How to account for invoices before goods in Vietnam

Navigating the complexities of Vietnamese accounting can be challenging, especially when dealing with invoices before goods are received. Understanding how to properly account for these transactions is crucial for maintaining accurate financial records and ensuring compliance with local regulations. This guide will clarify the necessary steps and considerations for businesses operating in Vietnam. How to account for invoices before goods later? This must be a question that many accountants ask. Please follow the article below of Viet An tax agent to get a thorough answer about this issue.

Cases of invoices before goods in Vietnam the accountant should pay attention

In the purchasing process of a business, it will usually be the goods first and the invoice later. However, there are some cases where businesses may receive invoices but the goods have not arrived in the warehouse:

• In case the enterprise has signed a purchase contract and accepted payment, but the goods are in the process of being transported or are still being deposited at the seller’s warehouse or port.
• In case, the goods have arrived but the business is waiting for quality and quantity testing to proceed with warehousing.

Instructions on how to account for invoices before goods in Vietnam

Accounts used for accounting

Goods that are identified as short-term assets and under the ownership of the enterprise but have not been warehoused in the month, when receiving the invoice from the seller, the accountant needs to monitor and record in the dossier of goods on the way:

• If in the month, the goods have arrived, based on the warehousing receipt and input invoice, the accountant shall record an increase in goods (arising from A/C 156, 152)
• If by the end of the month, the goods have not yet arrived at the warehouse of the enterprise, the accountant shall account for it in A/C 151 (Purchased goods are on the way, recorded in detail according to each commodity code and material lot).

Method of accounting invoices before goods

• If by the end of the month the goods have not yet arrived in the warehouse, based on the input invoice from the supplier, the accountant shall make an account in the accounting book:

Debit Tk 151 (account of goods purchased on the way): The value of goods excluding VAT.

Debit Tk 1331 (input VAT account is deducted

Debit Account 111,112,331 (cash account, bank deposit, or payable): The total payment value stated on the invoice.

• In the next month, the goods arrive at the warehouse of the enterprise

Based on the warehouse receipt slip and the quality and quantity inventory process, the bookkeeper shall record the books as follows:

Debit A/C 152,156 (Raw materials and goods account)

Cr 151 (Purchased goods account on the way)

• Accounting in case of shortage of goods

In case of loss of goods in the process of transportation, the accountant needs to base on the record of delivery and receipt and account the value of the lost goods as follows:

Dr 1381 (Pending missing account): Reflecting the value of inventory that has been lost for unknown reasons

Dr 632: Natural loss value in the norm

Cr 151: Total value of losses and losses

• Accounting for goods sold without warehousing

In case the purchased goods are delivered directly to the customer’s warehouse or consigned to the agent, the accountant will account this economic operation as follows:

Dr 632, 157 (Account on cost of goods sold, goods consigned to dealers): Value of goods purchased without warehouse

Cr 151: Value of purchased goods not returned to warehouse

Example illustration in case of invoice before goods in Vietnam

On January 1, 2025, company A buys goods from company B with a total price of 50,000,000 VND, 10% VAT, delivery terms at the seller’s warehouse. On 01/01/2025, company B issues an invoice to company A. By 31/01/2025, the goods are still in the process of transportation and have not been warehoused at company A. By 15/2/2025, the goods arrive at company A and are fully inventoried according to the number of invoices issued by company B. Company A receives the goods and then pays to company B. In this case, the accountant of company A shall account as follows:

• On 31/01/2025, the invoice is received but the goods have not yet arrived in the warehouse by the end of the month:

Debit Account 151: 50,000,000

Debt of Account 1331: 5,000,000

Credit Tk 331: 55,000,000

• On February 15, 2025, when the goods are warehoused, the accountant will account:

Debt of Account 15: 50,000,000

Yes Tk 151: 50,000,000

On February 15, 2025, company A pays for the goods to company B:

Debit Account 331: 55,000,000

Yes Tk 112: 55,000,000

Above, Viet An tax agent has instructed you how to account invoices in detail before and after according to cases. Hopefully, our article below will help you in the accounting profession. Please contact us via the hotline if your unit needs to hire a package of tax accounting services!