A lot of accountants are still confused about the procedures, the application of advance payment, the refund in their work. To clarify this issue, Cong Minh Tax Agent would like to share the article Procedures and documents for advance payment and refund.
1. Principles of advance management
An advance is a sum of money or supplies assigned by an enterprise to an advance recipient to perform an approved production or business task or to settle a certain job. The advance recipient must be an employee working at the enterprise. For regular advance recipients (Belonging to material supply, administration, administration) must be appointed in writing by the Director. Advance recipients (individual or collective status) must bear the responsibility. be responsible to the enterprise for the amount received in advance and only use the advance in accordance with the approved purpose and content of the work. If the amount received in advance is not used or is not used up, it must be returned to the fund. The advance recipient may not transfer the advance amount to another person for use.
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When completing and finishing the assigned work, the advance recipient must make an advance payment table (Attached with original documents) to pay the entire and definitively (in each installment) the amount of advance received. , the amount of advance used and the difference between the amount received and used (if any). If the advance is not used up, if it is not returned to the fund, it will be deducted from the salary of the advance recipient. In case of spending in excess of the amount received in advance, the enterprise will make additional payments for the missing amount. The advance payment of the previous period must be completely paid before receiving the advance for the next period. The accountant must open a detailed accounting book to monitor each one. advance recipient and fully record the status of advance receipt and payment according to each advance.
2. Procedures and advance documents
2.1 Advance for business travel expenses
Initial advance file
+ Business proposal + Cost estimate for the delegation + Decision of the managing director to send him on a business trip + Business schedule; + Air ticket quote attached to the airline’s reservation file (who is paid) air tickets); + Invitation related to financial expenses (if any).
Work planning department unit: where to go, where to go, how many days,
+ Request advance for business trip, write fully and clearly the amount to be advanced, the content to be advanced, the date of refund to the Company… submit to the competent authority for approval according to regulations; Once approved, the Finance and Accounting Department prepares a payment slip (under Form No. 02-TT) for the requester, cashier to pay, and the payee must sign and write his/her full name.
2.2 Advances for employees to purchase goods and materials
+ Proposal to purchase goods and supplies, clearly stating the items, unit prices and quantity to be purchased, approved by competent authorities.
+ Contract or Quotation
After going on a business trip, the payment procedures are as follows: + Payment request form (made according to form 05-TT) + Payment slip in case of cash, payment order in case of bank transfer + Detailed list of each expense + Decision to send on a business trip: place of departure, time of work + Final settlement of travel expenses completed together with valid financial invoices for payment of meals, accommodation, other documents such as train tickets, bridges ferry, road, baggage fee (if any).+ Financial invoice (Original + copy) If it exceeds the allowable limit of business travel expenses, the company will base on the actual situation and valid documents. pay money back to the person going on a business trip, if it is more than the estimate, the fund must be refunded, or deducted from the salary. Note: When making the payment of business travel expenses, it must comply with the regulations of the State and the Government. General Department of Taxation.
-. Payment documents in foreign languages must be translated into Vietnamese. Based on the above documents, the company will pay the person who is allowed to go on a business trip – If using the hotel room service, a booking confirmation is required, if it is a plane, there must be documents as a basis for calculation. Included in the deductible expenses are electronic air tickets, boarding passes and payment vouchers of businesses with individuals participating in the transportation journey.”
II/ Process of advance payment and personal advance payment1. Advance payment+ Request for advance (form)+ Proposal for advance (copy)Note: The payment term must be clearly stated on the advance request
2. Advance payment + Request for payment of advance (form 04-TT) + Proposal (original) + Financial invoice (if any) (Original + Copy) + Detailed statement ( (if there are many payments) Note: Officers making advance must fully repay this advance before they can make another advance. It is requested that the officer making the advance is responsible for paying the advance according to the time limit specified in the request for advance. If the advance payment deadline is reached, but the advance payment officer has not yet refunded, please give a specific explanation to the Accounting Department.
See also: What is Paycheck – What is Payroll Check
(Depending on the case, there will be appropriate documents)
c. Keep records of advance payment – After having all signatures of Head of Accounting and Internal Audit Department and advance payment officer, Payment Accountant keeps monthly records and makes a list. The advance payment slips are arranged in the order of the date of arising. After each quarter, save to a file.
III/ Professional account:
1. When making advances in cash or supplies to employees in the unit, the following accounts shall be recorded:
Dr. 141 – Advance, Accounts 111, 112, 152,. . .
2. When completing the assigned work, the advance recipient shall make an advance payment table enclosed with original signed documents to finalize the advance, recording: Debit to Accounts 152, 153, 156, 241 , 331, 621, 623, 627, 642,. . .Account 141 – Advance.
3. Advances that are not spent (or used) are not exhausted, must be re-entered into the fund, re-entered into the warehouse or deducted from the payee’s salary, the following accounts shall be recorded: Debit Account 111 – Cash Debit Account 152 – Raw materials, materials Debit Account 334 – Payable to employeesCr 141 – Advance.
See also: What is Mane – (English Dictionary
4. In case the approved actual expenditure is larger than the amount received in advance, the accountant shall make a payment slip to make additional payment to the advance recipient, recording: Debit to Accounts 152, 153, 156, 241, 331, 621, 623, 627,. . .Account 111 – Cash.
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