Account 336 – Intra-company receivables

1.Rules for accounting

a) This account is used to record payment of payables between an enterprise and dependent accounting affiliated units having no legal status (hereinafter referred to as dependent accounting units); between dependent accounting units in the same company.

In the enterprise, the classification of affiliates for accounting purpose shall base on nature of the units (independent accounting or dependent accounting, whether or not having legal status or having legal representative), but not base on the names of those units (members, branches, plants, groups, etc).

b) The account 336 shall not record payment between parent company and subsidiaries and between subsidiaries (between independent accounting units having legal status).

c) Intra-company receivables recorded to account 336 ―Intra-company receivables‖ include working capital payables and other payables which the dependent accounting unit pays to the enterprise or other dependent accounting units; amounts which the enterprise grants to dependent accounting units. Amounts payable may relate to asset receipt, capital, funds, current payment, payment on behalf of a third party, interests, exchange differences, etc;

d) According to the decentralization and operating feature, the enterprise shall decide that the dependent accounting units shall record working capital granted by the enterprise to account 3361 – Operating capital provided for affiliated units or account 411 – Owner's invested equity.

dd) Account 336 ―Intra-company receivables‖ is recorded in details for every unit which has mutual payment relationship, and accounts payable will be observed in details.

e) At end of period, accountants shall check and collate Account 136 and Account 336 between units according to every internal payment content, to prepare offsetting reports for every unit, as basis for offsetting adjustment in these two accounts. When collating, if having differences, the reasons for them must be uncovered and adjusted promptly.

2.Structure and contents of account 336 – Intra–company receivables

Debit:

- Amounts paid for dependent accounting units;

- Amounts paid to the enterprise by dependent accounting units;

- Amounts paid for items which internal units pay or receive on behalf of other internal units;

- Offsetting receivables against payables of the same unit having payment relationships.

Credit:

- Amounts of operating capital granted to dependent accounting units by the enterprise

- Amounts payable to the enterprise by dependent accounting units;

- Amounts payable to dependent accounting units;

- Amounts payable for other internal units on items paid or received on behalf of other units.

Credit balance: Outstanding amounts payable to the enterprise and internal units in the enterprise. Account 336 – Intra-company receivables, comprises 4 sub-accounts:

- Account 3361 – Operating capital intra-company payables: This account is opened in dependent accounting units having no legal status to record operating capital granted by the enterprise.

This account does not record capital contributed to subsidiaries or units similar to subsidiaries (independent accounting units having no legal status) by the parent company.

- Account 3362 – Exchange differences intra-company payables: This account is only opened in project management board affiliated to the enterprise which is an investor to record the exchange differences payable to the enterprise.

- Account 3363 – Intra-company payables for borrowing costs entitled to be capitalized: This account is only opened in project management board affiliated to the enterprise which is an investor to record borrowings costs entitled to be capitalized transferred to the enterprise.

- Account 3368 – Other intra-company payables: records other payables between internal units in the same enterprise.

3.Method of accounting for several major transactions

3.1. Accounting for dependent accounting units;

a) When a dependent accounting unit (branch, shop, project management board, etc) receives capital from the superior unit, the following accounts shall be recorded:

Dr 111, 112, 152, 155, 156, 211, 213, 217, etc.

Cr 336 – Intra-company payables (3361).

b) When repaying amounts which are paid by other internal units or receiving goods or services from other internal units, the following accounts shall be recorded:

Dr 152, 153, 156

Dr 331 – Trade payables

Dr 641 – Selling expenses

Dr 642 – General administration expenses

Dr 133 – Deductible VAT

Cr 336 – Intra-company payables.

c) When collecting amounts on behalf of a third party or applying for loans from other internal units, the following accounts shall be recorded:

Dr 111, 112, etc.

Cr 336 – Intra-company payables.

d) When paying amounts payables or repaying amounts paid on behalf of the dependent accounting unit to the enterprise or other internal units, the following accounts shall be recorded:

Dr 336 – Intra-company payables.

Cr 111, 112, etc.

dd) When receiving decisions on transfer of assets to other internal units and decline in operating capital, the following accounts shall be recorded:

Dr 336 – Intra-company payables (3361)

Dr 214 – Depreciation of fixed assets (for transfer of fixed assets or investment properties)

Cr 152, 155, 156, 211, 213, 217, etc.

e) When offsetting receivables against payables incurring from transactions between the dependent accounting unit and other internal units, the following accounts shall be recorded:

Dr 336 – Intra-company payables.

Cr 136 – Intra-company payables.

g) If the dependent accounting unit is not assigned to account for undistributed profit after tax (TK 421), periodically the dependent accounting unit shall transfer revenues, income, expenses directly through account 336 – Intra-company payables or account 911 – Income summary, the following accounts shall be recorded:

- When transferring revenues or income, the following accounts shall be recorded:

Dr 511, 711.

Cr 911 – Income summary (if the dependent accounting unit observes the income summary during a period)

Cr 336 – Intra-company receivables (if the dependent accounting unit does not observe the income summary during a period)

Periodically, when the dependent accounting unit in charge of observation of the income summary during a period transfers the income summary (profits) to the superior unit, the following accounts shall be recorded:

Dr 911 – Income summary

Cr 336 – Intra-company payables.

- When transferring expenses, the following accounts shall be recorded:

Dr 336 – Intra-company receivables (if the dependent accounting unit is not assigned to observe the income summary)

Dr 911 – Income summary (if the dependent accounting unit is assigned to observe the income summary separately)

Cr 632, 635, 641, 642.

Periodically, when the dependent accounting unit in charge of observation of the income summary during a period transfers the income summary (losses) to the superior unit, the following accounts shall be recorded:

Dr 336 – Intra-company payables.

Cr 911 – Income summary.

h) If the dependent accounting unit is not assigned to account for undistributed profit after tax (TK 421), periodically, the dependent accounting unit shall transfer undistributed profit after tax to the superior unit, the following accounts shall be recorded:

- When transferring profits, the following accounts shall be recorded:

Dr 421 - Undistributed profits after tax

Cr 336 – Intra-company payables.

- When transferring losses, the following accounts shall be recorded:

Dr 336 – Intra-company payables.

Cr 421 - Undistributed profits after tax.

3.2. Accounting for enterprises having dependent accounting units (superior units)

a) When granting welfare fund to dependent accounting units, the following accounts shall be recorded:

Dr 353 - Welfare fund

Cr 336 – Intra-company payables.

b) When paying amounts payable to dependent accounting units, the following accounts shall be recorded:

Dr 152 – Raw materials

Dr 153—Tools and supplies

Dr 211 – Tangible fixed asset

Dr 331 – Trade payables

Dr 623 – Costs of construction machinery

Dr 627 – Factory overheads

Dr 641- – Selling expenses

Dr 642 – General administration expenses

Cr 336 – Intra-company payables.

c) When paying amounts payable to dependent accounting units, the following accounts shall be recorded:

Dr 336 – Intra-company payables.

Cr 111, 112, etc.

d) When offsetting intra-company receivables against intra-company payables, the following accounts shall be recorded:

Dr 336 – Intra-company payables.

Cr 136 – Intra-company payables.

Source: Circular 200