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NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAMS
BACHELOR THESIS
Major: Advanced Accounting
ACCOUNTING FOR RAW MATERIALS AT BUT THAP GARMENT

AND FASHION JOINT STOCK COMPANY
Student’s name: Phan Van Vu
Ha Noi, 2023
NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAMS
BACHELOR THESIS
ACCOUNTING FOR RAW MATERIALS AT BUT THAP GARMENT

AND FASHION JOINT STOCK COMPANY
Student : Phan Van Vu

Major : Accounting
Class : Advanced Accounting 61
Student’s ID : 11195819
Supervisor : Assoc. Prof. Nguyen Thanh Hieu
Ha Noi, 2023
ACKNOWLEDGEMENTS
The completion of this study internship report has been an incredible journey
for me and my personal development, and I would want to spend this part personally
sending my appreciation to all of the assistance that I have received during the process,
from my supervisors and But Thap Garment and Fashion joint stock company.
First and foremost, I want to voice my deepest gratitude to my supervisor,
Assoc. Prof. Nguyen Thanh Hieu, who has been incredibly supportive to me since the
first day. Without her sound and timely advice, I would have been lost during this
process. The criticality in her feedback did not only help me to improve this paper, but
it also contributed a lot to my critical thinking, which I deem to be useful in my future
career.
Second, I sincerely extend my appreciation to Mr. Le Thanh Truong - Director
of But Thap Garment and Fashion joint stock company for giving me an opportunity to
work as an accounting intern, and also to Ms. Nguyen Thi Van – Chief Accountant,
who was in charge of managing me during my internship, and all the accounting
members of the enterprise have helped me a lot.
Last but not least, I would like to thank the School of Advanced Educational
Programs (AEP) for helping students put knowledge into practice and obtain realistic
working experience. Thank you for encouraging me to step outside of my comfort
zone as well as for my consistency. I am looking forward to receiving valuable
comments from teachers so that my knowledge in this field can be more complete and
at the same time have additional conditions to improve my knowledge.
Thank you, everyone!
Table of Contents
INTRODUCTION.......................................................................................................1
CHAPTER 1: FEATURES OF RAW MATERIALS AND MANAGEMENT OF
RAW MATERIALS AT BUT THAP GARMENT AND FASHION JOINT
STOCK COMPANY...................................................................................................3
1.1. Features of raw materials at firm But Thap Garment and Fashion joint
stock company..........................................................................................................3
1.1.1. Characteristics of Raw materials at But Thap Garment and Fashion
joint stock company..............................................................................................3
1.1.2. Classification and code of raw materials at But Thap Garment and
Fashion joint stock company................................................................................4
1.1.3. Valuation for raw materials.......................................................................5
1.2. Features of supply chain for raw materials at But Thap Garment and
Fashion joint stock company...................................................................................8
1.2.1 Procedure for receiving raw material.........................................................9
1.2.2 Procedure for storing raw material..........................................................11
1.2.3 Procedure for delivering raw material.....................................................12
1.3. Features of organization of raw materials at But Thap Garment and
Fashion joint stock company.................................................................................13
CHAPTER 2: CURRENT SITUATION OF ACCOUNTING PROCEDURES
FOR RAW MATERIALS AT BUT THAP GARMENT AND FASHION JOINT
STOCK COMPANY..................................................................................................15
2.1. Detailed accounting for raw materials at firm But Thap Garment and
Fashion joint stock company.................................................................................15
2.1.1. Accounting documents and procedure....................................................15
2.1.2 Detailed Recording Process.......................................................................29
2.2. General Accounting for raw materials at But Thap Garment and Fashion
joint stock company................................................................................................35
2.2.1. Accounts used at But Thap Garment and Fashion JSC.........................35
2.2.2. Recording process of materials at But Thap Fashion and Garment JSC
.............................................................................................................................. 37
CHAPTER 3: COMPLETING ACCOUNTING PROCEDURES FOR RAW
MATERIALS AT BUT THAP GARMENT AND FASHION JOINT STOCK
COMPANY................................................................................................................41
3.1. Assessing the current accounting for raw materials and tools at But Thap
Garment and Fashion joint stock company..........................................................41
3.1.1. Advantages.................................................................................................41
3.1.2. Disadvantages............................................................................................44
3.2. Recommendations for improving accounting of materials at But Thap
Garment and fashion joint stock company...........................................................46
3.2.1. Management of raw materials.................................................................46
3.2.2. T-account, cost flow methods, recording methods..................................47
3.2.3. Accounting documents and documents transfer.....................................49
3.2.4. Detailed accounting books........................................................................50
3.2.5. General accounting books.........................................................................50
3.2.6. Report of raw materials............................................................................50
CONCLUSION..........................................................................................................52
STATUTORY DECLARATION
I hereby declare that this is my accounting internship report. The statistics and
study findings were generated by the But Thap Garment and Fashion Joint Stock
Company's Accounting Department and were not plagiarized from any other sources.
Moreover, in the report, there are a number of references that have been cited and
clearly annotated. I would like to take full responsibility to the department and school
for this commitment.
I herewith formally declare that I myself have written the submitted Bachelor
Thesis independently. I did not use any outside support except for the quoted literature
and other sources mentioned at the end of this paper.
I clearly marked and separately listed all the literature and all other sources which I
employed producing this academic work, either literally or in content.
Hanoi, May 2023
Phan Van Vu
LIST OF ABBREVIATIONS
Acronyms Meaning
COGS Cost of goods sold
No. Number
JSC Joint Stock Company
VAT Value added tax
VND Vietnam Dong
LIST OF TABLES
Table 1 - 1: Material code at But Thap Garment and Fashion JSC................................5
Table 2 - 1: VAT invoice for purchase of cotton 17
Table 2 - 2: VAT Invoice for the delivery of cotton...............................................................................18

Table 2 - 3: Minute on testing raw materials for cotton.......................................................................19
Table 2 - 4: Goods received notes for cotton....................................................................................20
Table 2 - 5: VAT Invoice for purchase of thread...................................................................................21
Table 2 - 6: Minutes on testing raw materials for thread.....................................................................22
Table 2 - 7: Goods received note for thread.........................................................................................23
Table 2 - 8: Request for supply of raw materials - Cotton....................................................................25
Table 2 - 9: Goods dispatched note - Cotton........................................................................................26
Table 2 - 10: Request for supply materials – Threads...........................................................................27
Table 2 - 11: Goods dispatched note - Threads....................................................................................28
Table 2 - 12: Warehouse Card for Cotton.............................................................................................30
Table 2 - 13: Warehouse Card for White Thread..................................................................................31
Table 2 - 14: Warehouse Card for Black Thread...................................................................................32
Table 2 - 15: Detailed Ledger of material for Account 152 – Cotton....................................................32
Table 2 - 16: Detail Ledger of Material for Account 152 – White Thread.............................................33
Table 2 - 17: Detail Ledger of Material for Account 152 – Black thread...............................................33
Table 2 - 18: General account of Input – Output – Balance..................................................................34
Table 2 - 19: General Ledger................................................................................................................38
Table 2 - 20: General Ledger of Account 152.......................................................................................39
LIST OF FIGURES
Figure 1 - 1: The raw materials flow in But Thap Garment and Fashion JSC................8
Figure 1 - 2: Raw materials receiving procedure.........................................................10
Figure 1 - 3: But Thap Garment and Fashion JSC ‘s organizational structure.............13
Figure 2 - 1: The flow of accounting documents for received materials......................16

Figure 2 - 2: The flow of accounting documents for dispatched materials...................24
Figure 2 - 3: The Parallel Method................................................................................29
Figure 2 - 4: The accounting form of General Journal.................................................37
INTRODUCTION
During the initial half of 2022, the Vietnam Textile and Apparel Association
has itemized the cost encumbrance borne by enterprises to succinctly enumerate the
primary drivers behind the perpetual escalation in the price of raw materials. The
considerable inflationary pressure witnessed across leading textile and garment
consuming markets in Vietnam, coupled with the convoluted dynamics of the Russia-
Ukraine conflict and transportation expenses, has contributed to an approximate 20-
25% surge in the overall cost borne by enterprises.
To increase competitiveness, survive, and develop in the garment industry,
businesses must pay attention to planning and controlling costs. For garment
manufacturing enterprises, product cost calculation is important because it is the
leading indicator to evaluate the level of effective production activities in the business.
Therefore, the organization of material accounting is also an issue worthy of attention
by garment enterprises under the current conditions. If the management of raw
materials is properly operated, it can be considered a useful measure to reduce costs
and increase profits for the company.
Recognizing the critical role of accounting in managing raw materials and its
impact on overall production and business operations, I have undertaken my
graduation thesis on the topic “Accounting for Raw materials at But Thap Garment
and Fashion joint stock company”. In this thesis, there are two main research
subjects:
 Examining accounting for raw materials at But Thap Garment and Fashion joint
stock company in accordance with Circular 200/2014/TT-BTC dated December
22nd, 2014, Vietnamese Accounting Standards issued by the Ministry of Finance
to conduct accounting procedures and prepare financial statements.
 Making recommendations to But Thap Garment and Fashion joint stock
company to complete accounting for raw materials.
In 2022 and 2023, I focused my research on theoretical and practical challenges related
to raw material accounting from a financial accounting approach.
1
During my internship at But Thap Garment and Fashion joint stock company, I
gathered primary and secondary data to ensure that all of the information in the thesis
was accurate.
Primary information: I interviewed administrators at But Thap Garment and
Fashion joint stock company, such as the Director, Chief Accountant, accountants in
charge of each accounting section, and a few other related employees to gain a
thorough understanding of raw material accounting issues in preparation for thesis
implementation. I have prepared some interview questions as well as an interview
schedule.
Secondary data: all accounting books pertinent to my thesis topic, such as
General Ledger, Detailed Book, Accounting voucher, and so on.
The structure of the thesis
Chapter 1: Feature of raw materials and management of raw materials at But Thap
Garment and Fashion joint stock company.
Chapter 2: Current situations of accounting for raw materials at But Thap Garment and
Fashion joint stock company.
Chapter 3: Completing accounting for raw materials at But Thap Garment and Fashion
joint stock company.
2
CHAPTER 1: FEATURES OF RAW MATERIALS AND MANAGEMENT OF
RAW MATERIALS AT BUT THAP GARMENT AND FASHION JOINT
STOCK COMPANY
1.1. Features of raw materials at firm But Thap Garment and Fashion joint
stock company
1.1.1. Characteristics of Raw materials at But Thap Garment and Fashion joint
stock company
The material has two main characteristics:
 Materials participate in only one business cycle.

 When participating in the production and business process, they are completely
consumed and changed in their original physical form to create the physical
production form of the product.
Raw materials are a crucial factor for many companies involved in the garment
manufacturing industry. The product's quality and durability are significantly
influenced by its raw material quality as well as by its texture and design.
It is important for But Thap Company to prioritize the quality of raw materials,
given their primary market of international consumers who seek high-quality goods
and unique designs. Depending on the product's design and intended function, each
step of the extensive manufacturing process may require a distinct type of material.
Within the same production line, multiple fabric resources can be utilized to create a
diverse range of garments, highlighting the industry's abundance and variety of input
materials. Therefore, But Thap Company sources and employs a vast array of
materials in various forms, styles, textures, and colors.
While fabrics serve as the cornerstone of garment production, relying solely on

them for clothing manufacturing is not feasible. Supplementary materials, such as
trims and accessories, are often necessary to enhance the aesthetics and functionality
of garments, or to meet client demands. Although both trims and accessories fall under
3
the category of indirect materials, they constitute distinct concepts. Trimmings, such as
buttons, beads, badges, and zippers, are directly sewn onto garments for functional
purposes. Conversely, accessories are used for decorative purposes and are not
typically attached to garments via sewing. Examples of accessories include hangtags,
pins, collar stands, elastic bags, and cartons.
The apparel industry is commonly recognized as a market driven by buyers, where

the majority of raw materials are sourced from exporting countries around the world.
As previously mentioned, But Thap Company, a business specializing in apparel
exports, places great importance on sourcing high-quality raw materials that meet the
demands of their partners. Despite the growth of Vietnam's textile and garment
industry, the domestic supply of raw materials remains limited and often fails to meet
customers' stringent requirements. Therefore, But Thap Company predominantly
procures their materials from overseas, either through direct supply from processors or
outsourcing through other businesses. Only a small number of materials are purchased
domestically. The company imports materials from various countries, including
Taiwan, China, Thailand, Japan, Germany, and the United States of America; with
China being the primary source. With these factors in mind, the management of
materials is of utmost importance for the company's production and business
efficiency evaluation.
1.1.2. Classification and code of raw materials at But Thap Garment and Fashion
joint stock company
There are several kinds of raw materials used by But Thap company, each with
unique characteristics and applications. Thus, it is essential to classify raw materials
accurately to ease their administration and precise accounting. In recognition of this,
the company classifies its materials in the following ways:
 Direct Raw Materials: fabrics (such as cotton, denim, polyester, wool, khaki,
corduroy, silk, etc.). For the value of use, there can be 2 main types of fabrics
which are shell and lining. The shell fabric is the outer layer of the garment
4
while the lining is the inner layer, next to the body. Besides, thread, yarn,
wadding, and dyeing chemicals can also be considered as direct materials.
 Indirect Raw Materials: comprise trimmings (beads, badges, buckles, buttons,
bands, zippers, ...) and accessories (collar stands, hang tags, plastic bags, carton,
...)
 Waste Materials: deteriorated materials, scrap cloths (materials that do not meet
the prescribed technical standards and are recovered from the production
process).
The aforementioned classification system streamlines the process of material
management for the company. With the implementation of appropriate storage
categorization, the organization can more effectively monitor the variability of raw
materials.
 Code of raw materials

Effective management of raw materials is crucial to the seamless operations of any
organization. At But Thap Garment and Fashion JSC, we recognize that our business
involves the utilization of diverse materials in significant quantities from multiple
suppliers. Consequently, the implementation of a comprehensive material coding
system forms the bedrock for our information management strategy. This system
facilitates the systematic monitoring of the flow of our raw materials, thereby
enhancing our overall efficiency. To illustrate some examples of our encrypted raw
materials, we have provided a table below.
5
Table 1 - 1: Material code at But Thap Garment and Fashion JSC
Group Item Main raw materials Material Code

01 Fabric
001 Cotton 100% 50
002 Cotton 70% Nylon 30% 51
003 Polyamide 95% Elastane 5% 52
004 Cotton 97% Elastane 3% 53
005 Nylon 97% Spandex 3% 54
006 Nylon 96% Elastane 4% 55
… …
02 Zipper P25
03 Thread
001 White thread 40/2, 4000 m/coil P11
002 Black thread 60/3, 5000 m/coil P12
04 Others
001 Needle size 65x9 P1
002 Needle 75x11 P2
003 Needle 90x14 P3
004 Rubber band P80
005 Hang tag P100
006 Plastic bag P150
007 Carton P151
008 Velcro (size 20-50mm) P152
009 Bell loop C84 P187
010 Bell loop C92 P188
Source: Accounting Department at But Thap JSC
1.1.3. Valuation for raw materials

a) Received materials valuation method
The actual price of raw materials includes the purchase costs, processing costs as well
as other directly related costs incurred to obtain raw materials at the current time and at
the current state. Also, the cost measurement of received materials differs by each
source, illustrated as follows.
6
 For the materials purchased from foreign manufacturers
The company's raw materials are mainly imported from foreign sources (outsourced by
processing suppliers).
Non-
Cost of
Purchase Direct/Related Import refundable Deductions
received = + + + -
price Cost duty taxes (if (if any)
material
any)
It is important to note that the price stated on the invoice does not encompass value-
added tax (VAT). Additionally, non-refundable taxes, including special excise duty,
import VAT, and environmental protection tax will be incurred. The expenses
connected to the procurement process, such as transportation fees, loading and
unloading charges, storage expenses, insurance, remuneration for procurement
personnel, and other related costs, will be considered as purchase costs. Discounts
applicable to trades, sales, etc., will be categorized as deductions.
To ensure trading with foreign companies is carried out smoothly, exchange rate
matters are given high priority and the purchase price is determined on a case-by-case
basis:
 If payment is transferred all at once before receiving the raw materials, the
purchase price will be calculated at the exchange rate on the payment date.
 If payment is transferred at once after receiving the raw materials, the
purchase price will be calculated at the exchange rate on the customs
declaration.
 If payment is transferred multiple times before and after receiving the raw
materials, the purchase price will be calculated according to the exchange
rate on the customs declaration.
7
 For the materials purchased from domestic manufacturers
Purchas Direct/
Cost of received material = + - Deductions (if any)
e price Related Cost
 For the materials processed and repaired by the company

Cost of materials for Cost for
Cost of received material = +
processing processing
 For the materials processed and repaired by outsourcing

Cost of materials Cost for
Transportatio
Cost of received material = for outsourced + + processin
n cost
processing g
 For the materials received from the clients to process

For orders that the company is not responsible for purchasing raw materials but
received from the partner, the company does not calculate the cost of those materials,
only the prices of raw materials purchased and sold. The company calculates the
consumption norms to ensure the completion of orders according to the partner's
request.
Example 1.1: According to the invoice dated October 12 th in 2022, the company
purchased 1,200 meters of cotton from VINH PHUC EXPORT GARMENT
COMPANY LIMITED to be used in the manufacturing process. The unit price of the
material is VND 55,000 per meter (excluding VAT). Delivery and unloading fees are
VND 1,100,000 including VAT 10%.
Cost of received materials = VND 55,000 x 1,200 units+ VND 1,100,000/1,1
= VND 67,000,000
Unit cost of the materials received = VND 67,000,000/1,200 units = VND 55,833.33
8
Example 1.2: On October 25th in 2022, the company purchased 130 coils of white
thread and 150 coils of black thread from VINH PHUC EXPORT GARMENT
COMPANY LIMITED to be used in the manufacturing process. The unit price of the
white thread is 17,900 VND per coil and the black thread is 21,200 VND per coil
(without VAT). (No shipping cost)
Cost of materials received.
 White thread = 17,900 VND x 130 units = 2,327,000 VND

 Black thread = 21,200 VND x 150 units = 3,180,000 VND
b) Issued materials valuation method
Raw materials of But Thap company are procured from different sources and at
different times, hence, there will be inevitable disparity in price of the materials in the
same category. Therefore, it is indispensable to have a rational and efficient measure
to keep track of the cost.
The company follows the “First in First out (FIFO)" method to determine the cost of
dispatched raw materials. This approach implies first purchased or imported materials
should be dispatched first then followed by the newer materials.
Example 1.3: On November 25th, 2022, the company dispatched 40 coils of white
thread and 25 coils of black thread.
Provided that the beginning inventory of white thread: 12 coils; 19,000 VND/unit.
the beginning inventory of black thread: 20 coils; 19,800 VND/unit.
The materials received during the period:
White thread: 130 coils; 17,900 VND/unit.
Black thread: 150 coils; 21,200 VND/unit.
Issued materials valuation:
9
 White thread: 12 units x 19,000 VND + 28 units x 17,900 VND = 729,200
VND
 Black thread: 20 units x 19,800 VND + 5 units x 21,200 VND = 502,000 VND
1.2. Features of supply chain for raw materials at But Thap Garment and
Fashion joint stock company
The manner in which raw materials are controlled and handled can immensely affect
productivity along with the cost of production. With this in mind, the company
attaches great importance to the establishment of an efficient and scientific material
circulation system to enhance the continuity and synchronization of the production
line. The circulation involved several processes from receiving raw materials to
dispatching them to the manufacturing of the desired product.
The flow chart below indicates 3 main processes which simplify how raw materials are
transferred from one stage to another.
Figure 1 - 1: The raw materials flow in But Thap Garment and Fashion JSC
RECEPTION
STORAGE
DISPATCH
1.2.1 Procedure for receiving raw material.

The company's material procurement strategy depends on a number of elements, for
instance, production plan, in-stock materials, market price of raw materials, etc. The
planning activity is of special interest to the company to provide materials in sufficient
quantity and high quality in agreement with the customers' orders.
Raw materials of the company are formed from many different sources: purchasing
from domestic and foreign suppliers, self-processing, outsourced processing and even
waste materials. The company monitors and manages the receipt of raw materials for
each source.
10
 For purchased materials
The vast majority of But Thap Company's raw materials are purchased from outside
suppliers and mostly imported from foreign manufacturers. The company usually buys
materials from familiar suppliers with long-term business relationships. However, for
several contracts from the clients require the company to import raw materials from
them or purchase materials at their designated sources, the company will comply with
the customers' requirements.
Based on the plan for the number of raw materials needed, the import-export
department will draw up a purchasing plan and submit it to the general manager for
approval. When the plan is approved, it will be transferred to the import - export
department. The department will draft a purchase contract and the company's
representative will sign a contract with the seller. After that, the warehouse keeper and
the material accountant will be informed of the quantity and time of the imports to
prepare for the reception.
At the time the materials arrive, based on the invoice, the testing committee, including
the technical representative and the warehouse keeper, shall inspect the quantity,
quality as well as the unit price of the materials and all the related documents. If the
materials meet the requirements, the material accountant will make "goods received
notes" and transfer them to the warehouse keeper for input transaction. The warehouse
keeper will arrange the materials in appropriate areas and record the information on the
warehouse card. All information on materials will then be updated immediately into
the warehouse management system. The items which do not conform with the
specifications shall be refused and the technical department will record the
discrepancy and notify instantly to the proposing unit in order to promptly remedy or
re-import adequate standard materials.
The "Goods received note" will be formed and saved into 2 copies: a copy for storage
and a copy for the warehouse keeper to record and submit to the accounting
department for posting.
11
12
Figure 1 - 2: Raw materials receiving procedure.
Import - Export Inspection Accounting Warehouse Accounting

Director
Department committee Depart ment Keeper Department
Receive, record
Prepare Approve the plan Prepare "Goods
Inspect the warehouse card
procurement and sign the Received Note" Record the raw
received raw and arrange the
plan and draft contract with the for the raw meterials
materials raw materials in
the contract supplier materials
warehouses
12
 For processed materials
In the realm of material processing, there are two primary classifications: those
processed internally by the company and those handled through outsourcing
agreements. Upon receipt of either type of material, the warehouse keeper and
technical department initiate an inspection procedure to verify that the materials
conform to specific requirements. From there, the receipt process closely mirrors that
of newly purchased materials. In the event that any defects are discovered, the
materials are sent back to the processing site for remediation in order to satisfy
applicable standards.
 For waste materials

But Thap Company, as a business operating in the clothing industry, is faced with a
significant volume of apparel waste materials, including scrap cloths, rags, excess
fabrics, yarns, and other deteriorated materials. In order to reduce production costs, the
company has implemented a process to reclaim these waste materials for recycling or
resale to other companies. These recovered scraps undergo inspection by production
preparation staff and are entered into the warehouse as purchased raw materials. An
official "goods received note" is created, with two copies made: one for the workshop
and the other for the warehouse keeper to record into the warehouse card, before
sending the necessary documentation to the accounting department for bookkeeping.
1.2.2 Procedure for storing raw material.

Preserving raw materials in a proper and scientific way not only contributes to the
production supply but also prevents possible damage and loss to help the company
save costs. Therefore, the company has invested quite thoroughly in the infrastructure
and warehouse directors and staff to organize a system of storage for this activity.
At But Thap Company, each workshop has its own separate material warehouse which
helps the manufacturing process avoid unnecessary travel times and delays in delivery,
loading and unloading raw materials.
Due to the diversity in types of materials and the nature of their storage conditions, the
materials are arranged neatly and divided into specific areas according to their
13
characteristics, classification and the ordering company's name code. This suitable
organization and indexing system provide the right support for the warehouse
managers to easily monitor the fluctuations of raw materials and ensure timely supply
for production.
Each warehouse has a warehouse manager and a security guard to avoid the situation
of damage due to physical and chemical impacts as well as protecting the raw
materials for the company from being lost. Additionally, the company also takes fire
prevention and protective solutions in accordance with the state regulations, with the
purpose of ensuring safety and reducing damage when a fire incident occurs.
At the end of the month, the warehouse keeper conducts an examination of in-stock
raw materials in order to check and detect any cases of deficiency or impairment to
take appropriate measures promptly, avoid adverse effects to the production. Forms of
examination can be varied, for instance, weighing, measuring, physical counting,
quality checking, etc., depending on the characteristics of each type of material. To
keep track of the materials, the warehouse keeper manages the materials by warehouse
card. Warehouse cards are made separately for each type of material. The warehouse
keeper calculates the amount of inventory of each type of raw material both in as a
basis for comparison with the detailed book made by the material accountant.
After that, the accountant makes a comparison between the data in the accounting
book and the actual inventory data. In case of detecting discrepancies, the accountant
will make a record in time notify the managers to find solutions to handle deviations
appropriately.
1.2.3 Procedure for delivering raw material.

At But Thap company, dispatched materials are mainly used for manufacturing. The
amount of issued materials is based on the production demand and the consumption
norm of raw materials on the basis of the proposed production plan. In addition, the
company also has a small amount of recovered scrap materials which are exported for
selling purposes.
14
 The process of dispatching raw materials for production of the company
When there is a need for raw materials, the workshops calculate and prepare a "Bill of
materials" (BOM) or a "Request for supply materials" then send it directly to the
board of directors for consideration and approval.
The technical department receives the request and re-calculates the number of raw
materials needed based on the production plan assigned to the workshop and the pre-
established consumption norms, then transfer the request form to the accounting
department.
The material accountant conducts inventory inspection. In case the quantity of the
requested materials is insufficient compared with the proposal, the situation will be
notified to the workshop for adjustment. On the other hand, if the quantity is
guaranteed comply with the request, the accountant prepares the "goods dispatch note"
and transfer it to the warehouse keeper to carry out the materials on demand.
The warehouse manager relies on the information on the "goods dispatched note"
(fully signed by the relevant division managers) to pick up and arrange the materials as
required; check the quality and actual condition of the materials before delivery.
The "goods dispatched notes" are made into 3 copies: one is saved at the billing
section; one is for the warehouse keeper records into the warehouse cards then
transfers to the accounting department for bookkeeping; and the last one is for the
recipient of the materials
15
Figure 1 - 3: Raw materials dispatching procedure.
Technical Accounting Warehouse Accounting

Workshops Director
Department Depart ment Keeper Department
Check the
Prepare a Calculate the inventory and Dispatch and
Approve the Record the raw
request for raw materials prepare "Goods record the raw
request meterials
materials needed Dispatched materials
Note
16
 The process of dispatching economical materials and waste materials for sale
With the consent of the general director, the sales department is responsible for send
the delivery order to the accounting department. After checking the inventory for the
saved or waste materials, the accountant will base on the information on the order to
issue a “goods dispatched note" (sales invoice) and transfer it to the warehouse keeper
to carry out the delivery upon the request. The “goods dispatched note" is made into
3 copies for the accounting department, the warehouse keeper and the recipient of the
materials.
The VAT invoice is made in 3 copies: 1 copy for the buyer, 1 copy for the accounting
department, 1 copy kept in the sales department.
17
1.3. Features of organization of raw materials at But Thap Garment and Fashion joint stock company
Figure 1 - 4: But Thap Garment and Fashion JSC ‘s organizational structure.
Executive Director
Industrial Human
Import - Export Technical Production Accounting
Engineering Resource
Department Department Department Department
Department Department
18
In the management of raw materials at But Thap Garment and Fashion JSC, the roles
and responsibilities of the relevant divisions along with individuals are described in
Figure 1 - 3 as follows:
❖ Executive Director: is the senior executive of the company and in charge of

operating the production and business activities of the company; negotiates and
represents the BOD to sign economic contracts with domestic and foreign clients and
material suppliers; evaluates and ratifies the requests for materials serving production
line; arranges and appoints members to suitable positions according to the production
needs of each stage and task.
❖ Import - Export Department: has the responsibility of managing and operating

import-export activities; finds partners that meet production requirements in a timely
manner; examines the raw materials orders and other documents related to the
purchase and import; coordinates with other relevant departments to ensure the input
supply for the production promptly and sufficiently.
❖ Technical Department: participates in inspecting the raw materials with the

warehouse keeper before being stored, and at the same time periodically check
inventory to detect inadequate raw materials for timely repaired and processing;
analyzes the ability to utilize materials to make adjustments when detecting excess
materials; establishes consumption norms of raw materials to control the proportion of
raw material costs in product costs; deploys technical management and supervision
tasks to make sure the production line operates smoothly.
❖ Industrial Engineering Department: has the role of the creation and implementation
of process enhancements and technology advancements; examining the production
schedules, procedures, requirements and relevant data; creating manufacturing
methods that optimize effectiveness and minimize waste.
❖ Human Resource Department: boosts workforce quality, establishes strategies for

the structure of the human resources apparatus, remuneration, and employee training
19
based on the company's actual annual situation. In addition, in order to satisfy the
demands of high business efficiency, the department actively investigates and
develops solutions to enhance and supplement the organizational structure. An annual
plan is in place to coordinate staff reward, discipline, labor management strategies, and
policies. This department also puts numerous other projects into action once the
general director has accepted them.
The human resource department will provide paperwork support to other divisions
within the corporation. Furthermore, it also reports to the director on the quality and
number of staff by monitoring, evaluating, and analyzing them. This also serves as a
link between the director and the other departments.
❖ Production Department:
 Ensure smooth production flow from the cutting section to finished garments.
 Ensure necessary Input in every section to keep balance in production flow with
minimum Work in Process.
 Make necessary input in every section to keep balance in the production flow.
 Maintain production logs against every order number and daily set a production
target and follow up every hour.
 Create on-time delivery with good quality products.
❖ Accounting Department: accountable for aiding the director in organizing and
coordinating accounting and statistics activities. Simultaneously, they check and
supervise the financial records and documentation of the enterprise. In charge of
ensuring efficient capital management and utilization, as well as producing annual
financial statements for managers and state officials. After the contract of both parties
is completed, the sales team will submit all sales invoices and payment records
(combining recently paid retail customers and unpaid invoices from other entities) to
the accounting department to record sales revenue, manage debts of the buyer, and
prepare financial reports on the enterprise’s financial situation.
20
As a Warehouse Keeper, the individual is responsible for the efficient
implementation of procedures pertaining to the receiving and dispatching of raw
materials:
 receives pertinent information regarding materials arrival and dispatching

decisions from their superior and meticulously verifies the relevant documents
to ensure authenticity and prevent errors.
 inspects the quantity and quality of the materials received, promptly alerting the
Import-Export and Accounting Departments upon detection of any anomalies.
 receives material-delivery documents, arranges for dispatching of raw
materials, and subsequently delivers them for bookkeeping purposes.
 maintains "goods received notes," "goods dispatched notes," and updates the
information on the warehousing cards to keep track of material inventory. The
materials are arranged according to the established regulations to retain their
functionality and ease management and location.
 to ensure safety, the Warehouse Keeper adheres to fire protection regulations.
As Material Accountants, their role is of utmost importance in the effective
management of raw materials for businesses. Their primary responsibilities lie in the
sphere of raw material management, which they execute with great proficiency:
 monitor and oversee the variations in the inflow and outflow of raw materials,
providing complete and timely documentation of such materials in terms of
their amount, quality and worth.
 carry out the precise determination and allocation of material costs within
production expenses in strict adherence to established company guidelines.
 engage in the process of stocktaking and re-valuation of all raw materials in
accordance with State regulatory requirements. This procedure is crucial in
identifying and addressing any occurrences of waste, absentees, stagnated or
deteriorating materials in a timely manner.
21
 conduct cross-referencing the data on the accounting ledgers with the
warehouse keeper's records in order to ascertain the precise inventory levels of
every material and to identify any discrepancies that may exist.
 assemble and disseminate information on the raw materials utilized in the
organization's financial statements, as well as examine business operations for
analytical purposes.
22
CHAPTER 2: CURRENT SITUATION OF ACCOUNTING PROCEDURES
FOR RAW MATERIALS AT BUT THAP GARMENT AND FASHION JOINT
STOCK COMPANY
2.1. Detailed accounting for raw materials at firm But Thap Garment and
Fashion joint stock company
2.1.1. Accounting documents and procedure
a) Name of accounting documents
The accounting documents exercised at, But Thasp Garment and Fashion joint stock
company are approved in compliance with the accounting voucher system provided
under the Circular 200/2014/TT-BTC, issued by the Minister of Finance.
 Goods - received Notes.

 Goods- dispatched Notes.
 Minutes on testing materials, tools, products and goods.
 Minutes on inventorying materials, tools, products and goods.
 Request for supply of raw materials.
 Purchase voucher, purchase contracts.
 VAT invoice.
Depending on some specific transactions or situations, the types and the number of
accounting documents needed will have some slight differences.
b) Flows of Accounting Documents
For received materials transactions
As mentioned above, depending on the circumstances, additional documents will be

needed, however, the following documents are used primarily in the process of
receiving materials at But Thap company:
 Purchase contract.
 VAT Invoice.
 Minutes on testing raw materials.
23
 Goods received notes.
The rotation process of the above documents is interpreted simply by the following
diagram:
Figure 2 - 1: The flow of accounting documents for received materials.
Purchase Contract
The raw materials are delivered to the warehouse along with the "VAT Invoice"
Prepare “Minutes on testing raw materials”
Material Accountant forms "Goods received note"
Warehouse keeper receives
The note and records on the warehouse cards
Warehouse keeper transfers "Goods received note" to the Material Accountant
Based on the demand for raw materials for manufacturing, the marketing Import-
Export Department will contact the supplier and conclude a purchase contract. After
the contract is approved and signed, the raw materials will be delivered to the
warehouse of But Thap company together with a "VAT Invoice" of the purchased
materials, including details of the materials in terms of quantity, types and price.
24
Example 2.1: On November 12th, 2022, the company purchased 1,200m of cotton, and
the VAT invoice received as follows:
Table 2 - 1: VAT invoice for purchase of cotton
25
Apart from that, the company also received a VAT invoice to charge for the delivery
fee of cotton to the company’s warehouse.
Table 2 - 2: VAT Invoice for the delivery of cotton
VAT INVOICE Series: 1C22TSB

Copy 2: For Customer Form : 000000007
November 12th, 2022
Issued: VINH PHUC EXPORT GARMENT COMPANY LIMITED
Tax Code: 2500634248
Address: Quang Vien Hamlet, Quang Yen Commune, Song Lo District, Vinh Phuc
Province
Tel: 0981 601 907
Bank account: 2805201002332 - AGRIBANK
Customer's name:
Company: BUT THAP GARMENT AND FASHION JOINT STOCK COMPANY
Tax Code: 2300783933
Address: But Thap Village, Dinh To Commune, Thuan Thanh District, Bac Ninh
Province
Tel: 0913 570 916
Payment Method: Bank transfer
Bank account:
No. Items Unit Quantity Unit Price Amount
A B C 1 2 3=1x2
1 Delivery fee 1,000,000
Total amount: 1,000,000

VAT rate: 10% VAT Amount: 100,000
Grand Total (in number): 1,100,000
Grand Total (in word): Seventy-two million and six hundred thousand Vietnam
dong
Buyer Issued Director
(Signature, full name) (Signature, full name) (Signature, stamp, full name)
Then, the inspection committee carries out an examination on the quantity, genre plus
other descriptions and prepares a "Minutes on testing raw materials". The minutes
26
must clearly state the testing committee's conclusions. The inspection committee
consists of the warehouse keeper, the representative of the technical department and
the delivery person.
Table 2 - 3: Minute on testing raw materials for cotton

BUT THAP GARMENT AND FASION JOINT STOCK COMPANY
But Thap Village, Dinh To Commune, Thuan Thanh District, Bac Ninh Province
Phone: 0913 570 916
MINUTES ON TESTING RAW MATERIALS

Code: BBKN05
Inspecting time: November 12 , 2022
th
Inspection Committee:
Mr./Mrs.: Le Van Hung Position: Technical Rep. Chief of committee
Mr./Mrs.: Pham Tue
Position: Warehouse Keeper Member
Thu
Mr./Mrs.: La Gia Bao Position: Shipper Member
Have inspected the following items:
Results
No Testing Uni Stated Not
Items Quantity of Quantity of
. method t quantity e
correct incorrect
Cotto Measurin
1 m 1,200 1,200 0
n g
Committee's conclusion: Passed
Warehouse keeper Chief Committee

(Sign, full name) (Sign, full name)
Predicated on the VAT invoice and the Minutes on testing materials, the material
accountant compares the information with the purchase contract and forms the “Goods
received Note” in 2 copies: one for storage and the other for the warehouse keeper.
According to the valuation method of received raw material mentioned above, the
transportation cost is included in the cost of the received materials. Therefore, the
27
price of received raw materials record on the “Goods received note” is VND
67,000,000 (as calculated in example 1.1)
Table 2 - 4: Goods received notes for cotton.

GOODS RECEIVED NOTE

November 12th, 2022
No.: BNK005
Shipper's name: La Gia Bao
According to Contract No … Date … Month … Year …
Received at Warehouse No.1
Uni Quantity Unit
No. Items Code Amount
t In voucher In reality price
1 Cotton 50 m 1,200 1,200 55,833.33 67,000,000
Total 67,000,000
Total amount in words: Sixty-seven million Vietnam dong.
Enclosed original documents: …
November 12th, 2022
Preparer Shipper Warehouse keeper Chief Committee
(Sign, full (Sign, full
(Sign, full name) (Sign, full name)
name) name)
The warehouse keeper receives the note along with the materials and updates the data
in the warehouse cards. After signing the note for confirmation, the warehouse keeper
sends it back to the accounting department for bookkeeping and preservation with
original documents.
Example 2.2: For the transaction on November 25th, 2022, the company purchased
130 coils of white thread and 150 coils of black thread from VINH PHUC EXPORT
GARMENT COMPANY LIMITED. The documents flow is described as followings:
28
Table 2 - 5: VAT Invoice for purchase of thread.
29
Table 2 - 6: Minutes on testing raw materials for thread
Phone: 0913 570 916
MINUTES ON TESTING RAW MATERIALS

Code: BBKN07
Inspecting time: November 25 , 2022
th
Inspection Committee:
Mr./Mrs.: Le Van Hung Position: Technical Rep. Chief of committee
Mr./Mrs.: Pham Tue Thu Position: Warehouse Keeper Member
Mr./Mrs.: La Hoang Bao Position: Shipper Member
Have inspected the following items:
Results
No Testing Stated
Items Unit Quantity of Quantity of Note
. method quantity
correct incorrect
White thread
1 Count Coil 130 130 0
40/2
Black thread
2 60/3 Count Coil 150 150 0
Committee's conclusion: Passed
Warehouse keeper Chief Committee

(sign, full name) (sign, full name)
After receiving the threads, the inspection process took place and the “Minutes on
testing materials” was formed. Without disparity, the material accountant prepares
the “Goods received note”, and the procedure went on.
30
Table 2 - 7: Goods received note for thread.
 For dispatched materials transactions

The documents mainly used in this process are:
 Request for dispatched materials

 Goods dispatched note
31
The following diagram briefly describes the flow of accounting documents for the
dispatched raw materials at But Thap Garment and Fashion Joint Stock Company
Request for Dispatched Raw Materials
Approve the request and form "Goods Dispatched Note"
Warehouse keeper receives the note and dispatches the required materials
Warehouse keeper records on the cards and transfers "Goods dispatched note" to
the Material Accountant
Figure 2 - 2: The flow of accounting documents for dispatched materials

When there is a need for materials supply, the production manager shall prepare a
request for the dispatch of raw materials and submit it to the director. After obtaining
approval, the request will be transferred to the accounting department for the material
accountant to prepare "Goods dispatched notes" into 3 copies. One copy is for
original storing, one copy is for the recipient of raw materials and the remaining is for
the warehouse keeper to deliver the required materials and recognize the transaction on
the warehouse cards.
Subsequently, the warehouse keeper signs and sends the Goods dispatched notes
back to the accounting department for recordings and keeping.
32
Example 2.3: On November 22nd, 2022, Workshop No.1 required to issue 15,000
meters of cotton for production.
Table 2 - 8: Request for supply of raw materials - Cotton

REQUEST FOR SUPPLY RAW MATERIALS

November 22nd, 2022
No.: ...
Proponent: Tran Vu Dung Department: Workshop No.1
Purpose: to serve the production according to Contract 07/2022/HDMM
No. Items Code Unit Quantity Note
1 Cotton 100% 50 m 15,000
November 22nd, 2022

Material Supply
Preparer
Director Chief Accountant Officer
(sign, full
(sign, full name) (sign, full name) (sign, full name)
name)
After receiving approval, the material accountant checked the inventory data and
realized:
 The beginning inventory for cotton was 14,325 meters with a value of VND
696,195,000 => unit price = VND 48,600
 The received cotton during the process was 1,200 meters with a value of VND
67,000,000 => unit price = VND 55033.33
Because the company applied the FIFO method, the material accountant calculated the
cost of dispatched materials and prepared the goods dispatched note as follows:
33
Table 2 - 9: Goods dispatched note - Cotton
34
Example 2.4: On November 25th ,2022, Workshop No.2 required to issue 40 coils of
white thread 40/2 and 25 Coils of black thread 60/3 for production.
Table 2 - 10: Request for supply materials – Threads

REQUEST FOR SUPPLY RAW MATERIALS

November 25th, 2022
No.: ...
Proponent: Vu Ha Anh Department: Workshop No.2
Purpose: to serve the production according to Contract 07/2022/HDMM
No Cod
Items Unit Quantity Note
. e
1 White thread - 40/2 - 4000m/coil P11 m 40
2 Black thread - 60/3 - 5000m/coil P12 m 50
November 25th, 2022

Director Chief Accountant Material Supply Officer Preparer
(Sign, full name) (Sign, full name) (Sign, full name) (Sign, full name)
Based on the accounting book:
 The beginning inventory of white thread: 12 coils _ 19,000 VND/Unit.

 The beginning inventory of black thread: 20 coils _ 19,800 VND/Unit.
The materials received during the period:
 White thread: 130 coils _ 17,900 VND/Unit.

 Black thread: 150 coils _ 21,200 VND/Unit.
Similar to the previous example, the material accountant calculated the cost of the
dispatched materials as presented in example 1.4 and prepared the following “goods
dispatched note”:
35
Table 2 - 11: Goods dispatched note - Threads
36
2.1.2 Detailed Recording Process
With a view to ensure a close monitoring of existing numbers and fluctuations of each
raw materials in terms of quantity, quality, type and value, the company adopts
“parallel card” method for detailed recording process. According to this method, the
accounting department shall coordinate with the warehouse keeper to account in detail
the raw materials based on the goods received/dispatched notes, from which are
recorded in the relevant card books.
Figure 2 - 3: The Parallel Method
37
 At the warehouse
The warehouse keeper relies on the notes of received goods and dispatched goods to
record the factual amount into the appropriate warehouse cards. Each type of material
is tracked on a particular card. The warehouse keeper must regularly collate the
number of materials on the warehouse card with the actual number of remaining
materials in stock. On a daily or periodic basis, after recording the cards, the
warehouse keeper must transfer all the receipt and dispatch documents to the
accounting department.
Example 2.5: On November 30th, 2022, based on the received and dispatched notes of
raw materials, the warehouse keeper recorded the warehouse cards as follows.
Table 2 - 12: Warehouse Card for Cotton

WAREHOUSE CARD
November 2022
No.: 01
Material Name: Cotton Unit: m
Material Code: 50
Voucher's Code Input/ Quantity Accountant's
No. Date Description
Input Output Output Date Input Output Balance Signature
Opening balance 14,325
1 12/11 PNK005 Purchase 12/11 1,200 15,525
2 22/11 PXK005 Dispatch 22/11 15,000 525
Total 1,200 15,000

Closing balance 525
This book includes 1 page, marked from page 01 to page 01
Opening book date: 01/11/2022
November 30th, 2022
Warehouse Keeper Chief Accountant Director
38
Table 2 - 13: Warehouse Card for White Thread
WAREHOUSE CARD
November 2022
No.: 01
Material Name: White thread 40/2_4000m/coil Unit: Coil
Material Code: P11
Opening balance 12
1 25/11 PNK007 Purchase 25/11 130 142
2 25/11 PXK007 Dispatch 25/11 40 102
Total 130 40
Closing balance 102
November 30, 2022
Number of raw materials at the end of the month = raw materials at the beginning of
the month + raw materials received during the month - raw materials dispatched in the
month.
39
Table 2 - 14: Warehouse Card for Black Thread
WAREHOUSE CARD
November 2022
No.: 01
Material Name: Black thread 60/3_5000m/coil Unit: Coil
Material Code: P12
Opening balance 20
1 25/11 PNK007 Purchase 25/11 150 170
2 25/11 PXK007 Dispatch 25/11 25 145
Total 150 25
Closing balance 145
November 30, 2022
 At the accounting department

As soon as collecting the material received - dispatched documents from the
warehouse, the material accountant checks and completes the documents then record
them in the detailed book. The accountant uses the detailed book to keep track of the
input as well as the output situation of the company`s raw materials. Detailed books
are opened for each type of material corresponding to the warehouse keeper's card.
For materials received from clients to process: detailed books only track quantity.
For materials purchased: detailed book keeps track of quantity and value criteria. For
materials to be stored, their values are based on the actual values for posting. For
materials to be dispatched, based on FIFO method to calculate the cost.
40
SUBSIDIARY LEDGER OF ACCOUNT

Account material 152
Material Name: Cotton Material Code: 50
Reciproc
Voucher Unit Input Output Balance
al
Description
Cod Quantit Quantit Quantit
Date Account Price Amount Amount Amount
e y y y
Beginning 696,195,00
balance 48,600 14,325 0
12/1 55,833.3 67,000,00 763,195,00
1 Purchase 331 3 1200 0 15,525 0
22/1 733,882,50
1 Dispatch 621 15,000 0 525 29,312,500
67,000,00 733,882,50
Total 1200 0 15,000 0 525 29,312,500
November 30th, 2022

Material Accountant Chief Accountant Director
(Sign, full name) (Sign, full name) (Sign, full name)
Table 2 - 15: Detailed Ledger of material for Account 152 – Cotton
40
Table 2 - 16: Detail Ledger of Material for Account 152 – White Thread
DETAILED LEDGER OF MATERIAL

Account 152
Material Name: White thread 40/2 Material Code: P11
Document Reciprocal Unit Input Output Balance
Description
No. Date Account Price Quantity Amount Quantity Amount Quantity Amount
Beginning balance 19,000 12 228,000
PNK007 25/11 Purchase 111 17,900 130 2,327,000 142 2,555,000
PXK007 25/11 Dispatch 621 40 729,200 102 1,825,800
Total 130 2,327,000 40 729,200 102 1,825,800
November 30, 2022

41
The detail material ledger of account 152 – Black thread was also formed similar to the above example.
Table 2 - 17: Detail Ledger of Material for Account 152 – Black thread
DETAILED LEDGER OF MATERIAL

Account 152
Material Name: Black thread 60/3 Material Code: P12
Document Reciprocal Unit Input Output Balance
Description
No. Date Account Price Quantity Amount Quantity Amount Quantity Amount
Beginning balance 19,800 20 396,000
PNK007 25/11 Purchase 111 21,200 150 3,180,000 170 3,576,000
PXK007 25/11 Dispatch 621 25 502,000 145 3,074,000
Total 150 3,180,000 25 502,000 145 3,074,000
November 30, 2022

At the end of the month, the accountant compares the figures on the detailed accounting books with the warehouse keeper’s card. If
there is no disparity, the accountant shall base on the total lines of each type of materials on the detailed books to make a general
account of input – output – inventory.
42
Table 2 - 18: General account of Input – Output – Balance
SUMMARY OF MATERIALS INPUT - OUTPUT - BALANCE

November 2022
Beginning balance Input Output Closing Balance

Cod Uni
Items Quantit Quantit Quantit
e t Amount Amount Quantity Amount Amount
y y y
67,000,00 733,882,50
50 m 14,325 1,200 15,000
Cotton 696,195,000 0 0 525 29,312,500
White
P11 Coil 12 130 40
thread 288,000 2,327,000 729,200 102 1,825,800
Black
P12 Coil 20 150 25
thread 396,000 3,180,000 502,000 145 3,074,000
… … … … … … … … … … …
1,475,908,65 72,507,00 735,113,70 813,301,95
16,935 1,480 15,065
Total 0 0 0 390 0
November 30th, 2022

43
2.2. General Accounting for raw materials at But Thap Garment and Fashion
joint stock company
In general, the accounting system of But Thap company was built following closely
the Circular 200 guidelines of the Ministry of Finance. For the accounting of inventory
in general and raw materials in particular, the company applies the "perpetual
method" in which accountants check and record the transactions regularly. This
method allows monitoring the fluctuations of materials on a regular and continuous
basis. At the same time, this method also plays an important role in providing the
necessary data for the management of production and business activities.
2.2.1. Accounts used at But Thap Garment and Fashion JSC

The system of accounts at But Thap Garment and Fashion JSC is registered and
implemented pursuant to the accounts system indicated in Circular 200. However, the
company has also opened several supplementary sub-accounts for the monitoring to be
easier, more precise and conform to the managers' specifications as well as for the
entries making to be more practical.
Fundamentally, But Thap Garment and Fashion JSC still maintains the key accounts,
but for those accounts that need to be specified, depending on the company's current
operations or the characteristics of the garment industry, the company opens a few
more detailed accounts describing in stage 2 to stage 3. Here are some illustrations of
the company's ledger accounts and their sub-ledger accounts:
Account 152_Raw Materials
 Account 152.1-Direct materials Account

152.11_Cotton Account
152.12_Polyester Account
152.13 Wool Account
152.14_Silk Account
152.15_Denim
 Account 152.2-Indirect materials
44
Account 152.21-Trimmings (such as threads, buttons, beads...)
Account 152.22-Accessories (such as plastic bag, chalk, carton…)
 Account 152.3 – Replaced supplies.

 Account 152.4-Fuels
 Account 152.5- Waste materials
The structure of Account 152 is illustrated by the following:
Account 152-Raw materials

 Actual cost of procured raw  Actual cost of raw materials
materials, processed materials by dispatched for production, sale,
company or outsourcing contract, outsourcing, contribution as
received as contribution or capital or other business activities.
received from other sources.  Cost of raw material returned to
 Cost of raw materials excess sellers or sales rebates.
detected when counting physical  Trade discounts on raw materials
inventory purchased.
 Trade discounts on raw materials
purchased.
 Cost of raw materials detected
lost when conducting physical
inventory count.
Actual cost of ending raw materials
inventory.
Other accounts related to the increased transactions:
 Account 111: Cash

 Account 112: Deposits
 Account 151: Goods in transit
 Account 331: Accounts payable to the sellers
 etc.
Other accounts related to the decreased transactions:
 Account 154: Expenses of work in progress
45
 Account 621: Cost of raw materials directly used.
 Account 622: Cost of direct employees
 Account 623: Cost of use of construction machinery
 Account 627: General production cost
 Etc.
2.2.2. Recording process of materials at But Thap Fashion and Garment JSC
Due to unique features of the clothing industry, the business size along with personnel
skills, the company is currently using the General Ledger system to file the paperwork
and record the transactions. This procedure is conducted in line with Vietnam’s
accounting principles and is facilitated by computer software.
Figure 2 - 4: The accounting form of General Journal
46
47
Throughout the process, if there is any transaction occurring, the accountants must report the data on the general journal on the
basis of the confirmed accounting vouchers and the associated documents. Such details would also be recognized within the
specified accounting books and cards as well as a ledger account.
Table 2 - 19: General Ledger

GENERAL JOURNAL
November 2022
Voucher Recorded Amount

Date Description Account
Code Date on Ledger Debit Credit
152 66,000,000
12/11 VAT Invoice 12/11 Purchase 1,200 m Cotton 133 6,600,000
331 72,600,000
152 1,000,000
12/11 VAT Invoice 12/11 Pay the delivery fee for the purchase of contton 133 100,000
111 1,100,000
621 733,882,500
22/11 PXK005 22/11 Dispatch 15,000 m Cotton for production
152 733,882,500
152 2,327,000
25/11 PNK007, VAT Invoice 25/11 Purchase 130 coils of white thread 133 232,700
111 2,559,700
152 3,180,000
25/11 PNK007, VAT Invoice 25/11 Purchase 150 coils of black thread 133 318,000
111 3,498,000
621 729,200
25/11 PXK007 25/11 Dispatch 40 Coils of white thread for production
152 729,200
621 502,000
25/11 PNK007 25/11 Dispatch 25 Coils of Black thread for production
152 502,000
This book includes … pages, marked from page 01 to page …
November 30th, 2022
Recorder Chief Accountant Director
47
Table 2 - 20: General Ledger of Account 152
GENERAL LEDGER
November 2022
Account Name: Material
Account number: 152
General
Voucher Accoun Amount
Date Description Journal
t
Code Date Page Line Debit Credit
1,475,908,65
Beginning balance
0
12/1 PNK00 12/1
Purchase 1,200 m Cotton 331 67,000,000
1 5 1
22/1 PXK00 22/1 733,882,50
Dispatch 15,000 m Cotton for production
1 5 1 621 0
25/1 PNK00 25/1
Purchase 130 coils of white thread 2,327,000
1 7 1 111
25/1 PNK00 25/1
Purchase 150 coils of black thread 3,180,000
1 7 1 111
25/1 PXK00 25/1 Dispatch 40 Coils of white thread for
729,200
1 7 1 production 621
25/1 PXK00 25/1 Dispatch 25 Coils of Black thread for
502,000
1 7 1 production 621
735,113,70
Total amount during the period 72,507,000
0
Closing balance 813,301,950
48
Opening date: 01/11/2022
November 30th, 2022
Recorder Chief Accountant Director
49
Table 2 Table 2 - 21: Minutes on inventorying raw materials
49
At the end of the month or the period, the material accountant and the warehouse
keeper conduct a physical examination on the inventory and prepare a "Minutes on
inventorying raw materials" (Table 2-22). They perform a test to validate and
analyze certain data in order to figure out whether or not the results are accurate and
balanced as well as find out if there are any loss, excess, damaged or outdated raw
materials in the warehouse. If there is any discrepancy or other problems, the
accountant must collate with relevant records and documentation in order to check any
mistakes and allow several corrections or adjustments to the journal or to inform the
superior if the matter becomes more severe. However, if there are no errors detected,
the chief accountant shall rely on these reports to prepare financial statements.
50
CHAPTER 3: COMPLETING ACCOUNTING FOR RAW MATERIALS
AT BUT THAP GARMENT AND FASHION JOINT STOCK COMPANY
3.1. Assessing the current accounting for raw materials and tools at But Thap
Garment and Fashion joint stock company
3.1.1. Advantages
a) Management of raw materials
The company has established positive, lasting relationships with customers and
acquired reliable purchasing sources. The planning and organizing of the process of
purchasing, receiving - dispatching, and stocking raw materials is done regularly and
relatively well. Through the management of invoices and purchase documents, the
company's skilled purchasing staff consistently ensures an adequate and timely supply
of raw materials for production.
Regarding the facilities, the warehouse system is entirely and logically arranged,
according to the company's material classification method, near the place of use,
avoiding unnecessary transportation costs from the warehouse to the factory.
Moreover, the company also takes safety precautions seriously so that the warehouses
are always ensured to be adequate and appropriately equipped with a fire protection
system to prevent any potential risk.
Regarding the management of materials, the company's materials include many types
with different specifications. Therefore, to manage them effectively, raw materials at
But Thap company are organized scientifically by using rational classification and the
proper coding system. Encryption provides a huge contribution to the administration of
accounting databases which helps the manager avoid confusing accounting subjects;
access the right materials more quickly and easily; as well as identify and organize
separate, clear accounting practices scientifically, creating the best favorable
conditions for tracking and management.
Regarding regulations on the procedures for inspecting the materials and the process of
delivery and receipt of documents in the delivery and receipt of materials, the
51
company has established an inspecting committee, so the purchased materials are
subject to a meticulously detailed inspection, both in quantity and quality. Not only
does this help the operation in smoothly and without any undesired mistakes but also
helps the accountants have enough necessary initial documents (records of testing
materials) in the accounting vouchers.
b) Accounting procedure for raw materials
The organization of the company's accounting status is built on a centralized model, it
is suitable to the characteristics and production scale of the company. The company's
departments and workshops closely coordinate with the accounting department,
ensuring the good performance of the accounting material takes place regularly and
smoothly.
 About the raw materials valuation methods
For the materials received, the valuation method applied by the company is pursuant
thoroughly to Circular 200 and VAS No.02 - "Inventory". The materials received are
accounted for under the historical cost basis and specified to each circumstance or the
source of the materials. This assists the company to closely track and record the true
value of materials received to help avoid unnecessary errors in the process of
determining the product cost.
For the issued materials, the company uses FIFO to calculate the value of raw
materials according to the actual cost of inventory on the basis of assuming which
materials are received first, they will be used first and calculated according to the unit
price of the previous receipt. This method brings about numerous advantages to the
company, which are:
 easy to apply since the raw materials will be accounted for following the rules
of natural flow, thereby reducing the company warehouse operation.
 helps the accountant calculate immediately the cost of each batch of materials
dispatched; guarantees the in-time supply of data for accounting records and
management.
 avoids the cost of destruction and liquidation of materials. First-received raw
materials will be issued first, thereby avoiding obsolete or outdated conditions.
52
This helps businesses avoid a significant cost of destroying or liquidating old
materials.
 limit the effects of inflation on materials. The first-purchased materials being
used first help to avoid the impact of changes in the value of raw materials on
the market, thus limiting the impact of inflation on the product.
 About the accounting documents
The accounting regime at the company is in accordance with the regulations of the
Ministry of Finance. The system of vouchers is organized legally, logically and
adequately. All the transactions related to the increase or decrease of raw materials are
ensured to have sufficient applicable accounting documents in order to provide the
legal basis and evidence for the accounting of raw materials. These are vouchers
prepared by the business itself and there are also documents prepared by other units
delivered to business such as sales invoices or VAT invoices. However, regardless of
the type of documents used, businesses still comply with the order of making,
approving and circulating documents to serve the recording of accounting books and
improve the efficiency of raw materials management at enterprises.
The process of document rotation complies with the regulations, ensures timely and
accurately reflects the transactions arising and economic information for each relevant
department.
 About the detailed recording process

Detailed accounting applies the method of parallel card recording. The feature of this
method is the use of detailed books to monitor regularly and continuously the
fluctuations of each raw material in both quantity and value, thus it is easy to detect
and handle any possible differences in time. The parallel card method is simple and
easy for accountants and warehouse keepers to record and collate. It would be more
convenient if the work was handled with the use of computers or accounting software.
Therefore, with this method, the accounting work ensures consistency in the scope and
method of calculating the criteria between accounting and related departments.
 About the general recording process
53
 The method of accounting for raw materials
The company applies "perpetual method" which supports the operation with several
utilities, such as: help the accountant determine and assess the quantity and value of
raw materials at each time of operation; capture and manage raw materials regularly
and continuously, contributing to quick and timely adjustment of the company’s
production and business activities; reduce errors in recording and management
between warehouse keepers and accountants.
 Account used.
Regarding the accounts used by the company, raw materials are accounted in
accordance with the accounts system prescribed by the Ministry of Finance. With the
characteristic of possessing a large and diverse number of materials, account 152 has
been detailed into level 2, level 3 and not to mention, all raw materials have been
encrypted to facilitate monitoring and management. The fluctuations of materials in
the manufacturing process after being reflected in accounting vouchers will be directly
reflected in accounts of level 1, level 2 and level 3 about materials. This method
classifies and accounts raw materials to reflect with the managers the existing situation
and the fluctuations of raw materials on a regular, continuous and systematic basis.
 Accounting book
Regarding the accounting book system, accounting accounts, the company applies
according to the issued form in Circular 200. The form of company using General
Journal is a suitable form of bookkeeping. This is a widely used accounting format
with the advantage of organizing a fairly simple book system, easy to implement and
especially suitable for machinery accounting. The company has equipped the
accounting department with Fast Accounting software which provides many
advantages: the ease of use, providing fast, accurate information, good performance of
user management. The application of machine accounting to the company has
delivered huge support to the accountants by reducing the workload they have to
perform, at the same time providing high accuracy, promptness, and timely delivery of
information. The accounting software is suitable for the conditions and accounting
54
work at the company; hence the updating of documents is carried out promptly and
scientifically.
In general, the organization of the accounting of raw materials at But Thap Company
was carried out quite effectively, in accordance with the prescribed regime, ensuring
the monitoring of the situation of materials during the production and processing
process. However, besides the advantages, there are still shortcomings that need to be
overcome and perfected in the accounting of raw materials.
3.1.2. Disadvantages
 Management of raw materials
In the field of production, the calculation and setting of material consumption norms
are extremely necessary. At But Thap company, the consumption norms are
researched and calculated by the company's technical department; however, the factual
application of material consumption was different from the originally planned
calculation. Through monthly settlement of raw materials, it is easy to notice most of
raw materials have consumption volume not close to the set norms. The determination
of the demand and reserve for raw materials are not really accurate, leading to the
shortage or excess of raw materials in the production process. Therefore, it can be said
that the consumption norms prepared are not really effective.
 Accounting procedure for raw materials
 About the raw materials valuation methods
In case of receiving the raw materials for export processing, the accountant does not
track and record in terms of value but only in terms of quantity. Therefore, there is no
sufficient data for circulation and bookkeeping that makes it difficult to manage and
evaluate the raw materials, especially for cross-checking.
Regarding the valuation method for issued materials, besides the benefits that FIFO
brings, this method also has some disadvantages that managers need to take into
consideration. When applying FIFO, the current sales report might not match the
actual cost since the value of the material corresponds to the price of the previous
material received. Instead, lower costs are assigned to the goods sold, resulting in
55
inflated profits. Higher profits can lead to higher income tax costs, reduce cash flow
and weaken a company's financial position for the next accounting period.
 About the accounting documents
Some documents circulating internally sometimes have several shortcomings such as
missing signatures, incomplete information such as code, time, ... etc. Although this
has not caused any major or serious problems in the business process of the company
yet, it still reduces the level of accuracy and clarity of the accounting documents. The
circulation of accounting documents between the technical department, warehouse and
accounting department takes place regularly. In the meanwhile, during the process of
delivering those documents, there are no forms to recognize and confirm the
documents exchange has happened. Therefore, losing documents can easily occur, and
when it does, it is extremely difficult to find the person who has the responsibility for
it.
 About the accounting method for raw materials.
The application of "Perpetual method" together with the records between warehouse
keeper and the material accountant with many duplications has partly increased the
daily volume of tasks, putting pressure on accounting staff. The collation and
reconciliation are mainly accumulated to one material accountant, so it is difficult to
ensure the timeliness of the accounting work. Because the items have many categories
and low to average value, choosing perpetual method would cause a lot of unnecessary
time for accounting and also may not be effective.
Besides that, the company has not established allowances for the reduction of
inventory to net realizable value. Normally, to ensure the prudent principle in
management and in accounting, enterprises often have to set up allowances for
reduction of inventory. At the company, raw materials account for a major cost.
Especially, raw materials such as fabrics often change in price according to the supply
and demand of the market, so if there is only a slight change in the price of fabrics,
there is a great change in the product cost. However, the company has not yet made an
allowance for the reduction of inventories. This problem may be because the company
mainly handles processing contracts in which raw materials are brought by the
56
customers themselves, so the material accountant does pay much attention to the
fluctuation of raw material price of these processed orders. However, a part of the
company's materials is also purchased from outside, even from foreign suppliers.
Therefore, since the market price is always unpredictable, this allowance is highly
essential for the company to minimize the risks of adverse fluctuations in raw material
prices.
3.2. Recommendations for improving accounting of materials at But Thap

Garment and fashion joint stock company.
One of the keys determining factors in the production process is the fundamental step
in creating the entity of the product, which is thought to be the raw materials.
Therefore, good or bad raw material management will have a direct impact on the
company's business and production plans. It can ensure continuous production or
interrupt production, which will have an impact on the company's profits. The garment
industry is currently experiencing intense competition as numerous new businesses
enter the market. The business must effectively manage its materials, create the right
conditions for its business and production plans, and make sure that its business and
production processes are carried out continuously. Thus, a number of ideas are put
forth to address unresolved problems in order to better manage the company's
materials.
3.2.1. Management of raw materials

The raw material consumption standard is crucial for manufacturing businesses
because it has a direct impact on how much raw material is needed and how to source
it. An accurate and reasonable estimate of raw materials is a crucial foundation for
meeting the company's production needs. Inefficient production and business practices
will result from having too many input materials. As a result, consumption standards
must be established in line with the company's operational and manufacturing
circumstances. The norms established department needs to study and improve the
consumption of raw materials for each product in a reasonable manner based on the
actual situation of production and business; regularly inspect, evaluate and complete
57
the norms to save maximum raw materials, improve the optimal use of raw materials;
regularly monitor and assess the process of norm implementation with each stage, each
production workshop to detect the irrationalities and their causes, thereby take
remedial measures promptly.
3.2.2. T-account, cost flow methods, recording methods.

 T-account
In general, T-account reflects mostly the main transactions related to materials.
However, there is one additional entry that the company should also recognize which
is allowance for deduction of inventory. This operation ensures the prudence principle
in business.
For example, the cotton the company purchased on November 12, 2022, for VND
55,000/m. Assumed that at the end of November, the fabric price reduced to VND
45,000/m and it was expected that the price would still decrease due to market
fluctuations. At that moment, the company still had 525m of this type of fabric in
stock, the accountant should make an allowance for deduction of inventory with an
allowance of:
(VND55,000 - VND45,000) x 525 = VND 5,250,000
Then post the transaction as below:
Debit 632: VND 5,250,000 VND
Credit 229: VND 5,250,000
Next year, the account shall compare the amount of provision to be set up for
the new year, if the remaining provision is larger than the provision for the new year,
the accountant shall revert the provision by reducing the cost of goods sold.
Debit 229: The difference
Credit 632: The difference
58
On the other hand, if the remaining provision is smaller than the amount needed to set
up for the new year, it is necessary to make an additional provision.
Debit 632: The difference
Credit 229: The difference
The allowance made by the company will be offset by the price reduction of materials.
At the end of the accounting period, the company should evaluate the net realizable
value of ending inventories that year. Determine inventory value at a lower price
between ending inventory value and net realizable value.
Net realizable value = Estimated sale price-Cost of completion - Selling cost
 Cost flow methods

Regarding the materials valuation method, the company operates in parallel with two
business models, which are under processing contracts and sales contracts, so it is
necessary to calculate the value of the materials received of both types above as a basis
for comparison in terms of business benefits. In addition, the company can improve
the business relationship between the two types of businesses so that the company can
promote positive aspects and overcome the limitations of each type of business,
helping managers to make the right business decisions in each period.
Regarding the issued materials valuation method, the FIFO has both good sides and
bad sides that need to be taken into thoroughly consideration. Basically, the company's
raw material cost calculation has partly demonstrated true and full value of raw
materials. The FIFO assessment is quite simple to implement and does not require too
much accounting work compared to other methods. However, if there are unfavorable
changes in the market, the price of the product will be affected and fail to reflect its
actual value. Depending on the needs, priorities and operational practices of the
company, managers can consider changing to a different method that suits their
business type.
 Recording method
59
In addition, the "Perpetual method" for recording makes the workload of accountants
quite large, so the company can reduce material inventory time by incorporating a
Technology-based inventory method. This method helps to increase the accuracy,
speed, and efficiency of the inventory process. Technologies commonly used in
inventory counting include:
 Asset Management System (AMS): This is a piece of software used to manage

an organization's assets. The AMS system helps to track, check and update
information about the assets of the organization, thereby increasing the
accuracy and speed of the inventory process.
 Mobile devices: Mobile devices such as barcode scanners to identify goods,
save time, and reduce errors.
 Barcode scanning and RFID identification: These technologies increase the
speed and accuracy of the inventory process by automatically identifying and
remembering assets or goods.
This method is simple, and compact, reduces the burden on accounting work, and is
more suitable for manufacturing enterprises using raw materials of large quantities,
different types, and specifications such as garment materials.
3.2.3. Accounting documents and documents transfer

 The accountants need to overcome shortcomings such as: missing signatures,
account names and dates are not yet recorded, etc. to ensure a high degree of
accuracy and transparency of necessary information for administration.
 For unused raw materials at the workshop, the workshops need to make a notice
of remaining supplies at the end of the period, in order to monitor the amount of
remaining materials at the end of the accounting period at the unit, as a basis for
calculating the cost. and check the implementation of supplies norms. The
remaining supplies at the end of the period are classified into 2 types:
- Materials that are no longer used: prepare a "goods received note" and carry out the
entry into the waste materials- account 152.
60
-Materials that can continue being used: making a slip of materials left at the closing
of the period.
The remaining materials voucher at the end of the period will be made in 2 copies, 1
copy will be handed to the supplies department, the other will be given to the
accounting department.
 Improve the rotation of documents.

The company should make document delivery and receipt book when circulating
documents among departments. During each rotation, the parties delivering and
receiving vouchers must confirm and sign in the voucher delivery books. If the loss of
any document happens, it will be simpler to find the right people and the right
department to take responsibility and measures to handle. This practice helps to strictly
manage the company's documents, and also enhances the sense of responsibility for
officials and employees for the management of documents in particular and the work
in general.
3.2.4. Detailed accounting books

Detailed accounting books of raw materials should continue to be built and
supplemented under the renovation of the Ministry of Finance. In addition, the
accounting department can also modify it to suit the specific characteristics of the
business, for instance, detailed accounting book for account 331- "accounts payable to
the seller". With the purpose of facilitating the tracking and aggregation of data,
detailed book 331 may open more details as follows:
 For the unit with irregular trading activities, the number of transactions arising
is not so much that they can be monitored in one book. Each unit is tracked on a
certain number of book pages.
 For units that the company has a regular business relationship with a large
number of operations, it is recommended to follow a separate book for that
company.
61
3.2.5. General accounting books
The system of general accounting books of the company needs to be designed and
built closely to the regulations of the state. For the purpose of managing the purchase
of raw materials, the company should open a purchase journal also called Cash
disbursement journal which is a special diary to record the purchases by each group.
3.2.6. Report of raw materials.

Financial reports related to materials at the company are generally quite adequate,
provide useful information for managers and are structured in accordance with the
government regulations.
The company should also perform management accounting to estimate costs or

expenses of raw materials on financial reports.
 Control the process of purchasing - receiving raw materials at the company.

The accounting department has the right to select suppliers, make purchase orders and
write an advance request for raw materials, so mistakes may occur. To control
purchased materials, the accounting department makes a list of purchased materials to
control the quantity and value of purchased materials in the period.
 Control the process of releasing raw materials, using, and preserving raw
materials.
Raw materials are often released from the warehouse before the Director's approval or
the Director's authorization. To control the cost of raw materials, the company
prepares the following reports: detailed report on direct materials, report on import -
export - balance, report on status of materials used, a report on the situation of
materials used, a statistical report on production results.
Estimating raw material costs based on material cost norms for each product at each
sewing line from the production department combined with information and data from
the engineering department and the industrial engineering department, accountant can
estimate costs on the management report.
62
CONCLUSION
The incorporation of general accounting and material accounting has significantly
contributed to the achievements of But Thap Garment and Fashion JSC. Specifically,
the material accounting system at But Thap Company has been designed to provide
prompt, precise, and current data on raw materials, which serves as a crucial
foundation for the other components while effectively facilitating organizational
management.
In summary, the accounting system for materials employed by But Thap Garment and
Fashion JSC is well-structured and aligns with industry standards and government
regulations. However, there are still gaps that need to be addressed for the company to
keep up with the continuous development of the market economy. Improving
management tools and optimizing product costs are crucial steps that the company
must take, given the highly unpredictable nature of market fluctuations and the intense
competition in this industry. Based on thorough research, this report proposes a series
of adjustments that the company must make to perfect the accounting process for raw
materials. Proper implementation of these improvements will enable the business to
maximize efficiency in the management and use of materials.
Given the constraints of limited capacity and expertise, there may exist unforeseen
errors within the paper. Consequently, I eagerly await feedback from my mentor and
instructors to identify and rectify any such issues in an appropriate manner.
63
REFERENCE
Finance, M. o. (December 22, 2014). Circular 200/2014/TT-BTC Guidelines for

Accounting policies for enterprises.
Prof. Loan, D. T. (2013). Financial Accounting in Businesses. Hanoi: National

Economics University Press

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NATIONAL ECONOMICS UNIVERSITY

ADVANCED EDUCATIONAL PROGRAMS

ACCOUNTING FOR RAW MATERIALS AT BUT THAP GARMENT

Student’s name: Phan Van Vu

ACCOUNTING FOR RAW MATERIALS AT BUT THAP GARMENT

Student : Phan Van Vu

Hanoi, May 2023

Table 1 - 1: Material code at But Thap Garment and Fashion JSC................................5

Table 2 - 1: VAT invoice for purchase of cotton 17

Table 2 - 2: VAT Invoice for the delivery of cotton...............................................................................18

Figure 2 - 1: The flow of accounting documents for received materials......................16

 Materials participate in only one business cycle.

While fabrics serve as the cornerstone of garment production, relying solely on

The apparel industry is commonly recognized as a market driven by buyers, where

 Code of raw materials

Group Item Main raw materials Material Code

1.1.3. Valuation for raw materials

 For the materials processed and repaired by the company

 For the materials processed and repaired by outsourcing

 For the materials received from the clients to process

Cost of received materials = VND 55,000 x 1,200 units+ VND 1,100,000/1,1

Cost of materials received.

 White thread = 17,900 VND x 130 units = 2,327,000 VND

the beginning inventory of black thread: 20 coils; 19,800 VND/unit.

The materials received during the period:

White thread: 130 coils; 17,900 VND/unit.

Black thread: 150 coils; 21,200 VND/unit.

Issued materials valuation:

1.2.1 Procedure for receiving raw material.

Import - Export Inspection Accounting Warehouse Accounting

 For waste materials

1.2.2 Procedure for storing raw material.

1.2.3 Procedure for delivering raw material.

Technical Accounting Warehouse Accounting

❖ Executive Director: is the senior executive of the company and in charge of

❖ Import - Export Department: has the responsibility of managing and operating

❖ Technical Department: participates in inspecting the raw materials with the

❖ Human Resource Department: boosts workforce quality, establishes strategies for

 receives pertinent information regarding materials arrival and dispatching

2.1.1. Accounting documents and procedure

a) Name of accounting documents

 Goods - received Notes.

b) Flows of Accounting Documents

For received materials transactions

As mentioned above, depending on the circumstances, additional documents will be

Figure 2 - 1: The flow of accounting documents for received materials.

Prepare “Minutes on testing raw materials”

Material Accountant forms "Goods received note"

Warehouse keeper receives

The note and records on the warehouse cards

Warehouse keeper transfers "Goods received note" to the Material Accountant

Table 2 - 1: VAT invoice for purchase of cotton

Table 2 - 2: VAT Invoice for the delivery of cotton

VAT INVOICE Series: 1C22TSB

Total amount: 1,000,000

Table 2 - 3: Minute on testing raw materials for cotton

MINUTES ON TESTING RAW MATERIALS

Committee's conclusion: Passed

Warehouse keeper Chief Committee

Table 2 - 4: Goods received notes for cotton.

BUT THAP GARMENT AND FASION JOINT STOCK COMPANY

GOODS RECEIVED NOTE

MINUTES ON TESTING RAW MATERIALS