Guide to accounting for raw materials received for processing

With the advantage of cheap labor, the field of processing – export is currently a key industry in Vietnam in general and Thanh Hoa in particular. Accountants in this field always have many good income job opportunities, but it is required to have basic knowledge, and understand the nature and operation of the Enterprise.

How to account for outsourced materials is one of the basic knowledge contents of accountants in this field. Through the article, Tax Accountant Vision will guide you on how to accurately account the processed materials according to Circular 200/2014/TT-BTC  and Circular 133/133 2016/TT-BTC

Enterprises accounting according to Circular 200

Pursuant to Point dd, Section 1, Article 25 of Circular 200/2014/TT-BTC dated December 22, 2014

Article 25. Account 152 – Raw materials and materials

dd) Not recorded in this account for raw materials not under the ownership of the enterprise such as raw materials received for custody, raw materials received for processing, materials received from the import-export entrustment party. password…

Normally, outsourcing enterprises will receive NLV from the outsourcing party (foreign traders or domestic enterprises) and all the raw materials received will not be recorded in accounting and account 152 but proceed to open a separate book to follow. quantity tracking (no value tracking) purpose for finalization after each order (settlement with Customs + outsourcer)

=> Enterprises accounting according to Circular 200 do not account in account 152 of processed materials

Enterprises make accounting according to Circular 133

Pursuant to Point dd, Section 1, Article 24 of Circular 133 2016/TT-BTC dated August 26, 2016.

Article 24. Account 152 – Raw materials and materials

dd) Not recorded in this account for raw materials not under the ownership of the enterprise such as raw materials received for custody, raw materials received for processing, materials received from the import-export entrustment party. password…

=> Thus, the enterprise accounting according to Circular 133 also does not record the raw materials received for processing to account 152 similar to the accounting according to Circular 200.

Recognition of processing revenue

The processing enterprise only reflects into account 511 the processing value (excluding the value of raw materials to be processed), which is the remuneration paid by the outsourcer.

Processing revenue = Processing unit price x quantity

There are many accountants who record the entire value of exported goods on the Customs declaration of exported goods to the Revenue account, which is not correct, because the value of exported goods on the customs declaration includes: NVL + processing price.

If you do such accounting, you accidentally make the revenue virtualized a lot, this will affect the enterprise’s CIT liability.

The above is the method of accounting for standard processing materials according to current regulations. For each actual arising transaction, readers should flexibly use in each of the above cases to have the most accurate accounting method. To follow useful articles, please visit website: ketoanthuevision.com!

Hope you get it right, do it right!