- Rules for accounting
- a) This account is used to record receivables and payments of receivables between the parent company and affiliated units or between affiliated units. The affiliated units are dependent accounting units which have no legal status, but they have accounting divisions, such as branches, plants, or project management board, etc.
- b) The transactions between the enterprise and dependent accounting units (members, plants) which have legal status shall not be recorded in this account, but they shall be recorded similarly to subsidiaries.
- c) Content of intra-company receivables recorded to account 136:
- In the superior enterprise:
+ Capital, funds or funding allocated to affiliated units;
+ Amounts payable to superior enterprise by affiliated units as prescribed;
+ Amounts collected by affiliated units;
+ Amounts of expenses paid on behalf of affiliated units;
+ Amounts allocated to affiliated units to perform internal fixed works and receive value of fixed works
+ Other current receivables.
- In the dependent accounting units:
+ Amounts allocated by the superior enterprise which have not been received;
+ Value of goods or services transferred to superior enterprise or other affiliated units for sale; revenues from goods or services provided for the affiliated units;
+ Amounts collected by superior enterprise or other affiliated units;
+ Amounts paid for superior enterprise or other affiliated units;
+ Other current receivables.
d) Account 136 must be kept records of every inferior unit in details and every intra-company receivables must be separately monitored. The enterprise must take measure for intra-company receivables within the tax period.
đ) At the end of tax period, it is required to collate and certify incurred amounts or balance of account 136 ―Intra-company receivables‖, account 336 ―Intra-company receivables‖ with affiliated units in the payment relationship must be verified, collated and certified. Offsetting for every account of each subsidiary in relationship, and offsetting account 136 "Intra-company receivables" against 336 "Internal payable" (for every entity). When comparing, if there is any difference, it is required to uncover reasons and adjust promptly.
- Structure and contents of account 136 – Intra-company receivables
Debit:
- Operating capital provided for affiliated units;
- Funding allocated to project management board by investor; other amounts shall be recorded as increases in receivables of investor from project management board;
- Amounts paid on behalf of superior enterprise or other affiliated units;
- Amounts receivables collected by superior enterprise or amounts payable made by affiliated units;
- Amounts receivables collected by affiliated units, amounts payable provided by superior enterprise;
- Amounts receivables of goods or services between affiliated units.
- Other intra-company receivables.
Credit:
- Capital or fund recovery of affiliated units;
- Settlement of public funding allocated and used by affiliated units;
- Value of finished fixed assets transferred from project management board; other amounts shall be recorded as decreases in receivables of investor from project management board;
- Collected amounts of intra-company receivables.
- Offsetting intra-company receivables against intra-company payables of an entity.
Debit balance: Outstanding receivables from subsidiaries.
Account 136 – Intra-company receivables, comprises 4 sub-accounts:
- Account 1361 – Operating capital provided for affiliated units: This account is only opened by the superior enterprise to record current business capital of dependent accounting units allocated by the superior enterprise.
This account does not record capital which a parent company invests in their subsidiaries or capital which the enterprise invests in dependent accounting units having legal status. Above investment shall be recorded to account 221 ―Investment in subsidiaries‖.
- Account 1362 – Intra-company receivables for exchange differences: This account is only opened in enterprises which are investors establishing project management boards, used to record exchange differences transferred by the project management board.
- Account 1363 – Intra-company receivables for cost of loans eligible for capitalization: This account is only opened in enterprises which are investors establishing project management board, used to record capitalized borrowing costs incurring in project management board.
- Account 1368 – Other intra-company receivables: recording other receivables between affiliated units.
- Accounting methods for several major transactions:
3.1. In dependent accounting units:
a) When paying on behalf of the superior enterprise and other affiliated units, the following accounts shall be recorded:
Dr 136 - Other receivables (1368)
Cr 111, 112.
b) According to notification of welfare fund allocated by superior enterprise, the following accounts shall be recorded:
Dr 136 - Other receivables (1368)
Cr 353 - Welfare fund.
c) When selling goods or providing services for subsidiaries in the enterprise, according to operation and task delegation in every unit:
- In case the dependent accounting unit is in charge of recording revenues, the following accounts shall be recorded:
Dr 136 - Other receivables (1368)
Cr 511 – Revenues (specific internal sale)
Cr 333 – Taxes and other payables to the State.
Concurrently, the cost prices shall be recorded as follow:
Dr 632 – Costs of goods sold
Cr 154, 155, 156, etc.
- In case the dependent accounting unit is not in charge of recording revenues, value of goods or services provided for subsidiaries shall be recorded to internal receivables:
Dr 136 - Other receivables (1368)
Cr 154, 155, 156
Cr 333 – Taxes and other payables to the State.
đ) When receiving money, materials or assets from superior enterprise or other internal enterprises for amounts receivables, the following accounts shall be recorded:
Dr 111, 112, 152, 153, etc.
Cr 136 - Other receivables (1368).
e) When offsetting intra-company receivables against internal payables of the same entity, the following accounts shall be recorded:
Dr 336 - Other receivables (3368)
Cr 136 - Other receivables (1368).
3.2. In superior enterprise
a) When a superior enterprise provides operating capital for inferior dependent accounting units having no legal status:
- If the business capital is in money, the following accounts shall be recorded:
Dr 1361 – Operating capital in affiliated units
Cr 111, 112.
- If the business capital is fixed assets, the following accounts shall be recorded:
Dr 136 - Other receivables (residual value of fixed assets) (1361)
Dr 214 - Depreciation of fixed assets (value of depreciation of fixed assets)
Cr 211 – Tangible fixed assets (cost prices).
b) In case the dependent accounting units receive operating capital directly from government budget according to the authorization of superior enterprise, when the affiliated units receive capital, the superior enterprise shall record as follow:
Dr 136 - Other receivables (1361)
Cr 411 - Owner‘s invested equity.
c) When the superior enterprise provides public funding or projects to affiliated units, the following accounts shall be recorded:
Dr 136 - Other receivables (1368)
Cr 111, 112, 461, etc.
d) In case the dependent accounting unit is required to refund the business capital to the superior enterprise, when the superior enterprise receives the refund, the following accounts shall be recorded:
Dr 111, 112, etc.
Cr 136 - Other receivables (1361).
đ) According to report on operating capital paid to government budget by the dependent accounting unit under authorization of superior enterprise, the following accounts shall be recorded:
Dr 411 - Owner‘s invested equity.
Cr 136 - Other receivables (1361).
e) When selling goods or providing services for affiliated units in the enterprise, according to operation and gradation in every unit, the revenue may be recorded either at the time in which the goods or services are transferred to dependent accounting units or at the time in which the dependent accounting units sell goods or services:
- If the revenue is recorded when the goods or services are transferred to dependent accounting units, the following accounts shall be recorded:
Dr 136 - Other receivables (1368)
Cr 511 – Revenues (specific internal sale)
Cr 333 – Taxes and other payables to the State.
- If the revenue is not recorded when the goods or services are transferred to dependent accounting units, the following accounts shall be recorded:
+ When transferring goods or services:
Dr 136 - Other receivables (1368)
Cr 154, 155, 156
Cr 333 – Taxes and other payables to the State (if any).
+ When the dependent accounting unit notifies that it has sold their goods or services to a third party outside the enterprise, the following accounts shall be recorded:
Dr 136 - Other receivables (1368)
Cr 511 – Revenues.
Concurrently, the cost prices shall be recorded as follow:
Dr 632 – Costs of goods sold
Cr 136 - Other receivables (1368).
g) When collecting interest receivables arising from business or other operation of subsidiaries, the following accounts shall be recorded:
Dr 136 - Other receivables (1368)
Cr 421 – Unallocated profits.
h) When paying for dependent accounting units, the following accounts shall be recorded:
Dr 136 - Other receivables (1368)
Cr 111, 112, etc.
I) When receiving the business interests from affiliated units or repayment of amounts paid on behalf of the affiliated units, the following accounts shall be recorded:
Cr 111, 112, etc.
Cr 136 - Other receivables (1368).
k) When offsetting intra-company receivables against internal payable of the same entity, the following accounts shall be recorded:
Dr 336 - Other receivables (3368)
Cr 136 - Other receivables (1368).
3.3. Accounting pertaining to investors establishing project management board
a) When an investor issues a decision on allocation of investment capital in money, materials or fixed assets to project management board, the following accounts shall be recorded:
Dr 136 - Other receivables (1361)
Dr 214 - Depreciation of fixed assets
Cr 111, 112, 152
Cr 211 - Tangible fixed assets
b) When project management boards transfer deposit interests from temporarily unused capital, the following accounts shall be recorded:
Dr 136 - Other receivables (1368)
Cr 515 - Financial income.
c) When the investor transfers the capitalized borrowings costs to project management board to the construction costs, the following accounts shall be recorded:
Dr 136 - Other receivables (1363)
Cr 111, 112, 242, 335.
d) When revenues, financial income or other incomes submitted by project management boards are received, the following accounts shall be recorded:
Dr 136 - Other receivables (1361, 1368)
Cr 515, 711.
đ) When project management boards transfer input VAT on purchases of materials, tools, fixed assets or services for project of investment to the investor for deduction, the following accounts shall be recorded:
Dr 133 – Deductible VAT
Cr 136 - Other receivables (1368).
e) When receiving cost prices for services, financial expenses or other expenses transferred by project management boards, the following accounts shall be recorded:
Dr 632, 635, 811, etc.
Cr 136 - Other receivables (1362, 1368).
g) When the project is finished and received, the following accounts shall be recorded:
- When receiving the building work which is settled, the investor shall record the value of the building work to settled price as follows:
Dr 111, 112, 152, 153, 211, 213, 217, 1557
Dr 133 – Deductible VAT (if any)
Cr 136 - Intra-company receivables (1361)
Cr 331, 333, etc. (debts payable, if any).
- When receiving building work which is not settled, the investor shall record the value of the building work to estimated price. When the building work is settled, the value of the building work shall be adjusted to the settled price.
+ If the settled price is greater than the estimated price, the following accounts shall be recorded:
Dr 211, 213, 217, 1557
Cr, relevant accounts.
+ If the settled price is smaller than the estimated price, the following accounts shall be recorded:
Dr, relevant accounts.
Cr 211, 213, 217, 1557.
Source: Circular 200
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