School of Accounting and Auditing - National Economics University

FOR ACCOUNTING MAJOR

TOPIC: ACCOUNTING PROCEDURES FOR RAW MATERIAL AT NAM KINH
CONSTRUCTION AND
INVESTMENT JOINT STOCK COMPANY
School of Accounting and Auditing - National Economics University

Contents
LIST OF TABLES..........................................................................................................4
INTRODUCTION..........................................................................................................5
CHAPTER 1...................................................................................................................6
FEATURES OF RAW MATERIALS AND MANAGEMENT OF RAW
MATERIALS AND TOOLS AT NAM KINH CONSTRUCTION AND
INVESTMENT JOINT STOCK COMPANY................................................................6
1.1. Features of raw materials and tool at Nam Kinh construction and.................6
investment joint stock company.................................................................................6
1.1.1. Characteristic of raw materials and tools..................................................6
1.1.2. List of raw materials and tools..................................................................7
1.1.3. Classification, group and code of raw materials and tools company.....11
1.1.3.1 Material classification:..............................................................................11
1.1.3.2. Tools classification:.................................................................................12
1.1.4. Measuring cost of raw materials and tools.................................................12
1.1.4.1. Calculating the cost of imported raw materials:......................................12
1.1.4.2. Calculating the cost of exported raw materials:......................................12
1.2. Features of supply chain for raw materials and tools at Nam Kinh
construction and investment joint stock company....................................................13
1.2.1. Material and tool management process..................................................13
1.2.2. Planning to purchase raw materials........................................................15
1.2.3. Develop a schedule for the procurement of raw materials.....................15
1.3. Features of organization of raw materials at Nam Kinh construction and
investment joint stock company...............................................................................17
1.3.1. Organization of the accounting apparatus:.............................................17
1.3.2. The function and responsibility of departments of the company...........18
1.3.3. Physical counting methods for raw materials and tools.........................19
CHAPTER 2.................................................................................................................21
CURRENT SITUATION OF ACCOUNTING PROCEDURES FOR RAW
MATERIALS AND TOOLS AT AT NAM KINH CONSTRUCTION AND
INVESTMENT JOINT STOCK COMPANY..............................................................21
2.1. Detailed accounting procedures for raw materials and tools at Nam Kinh
construction and investment joint stock company....................................................21
2.1.1. Accounting documents and procedure........................................................21
2.1.2 Detailed Recording Process:........................................................................33
2.2. General Accounting for raw materials and tools at Nam Kinh construction and
investment joint stock company...............................................................................37
CHAPTER 3.................................................................................................................43
COMPLETING ACCOUNTING PROCEDURES FOR RAW MATERIALS AND
TOOLS AT NAM KINH CONSTRUCTION AND INVESTMENT JOINT STOCK
COMPANY..................................................................................................................43
3.1. Assessing the current accounting procedures for raw materials and tools at Nam
Kinh construction and investment joint stock company...............................................43
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3.1.1. Advantages:................................................................................................43
3.1.2. Disadvantages:............................................................................................45
3.2. Suggestion to complete accounting procedures for raw materials and tools at
Nam Kinh construction and investment joint stock company..................................46
3.2.1. Management of raw materials and tools:....................................................46
3.2.2. T-account, cost flow methods, recording methods:....................................46
3.2.3. Accounting documents and documents transfer:........................................47
3.2.4. Detailed accounting books:.........................................................................47
3.2.5. General accounting books:.........................................................................48
3.2.6. Financial reports related to raw materials and tools:..................................48
CONCLUSION.............................................................................................................49
REFERENCES.............................................................................................................50
COMMENT OF COMPANY.......................................................................................50
APPENDIX...................................................................................................................50
School of Accounting and Auditing - National Economics University

LIST OF TABLES
School of Accounting and Auditing - National Economics University

INTRODUCTION

Due to the intense market rivalry in the current trend of integration, domestic businesses
are having a lot of trouble. Businesses must continually increase their output and operational
effectiveness in order to thrive and grow. Businesses must utilize a variety of economic and
technical strategies, effective production management, flexible economic lever usage, and
market research to accomplish this. In particular, carefully planning the accounting work at
the unit makes sense for supplying information to all topics, meeting management's needs,
promoting financial transparency, and enhancing usage efficiency. capital, reducing expenses
for companies. As a foundation for judgments about the prompt and efficient economic
management of the unit's production and business activities.
One of the key components of accounting in businesses is material accounting,
particularly in manufacturing. It timely reflects the actual value of materials used in order to
accurately and completely calculate the value of materials, making an essential contribution
to the accuracy of the cost of the product and the nature of profits in the business. It also
reflects the fluctuation of raw materials from time to time.
Additionally, raw resources are always essential in the production of a product. The
supply and use of materials is how to achieve the intended outcome, regardless of whether
the product is good or poor, the quality is good or bad, the manufacturing time is quick or
long, the cost of the product is high or low. Since then, it shows that accounting of materials
is a very important part, so I chose the topic for my graduation thesis "Accounting of
materials at NAM KINH construction and investment joint stock company".
Theme Construction:

 Chapter 1: Features of raw materials and tools and management of raw

materials.

 Chapter 2: Current situation of accounting procedures for raw materials and

tools

 Chapter 3: Completing accounting procedures for raw materials

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CHAPTER 1

FEATURES OF RAW MATERIALS AND MANAGEMENT OF RAW MATERIALS

AT NAM KINH CONSTRUCTION AND INVESTMENT JOINT STOCK COMPANY

1.1. Features of raw materials and tool at Nam Kinh construction and
investment joint stock company
1.1.1. Characteristic of raw materials and tools
- Raw materials are labor objects involved in the production and business process to
create new products.
- Characteristic of materials:
 Only take part in one production cycle, and at the conclusion of that cycle, its
original shape is altered, the material's value is modified, and the overall value of
the new product is increased.
 The cost of raw materials accounts for a large proportion of 60-90% of the
product cost, one of the three factors of the production and business process.
- Material management requirements:
 Must be based on documents and detailed books from the time of import, export
and inventory.
 In order to stop unfavorable events, strengthen the task of reconciliation, check,
and identify data in the accounting books and in reality.
 Check the stock levels periodically in the warehouses and the production
workplace to quickly alter the import and export situation and to supply raw
materials as needed.
- Tools are labor materials that are insufficient in terms of value and use time specified
for fixed assets.
- Characteristic of tools:
 The tools remains in its initial physical shape despite taking part in numerous
production cycles.
 Tools gradually lose value when they are used in the production process and are
replaced by production and business expenses. As a result, it's essential to
gradually transfer the tool's value to production and operational costs.
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- Tools management requirements:

 Tools used for production, business, rental, and other purposes must be tracked
both in kind and in value on thorough accounting books, according to users. Tools
have many things and many types in the warehouse or in use in the workshop; if
not closely monitored and managed, it will cause loss, waste, and tools used for
these purposes.
 The instruments required for precise calculations must be kept in a warehouse in
order to organize the tool management effectively. Create minimum and
maximum stock levels for each type of tool to assure production. Minimize
material shortages by defining tools in detail for each stage of purchase, storage,
and use.

1.1.2. List of raw materials and tools.

Table 1.1. List of building materials

Product Groups Product's name
1 Cement, admixtures for cement and Portland Cement
2 concrete. Portland cement mix
3 Sulphate resistant portland cement
material.
4 Sulphate-resistant mixed Portland cement
materials
5 Phosphorus gypsum is used to produce
cement
6 Blast furnace slag is used to produce
cement
7 Finely ground blast furnace slag for
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concrete and mortar

8 Fly ash for concrete and mortar
9 Fly ash for cement
10 Natural sand for concrete and mortar
11 Large aggregates (Crushed stone, gravel
Construction Aggregates and crushed gravel) for concrete and
mortar
12 Crushed sand for concrete and mortar
13 Ceramic Tiles
14 Natural paving stone
Tiles, paving stones
15 Artificial paving stone based on organic
binder
16 Fired clay bricks
17 Concrete bricks
18 Building materials Autoclaved aerated concrete products
19 Concrete hollow wall panels are
prefabricated by extrusion technology.
20 Connecting glass
21 Heat tempered flat glass
22 Construction glass Laminated glass and laminated safety
glass
23 Insulated sealed box glass
24 Other building materials Asbestos cement corrugated board
25 Asbestos crizotin for the production of
asbestos-cement corrugated board
26 Gypsum board and plasterboard with
reinforcing fibers
27 Emulsion wall paint
28 Aluminum profile with aluminum alloy
29 Unplasticized poly (vinyl chloride)
profiles (PVC-U) for the manufacture of
windows and doors
30 Polyethylene (PE) pipes and fittings for
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water supply and drainage purposes

31 Polypropylene (PP) pipes and fittings for
water supply and drainage purposes
32 Unplasticized Polyvinyl chloride (PVC-
U) pipes and fittings for water supply and
drainage purposes
33 Pipes and fittings made of plastic (PVC-
U; PP; PE) into structures for
underground drainage purposes in non-
pressurized conditions
34 Glass fiber reinforced thermoset plastic
pipe system based on unsaturated
polyester resin (GRP) used in pressure
and non-pressure water supply

Table 1.2. List of materials for roughing and finishing

STANDARD SECTION SUPPLY

Name Describe
1 Stone 10mm x 20mm stone for concrete work
2 Sand Large-grained sand to pour concrete
3 Sand to build bowls Sand mi builds bowls
4 Machine-mixed concrete at construction
Concrete
sites or commercial fresh concrete
5 Cement HOLCIM for concrete work
6 Steel Vietnamese - Japanese Or Pomina
7 Some brands such as: Dong Tam, Tam
Brick Quynh, Phuoc Thanh, Quoc Toan, Thanh
Tam, ... or equivalent
8 Cadivi, Using 7-core copper-core power
Wire
cable with code CV
9 Conduit for electrical wiring in the wall Fireproof Nano brand chicken intestine
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tube
10 Conduit for conduit of electricity going White hard tube
to concrete floor
11 Wire ADSL, telephone, television Brand Sino
12 BinhMinh, Drain pipe: Horizontal pipe
D114, and vertical pipe D90, Drainage
pipe in roof floor - balcony - terrace on
Water supply and drainage pipes
WC floor using pipe D114, Equipment
branching supply pipe (depending on
equipment).
13 Waterproofing toilet floor, roof, Kova CT11A
balcony
14 Quick setting admixture for concrete Sika R7
15 Hot water pipe Not included
16 Refrigeration copper pipe Not included
17 Scaffolding - iron formwork, concrete
mixers, iron and steel processing
Construction equipment
machines, trees of all kinds and other
equipment for construction
MATERIAL FOR FINISHING SECTION
1 Glossy tile 2 leather 600×600, (Taicera,
Living room floor tiles
CMC, Hoan My)
2 Tiles for kitchen floor, hallway and Glossy tiles 2 leather 600×600, (Taicera,
stairs CMC, Hoan My)
3 Ceramic tile 400×400, (Taicera, CMC,
Floor tiles for bedrooms, SHC rooms
Hoan My)
4 Anti-slip ceramic tile 400×400, (Taicera,
Floor tiles for yard, balcony, warehouse
CMC, Hoan My)
5 Anti-slip ceramic tile 250×250, (Taicera,
Toilets floor tiles
CMC, Hoan My)
6 Paving the door threshold, three levels White stone in spring stream
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1.1.3. Classification, group and code of raw materials and tools company.
1.1.3.1 Material classification:
- Main raw materials: are raw materials and materials that, when participating in the
production process, constitute the main entity, material, and entity of the product.
Main raw materials include semi-finished products purchased from outside for the
purpose of continuing the production and manufacturing process.
- Auxiliary materials are those that, when used in the production process, do not
directly contribute to the creation of the final product but can be combined with it to
alter its appearance or improve its quality, such as paints for wood products, additives,
and catalysts for the production of chemicals.
- Fuel: is the thing that provides heat in the production and business process such as:
coal, firewood, wood, gasoline....
- Spare parts: are materials that need to be stocked to repair and replace spare parts of
machinery, equipment, means of transport, tools, and production tools.
- Basic construction materials and equipment: are materials and equipment used for
basic construction works, including: equipment to be installed, tools.
- Scrap: includes materials removed from the production and disposal of fixed assets,
tools, but can also be sold to recover capital.
However, it is required to create a list of materials, in which materials are held, in order to
better overcome the necessity of tight material management, particularly for the needs of
information processing on machines. separated into groups, categories, and specifics. The list
of raw materials is determined on the basis of uniform regulations on names, symbols and
codes for each group and each material.
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Table 1.3. Material list book

Type of material: Sign:152…
Sign Brand name,
Accounting
material Unit Note
Group Material list unit
specification
1 2 3 4 5 6

1.1.3.2. Tools classification:

Based on the purpose and use of the tool:
- Portable tool.tool
- Tools
- Management tools.
- Labor protection.
- Makeshift camp
- Rotational packaging.
- Rental equipment.

1.1.4. Measuring cost of raw materials and tools.

1.1.4.1. Calculating the cost of imported raw materials:
- In case of raw materials purchased from outside:
Original cost of materials = Invoice purchase price + actual purchase cost - discount
- In case of self-processed materials:
Original price of materials = actual price of homemade materials + processing costs
- In case of outsourcing raw materials:
Original price of materials - actual price of processed material + processing fee +
shipping cost

1.1.4.2. Calculating the cost of exported raw materials:

- Weighted average method:
Average input price = (actual cost of materials in stock at the beginning of the period
+ total cost of inventory in the period) / (inventory at the beginning of the period +
total quantity of materials in stock during the period)
- Average unit price = Average unit price x quantity of goods shipped in the period
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1.2. Features of supply chain for raw materials and tools at Nam Kinh
construction and investment joint stock company
1.2.1. Material and tool management process.
The role of material management in the enterprise:
Ensure adequate input sources: Production activities to achieve the highest efficiency
require a continuous supply of raw materials. The shortage will disrupt production, supply
is not enough for the market, and customers are inclined to switch to other products. This
will cause significant damage to the business, whether in the short term or long term. On
the contrary, effective management will contribute to improving productivity, increasing
output and promptly responding to market demand.
Reasonable and economical use of raw materials: Effective material management in
an enterprise is a way to optimize costs, improve product quality and with a reasonable
price, will attract many customers. row.
Use related resources more rationally: Good input management will plan to use labor
resources, machinery and equipment more effectively…
It can be said that material management activities in enterprises play a very important
role. Therefore, it is necessary to invest in finance and personnel as well as technology for
the most effective management.
The process of material management at Nam Kinh company consists of 5 stages as
follows:
- Stage 1: Organizing receiving materials
This is the first step but it plays a very important role. The receiving organization is
the movement of materials from the supplier to the warehouse, and accounts for the costs
and prices for each party.
Mission:
 Receive the correct quantity and quality according to the signed content in the
purchase and sale contract.
 Quickly transported to the warehouse of the enterprise, avoiding the situation of
falling, breaking, causing damage and loss, affecting the supply for production.
Request:
 Receipt of goods and related documents according to state regulations
 The warehouse receipt must be signed by the warehouse keeper and the delivery
person.
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 The supplier and the enterprise agree on the place of delivery of materials, ensuring
the agreed time and location.
- Stage 2: Organization of warehouse management
After raw materials are warehoused, it is necessary to control the quantity and quality
to minimize loss during storage.
Mission:
 Minimize loss of materials.
 Monitor and regularly check the status of goods.
 Facilitate the release of warehouse at any time.
Request:
 Professionally arranged, classified by category of properties, numbered and named for
reasonable distribution.
 Ensuring fire safety with explosive materials.
 Regularly update the status of goods.
- Stage 3: Organizing the distribution of materials
When there is a work order, the warehouse department needs to transport materials to
the factory for production.
Task: There are 2 ways to organize the allocation of materials:
 Method 1: Distributing according to the requirements of each workshop and
department
 Method 2: Distributing according to production schedule
Depending on each specific case, the enterprise will choose to supply raw materials in
any form. However, for the most part, the allocation according to the schedule will be
more effective than the other form due to its higher professionalism and stability.
- Stage 4: Payment and settlement of raw materials
This is an activity that transfers responsibility for the management of materials to each
user department. At this stage, the amount of raw materials received will be compared
with the amount of products delivered.
Payment period can be divided by certain period such as quarter or month.
- Stage 5: Using rationally, saving materials
In the process of using, businesses need to have a reasonable consumption plan to
avoid wasteful abuse of natural resources. The scientific use of savings will minimize
costs and increase revenue for businesses.
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It can be said that the management of raw materials in enterprises is a difficult

problem. However, it is not without a solution. As long as businesses follow the right
process with the help of technology, the management will become more effective.

1.2.2. Planning to purchase raw materials.

Material procurement plan is an important part of the production-technical-financial
plan of the enterprise. In this relationship, the plan for procurement of raw materials
ensures the material elements for the implementation of other plans, while the other plans
are the basis for construction and procurement of materials. The raw material procurement
plan affects the activities of storage, consumption, production and business results of
enterprises.
First, determine the amount of material to be used. The amount of material to be used
is the amount of material that is used reasonably and economically during the planning
period (usually 1 year). The amount of materials needed must ensure the completion of the
product production plan in terms of both in-kind and value, and also take into account the
material needs for new product testing, self-fabrication, machine repair. equipment ... The
amount of materials needed is calculated specifically for each type according to the
specifications, its type in each use department, and then aggregated for the whole
enterprise. When calculating, it must be based on the norm of raw materials consumption
for a product, production tasks, testing of new products and repair in the planning period.
Determine the stock of raw materials. To ensure a continuous process, efficient
harvesting must have a reasonable amount of raw materials. The amount of raw materials
in reserve (also known as the raw material reserve norm) is the necessary inventory of raw
materials specified in the planning period to ensure that the production process is carried
out continuously and normally.

1.2.3. Develop a schedule for the procurement of raw materials.

After determining the amount of materials to be used, stored and purchased in the
year, the next step is to develop a purchase schedule. The essence of this plan is to
determine the quantity, quality, specifications and time of each purchase. When
developing a plan for the procurement of raw materials, it must be based on the following
principles:
 No capital stagnation at the reserve stage.
 Always ensure a reasonable amount of stock in terms of quantity and quality.
 Contributing to improving capital efficiency targets.
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 When paying, you must accumulate for each type, each type is calculated separately
for each thing.
Stemming from the above principles, when developing a procurement schedule plan,
it must be based on the following contents:
 Plan internal production schedule.
 The system of norming material consumption for a product unit.
 Contracts for buying and selling materials and delivering products to customers.
 The level of convenience and difficulty of the market for buying and selling materials.
 Targets of the plan to purchase raw materials in the year.
 Means of transport and payment methods.
 The unit's existing warehouse system.
*Procurement schedule construction method: With the content of the progress plan
presented above, the calculation of planned targets is done by two methods:
 For those types of materials, the consumption norm is calculated directly: Take the
quantity of the product multiplied by the consumption norm of raw materials for a
unit of that product.
 For raw materials for which the norm has not been established, the indirect calculation
method should be established. Take the previous period's consumption as the base
multiplied by the production growth rate of the period to be purchased.
* Proceed to purchase raw materials.
After planning the procurement schedule of raw materials, the purchase and
transportation to the enterprise's warehouse is carried out by the materials department
(commercial or business). Managers or workshops can sign contracts with the materials
department for the purchase and delivery of materials. The contract must be determined
except for the quantity, quality, type, purchase specification, price and delivery time.
Both parties must bear material compensation if the contract is breached. The materials
department is responsible for the same level in a timely, complete and quality assurance
for the production units. If for some reason it is not provided in time, the materials
department must report to the director from 3 to 5 days for handling measures. The
material department that does well or not well will be rewarded or punished according to
the regulations of the business.
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1.3. Features of organization of raw materials at Nam Kinh construction and

investment joint stock company.
1.3.1. Organization of the accounting apparatus:
The Company's accounting team with high professional qualifications has helped the
Company in all aspects of financial management and accounting in production and
business activities. Based on the professional qualifications of the accounting staff, the
workload, the nature and complexity of the economic and financial operations, and the
organizational characteristics and scale of operations. business activities of the Company
for which the accounting department applies an appropriate accounting method. The
accounting apparatus of the Company is built according to the centralized accounting
organization model, both ensuring the performance of the assigned tasks and ensuring the
centralized and unified leadership and direction of the chief accountant.
The accounting and finance department of Nam Kinh Company is placed under the
direction of the Board of Directors. The Company's accounting apparatus is responsible
for organizing and inspecting all accounting work in the Company, organizing the
collection and processing of economic information, fully implementing the recording and
accounting regime according to the provisions of law of the provisions of the State.
 Chief accountant: has the task of guiding and inspecting the accounting works
performed by accountants. Take responsibility before directors, superiors and state
agencies for the information provided by accountants, operate the entire accounting
department according to professional functions, inspect and direct the management
and use of materials, capital in the whole company in accordance with the financial
regime promulgated by the state.
 Accounting of raw materials and fixed assets: Daily, based on the warehouse receipt,
the delivery note of materials, tools and tools, to enter the detailed accounting book of
the materials. At the end of the month, summarize in the import and export general
book, make lists, spreadsheets of actual prices of materials and tools, allocation tables
of materials and tools, from the invoices (or invoices cum delivery notes) of the seller
to enter the detailed payment ledger with the seller. sell to the vouchers journal.
Organize recording, reflect data on the quantity, current status and value of fixed
assets, the situation of purchase, sale and liquidation of fixed assets.
 Cost accounting and cost calculation: Based on the allocation table of materials, tools,
tools, summary table of used materials, salary distribution table.... And related
documents and journals to record in the production cost summary book (with details
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for each workshop) to allocate production costs and calculate costs for each specific
item.+ Accounting for finished products and consumption Finished product sales: In
charge of monitoring the situation of importing and exporting finished products,
consumption situation and monitoring debts of customers. Open the sales detail
number for each item. Open the finished product inventory tracking card. Then track
and enter the detailed sales book for each type.
 Cash capital accounting: Monitor revenue and expenditure using the company's cash
fund, bank deposits at the bank, daily compare the balance on the company's account
at the bank with the bank book, monitor the payment situation of the Company by
subjects such as: Customers, suppliers, internal Company. Through the above model,
we see that the Company organizes accounting in a centralized form. The accounting
department is the center for performing all accounting work from the first stage to the
last stage, receiving and processing vouchers, rotating detailed accounting books,
synthesizing and making accounting reports, analyzing operations. economic activities
and guide the accounting inspection throughout the Company, notify the necessary
accounting and statistical data to the Board of Directors and superior agencies. The
accountants are responsible for collecting documents, checking and processing them
under the supervision of the chief accountant. Based on the scale, characteristics of
production and business activities and management requirements as well as equipment
conditions, accountants apply the journal and voucher form.

1.3.2. The function and responsibility of departments of the company.

 Planning and Materials Department: Responsible for production planning, monitoring
raw materials, orders, worker productivity, ensuring input supply, and synchronous
gathering of raw materials and accessories. production service, balance delivery on
schedule, help the board of directors to build production plans during the
implementation period.
 Production workshops: Production workshops are responsible for carrying out the
production and creating products that meet quality standards, conform to the
specifications and designs as prescribed in order to produce good results and minimize
damaged products. profit for the business.
 Product Quality Inspection Team: Responsible for checking the quality of finished
products and works according to quality standards.
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1.3.3. Physical counting methods for raw materials and tools.

- Check for correctness:
Auditors need to carry out procedures to confirm at the time of enterprise inventory
that all import and export activities have stopped. Failure to stop these activities will
make the tally inaccurate and affect the ending balance of inventory on the financial
statements. Auditors need to check the ordinal numbers of the entry and exit slips
before and immediately after the tally to ensure continuity. If the order of entry and
exit slips before and after the tally is consecutive, the accounting records will be
complete.
- Witness the inventory
 Auditors witness and evaluate the client's inventory process in order to assess the
auditor's confidence in the Client's Inventory Minutes.
 At the end of the inventory observation process, the auditor must prepare a report
and store it
 The inventory report must include information to serve the assessment of making
provision for devaluation of inventory
 The inventory report must conclude: Can the customer's inventory report be trusted?
 For the case where the inventory is zeroed at the end of the financial year, the
auditor must perform the procedure of comparing and reflecting back to the end of the
year.
- Reconciling actual inventory with bookkeeping records
Auditors compare the actual count of inventory with the inventory being recorded in
the accounting books to ensure that inventory is fully recorded.
- Check high value inventory items
If there are inventory items with unusually high values, the auditor should spend extra
time checking the quantities and documentation of this inventory to ensure that the value
is properly assessed and recognized.
- Check inventory items that have had errors in the past
If the previous year's inventory item had errors, the auditor should take some time to
review whether the same items still have similar errors this year.
- Check goods in transit
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The risk in this scenario is that there is some inventory on the way from one
warehouse to another during the inventory process. The auditor needs to review the
transfer documents to ensure that the goods are in a state of transfer.
- Check purchase value of inventory
Auditors need to check the purchase price of the inventory and compare it with
accompanying documents including supplier invoices and supplier quotes to ensure the
purchase price is reasonable.
- Check inventory shipping costs
According to VAS 02 accounting standard, the cost of transporting inventory will be
recognized in the value of inventory. The review of transportation costs to ensure that the
business fully and properly recognizes the value of inventory.
- Net Realizable Value Review
The auditor should review the recognition of inventory by making a comparison
between the cost of the inventory and the net realizable value to ensure that the lower
price is recognized in the books of accounts in accordance with the accounting standards.
accounting standard VAS 02.
- Review and recalculate the cost of finished products
 Auditors need to review all types of costs including material costs, labor costs and
manufacturing overhead costs by reviewing all relevant documents such as material
release notes, timesheets and time sheets. workers' payroll, purchase documents,
purchase expenses. Check for any unusual loss of expenses.
 In particular, review the costing method and the consistency of the application of
the costing method between financial years. The auditor may recalculate the cost of
inventory samples to ensure that the correct costing method is being applied.
- Unfinished product inspection
If work-in-progress accounts for a large proportion of the business's inventory value,
the Audit Assistant needs to check the completion rate of this work-in-progress to ensure
the recognized value of the work-in-progress.
- Check ownership of consumables
Auditors need to review the purchase documents of inventory to ensure that the
inventory in the warehouse is owned by the business and not by any other third party.
School of Accounting and Auditing - National Economics University

CHAPTER 2

CURRENT SITUATION OF ACCOUNTING PROCEDURES FOR RAW

MATERIALS AT NAM KINH CONSTRUCTION AND INVESTMENT JOINT
STOCK COMPANY

2.1. Detailed accounting procedures for raw materials and tools at Nam Kinh
construction and investment joint stock company
2.1.1. Accounting documents and procedure
The accounting procedures for raw materials and tools involve various accounting
documents and procedures for recording transactions related to the acquisition, use, and
disposal of these items. Here is an overview of the key accounting documents and procedures
involved in the process:
Name of accounting documents: There are several accounting documents used to record
transactions related to raw materials and tools. These documents include:
Purchase orders: A purchase order is a document that outlines the details of a purchase, such
as the quantity, price, and delivery date of the raw materials or tools being purchased. It is
typically generated by the purchasing department and sent to the supplier.
Invoices: An invoice is a document that details the amount owed for the goods or services
received. In the case of raw materials and tools, an invoice would be issued by the supplier
and sent to the purchasing department.
School of Accounting and Auditing - National Economics University

Table 2.1: VAT INVOICE

Model number: 01GTKT3/001
VAT INVOICE  Symbol: TL/17P
Contact 2: Customer delivery Number: 0000319
January 5, 2022
Sales unit: Thanh Lam Trading and Production Co., Ltd
Address: 94 – Hưng Nghĩa Street, Huyện Hưng Nguyên, Tỉnh Nghệ An
Tax code: 4482405306
Account number: 4302201003008 at Agribank
Buyer's name: Le Thuy Vinh
Tên đơn vị: NamKinh Construction And Investment Joint Stock Company
Adress: No. 17, Quang Trung Street, Quang Trung Ward, Vinh City, Nghe An
Tax code: 0102417850-001
Hình thức thanh toán: CK        Số tài khoản: 160214851000976
Name of goods and
No. services Unit Quantity Price Total amount
1 2 3 4 5 6=4x5
1 Bicem Cement Kg 52.000 1.281,82 66.654.640
2 Song Gianh Cenmet Kg 75.000 1.333,47 100.010.250

           
                                               Add goods: 166.664.890
 VAT rate: 10% VAT amount: 16.666.489
                                                               Total payment 183.331.379
 Amount in words: One hundred and eighty-three million, three hundred and thirty-one
thousand three hundred and seventy-nine dong.

Buyer Unit heads

(Sign, write full name) (Sign, write full name)
School of Accounting and Auditing - National Economics University

Table 2.2: Testing Materials

Form No. 03-VT

NamKinh Construction And Investment Joint
Stock Company (Issued according to Circular 200/2014/TT-
No. 17, Quang Trung Street, Quang Trung BTC
Ward, Vinh City, Nghe An
Tax code: 0102417850-001 December 22, 2014 of the Ministry of
Finance)

 
MINUTES OF TESTING MATERIALS
January 5, 2022
Number: 006
Based on HD number 0000319 dated January 5, 2012 of NamKinh Construction and
Investment Joint Stock Company
The test board includes:
+ Mr/Ms: Le Thuy Vinh Position: Storekeeper of materials - Head of department
+ Mr/Ms: Bui Thi Linh Position: Accountant - Member
+ Mr/Ms: Truong Duc An Position: Technician - Member
Tested all kinds
Test results
Brand names, Quantity
Test The right
No tools, products, Code Unit according to
method quantity, the
goods voucher
right quality
 1 Bicem Cement Overview Kg 52.000 52.000

Song Gianh
2 Overview Kg 75.000 75.000
Cement
 
Opinion of the testing board: Goods in sufficient quantity, in accordance with the
specifications and in the right quality required for warehousing.

Technical Representative Accountant Stocker

(signature, full name) (signature, full name) (signature, full name)
School of Accounting and Auditing - National Economics University

Table 2.3: Receipt

Trong Phat Manufacturing & Trading Co., Ltd Form No. 01-VT
94 – Hung Nghia Street, Hung Nguyen District, (Issued according to Circular
Nghe An Province 200/2014/TT-BTC
Tax code: 4482405306 December 22, 2014 of the Ministry of
Finance)
RECEIPT
January 5, 2022 Debt: 1521
Number: PNK-006 Yes: 112
- According to invoice number 0000319 dated January 5, 2022 of Thanh Lam Trading
Production Co., Ltd.
- Reason for import:
- Imported at warehouse: NamKinh Construction and Investment Joint Stock Company
Names, Quantity
trademarks,
specifications, Code According Unit Total
Unit Real
No. tools, number to price
Import
products, document
goods
A B C D 1 2 3 4
1 Bicem Cement Kg 52.000 52.000 1.281,82 66.654.640
Song Gianh 1.333,47
2 Cement Kg 75.000 75.000 100.010.250
 TOTAL x x x x x 166.664.890

- Total amount (in words): One hundred and sixty-six million six hundred and sixty four
thousand eight hundred and ninety dong.
- Note: Input VAT 16,666,489. Total cost of goods and input VAT = 183,331,379
- Number of original documents attached: 03
Ngày 05 tháng 01 năm 2022
Voter Stocker
Deliver Unit heads
(Signature, (Signature, full
(Signature, full name) (Signature, full name)
full name) name)
School of Accounting and Auditing - National Economics University

Table 2.4: Bill added value

  Model number: 01GTKT3/001
BILL
ADDED VALUE Symbol:NC/17P
Contact 2: Customer delivery Number: 0063849
January 5, 2022
Sales unit: Ngoc Chuong private enterprise
Address: Nam Dan District - Nghe An Province
Tax code: 4100185418
Account number: 58110000221480 at BIDV Bank
Buyer's name: Bui Van Lac
Name of unit: NamKinh Construction and Investment Joint Stock Company
Address: No. 17, Quang Trung Street, Vinh City, Nghe An Province
Tax code: 0102417850-001
Payment method: Transfer Account number: 160214851000976
Unit
Name of goods and services Unit Quantity Total
No. price
1 Non-ferrous iron 8 Kg 5.000 9.954 49.770.000
2 Non-ferrous iron 12 Kg 4.000 10.090 40.360.000

 
                                                                Total before tax: 90.130.000
 VAT: 10%,                          VAT:  9.013.000
                                                                Total after tax: 99.143.000
Amount in words: Ninety-nine million, one hundred and forty-three thousand dong.

Buyer Unit head

(Sign, write full name) (Sign, stamp, write full name)

(Need to check and compare when making, delivering and receiving invoices)
School of Accounting and Auditing - National Economics University

Table 2.5: Testing materials iron

Namkinh Construction And Investment

Joint Stock Company Form No. 03-VT
No. 17, Quang Trung Street, Vinh City, (Issued according to Circular 200/2014/TT-BTC
Nghe An Province December 22, 2014 of the Ministry of Finance)
Tax code: 0102417850-001
 
MINUTES OF TESTING MATERIALS
January 5, 2022
Number: 007
Pursuant to HD No. 0063849, January 5, 2022 of Ngoc Chuong Private Enterprise
The test board includes:
+ Mr/Ms: Le Thuy Vinh Position: Storekeeper of materials - Head of department
+ Mr/Ms: Bui Thi Linh Position: Accountant - Member
+ Mr/Ms: Truong Duc An Position: Technician - Member
Tested types:
Test results
Brand Quantity is
Quantity The
names, not in
Code Test according right
No. tools, Unit accordance Note
number method to quantity,
products, with
voucher the right
goods specifications
quality
and quality
Non-
1 ferrous Fi8 Overview Kg 5.000 5.000 0
iron 8
Non-
2 ferrous Fi12 Overview Kg 4.000 4.000 0
iron 12  
 Opinion of the inspection board: Goods in sufficient quantity, in the right specifications, in
the right quality for warehousing.

Technical
Representative Accountant Chairman
(signature, full (signature, full name) (signature, full name)
name)
School of Accounting and Auditing - National Economics University

Table 2.6: Receipt iron

Namkinh Construction And Investment Form No. 01-VT
Joint Stock Company (Issued according to Circular 200/2014/TT-BTC
No. 17, Quang Trung Street, Vinh City, December 22, 2014 of the Ministry of Finance)
Nghe An Province
Tax code: 0102417850-001
RECEIPT
January 5, 2022 Debt: 1521
Number: PNK-007 Yes: 331
    - Full name of the delivery person: Cao Quang Vinh
- Digitized No. 0063849, January 5, 2022 of Ngoc Chuong Private Enterprise
- Reason for import:
- Imported at warehouse: NamKinh Construction and Investment Joint Stock Company
Names, Quantity
trademarks,
specifications, Code According Unit
No. Unit Actually
tools, số to Price Total
imported
products, document
goods
A B C D 1 2 3 4
Non-ferrous
1 iron 8 Fi8 Kg 5.000 5.000 9.954 49.770.000
Non-ferrous
2 iron 12 Fi12 Kg 4.000 4.000 10.090 40.360.000
   Total x x x x x 90.130.000
 
- Total amount (in words): Ninety million, one hundred and thirty thousand dong.
- Note: Input VAT = 9,013,000 VND
. . Total cost of goods and input VAT = 99,143,000 VND
- Number of original documents attached: 03
January 5, 2022
Voter Deliver Stocker
(signature, full (signature, full (Signature, full          Unit heads
name) name) name) (Signature, full name)
School of Accounting and Auditing - National Economics University

Table 2.7: Proposal Cenmet

Namkinh Construction And Investment Joint Stock Company

No. 17, Quang Trung Street, Vinh City, Nghe An Province
Tax code: 0102417850-001

PROPOSAL FOR Warehousing of GOODS and MATERIALS

January 10, 2022

Name of the proposer: Bui Chi Tan

Department: Construction team I
Reason for proposal: Exporting construction materials for the project
No. Name supplies Unit Pricee Quantity Note

1 Bicem Cement  Kg 50.000

2 Song Gianh Cement Kg 70.000

January 10, 2022

Proposer Storekeeper Director
(Signature, full name) (Signature, full name) (Signature, full name)
School of Accounting and Auditing - National Economics University

Table 2.8: Delivery Bill Jan 10

Namkinh Construction And Investment Joint Form No. 02-VT

Stock Company (Issued according to Circular
No. 17, Quang Trung Street, Vinh City, Nghe An 200/2014/TT-BTC
Province December 22, 2014 of the Ministry of
Tax code: 0102417850-001 Finance)

DELIVERY BILL
January 10, 2022
Number: PXK-010

Name of consignee: Bui Chi Tan

Department: Construction team I
Reason for ex-warehousing: Exporting construction materials for the project
Export at warehouse: NamKinh Construction and Investment Joint Stock Company
Names, brands, Quantity
No Unit Unit
specifications of Code Actual Total
. price Request price
materials export
A B C D 1 2 3 4
1 Bicem Cement  XMBC Kg 50.000 50.000 1.281,82 64.091.000

2 Song Gianh Cement  XMSG Kg 70.000 70.000 1.333,47 93.342.900

Total x x x x x 157.433.900

Total amount (In words): One hundred fifty-seven million, four hundred thirty-three
thousand nine hundred dong.
Number of original documents attached: 01
January 10, 2022
Voting person Consignee Consignee Storekeeper Head unit
(Signature, full name) (Signature, full name) (Signature, full name) (Signature, full name)
School of Accounting and Auditing - National Economics University

Table 2.9: Proposal iron

Namkinh Construction And Investment Joint Stock Company
No. 17, Quang Trung Street, Vinh City, Nghe An Province
Tax code: 0102417850-001

PROPOSAL FOR Warehousing of GOODS and MATERIALS

January 23, 2022

Name of the proposer: Bui Chi Tan

Department: Construction team I
Reason for proposal: Exporting construction materials for the project

No. Name supplies Unit Quantity Note

1 Non-ferrous iron 8 Kg 3.000

2 Non-ferrous iron 12 Kg 3.456

January 23, 2022

Proposer Storekeeper Director
(Signature, full name) (Signature, full name) (Signature, full name)
School of Accounting and Auditing - National Economics University

Table 2.10: Delivery bill Jan 23

Namkinh Construction And Investment Joint

Stock Company Form No. 01-VT
No. 17, Quang Trung Street, Vinh City, Nghe An (Issued according to Circular
Province 200/2014/TT-BTC
Tax code: 0102417850-001 December 22, 2014 of the Ministry of
Finance)

DELIVERY BILL
January 23, 2022
Number: PXK-021

Name of consignee: Bui Chi Tan

Department: Construction team I
Reason for ex-warehousing: Exporting construction materials for the project
Export at warehouse: NamKinh Construction and Investment Joint Stock Company
Names, brands, Quantity
No Unit
specifications of Code Unit Actual Total
. Request price
materials export
A B C D 1 2 3 4
1 Non-ferrous iron 8 Fi8 Kg 3.000 3.000 9.954 29.850.000

2 Non-ferrous iron 12 Fi12 Kg 3.456 3.456 10.090 34.871.040

Total x x x x x 64.721.040

Total amount (In words): Sixty-four million, seven hundred and twenty-one thousand zero
hundred and forty dong.
Number of original documents attached: 01
January 23, 2022
Voting person Consignee Storekeeper Chief accountant Director
(Signature, full name) (Signature, full name) (Signature, full name) (Signature, full name)
(Signature, full name)
School of Accounting and Auditing - National Economics University

Receiving reports: A receiving report is a document that verifies the receipt of goods. It is
typically generated by the receiving department and sent to the accounting department.

Table 2.11: Delivery record

ANH SAO CONSTRUCTION SERVICES COMPANY

DELIVERY RECORD

Pursuant to invoice number 0000811 dated January 20, 2022 of Anh Sao KT and
Construction Co., Ltd
Today, January 20, 2022 At the construction site we include:

PARTY A (Consignee): Nam Kinh Nghe An Construction and Investment Joint Stock
Company
- Address: No. 17, Quang Trung Street, Quang Trung Ward, Vinh City, Nghe An
- Representative of Mr/Ms: Bui Chi Tan – Company employee

PARTY B (Deliverer): Anh Sao Stone and Construction KT Co., Ltd

- Address: National Highway 1 - Nghi Loc Town - Nghe An Province
- Representative of Mr/Ms: Do Ho Nhat - company employee
The two parties mutually agree on the delivery quantity as follows:

No. Product name Specification/type Unit Quantity Note

01 Ice machine 1 * 2 300 m³ 300

Party A confirms that Party B has delivered to Party A the correct type and quantity of goods
as above.
Both parties agree and agree to sign. The minutes are made in 02 copies, each party
keeps 01 copy with the same legal value.

            REPRESENTATIVE OF PARTY A REPRESENTATIVE OF PARTY B

School of Accounting and Auditing - National Economics University

2.1.2 Detailed Recording Process:

The process of circulating accounting documents at the company:
 When importing
- Documents: Value-added invoices, materials testing minutes, warehouse receipts.
The process of importing raw materials is explained as follows:
- When there is a need to import raw materials, the material planning department will
base on the use of materials and technical norms to plan the supply and storage of
materials. Based on the material supply plan, the materials department takes a
quotation for materials, prepares an estimate for purchasing materials and passes it on
to the Director for approval, and applies for an advance for the purchase of materials
at the accounting department (if purchased in cash). . Thus, the planning department is
responsible for planning the supply of raw materials, purchasing, storing and
supplying materials for use by departments.
- The purchase of raw materials is carried out on the basis of an agreement between the
company and the supplier. The form of payment can be prepayment, immediate cash
payment, bank deposit, advance payment or deferred payment.
- When the supplier delivers the goods to the company, the material warehouse keeper
checks the quantity on the seller's delivery invoice. At the same time, compare the
quality and quantity standards according to the orders placed by the planning
department. After checking the required quantity and quality, the warehouse keeper
shall make a test record and the warehouse receipt.
 When out of stock
- Documents: Material request form, Warehouse delivery note, Receipt of supplies.
- In fact, the procurement and warehousing of materials is planned by the material
planning department based on the production plan of each order.
- When the order has been signed, the material planning department will plan the
materials and supplies. The material planning table will be deployed to relevant
departments: material storekeeper, material storekeeper. Based on the table of norms
of materials prepared by the planning department, relevant departments will make a
request for supply of materials and materials. The material storekeeper and the
material storekeeper will allocate to relevant departments according to each
department's receiving plan.
 School of Accounting and Auditing - National Economics University

- Accountants make an export slip, the output value must be based on the input value
and calculated by the first-in - first-out method.

Table 2.12: Warehouse card Bicem Cenmet

Namkinh Construction And Investment Joint

Model No. S12-DN
Stock Company
(Issued according to Circular
No. 17, Quang Trung Street, Vinh City, Nghe An
200/2014/TT-BTC
Province
December 22, 2014 of the Ministry of
Tax code: 0102417850-001
Finance)

WAREHOUSE CARD
Account: 152 – Raw materials, materials
Item: Bicem Cement
Unit of item: Kg
Import and export Quantity
Import/
Explain Note
Export date
Number Day Import Export Inventory

Balance at the
beginning of the 0
month
PNK Import Cement
05/01 05/01/2022 52.000 52.000
006 warehouse
Export warehouse
10/01 PXK 010 10/01/2022 50.000 2.000
for the project
........ ........ ........ .................................. ............ …… .......... ........
98.900 80.000 18.900
Ending Inventory 18.900

This book has 01 page, numbered from page 01 to page 01

Book opening date: January 1, 2022
January 31, 2022
 
Card holder Treasurer Chief Accountant
(Signature, full name) (Signature, full name) (Signature, full name)
 School of Accounting and Auditing - National Economics University

Table 2.13: Warehouse card Song Gianh Cenmet

Namkinh Construction And Investment Joint

Model No. S12-DN
Stock Company
(Issued according to Circular
No. 17, Quang Trung Street, Vinh City, Nghe An
200/2014/TT-BTC
Province
December 22, 2014 of the Ministry of
Tax code: 0102417850-001
Finance)
WAREHOUSE CARD
Account: 152 – Raw materials, materials
Item: Song Gianh Cement

Unit of item: Kg

Import and export Quantity

Import/
Explain Note
Export date
Number Day Import Export Inventory

B C D E 1 2 3 G
Begining 50.000
Import Cement
05/011 PNK006 05/01/2022 75.000 125.000
warehouse
PXK Export warehouse
10/01 10/01/2022 70.000 55.000
010 for the project

........ ....... ........ ............................... ............ .......... .......... ......

223.300 200.000 73.300

Ending Inventory 73.300

This book has 01 page, numbered from page 01 to page 01

Book opening date: January 1, 2022
January 31, 2022
 
Card holder Treasurer Chief Accountant
(Signature, full name) (Signature, full name) (Signature, full name)
School of Accounting and Auditing - National Economics University

Table 2.14: Warehouse card Iron

Namkinh Construction And Investment Joint

Model No. S12-DN
Stock Company
(Issued according to Circular
No. 17, Quang Trung Street, Vinh City, Nghe An
200/2014/TT-BTC
Province
December 22, 2014 of the Ministry of
Tax code: 0102417850-001
Finance)

WAREHOUSE CARD
Account: 152 – Raw materials, materials
Item: Non-ferrous iron 8

Unit of item: Kg
Import/ Phiếu nhập xuất Quantity
Export Explain Note
Invent
date Số Ngày Import Export
ory
Begining 3.344,9
05/01/202 Enter the iron
05/01 PNK007 5.000 8.344,9
2 warehouse
PXK 21/01/202 Export warehouse
21/01 for the project 3.000 5.344,9
021 2
........ ...... ........ .......................... ......... .......... .......... ........
10.000 7.000 6.344,9
Ending
6.344,9
Inventory

This book has 01 page, numbered from page 01 to page 01

Book opening date: January 1, 2022
January 31, 2022
 
Card holder Treasurer Chief Accountant
(Signature, full name) (Signature, full name) (Signature, full name)
School of Accounting and Auditing - National Economics University

2.2. General Accounting for raw materials and tools at Nam Kinh construction
and investment joint stock company
The process of recording transactions related to raw materials and tools in the accounting
journal involves several steps. Firstly, the company must document all transactions related to
the purchase or sale of raw materials and tools using original documents such as invoices,
purchase orders, receipts, or bills of lading.
Once these documents are obtained, the transactions must be recorded in the accounting
journal using the double-entry accounting system. This system requires that each transaction
be recorded with an equal debit and credit entry. For example, when raw materials are
purchased, the inventory account (an asset account) is debited, and the accounts payable
account (a liability account) is credited.
After the transactions are recorded in the journal, they must be posted to the appropriate
ledger accounts. In this case, ledger accounts for raw materials and tools should be created,
and each transaction should be posted to the appropriate account. These accounts should
track the quantity, value, and location of the raw materials and tools.
In addition to recording transactions related to the purchase and sale of raw materials
and tools, it is also important to record any increases or decreases in inventory levels, as well
as any losses or excess inventory. This can be done through physical inventory counts, and
adjustments can be made to the inventory accounts accordingly.
Finally, all transactions related to raw materials and tools should be supported by general
documents, such as accounting vouchers or detailed lists, which provide additional
information about each transaction. These documents should be kept on file and used for
auditing and financial reporting purposes.
 School of Accounting and Auditing - National Economics University

Table 2.15: Detail book Bicem Cenmet

Namkinh Construction And Investment Joint

Model No. S10-DN
Stock Company
(Issued according to Circular
No. 17, Quang Trung Street, Vinh City, Nghe An
200/2014/TT-BTC
Province
December 22, 2014 of the Ministry of
Tax code: 0102417850-001
Finance)

DETAILS BOOK
January 2022
Account 152 – XMSG: Bicem Cement
Unit: Kg

Reco Document Import Xuất Inventory

rdin Explai Acco Unit
Num Quantit Quant Tota Quan
g Day  n unt Price Total Total
ber y ity l tity
date
Begini 0
0 0
ng
05/01 PNK 05/01/ 1.281, 66.654. 52.00 66.65
Import  112 52.000
/2022 006 2022 82 640 0 4.640
10/01/2 64.0
PXK 10/01/ 1.281, 2.563.
022 Export 621 50.000 91.0 2.000
010 2022 82 640
00
… … …. …. ...... …… ……
…….. ………. ….. ……
…… … …
102.
126.771
98.900 80.000 625.
.818
600
Endig 1.281, 18.90 23.07
n 82 0 2.760

This book has 01 page, numbered from page 01 to page 01

Book opening date: January 1, 2022

January 31, 2022
Bookkeeper Chief Accountant                                               
(Signature, full name) (Signature, full name)
 School of Accounting and Auditing - National Economics University

Table 2.16: Detail book Song Gianh Cenmet

Namkinh Construction And Investment Joint

Model No. S10-DN
Stock Company
(Issued according to Circular
No. 17, Quang Trung Street, Vinh City, Nghe An
200/2014/TT-BTC
Province
December 22, 2014 of the Ministry of
Tax code: 0102417850-001
Finance)

DETAILS BOOK
January 2022
Account 152 – XMSG: SongGianh Cement

Unit: Kg

Reco Document Import Xuất Inventory

rdin Explai Acco Unit
Num Quantit Quant Tota Quan
g Day  n unt Price Total Total
ber y ity l tity
date
Begini 1.333, 50.00 66.67
ng 47 0 3.334
05/01 166.6
PNK 05/01/ 1.333, 100.010 125.0
/2022 Import  112 75.000 83.58
007 2022 47 .250 00
4
23/01/2 93.3 73.34
PXK 23/01/ 1.333, 55.00
022 Export 621 70.000 42.9 0.684
021 2022 47 0
00
… … …. …. ...... …… ……
…….. ………. ….. ……
…… … …
266.
297.815 200.00
223.300 694.
.210 0
000
Endig 1.333, 73.30 97.73
n 47 0 4.351

This book has 01 page, numbered from page 01 to page 01

Book opening date: January 1, 2022

January 31, 2022
Bookkeeper Chief Accountant                                               
(Signature, full name) (Signature, full name)
School of Accounting and Auditing - National Economics University

Table 2.17: Summary table of details

Namkinh Construction And Investment Joint Stock Company

No. 17, Quang Trung Street, Vinh City, Nghe An Province
Tax code: 0102417850-001

SUMMARY TABLE OF DETAILS OF IMPORT AND EXPORT

Account: 152-Materials
January 2022
Currency: Dong
Begining Imported the period Exported in period Ending
Code Items Unit
Quantity Total Quantity Total Quantity Total Quantity Total
Bicem
Kg 0 0 98.900 126.771.818 80.000 102.625.600 18.900 23.072.760
XMBC Cement
Song Gianh
Kg 50.000 66.673.334 223.300 297.815.210 200.000 266.694.000 73.300 97.743.351
XMSG Cement
Bim Son
XMBS Cement Kg 30.000 35.090.909 0 0 0 0 30.000 35.090.909
PCB40
Dong Lam
XMDL Kg 0 0 108.000 109.080.000 108.000 109.080.000
Cement
Xuan Thanh
XMXT Cement Kg 50.00 63.549.753 0 0 0 0 50.000 63.549.753
PCB40
DO Diesel Liter 33.634,7 313.872.294 95.340 889.693.812 92.000 858.525.600 36.974,7 345.040.505
XANG92 Gasoline 92 Liter 2.468,8 37.496.640 2.000 32.618.182 200 3.219.950 4.268,08 66.894.872
School of Accounting and Auditing - National Economics University

Fi8 Iron fi8 Kg 3.344,9 33.295.135 10.000 99.540.000 7.000 69.678.000 6.344,9 63.157.135

Fi12 Iron fi12 Kg 20.301 204.837.090 12.456 125.681.040 8.234 83.040.700 24.523 247.437.070

Fi6 Iron fi6 Kg 2.680,5 26.291.887 2.911 27.072.300 0 0 5.59,.5 53.364.187

Fi10 Iron fi10 Kg 3.025 29.355.721 4.030 37.479.000 0 0 7.055 66.834.721

Fi14 Iron fi14 Kg 8.411 85.273.467 2.875 27.025.000 0 0 11.286 112.298.467

Fi16 Iron fi16 Kg 10.105,3 102.571.674 3.110 29.234.000 0 0 13.215,3 131.805.674

Fi18 Iron fi18 Kg 8.233,9 84.261.398 2.689 25.276.600 0 0 10.922,9 109.537.998

fi34galvanized
Kg 3.299,6 46.619.447 0 0 0 0 3.299,6 46.619.447
SATONGM1 iron pipe
Galvanized
Kg 263,02 2.915.050 0 0 0 0 263,02 2.915.050
SATONGM2 steel pipe fi 21
THEPLA Steel Kg 421 4.544.695 0 0 0 0 421 4.544.695
Steel V of all
Kg 750 7.217.250 0 0 0 0 750 7.217.250
THEPV kinds
TOTAL 1.431.411.473 3.573.856.404 3.714.539.460 1.290.728.417

                            January 31, 2022

Bookkeeper Chief Accountant Director
(Signature, full name) (Signature, full name) (Signature, full name, stamp)
School of Accounting and Auditing - National Economics University

Table 2.18: Booking documents

Namkinh Construction And Investment Joint Stock Company
No. 17, Quang Trung Street, Vinh City, Nghe An Province
Tax code: 0102417850-001

LIST OF BOOKING DOCUMENTS

Type of document: Cash payment slip
January 31, 2022
Curency: Dong
Document Credit to Account : 111
Recording Debiting Accounts
Explain The total amount
date Number Day
152 1331

31/01/2022 PNK010 15/01/2022 Buying oil due to imports 14.966.000 13.605.455 1.360.545

31/01/2022 PNK015 21/01/2022 Buying oil due to imports 10.264.980 9.331.800 933.180

31/01/2022 PNK021 30/01/2022 Buying imported cement 16.575.302 15.068.456 1.506.846

31/01/2022 PNK025 31/01/2022 Buy imported iron 13.020.500 11.835.000 1.185.500

… … … …

Total 743.023.576 675.475.978 67.547.598

January 31, 2022

Scheduler Chief Accountant
(Signature, full name) (Signature, full name)
School of Accounting and Auditing - National Economics University

CHAPTER 3

COMPLETING ACCOUNTING PROCEDURES FOR RAW MATERIALS AT

NAM KINH CONSTRUCTION AND INVESTMENT JOINT STOCK
COMPANY

3.1. Assessing the current accounting procedures for raw materials and tools at
Nam Kinh construction and investment joint stock company

After a period of operation, along with the growth and development of the basic
construction industry as well as other economic sectors, NamK company has constantly
strived for development and achieved many remarkable achievements. The company has
continuously expanded in both breadth and depth. To achieve the current business
results is a process of striving by the board of directors and all the employees, which we
cannot help but mention is the company's accounting team.
Along with the development of the company, the accounting work in general and
the accounting of materials in particular has been continuously consolidated and
perfected, meeting the increasing requirements of accounting management in the current
situation. market economy in our country today. After a period of research and practical
approach to accounting in general and accounting of materials in particular, some of the
following considerations can be made:

3.1.1. Advantages:
In accordance with the demands of the market economy, the company has
developed a rational, scientific accounting. This helps prevent misrepresenting emergent
economic transactions by helping with the initiative in production and business from the
job of creating standards to the initial accounting work, the examination of accounting
papers in accordance with the requirements, and having a legal basis, avoid
misrepresenting arising economic transactions.
About the model of accounting apparatus: The company applies a centralized
accounting model, all accounting staffs work centrally in the accounting and finance
department. This helps to synthesize information quickly and timely, helping the
management of the company to be better.
School of Accounting and Auditing - National Economics University

Regarding the structure of the company's accounting apparatus, there are 1 chief
accountant, 2 general accountants, 3 material accountants, 2 payment accountants and 1
treasurer.
Due to the company's frequent import and export activities, it has given each
employee a specific function for each type of material, such as accounting for materials
or accounting for equipment. The intention behind this is to prevent situations where one
person is in charge of several tasks at once in order to reduce the likelihood of mistakes
that complicate management and accounting tasks.
The company's accounting team are all experienced in labor and qualified with
enthusiasm and responsibility, meeting the needs of the company, actively contributing
to the overall development of the company.
In addition, the Company is applying machine accounting to the accounting work,
making the accounting work lighter and more convenient in checking, comparing and
storing. Provide information for management to be quick and timely.
Tasks related to material accounting: Open all of the books to keep an eye on any
timely adjustments to the quantity and quality of each content. It is simpler to use old
books when necessary since the raw material-related books and records are kept in a way
that makes them easy to inspect and preserve. The records are reviewed and contrasted
with the warehouse keeper at the conclusion of the accounting period to look for
problems that can be quickly fixed.
Concerning the organization of the accounting book system, the company has done
so in accordance with Ministry of Finance Decision No. 48, which is very clear,
appropriate for the company's circumstances, and guarantees the accuracy of the
accounting records. government strategy. assisting in the organization of accounting
vouchers to ensure adherence to the proper principles of forms, rotation, signing, and
approval, as well as the routines of checking, documenting, preserving, destroying, and
storing vouchers.
Regarding the accounting voucher regime: The Company has rigorously adhered to
the regime outlined by the State, arranged document rotation in a practical manner,
ensured convenient management and accounting, and assisted managers in managing the
company's situation more effectively.
School of Accounting and Auditing - National Economics University

The business has closely combined detailed and general accounting by using the
parallel card method in material accounting to save time and prevent duplication or
omission. to facilitate comparison and checking of exhaustive and detailed books.
Regarding the acquisition of raw materials: The firm uses the regular declaration
method, making it possible to always know the value of imported and exported raw
materials, as well as their availability and increase or decline. As a result, there are
favorable circumstances for controlling raw material import and exit.
In terms of how the cost of ex-warehouse goods is determined, the business uses a
weighted average method over the entire inventory period to determine the cost of
exported inventories. The accounting department can save more time using this
straightforward technique because it only requires one calculation at the end of the
period.
Organization of bookkeeping: The business uses the unified system of accounts and
accounting books in conjunction with book-entry vouchers, and the order of
bookkeeping is reasonable. Applying this technique results in strict, understandable
recording and constant comparison of the books between general accounting and
detailed accounting.
The business has converted a list of materials into a system of symbols for all
different types of materials in order to guarantee accurate accounting. Each has a unique
symbol that helps to make bookkeeping tasks simpler, more accurate, and modern. It
also provides timely information and documents for services. necessitate management to
oversee business and production.
Along with the benefits, there are still drawbacks to be resolved.

3.1.2. Disadvantages:
The business should reorganize the accounting system in light of the growing
complexity of the work in order to prevent confusion, mistakes, and the situation where
one person handles multiple tasks. In order to improve the accounting department's
ability to complete the given tasks, the business must hire more accountants for the unit's
accounting system.
Construction work is dispersed throughout many locations rather than concentrated
in one area, which is unique to the industry. As a result, documents are occasionally not
delivered on time, which slows down the collection of documents for the accounting
department and presents challenges for management and accounting.
School of Accounting and Auditing - National Economics University

The business conducts numerous import and export transactions throughout the
month, but because it uses the parallel card method of accounting, the vouchers are only
recorded at the end of the month, which causes an accumulation of accounting work and
the potential for errors. The work done this month will not be completed until the
following month, which will result in less bookkeeping work and delayed information to
investors.
The accounting work that accumulates at the end of the period effects the progress
of other sections, and the method of calculating the cost of ex-warehouse products does
not meet the information's deadline requirements, among other drawbacks. At the
moment of the transaction, accounting information.

3.2. Suggestion to complete accounting procedures for raw materials and tools
at Nam Kinh construction and investment joint stock company
3.2.1. Management of raw materials and tools:

Implement a reliable inventory management system: It's critical to have a reliable

system in place to keep track of instruments and raw materials. This entails keeping
track of stock levels, documenting incoming and outgoing inventory, and performing
routine physical inventory checks.
Classify raw materials and tools: It's crucial to classify raw materials and tools
according to their worth, purpose, and other pertinent aspects. This can aid in
establishing priorities for inventory management and in spotting any inconsistencies or
anomalies.
Regular audits are a good idea because they can help you find any discrepancies or
anomalies in the inventory records. Additionally, it can ensure that the inventory is
handled effectively and efficiently.
Implement appropriate controls: In order to avoid theft and improper inventory
management, it is crucial to implement appropriate controls. This entails putting in place
entry controls, keeping accurate records, and regularly reviewing inventory records.
A company can make sure that its inventory records are accurate and up-to-date, as
well as that its raw materials and tools are managed effectively and efficiently by putting
these processes into place.
School of Accounting and Auditing - National Economics University

3.2.2. T-account, cost flow methods, recording methods:

Utilize T-accounts for tools and raw materials: T-accounts can be helpful for
monitoring the flow of expenses for tools and raw materials. Each inventory object
should have its own T-account, in which all transactions pertaining to it should be
recorded.
Regularly reconcile your accounts: To find any discrepancies or irregularities,
regularly compare the inventory data with the physical inventory counts. By doing this,
you can make sure that the inventory records are accurate and current and that the cost of
products sold is calculated correctly.
A company can guarantee accurate tracking of inventory, cost of goods sold, and the
value of ending inventory by incorporating these ideas and practices into accounting
processes for raw materials and tools.

3.2.3. Accounting documents and documents transfer:

Create a method for the transfer of accounting documents related to inventory
transactions between the various departments or people in charge of inventory
management. This can involve the physical or electronic transfer of papers like logbooks
or file folders.
Utilize document management tools: Utilize a system to monitor the transfer of
papers between groups of people or entities in charge of inventory management. This
may involve scanning papers as they are transferred using barcodes or RFID technology.
Securely keep documents: Keep all accounting records pertaining to inventory
transactions in a safe place with only authorized employees having access to it. By doing
this, you can prevent the papers from being destroyed, stolen, or lost.
By incorporating these practices into accounting procedures for raw materials and
tools at a firm, the accuracy and completeness of inventory records can be improved.
This will help ensure that the firm has an accurate understanding of its inventory levels,
cost of goods sold, and value of ending inventory.

3.2.4. Detailed accounting books:

Keep an accurate inventory ledger: For each raw material and tool object, make a
distinct inventory ledger. Including purchases, sales, transfers, and adjustments, note
every inventory transaction involving that particular object.
Track expenses separately: Include both direct costs (such as the purchase price) and
indirect expenses when calculating the cost of each inventory item. (such as shipping
School of Accounting and Auditing - National Economics University

and handling fees). This will make it easier to calculate ending inventory value and cost
of products sold with accuracy.
The precision and thoroughness of inventory records can be increased by integrating
these practices into the accounting processes used by a company for raw materials and
tools. By doing this, the company can make sure that its knowledge of its inventory
levels, cost of goods sold, and value of ending inventory is accurate.

3.2.5. General accounting books:

Reconcile regularly: Regularly reconcile the general ledger with other accounting
records, such as bank statements or inventory counts. This will help ensure that all
accounting records are accurate and up-to-date.

3.2.6. Financial reports related to raw materials and tools:

A few reports are necessary for efficient financial management when it comes to
raw material and tool accounting processes. Here are some ideas for reports that could
be introduced or for reports that could be modified:
Report on scrap: This document should include information on any scrap or waste
generated during the manufacturing process. The cause, expense, and volume of the
scrap should all be mentioned. This report is crucial for finding inefficiencies and waste
in the manufacturing process.
To better serve the requirements of the company, it might be necessary to make
changes to the structure and content of the current reports. For instance, to provide a
more in-depth perspective of the inventory, the inventory report might need to be
divided by category or location. It may be necessary to provide more specific
information in the COGS report regarding employee costs or overhead costs. The reports
must be routinely reviewed and updated to guarantee that they contain the data required
for efficient financial management.
School of Accounting and Auditing - National Economics University

CONCLUSION

In the process of production and business activities of companies in general and

Nanjing companies in particular, the main purpose is to generate more profits; This is
an important issue that companies all care about. To solve this problem, it is
imperative that the company's products must ensure quality and meet standards. To
make a profit while still standing firmly in the market, this is not an easy task.
Therefore, it requires the efforts of the leadership and all employees in the company to
perfect and improve the management and production organization of Nanjing
company.
On the basis of the theory learned at school and experienced practical exposure at
the company, along with their own efforts and the dedicated help of the instructors, the
members of the department. The accountant provided the data for me to complete the
thesis on material accounting at the company.
However, the internship period is short and the knowledge is limited, so the initial
approach to accounting is still difficult. This report stops to a certain extent and cannot
avoid shortcomings. Therefore, I look forward to receiving the help and comments of
the teachers in the school and the brothers and sisters in the accounting department to
complete this topic and help me gain more valuable experience in doing business.
premise for future practical work.
Through this, I would like to express my deep gratitude to the teachers, teachers
and all the brothers and sisters in the accounting - finance department of Nanjing
company. Especially, I would like to thank Ms. Thuy, who directly guided and helped
me to complete this graduation thesis well.
Once again I sincerely thank!
School of Accounting and Auditing - National Economics University

REFERENCES

COMMENT OF COMPANY

APPENDIX