[Luận văn bằng tiếng anh - GRADUATION THESIS] ACCOUNTING FOR SALES AND BUSINESS RESULTS IN VIET DUNG YEN MY LIMITED COMPANY

MINISTRY OF FINANCE
ACADEMY OF FINANCE
----------

GRADUATION THESIS
ACCOUNTING FOR SALES AND BUSINESS RESULTS IN VIET
DUNG YEN MY LIMITED COMPANY
Major
Mentor

: Corporate Accounting
: PhD. Thai Ba Cong
MSc. Nguyen Ba Linh

HA NOI - 2022


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Graduation Thesis
DECLARATION

I hereby declare this is my own research. Data, results stated in the
graduation thesis are honestly come from the actual condition of company.

Ha Noi, January 20th, 2022.
Student

i

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Graduation Thesis
TABLE OF CONTENTS

DECLARATION...............................................................................................i
TABLE OF CONTENTS..................................................................................ii
LIST OF ABBREVIATIONS...........................................................................v
LIST OF TABLES...........................................................................................vi
LIST OF SCREENS........................................................................................vii
LIST OF DIAGRAMS....................................................................................vii
INTRODUCTION.............................................................................................1
CHAPTER 1: GENERAL THEORY ON ACCOUNTING FOR SALES AND
DETERMINATION

OF

BUSINESS

RESULT

IN

COMMERCIAL

ENTERPRISES.................................................................................................4
1.1

Importance of accounting for sales and business results in commercial

enterprises

....................................................................................................4

1.1.1 Overview of sales and business results...................................................4
1.1.2 The role of sales and determining business results.................................6
1.1.3 Task of accounting for sales and business results...................................6
1.2

Accounting for sales and determination of business results...................7

1.2.1 Methods of sales and payment................................................................7
1.2.2 Accounting for revenue...........................................................................8
1.2.3 Accounting for revenue deduction........................................................13
1.2.4 Accounting for cost of goods sold........................................................14
1.2.5 . Accounting for selling expenses and administration expenses...........18
1.2.6 Accounting for financial income and financial expenses.....................21
1.2.7 Accounting for other income and other expenses.................................23
1.2.8 Accounting for current Corporate Income Tax.....................................26
1.2.9 Accounting for determination of business results.................................27


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1.3

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Accounting for sales and business results in application with

accounting software.............................................................................................

29
1.3.1

Principles and requirements for the organization of machine

accounting
1.3.2

..................................................................................................29

Tasks of accounting for sales and business results in machine

accounting terms.............................................................................................30
1.3.3

Accounting for sales and business results in machine accounting

terms

..................................................................................................30

1.4

Presentation on financial statement...................................................32

CONCLUSION OF CHAPTER 1...................................................................35
CHAPTER 2: THE ACTUAL SITUATION OF ACCOUNTING FOR
SALES AND DETERMATION OF BUSINESS RESULTS AT VIET DUNG
YEN MY LIMITED COMPANY...................................................................36
2.1

Overview about Viet Dung Yen My Limited Company...................36

2.1.1

Establishment and development of the VIET DUNG YEN MY

company

..................................................................................................36

2.1.2

Business organizational characteristics of the company...................39

2.1.3

Management organizational characteristics of the company............39

2.1.4

The organization of accounting works in the company....................41

2.2

A ccounting for sales and determination of business results in Viet

Dung Yen My company..................................................................................48
2.2.1

Accounting for sale revenue and revenue deductions.......................48

2.2.2

Accounting for cost of goods sold....................................................57

2.2.3

Accounting for selling expenses.......................................................60

2.2.4

Accounting for administration expenses...........................................65

2.2.5

Accounting for financial income and financial expenses.................67

2.2.6

Accounting for other income and other expenses.............................71


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2.2.7

Accounting for corporate income tax expense..................................72

2.2.8

Accounting for business results........................................................73

2.3

Some comments on accounting activities in Viet Dung Yen My

Limited Company............................................................................................76
2.3.1

Advantages:.......................................................................................77

2.3.2

Some limitation.................................................................................79

CONCLUSION OF CHAPTER 2...................................................................81
CHAPTER 3: SOME SOLUTIONS TO IMPROVE ACCOUNTING AND
DETERMINATION OF ACCOUNTING FOR SALES AND BUSINESS
RESULTS IN VIET DUNG YEN MY LIMITED COMPANY.....................83
3.1

Development orientation of the company.........................................83

3.2

Requirements and principles of improving accounting for sales and

determining business results at Viet Dung Yen My Limited Company.........84
3.2.1

Improvement requirements:..............................................................84

3.2.2

Some suggestions for improvement of accounting for sales and

business results................................................................................................86
3.2.3

The content of improved suggestions about accounting for sales and

business results................................................................................................87
CONCLUSION FOR CHAPTER 3................................................................97
CONCLUSION...............................................................................................98
REFERENCE................................................................................................100


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LIST OF ABBREVIATIONS

Abbreviation

Full phrase

Acc

Account

CIT

Corporate income tax

COGS

Cost of goods sold

Co., Ltd

Limited Company

FE

Foreign exchange

FIFO

First-in, first out

GDNs

Goods despatch note

GRNs

Goods receipt note

LIFO

Last-in, first-out

No.

Number

VAT

Value added tax

VND

Vietnam Dong


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LIST OF TABLES

TABLE 2.1: EXTRACT LEDGER OF ACCOUNT 511 FOR CASH SALE.........52
TABLE 2.2. EXTRACT OF ACCOUNT 511 FOR CREDIT SALE......................54
TABLE 2.3 EXTRACT OF LEDGER ACCOUNT 632.........................................59
TABLE 2.4 EXTRACT OF LEDGER ACCOUNT 641.........................................62
TABLE 2.5 EXTRACT OF LEDGER ACCOUNT 642.........................................66
TABLE 2.6 EXTRACT OF LEDGER ACCOUNT 515.........................................68
TABLE 2.7 EXTRACT OF LEDGER ACCOUNT 635

..............70

TABLE 2.8 EXTRACT OF LEDGER ACCOUNT 911.........................................74


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LIST OF SCREENS
SCREEN 2.1 WORKING SCREEN OF ACCOUNTING SOFTWARE................44
SCREEN 2.2 ACCOUNT SYSTEM SCREEN.......................................................44
SCREEN 2.3 CUSTOMER LIST SCREEN............................................................45
SCREEN 2.4 THE INTERFACE OF ENTERING SALES DOCUMENT.............51
SCREEN 2.5 THE INTERFACE OF ENTERING CREDIT SALES DOCUMENT
................................................................................................................................. 55
SCREEN 2.6 THE INTERFACE OF ENTERING SELLING EXPENSE..............65
SCREEN 2.7 THE INTERFACE OF ENTERING ADMINISTRATION EXPENSE
................................................................................................................................. 67
SCREEN 2.8 THE INTERFACE OF ENTERING FINANCIAL INCOME...........69
SCREEN 2.9 THE INTERFACE OF ENTERING FINANCIAL EXPENSES.......71
SCREEN 2.10 THE INTERFACE OF CARRYING FORWARD PROFIT OR
LOSS....................................................................................................................... 75

LIST OF DIAGRAMS
DIAGRAM 2.1: COMPANY MANAGEMENT APPARATUS STRUCTURE.....40
DIAGRAM 2.2 STRUCTURE OF THE COMPANY'S ACCOUNTING..............41

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INTRODUCTION

1. The urgency of the research topic
In commercial business activities, selling is the basic
profession, which plays an important role in other operations,
business activities can only run smoothly w hen the sales are
efficiently organized.
Currently, the sale of goods and services by entities has faced a
range of difficulties and challenges. First, the competition between
domestic and foreign commercial enterprises is increasingly fierce.
Second, the economic management mechanism still has many
shortcomings, causing many difficulties and obstacles for businesses.
Therefore, to be able to stand firmly in the marketplace, enterprises
must organize well the sales process, have a suitable sales strategy so
that they can actively adapt to the environment, seize opportunities,
and effectively mobilize existing resources to improve business
efficiency. Sales and business result determination play a very
important role because it provides managers with information about
the performance and business situation of each commodity to make
accurate, timely and effective business decisions.
On the basis of applying the theory of sales accounting and
determining business results learned at school and based on the actual
situation of the company, along with the enthusiastic help of Teacher,
PhD. Thai Ba Cong and MSc. Nguyen Ba Linh and other members of
the Accounting Department of the company, I have a certain
understanding of the company and accounting work at the company.
Being aware of the importance of managing sales accounting and

determining business results at the company, after the internship at
1


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Graduation Thesis

the company, I decided to choose the research topic to write my
final thesis “Accounting for sales and business results at Viet Dung
Yen My Limited Company”.
2. Purposes of the dissertation
Research purposes: To deeply understand the sales accounting
organization and determine the business results, to give an overview
of the achievements and shortcomings in sales accounting and
business results determination, from which giving suggestions to
improve accounting for sales and business results at Viet Dung Yen
My Limited Company.
3. Research object and scope of the dissertation
Research object: Accounting for sales and determination of business
results at Viet Dung Yen My Limited Company.
Scope: Accounting for sales and determination of business
results at Viet Dung Yen My Limited Company in December 2020
4. Research methodology
Research is based on the methodology of dialectical
materialistic and historical materialism, combined with the methods
of analysis, statistics, synthesis, comparison between theoretical basis
and reality at Viet Dung Yen My Co., Ltd. from there, propose
solutions to improve accounting for sales and business results at the
company.

5. The structure of the dissertation
Recognizing the importance of organizing goods consumption,
I chose the topic: "Accounting for sales and business results at Viet
Dung Yen My Limited Company".
In addition to the introduction and conclusion, the dissertation
consists of 3 chapters:
2


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-

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Chapter 1: General theory on accounting for sales and determination

of business results in commercial enterprises
-

Chapter 2: The actual situation of accounting for sales and

determination of business results at Viet Dung Yen My Limited Company
-

Chapter 3: Some solutions to improve accounting for sales and

determination of business results at Viet Dung Yen My Limited Company.
As a student approaching the reality of accounting for the first
time, the topic has a synthesis and limited time, so the shortcomings
cannot be avoided. I would like to receive the help and evaluation,

and suggestions of the management board, the accounting department
staff of Viet Dung Yen My Limited Company and the teachers of the
subject at the Academy of Finance, especially teacher Thai Ba Cong
and Nguyen Ba Linh so that I can complete my essay.
Thank you sincerely!
Hanoi, January 20th, 2022.
Student

Do Lam Phuong

3


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Graduation Thesis

CHAPTER 1: GENERAL THEORY ON ACCOUNTING FOR SALES AND
DETERMINATION OF BUSINESS RESULT IN COMMERCIAL ENTERPRISES
1.1 Importance of accounting for sales and business results in

commercial enterprises
1.1.1 Overview of sales and business results

Concept and characteristics of the sales process
 Definition of sales
Sales is the process of transferring the ownership of goods
associated with benefits or risks to customers and being paid or
accepted by the customer. Selling is the final stage of the business
process in commercial enterprises, this is the process of transforming

capital from a commodity form to a monetary capital form or capital
in payment.
 Characteristics of the sales process
-

There is an exchange agreement between the buyer and the seller.

The seller agrees to sell, the buyer agrees to buy, pays and accepts to pay.
- There is a change in ownership of goods: the owner loses ownership
and the buyer has ownership of the purchased goods.
In the process of selling goods, economic units provide the customer
with a certain quantity of goods and receive back from the customer
a sum of money called the sales of goods.
Definition of business results
Determination of business results is the comparison between
the costs spent and the revenue earned in the period from selling
activities. If the revenue is greater than the cost of selling, the result
is profit and vice versa, if the revenue is less than the cost, the result
is a loss. Determining business results conducted at the end of a


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business period is usually the end of the month, the end of a quarter
or the end of the year, depending on each business characteristics and
management requirements of each business.
Relationship between sales and business results
Selling is the last stage in the business process of an enterprise,

business results is an important basis for the unit to decide whether to
consume goods or not. Therefore, there is a close relationship
between selling and business results. Business results are the ultimate
aim of the business, and sales are the means to achieve that goal.
Management requirements for sales and business results
Sales operations relate to each customer, each payment
method, and each item, and each type of service. Therefore, the
management of sales operations, service provision requires
management of indicators such as revenue management, revenue
deduction management, change of responsibility at the sale stage,
consumption and collection of money, debt situation and debt
payment on the buyer's accounts receivable, cost price management
of sold goods, ...
Managing sales operations, determining business results
should adhere to the following requirements:
- Manage the movement of each item in the process Receipt – Issue –
In stock on quantity, quality and value indicators.
- Capture and closely monitor each method of sale, each payment
method, each customer and each type of product consumed.
- Urge payment, fully recover the sales of goods
- Calculate and correctly determine the results of each type of
activity and strictly implement the profit distribution mechanism.


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- Fulfill all obligations towards the State according to the prescribed
regime.

1.1.2 The role of sales and determining business results

Sales and business results are of paramount importance to a
commercial enterprise. Accurate determination of business results is
the basis for determining the performance of an enterprise.
The organization of accounting for sales and business result
are an important tool in the effective management and administration
of an enterprise's operations in the business process.
Accounting information for sales and business results is
provided to help business managers understand the implementation
of the sales plan in terms of type, quantity, quality, price, and
payment; check the implementation of cost of goods sold estimates,
selling expenses, administration expenses and determine business
results of the unit. On that basis, it will propose measures to
guide business operations in the next period, improve business
operations, manage operations, save costs and increase revenue.
Accounting information for sales and business results is
provided to help State agencies inspect and supervise the
performance of their obligations to the State, from which to propose
appropriate policies to comprehensively develop the national
economy.
Accounting information for sales and business results provided
are the concerns of those with direct interests related to the business
situation of the business such as investors, suppliers, and creditors, ...
That is the basis for these subjects to grasp the business situation of
the business and to make timely appropriate economic decisions.


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1.1.3 Task of accounting for sales and business results

-

Reflect and record fully, promptly and accurately the existing

situation and changes of each type of finished product or goods according to
the quantity, quality, type and value criteria.
-

Reflect and record fully, promptly and accurately the revenues, sale

deductions and expenses of each type of activity in the enterprise, at the same
time monitor and urge customers' receivables.
-

Reflect and calculate accurately the results of each activity, monitor

the performance of obligations to the State and the distribution of the results
of activities.
-

Provide accounting information for the preparation of Financial

Statements and periodically analyze economic activities related to the sales
process, determine and distribute results.

1.2 Accounting for sales and determination of business results
1.2.1 Methods of sales and payment

Sales method
The sales process of an enterprise can be done according to
many different selling methods, sales methods can be understood as
the ways that enterprises use to sell goods. In businesses often use
sales methods such as wholesale, retail, and some other methods such
as: Selling through agents, consignment; Sale using deferred or
instalment payment, ...


Wholesales: Wholesale is a method of selling in large quantities

to other commercial units. Wholesale usually includes 2 forms: Wholesale
through warehouse and wholesale direct shipping.


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 Wholesale through warehouse: goods are delivered for sale from
the warehouse of the wholesaler, it is done under two forms: Direct delivery
at the warehouse and form of delivery.
 Direct shipping wholesale: goods are delivered for sale right from
the buying stage without going through the wholesale factory's warehouse.
This method of wholesale is also done under two forms: direct shipping
wholesale and wholesale shipping directly in the form of shipping.
 Retail: Retail is a method of selling directly to consumers and economic

organizations. Retailers usually sell in small volumes, change according
to customers' requirements, with stable selling prices.
Retailing has a more diverse range of practices than wholesaling.
Detail: Direct sales and collection; Concentrated sales and collection; Selfservice sales; Online sales; Installment sales; and Vending.

1.2.1.1

Payment method

 Cash sales
Under this method, when the buyer receiving the goods from the
business will immediately pay the business by cash on hand or cash
in bank. This method is often used in the case of buyers who are
small customers and buy small quantities or have immediate payment
ability at the time of delivery.

 Credit sales and calculate interest (if any)
Under this method, the buyer pays money after the time of
receiving the goods for a certain period of time agreed by the two
parties, at the end of that time the buyer will have to pay all the value
of the purchased goods plus a fee called interest from this delay.

1.2.2 Accounting for revenue


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 Definition

Revenue is the gross inflow of economics benefits during the
period arising in the course of the ordinary activities of an entity
when those inflows result in increases in equity, other than increases
relating to contributions from equity participants (VAS 01 –
Framework)
Sales revenue is the entire proceeds or will be earned from
transactions generating sales such as the sale of products or goods to
customers, including surcharges and additional charges in addition to
the selling price (if any).

 Revenue recognition
According to the Circular No. 133/2016/TT – BTC enterprise
shall record an amount as revenue from goods sale when all

of

the following conditions are satisfied:
o Most risk and benefits associated with the ownership of the product
have been transferred from the enterprise to the buyer;
o The enterprise no longer holds control over the product as its owner or
controller;
o The revenue can be reliably determined;
o The enterprise has obtained or will obtain economic benefits from the
sale;
o Selling expenses are identified.

 Accounting documents and accounts used
- Accounting documents: VAT invoice, Sales invoice, Payment documents
(Receipt note, cheque, …), Credit note, VAT declaration, and Other
related documents

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- Accounting accounts used: Acc 511 – Revenue, Acc 3331 – VAT, Acc
3387 – Unearned revenue, ….

 Accounting entries for some major transactions
-

Cash sales or Credit sales without interest on late payment

- Credit sales with interest payment, installment sale

- Dissimilar exchange of goods


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(1a): If value of exchanged goods is less than value of received goods
(1b): If value of exchanged goods is greater than value of received
goods
- Employees and other workers are paid in goods


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- Product used for business activities or for promotion purposes

- Goods sent on consignment with fixed price
Case 1: consignees deduct commission fee before making payment to
consigners