Inventory is a very important part of the job so we need to plan to do it, however many accountants or company managers do not pay attention and often have the following problems:
What if there is no inventory?
Article 13. Penalties for violations of regulations on asset inventory:
1. Warning or fine from VND 500,000 to VND 1,000,000 for one of the following acts:
a) Failure to prepare a summary report of inventory results as prescribed;
b) Failure to determine the cause of the difference; failure to reflect the difference and the results of handling the difference between the actual inventory data and the accounting book data in the accounting books.
2. Fine from VND 3,000,000 to VND 5,000,000 for failure to conduct an asset inventory at the end of the annual accounting period or failure to conduct an asset inventory in other cases as prescribed.
3. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed for falsifying or falsely declaring the results of asset inventory.”
At the end of the year, if the inventory is not conducted at the right time or the inventory is not conducted, how can we know that the actual inventory or assets are the same as the books?
Recording inventory without full invoices and valid documents: no warehouse receipt, no delivery and receipt minutes, no inventory quality assessment minutes.
Not performing warehouse procedures for each import, but the warehouse receipt is combined for a long period of time.
Not regularly checking between the warehouse keeper and the accountant.
Differences between actual inventory and accounting books, warehouse cards, differences between detailed books, ledgers, and accounting balance sheets.
Not establishing regulations for managing supplies, goods, and material consumption norms or inappropriate norms.
The management of loss and preservation of inventory is not good. At the time At the end of the year, the unit did not review and control the shelf life and physical and chemical characteristics that could lead to damage of each type of inventory, did not review the conditions for storage, preservation, and arrangement in the warehouse to ensure compliance with technical standards.
Not separating the warehouse keeper, HTK accountant, purchasing department, and goods receiving department.
Not accounting on account 151 when goods arrive but the invoice has not arrived yet.
Not making a warehouse receipt in a timely manner, accounting for the warehouse receipt when the warehouse receipt has not been recorded.
The warehouse receipt and delivery voucher is not in accordance with regulations: not numbered in order, duplicated numbers, missing signatures, inconsistent indicators, etc.
Not making a detailed list for each warehouse receipt, not writing a separate warehouse receipt for each delivery.
The value of imported inventory is different from the value on the invoice and the costs incurred.
Not making a detailed list for each warehouse receipt and delivery voucher.
Slow monthly settlement of materials used.
Not making a monthly and quarterly periodic import – export – inventory summary table; Summary table of quantity of each type of raw material in stock to compare with the data in the accounting books.
Do not make a list of prices for each type of inventory.
Do not make a record of inspection of imported materials, purchase goods with incorrect specifications, quality, type… but still record them in the warehouse.
Do not take inventory of fixed assets or do not make an asset management report.
Inventory of unfinished products is not in accordance with reality or the method is not suitable for measurement.
Solution
The need to have an audit report does not exclude inventory, fixed assets on asset inventory, to submit to the tax authority, to the bank, the inventory report is submitted to the customs authority to check the liquidity of raw materials. But by the time of need, the inventory time has passed, so what should we prepare to avoid being passive in the face of requests from relevant agencies. Contact us for a more detailed discussion on the Company’s situation.