Account 511- Turnovers from selling goods and provisions of service

1. Accounting Principles
This account is used to record turnovers of enterprises in an accounting period, including turnovers of selling goods, products and provisions of services for the parent company, subsidiary company in the same group.
This account records turnovers of production and trading activities from the following transactions and operations:
a) Sales: Selling products manufactured by business, selling of goods purchased and real estates invested.
b) Providing services: carrying out services agreed in contract for one or more accounting periods, such as providing transportation or travel services, leasing of Fixed Assets in ways of operating lease, turnovers from construction contract...
c) Other turnovers.
Conditions of recording turnovers
a) An enterprise shall only record turnovers from selling goods if simultaneously satisfies the following conditions:
- Enterprises have transferred most of risks and benefits associated with ownership of products, goods to the buyer;
- Enterprises no longer hold the right to manage goods as owners or the right to control goods;
- Turnovers are determined reliably. When contracts define that buyers are entitled to return products, goods purchased under specific conditions, enterprises shall only record turnovers if such specific conditions no longer exist and buyers are not entitled to return products, goods (unless the customer is entitled to return the goods under the form of exchange for other goods or services);
- Enterprises have received or will receive economic benefits from the sale transaction;
- Costs related to sale transactions may be determined.
b) An enterprise shall only record turnovers from providing services if simultaneously satisfies the following conditions:
- Turnovers are determined reliably. When contracts define that buyers are entitled to return services purchased under specific conditions, enterprises shall only record turnovers if such specific conditions no longer exist and buyers are not entitled to return provided services ;
- Enterprises have received or will receive economic benefits from the transaction of providing such services ;
- The completed work may be determined at the time of the report;
- Incurred costs for the transaction and the costs to complete the transaction of providing such services may be determined.
Where economic contracts including many transactions, enterprises must identify transactions to record turnovers in accordance with accounting Standards, for example:
- Where the economic contracts define sales and provisions of after-sales service (in addition to the normal warranty), enterprises must record sale turnovers and service provision turnovers separately ;
- Where the contracts define that the seller is responsible for installing the products, goods for the buyer, turnover is only recorded after the installation is done.
- If enterprises are obliged to provide goods or services free for the buyer or discount transactions for traditional customers, accountants shall only record turnovers for such goods, services provided until obligations for the buyer are fulfilled.
Net turnovers that are realized by the business in the accounting period can be lower than the Revenues originally recorded, because of business‘ trade discounts, sales allowances or sales returns from customers (because goods sold didn‘t meet specifications and quality conditions written in economic contract);
Where products, goods or services sold from the previous period, discounted for sales in the next previous or goods are returned, enterprises record a decrease in turnovers according to the principle:
- If products, goods or services sold from the previous period, discounted for sales, returned in the next period, but incurred prior to the issuance of financial statements, accountants must consider them as an adjustment event incurred after the dated of balance sheet and record decrease turnovers in financial statement of the reporting period.
- Where products, goods and services must be discounted for sales, returned after the release of financial statements, enterprises must record decrease turnovers of the incurred period.
Turnovers in some cases are determined as follows:
Turnovers from selling goods, providing services do not include indirect taxes payable such as VAT (including paying VAT under subtraction method), excise tax, export duties, environmental protection taxes .
In case of no immediate separate of indirect taxes payable at the time of recording turnovers, accountants shall record turnovers including the tax payable and record periodically as decrease in turnovers for indirect taxes payable. When preparing reports on income statement, standards of "Sales of goods, provisions of services" and standards of "Turnover deductions" do not include indirect taxes payable in the period due to naturally indirect taxes are not considered as a part of the turnovers.
In case in period enterprises have written invoices and received money from sales but at the end of period, have not yet delivered to the buyer, the value of the goods is not considered to have been sold in the period and not recorded in account 511 "Turnovers from selling goods and providing services" but only accounted for in Credit side of accounts 131 "Receivables from customer " the sum received from customers. When making deliveries to the buyer, the value of goods delivered, received money in advanced in accordance with the conditions for recording turnovers shall be accounted for in account 511 " Turnovers from selling goods and providing services ".
In case of dispatching goods for promotion, advertising, but customers only receive promotional, advertising goods together with other conditions, such as buying products, goods (eg, buy 2 get 1 free....), accountants must allocate the received sum to calculate the turnovers for promotional items, the value of promotional goods is calculated on the cost of goods sold (in this case the nature of the transaction is discount of goods sold ).
In case the enterprise has turnovers from sales and services provision in foreign currency, then the turnovers must be converted into accounting currency unit under exchange rates of real transactions at the time of economic transactions. In case of receipt of advance payments of customers in foreign currency, turnovers corresponding to the advance sum shall be converted into accounting currency unit under the exchange rate of real transactions at the time of receipt of advance.
Turnovers from sales of real estates of enterprises being investors must comply with the following principles:
a) For works, work items of which enterprises being investors (including works, work items of which enterprises being both investors and constructors), enterprises shall not record the turnovers of selling real estate under the accounting standard of construction contract and shall not record for the turnovers received in advance from the customers according to progress. Recording turnovers from sales of real estate must satisfy five following conditions:
- The real estate has completed and transferred to the buyers, enterprises have transferred risks and benefits associated with ownership of the real estate to the buyers;
- Enterprises no longer hold the right to manage the real estate as real estate‘s owners or the right to control the real estate ;
- The turnover is determined reliably;
- Enterprises have received or will receive economic benefits from the sales of the real estate;
- Costs related to sales of the real estate may be determined.
b) For works, work items of which enterprises being investors (including works, work items of which enterprises being both investors and constructors), where the customer is entitled to finish interior of real estate and enterprises finish interior of the real estate in accordance with designs and requirements of customers, enterprises record the turnovers upon completion and transfer of raw building to customers. In this case, enterprises must have a separate completed contract of interior of the real estate with the customer, which specifies the requirements of customers in the design, engineering, interior finishing forms of the real estate and a transfer note of the raw building parts to customers.
c) For real estate divided into plots for sale, if transferring the plot to customers (regardless legal procedures for land use right certificate is done or not) and the irrevocable contract, investors record the turnovers for the plot sold if satisfy the following conditions:
- Risks and benefits associated with the land use rights are transferred to the buyer;
- The turnover is determined reliably;
- Costs related to sale of plots may be determined.
- Enterprises have received or will receive economic benefits from sales of the plots;
In case goods are consigned to agencies for sales at exact prices and receiving commission, the turnovers shall be sales commission earned by the enterprises.
For operations of authorization service of export, the turnovers are authorization fees of units earned.
In case units only process materials, goods, then turnovers are actual amount of money earned, not including values of materials, goods processed.
In case sales on credit, sales on installments, then turnovers are determined according to cash price ;
Principle on recording the turnovers for the sale of goods and provisions of services under the programs for traditional customers:
Characteristics of the sale of goods and provisions of services under the programs for traditional customers: Transactions under the program for traditional customers must simultaneously satisfy all of the following conditions:
- When purchasing goods and services, customers built enough points to reach the prescribed points shall receive an amount of goods and services for free or discounted price;
- The seller shall determine the fair value of goods and services provided free or discounted amount for the buyer when the buyer meets the conditions of the program (built enough points);
- The program must be limited to a specific and clear time, if the prescribed time limit is over, the customers have not met the conditions set out, the seller shall no longer be obliged to supply goods services for free or discount for buyers (number of points accumulated by buyers is invalid);
- Upon receipt of the goods or services for free or discounted prices, buyers are subtracted the cumulative points as prescribed by the program (exchange cumulative points for goods, services or discount upon purchase).
- The provision of goods or services for free or discount for buyers when they reach enough bonus points may be made by the seller or a third party under the provisions of the program.
b) Accounting Principles
- At the time of sale of goods or provisions of service, the seller shall determine separately the fair value of goods and services provided free or discounted amount for the buyer when the buyer meets the conditions of the program.
- The turnovers recorded the total amount that needs to be received or has been received minus the fair value of goods and services provided free or discounts to buyers. The value of goods and services provided free or discounts for buyers are recorded an unearned turnover. If at the expiry of the program, the buyer does not qualify under the prescribed conditions and is not entitled to free goods, services or discounts, the unearned turnover is transferred to the turnover of sales, provisions of services.
- When buyers meet the conditions as stipulated by the program, handling of unearned turnovers shall be done as follows:
Where sellers directly provide goods or services for free or discount for buyers: The unearned turnovers corresponding to the fair value of some goods and services provided free or discount for buyers are recorded a turnovers from selling goods, providing services when buyers have received goods or services for free or been discounted as prescribed by the program .
Where the third party is obliged to provide goods or services free or discount for the buyer: If the contract between the seller and such third party is not an agency contract, when the third party provides goods, services or discounts, the unearned turnover is transferred to the turnover from selling goods, providing services. If the contact is an agent contract, only the difference between the unearned turnover and the amount payable to the third party is recorded a turnover. The amount paid to the third party is considered as the payment of liabilities.
Principle for recording and determination of turnovers from construction contracts
Turnovers from construction contracts include:
- The original turnovers written in contract;
- Amounts increased, decreased when implementing the contract, bonus and other payments, if these items may change turnovers, and can be determined reliably:
Turnovers from contract can increase or decrease in each period, for example: Contractors and consumers can agree upon changes and requirements, that increase or decrease turnovers of contract in the next period, in compassion with originally accepted contract. Turnovers agreed in the contract is based on fixed prices, so it can increase because of price increase. Turnovers written in contract can decrease because the contractor did not meet schedules of activities, or did not guarantee construction agreed in the contract. In case the contract written with fixed prices, that regulate a fixed price level for a finished unit of product, then turnovers calculated in contract will increase or decrease when product volume increases or decreases.
Bonuses are extras paid for contractors if they perform fairly or well contract requirements. Bonuses are charged to contract revenues if having both two conditions.
(i) Bonuses are determined reliably.
(ii) Bonuses are determined reliably
- Another payment that contractor receives from customer or another party to compensate for expenses not included in contract prices. For example, delays caused by customers; errors in technical or design indicators, and disputes on changes in carrying out the contract. Determination of turnover increase from these payments also depend on many uncertain factors, and usually depend on results of many negotiations. Thus, other payments are charged to turnover only if:
Negotiation obtained the solution that the customer accept to compensate;
Other payments are accepted by customers and can be determined reliably.
b) Recording turnovers of construction contract will comply with one of two conditions:
- In case the construction contract defines that the contractor shall be entitled to payment basing on the progress, when achieved results of construction contract are estimated reliably, then turnover from the construction contract is recorded proportionally to part of works finished, determined by contractors on the date of financial statement without depending on the bills under the progress made or not and the amount on the bills.
- In case the construction contract defines that the contractor shall be entitled to payment basing on value of volume achieved, when achieved results of construction contract are estimated reliably and confirmed by customers, then revenues and expenditures related to the contract recorded in proportion to the completed work confirmed by the customer in period are recorded in the bills set up.
c) In case achieved results of construction contract can‘t be estimated reliably, then:
- Turnover is only recorded proportionally to with incurred costs of contract that the repayment is relatively certain.
- Costs of contract is only recorded a period costs when these costs had been incurred.
In case of assets lease, lessors received rent in advance for many periods, then recording turnovers shall be made under the principle of allocating the rent received in advance in accordance with the lease period.
Where the rental period is 90% of the useful life of the assets, enterprises may choose method of recording turnovers once for the entire rental amount received in advance if the following conditions are met simultaneously:
The lessee is not entitled to cancel the lease contract and the lessor has no obligation to repay the amount received in advance in all cases and in all forms;
The amount received in advance from the lease is not less than 90% of the total lease amount expected to get under the contract during the lease term and the lessee must pay the entire amount of lease within 12 months from the beginning of the lease;
Almost all the risks and benefits associated with ownership of the leased asset are transferred to the lessee;
The lessor must estimate relatively the full cost of the lease.
Enterprises recorded turnover in the total amount received in advance in this case shall be explain in the financial statements on :
The difference in turnovers and profits, if being recorded in the method of gradual allocation under lease time;
The effect of recording turnovers in the period on the ability to create money, risks of declining turnover, profits of future periods.
In case enterprises perform the tasks of supplying products, goods, services as required by government, and are subsidized, price supported as regulated by government, then the subsidized or price supported turnovers are amounts officially announced, or actually subsidized or price supported.
In case of sale of products and goods with replacement products, goods, equipment (prevention in case products, goods malfunction) turnovers must be allocated for products, goods sold and goods, equipment must be delivered to the customer to replace and prevent damage. The value of the replacement products, goods, equipment is recorded in cost of sales.
For capital investment management fee :
- For enterprises assigned to manage construction, investment projects using state budget funds or Government bonds, municipal bonds, in case of making estimate of administrative expense of projects under the provisions of the State on investment and construction using state budget funds, the funds for the project manager reimbursed by the state budget are not accounted for as turnover but recorded a decrease in administrative expense of projects.
- Where enterprises fulfill the task of project management under consultancy contract, the sum received under the contract is recorded a turnover from provision of services.
Turnover from sales, provisions of service shall not be recorded to:
- Value of goods, materials, semi-finished products outsourced by outsiders; Value of goods consigned to agents for sales, consignment (not yet identified to be sold);
- Sum received from the sale of testing products ;
- Financial income;
- Other income.

2. Structure and contents of account 511 – Turnovers from sales and provisions of services
Debit side:
- Payable indirect taxes (VAT, excise, export, environmental protection);
- Turnover from returned goods transferred at the end of period;
- Discounts transferred at the end of period;
- Trade discounts transferred at the end of period;
- Transfer of net turnover to account 911 ―Income Summary‖.
Credit side: Revenues from sales of products, goods, real estates invested and service provision of enterprises performed in accounting period.
Account 511 does not have ending balance
Account 511 – Turnover from sales and service provisions comprises 6 sub - accounts:
- Account 5111 – Turnover from sales: This account is used to record turnover and net turnover of goods identified to be sold in an accounting period of enterprises. This account is mainly used in trading industries such as : goods, materials, food...
- Account 5112 – Turnovers from finished goods: This account is used to record turnover and net turnover of products (Finished goods Inventory, semi-finished products) identified to be sold in an accounting period of business. This account is essentially used in physical industries, such as: industry, agriculture, Construction, Fishering, Forestry,...
- Account 5113 - Turnovers from service provision: This account is used to record turnover and net turnover of services provision completed, provided for customers and identified as being sold in an account period. This account is essentially used in service business, such as: Traffic and transportation, post office, travel, public services, science and technical services, accounting and auditing services.
- Account 5114 - subsidized or price supported turnovers: This account is used to record turnover from subsidization and price support of government, when business provides products, goods and services as required by government.
- Account 5117 – Turnovers from investment property: this account used to record turnover from leasing investment property and turnover from selling, liquidating investment property.
- Account 5118 - Other turnovers: This account is used to record turnovers besides turnover from goods sales, sales of semi-finished products, service provision, subsidized turnover and turnover from real estate business such as: Turnover from sales of materials, scrap, sale of tools, instruments and other turnovers.

3. Method of accounting for several major transactions
Sales of product volume (Finished product, work-in-process), goods, services identified to be sold in accounting period:
a) For the products, goods, services, invested real estate subject to VAT, excise tax, export tax, taxes, environment protection tax, accountants record turnover from sales and service provision according to selling price without VAT, indirect taxes payable (details of each type of tax) separated as soon as receipt of turnover (including VAT payable under the direct method), record:
Dr 111, 112, 131, ... (total payment)
Cr 511 – Turnover from sale and service provision (price net of tax)
Cr 3331 - VAT payable to State
b) Where no immediate separation of tax payable, accountants record turnover including taxes payable. Periodically accountants determine tax obligations payable and record a decrease in turnover sales, record :
Dr 511 – Turnover from sale and service provision
Cr 3331 - VAT payable to State
In case turnover from sales and service provision incurred in foreign currency:
- In addition to record in details amount of foreign currency collected or receivable, accountants must base on actual transactional exchange rate at the time economic operation is incurred, to convert into accounting currency unit to account for in account 511 ― turnover from sale and service provisions"
- In case of receipt of advance payments of customers in foreign currency, turnover corresponding to the advanced amount shall be converted into the accounting currency unit in accordance with the actual exchange rate at the time of receipt of such advance.
For transactions of different barter:
When dispatching products or goods in exchange for different materials, goods, fixed assets, accountants record turnovers in exchange for other materials, goods and fixed assets at fair value of received assets after adjustment of amount received or paid additionally. In case of undetermining the fair value of received assets, turnovers are determined under the fair value of the exchanged assets after adjustment of amount received or paid additionally
- When turnover is recorded, record:
Dr 131 - Customer receivable (Total Settlement price)
Cr 511 – Turnover from sale and service provision (price net of tax)
Cr 3331 - VAT payable to State
Concurrently, recording the cost of exchanged goods, record:
Dr 632 Cost of goods sold
Cr 155, 156
- When receiving materials, goods, fixed assets from exchange, accountants records value of exchanged materials, goods, fixed assets, record:
Dr 152, 153, 156, 211,... (buying price without VAT)
Dr 133 – Deductible VAT ( if any)
Cr 131 - Customer receivable (Total Settlement price)
- In case the money is collected additionally because the fair value of the products, goods sent for exchange is higher than the fair value of materials, goods, fixed assets received by the exchange, when receiving money from the side which has materials and goods, fixed for exchange, record :
Dr 111, 112 ( sum received additionally)
Cr 131 – receivable from customers
- In case the money is paid additionally because the fair value of the products, goods sent for exchange is lower than the fair value of materials, goods, fixed assets received by the exchange, when paying for the side which has materials and goods, fixed for exchange, record :
Dr 131 – receivable from customers
Cr 111, 112,...
When goods are sold on credit, sold on installments:
- When goods are sold on credit, sold on installments. Accountants record turnovers from sales under the prices in cash without tax, record:
Dr 131 – receivable from customers
Cr 511- Turnover from sale and service provision (price in cash without tax)
Cr 3331 – Tax and payable to State (3331, 3332)
Cr 3387 - Unearned turnovers (Difference between total amount of credit sales, of installment sales and amount under price in cash)
Periodically recording turnovers from interests of credit sales, installment sales in the period, record:
Dr 3387 - Unearned Revenues
Cr 515 - Revenues from financial activities (Interests of credit sales, installment sales)
In case of sale of products and goods with replacement products, goods, equipment:
a) Accountants record the cost of goods sold including the value of products, goods sold and the value of replacement products, goods, equipment and parts, record:
Dr 632 - Cost of goods sold
Cr 153, 155, 156.
b) Recording turnover from sales (sales of both products, goods, and replacement products, goods, equipment and parts), record :
Dr 111, 112, 131.
Cr 511 – Turnover from sale and service provision
Cr 3331 - VAT payable to State
Turnover arising from the program for traditional customers
a) When selling goods or providing services in programs for traditional customers, accountants record turnovers on the basis that the total amount received minuses unearned turnover being the fair value of the goods and services provided free or discounted amount for customers:
Dr 112, 131.
Cr 511 – Turnover from sale and service provision
Cr 3387 - Unearned revenues
Cr 3331 - VAT payable to State
b) Upon the expiry of the program, if the customer does not meet the conditions to enjoy the preferential treatment such as free goods and services or discounted prices, the seller is not supposed to arise payments to customers, accountants transfer unearned turnover into turnover from sales and service provision, record :
Dr 3387 - Unearned Revenues
Cr 511 – Turnover from sale and service provision
c) When the customer meets all the conditions of the program to enjoy the preferential treatment, the unearned turnover shall be handled as follows:
- If the seller directly provides goods or services for free or discount for the buyer, the unearned turnover is transferred into turnover from sales and service provision at the time the obligations with customers are fulfilled (delivered goods or services for free or discounted or customers):
Dr 3387 - Unearned Revenues
Cr 511 – Turnover from sale and service provision
- In case the third party is provider of goods, services or discounts for customers, it shall be as follows:
In case enterprises act as the agent of a third party, the difference between the unearned turnover and the amount payable for such third parties is recorded a turnover from sales and service provision when incurring payment obligations with the third party, record :
Dr 3387 - Unearned Revenues
Cr 511 - Turnover from sales and service provisions (the difference between unearned turnover and the amount paid for the third party is considered as turnover from commissions)
Cr 111, 112 (amount paid for the third party).
In case enterprises do not act as the agent of a third party (Definitive purchase and definitive sale) the total unearned turnover shall be recorded a turnover from sales and service provision when incurring payment obligations with the third party, the amount paid for the third party is recorded into the cost of goods sold, record :
Dr 3387 - Unearned Turnovers
Cr 511 – Turnover from sale and service provision
At the same time record the amount payable for the third party as the cost of goods or services offered to customers, record:
Dr 632 - Cost of goods sold
Cr 112, 331.
When leasing fixed assets and real estate investment, accountants record the turnover in consistence with leasing service of fixed assets and investment real property completed in each period. When issuing invoices for payments for lease of fix assets and investment real property, record:
Dr 131 - Receivable from customers (if the money is not paid immediately)
Dr 111, 112 (if the money is paid immediately)
Cr 511 – Turnover from sale and service provision
Cr 3331 - VAT payable
In case collecting advance payment from operating lease of fixed assets and investment real property: for many periods:
- When receiving advance payment from operating lease of fixed assets and investment real property for many periods, record:
Dr 111, 112 (Total advance payment)
Cr 3387 - Unearned turnovers (Without VAT)
Cr 3331- VAT payable
- Periodical calculating and transferring turnovers of the accounting period, record:
Dr 3387 - Unearned Turnovers
Cr 511 – Turnover from sale and service provision ( 5113, 5117).
- Payment must be refunded for customers because operating lease contract of fixed assets, of investment real property is not implemented continuously, or implementing period is shorter than period of advance payment (if any), record:
Dr 3387 - Unearned turnover (Without VAT)
Dr 3331 - VAT payable (Amount refunded for lease about VAT of unrealized assets lease)
Cr 111, 112,... (Total repayment).
- In case of satisfying the conditions prescribed in points1.6.12 of this Article, accountants shall record turnover for the full amount received in advance.
In case sales through commission agent at exact price
Accounting at consigner:
- When delivering products, goods to agents, consigner must make delivery order for products consigned to agents. Based on this delivery order, accountants record:
Dr 157 - Goods consigned for sales
Cr 155, 156.
- When goods consigned to agents are sold, based on the list of invoices outward of goods sold received from commission agents prepared, accountants record the turnover from sales according to price excluding VAT, record :
Dr 111, 112, 131, ... (total payment)
Cr 511 – Turnover from sale and service provision
Cr 3331 - VAT payable (33311).
Also recording cost price of goods sold, record
Dr 632 - Cost of goods sold
Cr 157 - Goods consigned for sales.
- Commission payable for commission agents, record:
Dr 641 - Selling expenses (commission net of VAT)
Dr 133 – Deductible VAT ( 1331)
Cr 111, 112, 131,...
b) Accounting in commission agents:
- Upon receipt of goods from agents for commission, enterprises actively monitor and record information on the total value of goods received in the notes of financial statements.
- When the goods sold, based on the VAT invoice or sales invoices and related documents, accountants record the amount that agents must pay for the deliverer, record:
Dr 111, 112, 131,...
Cr 331 - Supplier payable (Total settlement price)
- Periodically, when determining revenues from commission agent, record:
Dr 331 - Supplier payable
Cr 511 – Turnover from sale and service provision
Cr 3331 - VAT payable ( if any).
- When paying agent sales for the deliverers, record :
Dr 331 - Supplier payable
Cr 111, 112.
When goods, products, services delivered for sales at dependent cost-accounting units in enterprises:
In case of not recording turnovers among stages within enterprises, only turnovers when goods are actually sold to external customers are recorded:
a) Accounting in sellers
- When delivering goods to dependent cost-accounting units within enterprises, accountants make delivery order and internal way or VAT bill, record:
Dr 136 – Internal payable (cost price)
Cr 155, 156
Cr 3331 - VAT payable to State
- Upon receipt of notice from the purchaser which states that products, goods have been sold to outside, the seller records turnover, cost price :
Recording cost price of goods sold, record:
Dr 632 - Cost of goods sold
Cr 136 – Internal payable.
Recording turnover, record:
Dr 136 – Internal payable.
Cr 511 – Turnover from sale and service provision
b) Accounting in buyers
- When receiving goods, products, services sent from dependent cost-accounting units within enterprises, accountants base on related documents, record :
Dr 155, 156 (cost price )
Dr 133 – Deductible VAT ( if any)
Cr 336 – Internal payable.
- When selling products, goods or services outside, accountants record turnover, cost price as usual.
- If dependent cost-accounting units are not decentralized accounting to income statement after tax, accountants must transfer turnover, cost price to higher-level units:
Transferring cost price, record :
Dr 336 – Internal payable.
Cr 632 - Cost of goods sold
Transferring turnovers, record:
Dr 511 – Turnover from sale and service provision
Cr 336 – Internal payable.
In case enterprises record turnover from sales for units within the enterprises, record :
Dr 136 – Internal payable.
Cr 511 – Turnover from sale and service provision (details of internal sales)
Cr 3331 - VAT payable to State
- Recording cost price of goods sold as ordinary sales.
For goods processing:
Accounting at unit delivering goods for processing:
- When delivering goods for processing, record:
Dr 154 - Work in process
Cr 152, 156.
- Recording costs of processing goods and deductible VAT:
Dr 154 - Work in process
Dr 133 – Deductible VAT ( if any)
Cr 111, 112, 331,...
- When receiving finished goods from processing to warehousing, record :
Dr 152, 156.
Dr 154 - Work in process
b) Accounting at unit receiving goods for processing:
- Upon receipt of goods for processing, enterprises actively monitor and record information on the total value of materials, goods received for processing in the notes of financial Statements.
- When determining revenues from actual processing charges:
Dr 111, 112, 131,...
Cr 511-Turnover from sale and service provision
Cr 3331 - VAT payable (33311).
Accounting for turnover of construction contracts:
- In case the construction contract specifies that the contractor is paid according to planned schedules, when performance of construction contract is estimated reliably, accountants base on documents recording objects corresponding to part of works finished (not base on invoices), identified by contractors themselves at the time preparing financial statement, record:
Dr 337 - Payment correspondent with the progress of construction contract
Cr 511 – Turnover from sale and service provision ( 5111).
- Basing on VAT invoices made out according to planned schedule, to record the amount customer must pay complying with planned schedule written in contract, record:
Dr 131 – Receivable from customers
Cr 337 - Payment correspondent with the progress of construction contract
Cr 3331 - VAT payable
- When receiving payment from customer (or advance payment), record :
Dr 111, 112,...
Cr 131 – Receivable from customers
- In case the construction contract specifies the contractor is paid according to value of performing volume, when performing, results of construction contract is determined reliably and verified by customers, then accountants must make out VAT invoice based on part of works finished and verified by customers. Basing on VAT invoice to record:
Dr 111, 112, 131,...
Cr 511 – Turnover from sale and service provision ( 5111).
Cr 3331 - VAT payable
- Bonus that contractor receives from customer for achievement or performing excess of some specifications written in contract, record:
Dr 111, 112, 131,...
Cr 511 – Turnover from sale and service provision ( 5111).
Cr 3331 - VAT payable
- Compensation received from customers or other parties to compensate for charges not included in contract value (for example: delays caused by customers, errors in technical specifications or in design, and disputes of changes in implementing the contract), record:
Dr 111, 112, 131,...
Cr 511 – Turnover from sale and service provision ( 5111).
Cr 3331 - VAT payable ( if any).
- When receiving payment for finished volume of construction or receiving advance payment, record:
Dr 111, 112,...
Cr 131 – Receivable from customers
Accounting of turnovers from subsidized, price support amounts of Government for enterprises:
- When receiving announcements of Government about subsidization, price support, record:
Dr 333 - Tax and Other payables for government (3339)
Cr 511 – Turnover from sale and service provision ( 5114).
- When receiving payment from Government Budget, record:
Dr 111, 112,...
Cr 333 - Tax and Other payables for government (3339).
Accounting of selling, liquidating investment real property :
- Recording turnovers from selling investment real property
Dr 111, 112, 131,...(total payment)
Cr 5117 – Turnover from trading investment real property .
Cr 3331 - VAT (33311 - Output VAT)
- Recording cost price of investment real property, record :
Dr 632 - Cost price of goods sold (net book value)
Dr 214 - Accumulated depreciation (2147) (if any)
Cr 217 – Investment real property ( Cost)
In case employees and other workers are paid in products, goods: Accountants must record turnovers for products, goods as for normal sales, record :
Dr 334 - Employee payable (Total settlement price)
Cr 511 – Turnover from sale and service provision
Cr 3331 - VAT payable (33311).
In case of using products and goods as gifts to staff and employees which are covered by bonus and welfare fund: Accountants must record turnovers for products, goods as for normal sales, record :
Dr 353 - Bonus and welfare fund (total settlement price)
Cr 511 – Turnover from sale and service provision
Cr 3331 - VAT payable (33311).
At the end of account period, transferring turnover from sale returns, sale allowances, and trade discounts incurred in the period subtracted from actual turnover in the period, to determine net turnover, record:
Dr 511 – Turnover from sale and service provision
Cr 521 – Deductible turnovers.
At the end of accounting period, transferring net sales to account 911 ―Income Summary‖
Dr 511 – Turnover from sale and service provision
Cr 911 - ―Income Summary‖.

Source: Circular 200, Article 79