort for users when editing reports at
the same time, the software has not thoroughly dealt with the problem of commissions
in payroll processing or it is difficult to print detailed books because the detailed books
are not well designed like the general ledger.
+The Sixth: The worth of the company's merchandise is stated in US dollars due
to the peculiarities of import and consumption of imported products. Accounting also
performs pretty closely the difference in exchange rates in the process of purchase with
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the supplier, inventory entry, and accounting. However, when it comes to consumer
payments, this has not been implemented correctly. Customers often pay for the firm
after a set amount of time, but they rely on the value of VAT invoices to do so. This
implies they pay at the invoice rate rather than the payment date. If the payment is
separated in more than one manner, the cash order is advanced at the amount of the
transfer date.
However, the final batch is determined by the amount missing after raising the
overall value of the bill less the advance payments. As a result, the value of the items
mentioned in foreign currency is only relevant to the company's export of sales
invoices. During the payment delay, the corporation has no control over any risks or
advantages resulting from the rise in the exchange rate.
+The Seventh: The statement does not show the turnover and cost price of each
sort of item sold throughout the time. As a result, it is hard to track which items are
profitable and have great demand, and which are sluggish and have little interest in
having appropriate methodology.
3.2. Recommendations to improve accounting for goods imports at Hiep Nga
Trading Single Member Limited Liability Company
Accounting is now more than just a straightforward measurement and
documentation of resources and its progressions in the manufacturing and market
processes of the component; it is now a significant part of the products at Hiep Nga
limited liability corporation. The economy is a critical instrument for fiscal
management in small and medium businesses and even in the economy in general. To
be able to play the task of accounting, it is determined to accomplish accounting tasks
that is tailored to the market characteristics of companies. Reacting to micro- and
macro-management criteria is a critical issue. Accounting for the transfer of
manufactured products and determining the effects of utilization of imported
merchandises is a significant aspect of company accounting. The actual effects of each
market operation are seen by the absolute, timely details presented by the company's
management. To assess and define the organization's strong hand, the industry of the
organization, to serve the board, and to prepare the entrepreneur's strategic plan.
Accomplishing accounting in principle and importing goods, in addition deciding the
effects of purchased goods, is a critical problem for any importing company. First and
foremost, the accounting job must be focused on the following criteria:
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-Accounting practice must be organized in accordance with the laws, policies,
and legislation of state-issued legislative manuals on accounting, as well as the State's
management standards.
-In compliance with the entity's industry features and management criteria.
-Must meet the executive team's and accounting staff's standards and technical
credentials.
-Must be reliable, lightweight, and cost-effective. Advance order for
performance of the company's accounting practice in compliance with the accounting
standard.
In accordance with generally accepted accounting level of the company's
accounting team on the basis of the information gained and understand about the
accounting of imported merchandises from the business, I will have the following
solutions to boost Hiep Nga accounting work:
+The First: The accountant should establish a separate account 151 to register
bought merchandise in order to reliably control and reliably assess when commodities
are imported. It can be used to record the value of imported merchandises when the firm
receive their items directly at the port.
+The Second: When selling products and transporting installed products, the
corporation should keep track of the account 157 – shipments to sell in order to
maintain adequate inventory value. To make the movement to account 632, the
installation charges should be tracked centrally on account 154.
+The Third: Presently, the corporation's import operations are rapidly
expanding; thus, before going to open an individual foreign currency fund, the bank
accountant can create a second-tier deposit account to constantly watch the subordinate
transfer foreign cash account to track the exchange rate differences. Since exchange rate
discrepancies account for a significant portion of the valuation on accounts 515 and 635
in an import-export company. The company should open a foreign currency trading
account at a reputable bank that is licensed and accepted by the government and
internationally for transactions, such as Vietcombank, HSBC. This makes foreign
currency transactions more convenient and the company can avoid paying intermediary
fees. The accountant in charge of cash and the bank can open an additional account
6351 or 6358. These two accounts are used to record the cost of temporarily idle capital
investment activities, reflecting expenses incurred during the period. of investment
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activities of temporarily idle capital or other financial expenses incurred during the
period that have not been recorded in Account 6351. Thus, it makes the accounting
system more rigorous and detailed. As far as possible, the company should negotiate to
ask customers to pay at the exchange rate at the time of transfer. This will have more
accurately reflect the nature of business operations related to foreign currency.
Moreover, the company and its customers can control and limit risks due to exchange
rate fluctuations.
+The Fourth: To have an acceptable consumption strategy, the business has to
publish more comprehensive sales and cost of capital accounts.
+The Fifth: The firm should re-organize their imported merchandises and
imported transaction code, so that it will help auditors and authorities classify plus
check the paperwork clearer. Specifically, for each transaction, the accounting
department should put the code according to the nature of the transaction, together with
the code of the transaction item (if any), to avoid confusion when recording in general
based only on the nature of the transaction such as: buy, sell or import. For example,
when importing a wiper device with the trademark of TDC, it is possible to put the code
of the transaction with the name TDC, but not generally ASP. This will help when
accountants need to find and classify transactions specifically related to that item, just
search by the relevant code. Thus, both avoiding errors in management and
classification, and increasing transparency if the audit is to check the books.
+The Sixth: The corporation should investigate the possibility of purchasing
products at FOB rates or accessing door to door. In this manner, the organization will
effectively monitor the timetable of products, proactively identify the right shipping
service supplier, and most importantly, the import fee can be reduced as well as input
costs saved.
+The Seventh: Because of the increasing market economy and increased
competitiveness, mainly with the advancement of technology, accounting work must be
arranged correctly and effectively in order to assist the company's management. As a
result, in order to automate the process, business accounting must be fitted with a
database system and modern accounting record tools. At the same time, the company
should organize training courses for accountants on how to use electronic software and
tools, update digital utilities, and online public services recently issued by the
government, to help push fast working process, night back to the business advantages,
from there, improve service quality as well as accuracy in recording. From my point of
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view, businesses should change to newer software which is BRAVO. This software has
the following characteristics suitable to the business nature of the enterprise: BRAVO
software effectively implements accounting and administrative functions, specifically:
building financial management plans, revenue, costs as well as data collection to report
to the reporting system. financial statements, tax reports, reports submitted to superiors
and management reports, not only providing operational support for the accounting
department but also the Planning department and the Board of Directors. It allows data
link, has the function of finding and self-correcting data errors, automatically backing
up data according to a pre-established schedule. In addition, this software has program
stability, simplicity. and easy to use. BRAVO allows users to access data both locally
and remotely via WAN/Internet. With the adaptive operating system for the server is:
Microsoft Windows Server; Workstations: Windows 7, Windows 8, Windows 10… In
addition, BRAVO is ready to be accessed from multiple platforms, including platforms
on mobile devices such as Android or iOS. In addition, bravo software has features high
security and detailed authorization. Moreover, bravo accounting software easily
connects with other modules in the overall business management software system. A
plus point is that the interface is friendly and flexible, so businesses can flexibly
customize to meet the needs of different individuals or departments, simplifying user
operations, saving the processing time of work management.
The above ideas are some solutions I give to the accounting system of Hiep Nga
enterprises in general, and the recognition of the process of importing auto parts at the
company in particular. Hopefully, these solutions will help the company as well as the
Accounting Department to improve the outstanding shortcomings.
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CONCLUSION
Thus, importing and assessing the consumption outcomes of imported products
are critical to the survival and growth of Hiep Nga Trading Single Member Limited
Liability Company. In order to capture the demand and deliver clear and effective
solutions, the company's management system must provide a detailed and in-depth
understanding of the business field. Accounting plays a major role in the approach by
supplying the requisite facts to the management, allowing the leadership to understand
the situation carefully, make swift choices, and capture opportunities. Recognizing this,
Hiep Nga Trading Single Member Limited Liability Company is engaged in market
administration and accounting in principle, accounting for the movement of
manufactured products and assessing the results of imported products intake. Especially
in the hope of attracting the rising management demands.
With the experience gained and an internship at Hiep Nga Trading Single
Member Limited Liability Company, under the enthusiastic supervision of Assoc. Prof.
Nguyen Huu Anh, he assists me in completing the graduation thesis titled
"ACCOUNTING PROCEDURES FOR GOODS IMPORTS AT HIEP NGA
TRADING SINGLE MEMBER LIMITED LIABILITY COMPANY."
My thesis did not escape flaws due to time constraints and credentials. I am
looking forward to having more experience from the professors in order to finish my
thesis. I'd like to thank Assoc. Prof. Ph.D. Nguyen Huu Anh and employees at Hiep
Nga Trading Single Member Limited Liability Company once more for their assistance
in completing my graduate internship thesis.
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doanh nghiệp.
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