Kế hoạch triển khai ứng dụng phần mềm tài chính và kế toán công ty xây dựng lũng lô

KẾ HOẠCH TRIỂN KHAI ỨNG DỤNG PHẦN MỀM TÀI CHÍNH VÀ KẾ TOÁN: CÔNG TY XÂY
DỰNG LŨNG LÔ

A PLAN FOR IMPLEMENTING APPLICATION OF THE FINANCE AND
ACCOUNTING SOFTWARE:
LUNG LO CONSTRUCTION COMPANY
I. Introduction
1. General Information:
Company name: Lung Lo Construction Company
Address: No 162 Truong Chinh Street, Dong Da District, Ha Noi.
Telephone: (84-4) 35633582
Fax: (84-4) 35625708
Email:
2. Development history:
Lung Lo Construction Company is a defence-business company belonging to the Ministry of
Defence
- Established in November, 1989 with the initial business name: The Lung Lo constructional
survey and Design Company. In August, 1993 the Ministry of Defence made the decision no.
577/QĐ-BQP changing the name into Lung Lo Construction Company.
- On 17 April 1996, the Ministry of Defence made the Decision no. 466/QĐ-QP to establish thye
Lung Lo Construction Company on the basis of merging 3 businesses: Lung Lo Construction
Company, Construction Company 25-3 and the Constructional Survey, Design & Consultancy
Enterprise.
- On 8 January 2010, the Minister of Defence made Decision No. 45/QĐ-BQP to turn the Lung
Lo Construction Company into the Lung Lo Single-Member Limited Liability Construction
Company operating with the mother company-daughter company form of business.
- On 02 December 2011, The Minister of Defence made Decision No. 4698/QĐ-BQP about
transferring the Lung Lo Single-Member Limited Liability Construction Company from the


umbrella of the Engineering High Command to under the direct charge of the Ministry of

Defence.
- On 12 January 2012, the Minister of Defence made the Decision no. 99/QĐ-BQP to reorganize
the Lung Lo Single-Member Limited Liability Construction Company and turn it into the Lung
Lo Construction Company operating with the mother company-daughter company form of
business.
[p. 2 Vietnamese]
3. Organization chart:



Note: Title Line: Skeleton Diagram about the organization of Lung Lo Construction Company
operating with the mother company – daughter company form of business.
Line 1 (Yellow): Chairman of the Council of Members (Chairman of the Council of Members and
concurrently Director General) – Controller
Line 2 (Yellow): Directorate General
Line 3 (Lavender): Planning Department; Administrative & Accounting Department; Organization
and Labour Department; Political Department; Investment Project Management Department;
Technology Equipment Department; Secretariat
Line 4 (Yellow): Daughter companies; Dependent Units; Associated Companies
# Daughter Companies (vertical lineup): Lung Lo 3 Single-Member Limited Liability Company;
Lung Lo 4 Construction Joint Stock Company; Lung Lo 6 Construction Joint Stock Company;
Lung Lo 9 Construction Joint Stock Company
# Dependent Units (Left Vertical Lineup): Bridge and Tunnel Construction Company; Marine
Projects Construction Company; Centre Processing Bombs, Mines and Explosives; Transport &
Mechanical Performance Company; Underground & Submerged Projects Construction Company;
Southern Construction and Investment Company.
# Dependent Units (Right Vertical Lineup): Urban Investment and Development Company;
Infrastructure Investment and Development Company; Central Representative Office, Da Nang;
Southern Representative Office, Ho Chi Minh City; Northern Central Representative Office, Nghe
An; Representative Office, Laos.

# Associated Companies (Right Vertical Lineup): Lung Lo 2 Construction Joint Stock Company; Lung Lo
5 Joint Stock Investment and Development Company; Construction Joint Stock Company MXD VN –
URAL; My Duc Cement Joint Stock Company; Military Commercial Joint Stock Bank.

4. [p. 3 Vietnamese] Achievement Awards
 Labour Medal First Grade of the President of the Socialist Republic of Vietnam regarding

“Excellent achievements in the tasks performing lanes and locks in the service of rescue


activities in Song Tử Tây islands, Spratly islands, contributing to the cause of building
Socialism and National Defence” pursuant to Decision no. 153 QĐ/CTN on 15 October 2009.
 Labour Medal Second Grade of the President of the Socialist Republic of

Vietnam regarding “Excellent completion of the designing and performing tasks concerning
Bach Long Vi island’s dock and anchorage Project, Hai Phong City, contributing to the cause
of building Socialism and National Defence” pursuant to Decision no. 21 QĐ/CTN on 09
January October 2004.
 Labour Medal Second Grade of the President of the Socialist Republic of

Vietnam regarding “Excellent achievements in the tasks performing the A Vuong
Hydroelectric Power Plant, contributing to the cause of building Socialism and National
Defence”.
 Labour

Medal Third Grade of the President of the Socialist Republic of

Vietnam regarding “Excellent achievements in the tasks from 1994 to 1998, contributing ot
the building of the army, consolidating national defence and safeguarding the country”
pursuant to Decision no. 470 KT/CT on 13 December 1999.

 High Quality Gold Medal for path HCC.25R of Tân Sân Nhất airport.
 Merit Certificate of Vietnam Oil and Gas Group regarding “Excellent achievements in the

emulation movement while building the Dung Quat Oil Refinery in 2007” pursuant to
Decision no. 098/QĐ-DKVN on 4 January 2008.
 Merit Certificate of Ministry of Defence regarding “Excellent achievements in carrying out

the task of building TTBG road in 2008” pursuant to Decision no. 1148/QĐ-BQP on 23 April
2009.
 [p. 4 Vietnamese] Merit Certificate of Quang Nang People’s Committee regarding

“Achievements in building the pressure tunnel of the A Vuong Hydroelectric Power Plant in
accordance with the schedule” pursuant to Decision no. 1118/KT on 09 March 2006.
 Merit

Certificate

of

Bằng

khen

của

General

Confederation

of Vietnamese

Labour regarding “Excellent achievements in the emulation movement while building the
Dung Quat Oil Refinery in 2007” pursuant to Decision no. 47/QĐ-TLĐ on 07 January 2008.


 Merit Certificate of Vietnam Electricity regarding “Achievements ensuring operation

schedule and construction quality while building A Vuong Hydroelectric Power Plant”
pursuant to Decision No. 1118/KT on 09 March 2006.
 Merit Certificate of Son La People’s Committee regarding “Many achievements helping

Son La Province to build cadastral archives information centre” pursuant to Decision No.
90/KT on 23 August 1995.
 Merit Certificate of Ministry of Defence regarding “Excellent achievements in 2 years of

participating in bulding the Ho Chi Minh Highway” pursuant to Decision No. 161/QĐ-BQP on
23 January 2003.
II. Analytical discussion of the present state of applying the finance and accounting software of the
company.
1. The present state of applying the finance and accounting software of the Lung Lo Construction
Company.
The company is using the accounting software Misa. This software is rather famous in the market.
It has been used since 2008 and has become inadequate in many respects:
 The software does not have the reporting system typical for the needs of the construction
sector. The company is a construction one and it has used many management reports to
administer schemes and construction projects. Costs and profits are all calculated and allocated
to each project. This is the most obvious shortcoming of softwar Misa, regarding its failure to
meet the needs of present management.
 Presently the softwares fail to update the changes of the state accounting system.
 The software has the low ability while extending and connecting with the applied software of

the subsidiaries and other units. The company has transformed into the business form mother
company and many daughter companies together with many dependent units, having a great
need for synthesizing reports. [p.5 Vietnamese] The company’s accounting department has 19
staff members and they have to work excessively overtime on the occasions of synthesizing
reports.


The case of the subsidiaries: At present the finance and accounting software has been applied at
many subsidiaries. Today there are rather numerous inadequacies:
 The subsidiaries bought software from different people. The system is different, helping to
make it rather difficult to synthesize data.
 Rather numerous units have not used software.
2. Comparison with professional rivals in the construction sector.
Today small construction companies as well as big construction general corporations have applied
modern finance and accounting software. There are backward steps in the state of IT application
in Lung Lo Construction Company. Comparison with a number of organization in the sector is
made to show the present weaknesses and shortcomings of Lung Lo Construction Company.
Comparison with the following organizations is made: Housing and Urban Development
Corporation (HUD) , Nam Cuong Group, Song Hong Corporation.
Items
Software
Year of application
Applied in the whole organization
Synthesizing data
Updating new information and

Lũng Lô
Misa
2008
No

No
No

HUD
Effect
2007
Yes
No
Yes

Nam Cường
Fast
2005
Yes
Yes
Yes

Sông Hồng
Fast
2012
Yes
Yes
Yes

circulars
Development/Implementation costs 10

35

130

98

(million VND)
Peculiar management reports
Whole company online connection

No
No

Yes
Yes

Yes
No

No
No

It can be seen in the above table that the software used by Lung Lo Construction Company is the
weakest one among those used by the compared companies. The failure to invest or use a strong
enough software will make the company bear great costs like those regarding: Expenditure on
salaries of cadres and expenditure of time, etc. This is the weak point leading to inadequacy in
managing the projects and expenditures, reducing the competitiveness of the Lung Lo
Construction Company in comparison with rivals in the same economic sector.
3. Lessons drawn from Nam Cuong experiences


[p.6 Vietnamese] Nam Cuong Group selected and has applied the software Fast Accounting since
2005 and presently is applying it in 19 member units.

Nam Cuong Group was established in 1984, operating in different sectors like real estate,
construction, investments, tourism, mineral exploitation, etc. Nam Cường has been known as a
group strong in the fields of real estate and infrastructure construction with big projects like: The
development axis route North of Ha Dong and New Town Dương Nội, Project “The Ha Tay
province 63,23 km North-South socio-economic axis development route and the new town “Green
Ha Tay”, the extended Le Van Luong street project and New Town Phùng Khoang.
In 2005 Nam Cuong Group selected the software Fast Accounting and applied it in 7 member
units. In the following years Nam Cuong Group successively applied it in the remaining member
units and today 19 member units are using Fast Accounting. Moreover, at the main office and in a
number of member units the version “Fast Accounting for Construction” is being used.
Everyday the total number of people using the software Fast Accounting in Nam Cường Group is
about 80.
To extend the software successfully Nam Cuong Group applied it for the mother company and
standardized all systems of management reports. In the beginning stage, the mother company
selected the solution of synthesizing data by integrating data taken from the excel tables of the
member units. Software Fast enabled Nam Cuong Group to have a system of management reports
of its own and issue a standard excel form. The member units would enter data into the excel
tables in accordance with the standard form and send them to the parent company. Thanks to a kit
developed by Fast the data was to be updated and entered into the software automatically.
In the second year, the parent company continued to apply the software to 07 member units. The
data fields were designed like the management reports before, helping the accountants to easily
approach and use the applied software.
In the third year, the parent company applied the software in 12 subsidiaries. Today the reporting
system is completely integrated into the accounting software and the units do not have to enter
data into the report forms like before. The system of the subsidiary software would automatically
produce a data file for conveyance to the software of the parent company.


[p.7 Vietnamese] At present, with the synchronized and scientific or methodical use of the
software, Nam Cuong Group achieves clearely beneficial working effectiveness:

 Not wasting time to synthesize report data. Everything is automatic and accurate. Nam
Cuong Group can synthesize the Group’s data almost right upon the conveyance of the data
from the units. This helps the leaders of the parent company to grasp the common data of
the Group immediately.
 Labour productivity increased
 Closely controlling the costs resulting from the performance of the projects, minimizing
errors and negative deeds during the realization of the schemes.
 The system of distinctive reports helps the Group to keep track of the business results of
each job or case and project. This is the most necessary thing for a construction company
like Nam Cuong.
With the business form parent and subsidiary companies in the construction sector, Nam Cuong
Group has the same characters as Lung Lo Construction Company. The expansion experiences of
Nam Cuong Group can be seen as the great lessons for Lung Lo Construction Company in the
latter’s process of developing its applied finance and accounting software.
III. Several kinds of fiance and accounting software in the present market
1. The Fast software for building and erection firms:
The activities and management of building and erection firms have distinctive features. FAST has
been applied in rather numerous enterprises in the construction sector and has also been used as a
software having a particular network subsystem specializing in mangaging and calculating the
building and erecting costs.
Network subsystem mangaging and calculating the building and erecting costs solves the the
particular accounting problems of the building and erection firm like:


Tracking and comparing real costs and making estimates of targeted expenditures.



Gathering costs, determining prices, reporting losses and profits of the projects in a term,
cumulatively calculating them with the effect since the beginning of the year and the

commencement of work.




Tracking liabilities of the customers and projects.



Tracking the input and output as well as the materials in stock according to stores and projects



Calculating expected interest rate for each scheme and project

Menu of functions
[p. 8 Vietnamese] Items of projects and building and erection works


Project code up to 16 characters.



There are 3 data fields for grouping and categorizing projects in the service of statistical and
analytical purposes.



Having a declarator stating mother and daughter codes in the service of synthesizing data
according to project items and projects.

Initial declarations


Declaring the acceptance values according to stages



Declaring expected prices according to targets, indices and factors



Declaring interest rates or base rates of projects.

Updating the initial balance and remainder


Enter the initial balance of the schemes and projects



Enter the initial balance and remainder of the schemes and projects.

Updating data


Having orders regarding conveyance according to schemes and projects.

Processing and calculating


Calculating monthly averages for schemes and projects



Calculating profits of schemes and projects



Making entries regarding the carry-over of capital prices

Reporting input and output of materials and inventory according to schemes and projects


An account or record of the receipt of a material according to schemes and projects



An account or record of the delivery of a matetial according to schemes and projects



An account or record of the receipt of materials according to schemes and projects



An account or record of the delivery of materials according to schemes and projects



Synthesizing the receipts of materials according to schemes and projects




Synthesizing the deliveries of materials according to schemes and projects



Stock cards and a detailed book regarding materials of schemes and projects



Reporting receipts, deliveries and inventory according to schemes and projects

Reporting liabilities or debts according to according to schemes and projects


A detailed book reporting liabilities according to schemes and projects



Balance of arising liabilities of schemes and projects in an account



[p. 9 Vietnamese] Balance of arising liabilities of schemes and projects in many accounts



Balance of liabilities at the beginning of the term of the schemes and projects



Balance of liabilities at the end of the term of the schemes and projects



Reports on the payments according to schemes and projects



Reports on the payments of the schemes and projects



Reports on the payments of the whole company.

Synthesizing Reports according to schemes and projects


Book of vouchers according to schemes and projects



Synthesizing the arising amount according to schemes and projects



Synthesizing the arising amount in many terms according to schemes and projects



Comparing the arising amount between 2 terms of schems and projects



Detailed book referring to the schemes and projects



Balance of arising amount of schemes and projects in an account



Balance of arising amount according to schemes and projects



Balance synthesizing costs according to schemes and projects



Reports on costs of schemes and projects according to the cost codes



Price tag of schemes and projects



Table calculating building and erecting prices – vertical form



Table calculating prices of schemes and projects



Reports on results of production and doing business according to schemes and projects.



List of vouchers in accordance of expected indices or targets



Comparison of real and expected budgets according to the targets




Synthesizing comparison between real expenditure and budget in view of the targets.

Cumulative Reports of Schemes and Projects


Synthesizing cumulatively arising amount according to schemes and projects



Synthesizing cumulatively arising amount NVL according to schemes and projects



Cumulatively arising amount at the beginning of the year of the schemes and projects



Reports on cumulative liabilities according to schemes and projects



Reports on cumulative costs of schemes and projects



[p. 10 Vietnamese] Reports on the cumulative result of business according to schemes and
projects

Reports on profits according to schemes and projects


Detailed list of profits



Synthesizing account of profits



Annually synthesizing account of profits.

Report of the Investor/Owner


Report on costs of construction investments



Report synthesizing investments



Report on investment realization



Report on costs of investments

2. CNS Software for construction companies
The construction accounting Software CNS is a system of computer programmes used to process
accounting information on your computer background. The software is a very favourable tool in
recording, storing, calculating and synthesizing the inputed data, i.e. the original vouchers. It has
superior features like accuracy, effectiveness, specialization and cooperativeness.
The construction accounting Software CNS was specially designed by CNS engineers for the
construction field, the valued customers will notice the differences as well as superiority of the
CNS software in comparision with similar software.
A NUMBER OF OUTSTANDING FEATURES FOR THE CONSTRUCTION FIELD
­

Seeing the detailed book and table synthesizing expenditures for each project.

­

Reports on, and balance listing receipts and expenses according to each project.


­

Balance of materials and budget.

­

Cost-plus book (calculating cost plus in any period of time).

­

Balance referring to costs, profits and losses according to each project.

­

Tracking temporary advances according to each project (detailing a project with many objects,
an object with many projects).

­

Tracking interests of loans of each object through TK141.

­

Tracking details of the delivery of matetials according to each project.

­

[p. 11 Vietnamese] Calculating cost according to each item.

­

Minutes collating liabilities according to each project.

A number of requests about which the construction accounting software CNS proves to be
superior in solving and processing.
 Managing project estimate, comparing real expenses and estimate cost price.
 Managing expenses, cost price, turnover according to projects and consecutive years’
cumulativeness.
 Managing obliged liabilities regarding the suppliers and expected liabilities regarding
customers.
 Managing advances and settled advances concerning employees according to projects.
 Managing goods in stock.
 Managing advanced liabilities of dependent units.
 Managing the investing, building and erecting activities.
3. Software Misa for construction companies.
The particular operations to manage the finance and accounting of a building and erecting
enterprise are solved in the software AMIS.VN of Misa
Managing Costs according to Projects
Software AMIS.VN fully meets the needs to gather costs and calculate costs for the firms building
and erecting projects. Following are the operating steps on the software:

 Gathering direct costs: The accountant only needs to input data once, the software will
automatically synthesize direct costs for each project and each internal item and the accountant
only needs to check the data before calculating costs.
 Allocating indirect costs: There are very diversified and complex general costs arising from
the performance of construction works. Therefore, MISA enables the establishment of the
allocating rations, helping the accountants easily track the allocation of expenses to each
project and item, etc.
 Assessing unfinished products and accepting projects: After gathering and allocating expenses
the software will automatically calculate the cost for each project.
Besides, AMIS.VN can also track the expenses of subcontractors, a peculiar cost of the
construction sector. This cost arises when the firm outsource an outsider to perform part of the
project.
[p. 12 Vietnamese] Managing profits and losses according to each project, contract
Given the peculiar activities of the construction companies, the management of profits and costs
according to each project or contract unfolds rather complexly, requiring details and clarity, etc.
Therefore, AMIS.VN allows the tracking of concrete expenses according to each project and each
contract. With this utility the accountant does not lose much time in calculating data, needing only
to input data once and log in at the end of the term to see reports. The managing officers also
easily control the health status of the enterprises and make quick and effective decisions.
IV. The plan to put into use the accounting software for Lung Lo Construction Company
1. Objective concerning software availability: Synchronized deployment of the software in the
whole company, enabling the sythesis of data in the form of parent company and subsidiaries.
2. Deployment time: From 2014 to 2019
3. Selecting suppliers:
Among the software brands introduced above, it may be seen that Fast is the software with many
abilities feasibly meeting the expectations and needs concerning the objectives of Lung Lo
Construction Company for the following reasons:
­

Fast has been successful with a firm of similar model, the Nam Cuong Group

­

Fast is one of the most famous finance and accounting software brands in Vietnam, having
experiences in deploying this software in the construction companies

­

The software Fast itself inherently possesses suitable features and this software does not
have to be corrected or adjusted considerably, economizing costs and speeding up
deployment progress.

4. Deployment plan:
­

Basing on the experiences of Nam Cuong Group, the Lung Lo Construction Company will
have a 4-stage deployment with the following details:
Stage

Deployment

Equiped units

Participating units

Deployment

01
12

09
22

Costs (VNĐ)
30,000,000
120,000,000
90,000,000
50,000,000

Time
Stage 1
2014 - 2015
Headquarters Office
Stage 2
2015 – 2017
Dependent units
Stage 3
2017 – 2018
Subsidiaries
Stage 4
2018 – 2019
Synthesis of data
­ Procedure of deployment in stage 01:
Job/Work
[p.13 Vietnamese] Làm
việc với nhà cung cấp
Signing of Contract
Survey, sample design
Installation
Training

Test run
Perfecting
Put into use

Applying
organizations
Accounting
Department
Accounting
Department,
Directorate
Accounting
Department,
software company
Công ty Fast
Accounting
Department, Fast
Company
Accounting
Department, Fast
Company
Accounting
Department, Fast
Company
Accounting
Department, Fast

Start

Completion

15/07/2014

31/08/2014

01/09/2014

15/09/2014

16/09/2014
01/11/2014

31/10/2014
30/11/2014

01/12/2014

31/12/2014

01/01/2015

31/03/2015

01/04/2015
01/05/2015

30/04/2015


­

Company
Stage 02: Deployment in dependent units
Công việc
Installation

Performance
Start
Fast Company
01/01/2016
Units
Training
Fast Company
01/02/2016
Units
Test run
Fast Company
01/07/2016
Units
Perfecting
Fast Company
01/10/2016
Units
Put into use
Fast Company
01/11/2016
­ Stage 03: Deployment in subsidiaries and associated companies
Job/Work
Installation
Training

Test run
Perfecting
Put into use
­

Performance
Fast Company
Units
Fast Company
Units
Fast Company
Units
Fast Company
Units
Fast Company

Completion
31/01/2016
30/06/2016
30/09/2016
31/10/2016

Start
01/01/2017

Completion
31/01/2017

01/02/2017

30/06/2017

01/07/2017

30/09/2017

01/10/2017

31/10/2017

01/11/2017

Giai đoạn 04: Tổng hợp số liệu toàn công ty

Job/Work
[p.14 Vietnamese]
Perfection of data by
subsidiaries
Extraction and sending
of data to parent
company
Synthesis of data at the
parent company
Checking, Accepting
Put into use

Performance
Fast Company
The whole
company

Units
Fast Company
Parent company
Parent company
Fast Company
The whole
company

Start

Completion

01/02/2018

15/02/2018

15/02/2018

25/02/2018

01/03/2018

05/03/2018

05/03/2018

31/03/2018

01/04/2018