{"id":999971364,"date":"2025-03-26T20:34:54","date_gmt":"2025-03-26T13:34:54","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999971364"},"modified":"2026-08-06T12:07:55","modified_gmt":"2026-08-06T05:07:55","slug":"what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/","title":{"rendered":"What is Purchasing Cost? How to Calculate and Allocate Purchasing Costs Effectively"},"content":{"rendered":"<div class=\"bizzi-template-page\" data-bizzi-template=\"chi-phi-mua-hang\">\n<article>\n<header class=\"template-sapo\" aria-label=\"Summary of the article\"><strong>Purchasing costs are the direct expenses incurred to bring goods, materials, or tools and equipment to the location and in a ready-to-use condition.<\/strong> For businesses applying Circular 200, the purchase price of goods is usually tracked in account 1561; procurement costs such as transportation, loading and unloading, and insurance for purchased goods can be accumulated in account 1562 for allocation.<\/p>\n<p>Accurately identifying the nature of an expense helps businesses accurately record the value of inventory, cost of goods sold, and profit for the accounting period.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Chi_phi_mua_hang_la_gi\" >What are the costs of purchasing goods?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Chi_phi_mua_hang_gom_nhung_khoan_nao\" >What are the costs involved in purchasing goods?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Chi_phi_mua_hang_hach_toan_vao_tai_khoan_nao\" >Which account should the cost of goods purchased be recorded in?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#TK_1561_va_TK_1562_khac_nhau_the_nao\" >What is the difference between account 1561 and account 1562?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Cach_hach_toan_chi_phi_mua_hang_theo_tung_truong_hop\" >How to account for the cost of goods purchased, depending on the specific case.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Mua_hang_hoa_nhap_kho_chua_thanh_toan\" >Goods purchased and received into inventory, but not yet paid for.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Phat_sinh_chi_phi_van_chuyen_boc_xep_dua_hang_ve_kho\" >Transportation and loading\/unloading costs are incurred to bring the goods to the warehouse.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Mua_nguyen_vat_lieu_nhap_kho\" >Purchase raw materials and store them in the warehouse.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Mua_vat_tu_su_dung_ngay_khong_qua_kho\" >Purchase supplies for immediate use, no warehousing required.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Chi_phi_van_chuyen_hang_ban_cho_khach\" >Shipping costs for goods sold to customers.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Cach_phan_bo_chi_phi_mua_hang_hop_ly\" >How to allocate purchasing costs effectively.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Phan_bo_chi_phi_thu_mua_cuoi_ky\" >Allocation of end-of-period procurement costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Vi_du_phan_bo_chi_phi_mua_hang_cho_nhieu_mat_hang\" >For example, allocating the cost of goods sold to multiple items.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Sai_sot_thuong_gap_khi_hach_toan_va_phan_bo\" >Common errors in accounting and allocation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Checklist_kiem_soat_chi_phi_mua_hang\" >Purchasing cost control checklist<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Ket_noi_hach_toan_voi_quy_trinh_chung_tu_va_thanh_toan\" >Connect accounting with the documentation and payment process.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Bizzi_ho_tro_o_buoc_nao\" >At what stage did Bizzi provide support?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Cau_hoi_thuong_gap_ve_chi_phi_mua_hang\" >Frequently Asked Questions about Purchase Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/bizzi.vn\/en\/what-is-purchasing-cost-how-to-account-for-and-allocate-purchasing-cost-effectively\/#Ket_luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n\n<\/header>\n<section id=\"chi-phi-mua-hang-la-gi\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Chi_phi_mua_hang_la_gi\"><\/span>What are the costs of purchasing goods?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The cost of goods sold includes expenses directly related to the process of purchasing and delivering goods to their current location and condition.<\/strong> In practice, it is necessary to distinguish between the purchase price of goods and the procurement costs to avoid double counting when accounting or allocating.<\/p>\n<p>The purchase price is the amount a business pays to a supplier after adjusting for deductions. Procurement costs are additional expenses such as transportation, loading and unloading, insurance, and storage of goods during the purchasing process.<\/p>\n<p class=\"bizzi-formula\" role=\"note\" aria-label=\"Formula for determining the cost of goods purchased.\"><strong>Original cost of goods purchased = Purchase price + Acquisition costs + Non-refundable taxes \u2212 Trade discounts \u2212 Purchase price reductions<\/strong><\/p>\n<aside class=\"bizzi-callout\" aria-label=\"Note on terminology\"><strong>Note on terminology<\/strong>When calculating allocations, businesses need to clearly identify the amount being allocated. <em>Procurement costs need to be allocated.<\/em>, not the full purchase price of the shipment.<\/p>\n<\/aside>\n<\/section>\n<section id=\"chi-phi-mua-hang-gom-nhung-gi\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Chi_phi_mua_hang_gom_nhung_khoan_nao\"><\/span>What are the costs involved in purchasing goods?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>An expense should only be included in the cost of goods purchased when it is directly related to the goods being purchased and is necessary to bring the goods to their current location and condition.<\/strong> Not all expenses incurred close to the time of purchase are considered purchase costs.<\/p>\n<figure class=\"bizzi-table-wrap\" tabindex=\"0\" role=\"region\" aria-label=\"Table of categories of expenses incurred when purchasing goods.\">\n<table>\n<caption>Categorizing common expenses when making purchases.<\/caption>\n<thead>\n<tr>\n<th scope=\"col\">Amount incurred<\/th>\n<th scope=\"col\">Way of looking at it<\/th>\n<th scope=\"col\">Points to check<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Purchase price as per invoice<\/td>\n<td>Cost of goods sold after deducting allowances<\/td>\n<td>Compare the contract, order, and invoice.<\/td>\n<\/tr>\n<tr>\n<td>Transporting goods from the point of purchase to the warehouse.<\/td>\n<td>Usually included in the cost price or procurement cost.<\/td>\n<td>This is different from the delivery fee charged to the customer.<\/td>\n<\/tr>\n<tr>\n<td>Loading, insurance, and storage during the purchasing process.<\/td>\n<td>It could be procurement costs if directly related.<\/td>\n<td>It needs to be linked to the shipment and have supporting documents.<\/td>\n<\/tr>\n<tr>\n<td>Import duties and taxes are non-refundable.<\/td>\n<td>It can be included in the original price.<\/td>\n<td>Not the same as deductible VAT.<\/td>\n<\/tr>\n<tr>\n<td>Input VAT eligible for deduction<\/td>\n<td>Not included in the original price.<\/td>\n<td>Tracking at account 133<\/td>\n<\/tr>\n<tr>\n<td>Delivery costs to customers<\/td>\n<td>Related to sales activities<\/td>\n<td>Not recorded as a cost of bringing purchased goods into the warehouse.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<figure class=\"bizzi-figure\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/01-dac-diem-chi-phi-mua-hang.jpg\" alt=\"Common characteristics and components of purchasing costs\" width=\"1378\" height=\"776\" title=\"\"><figcaption>Purchasing costs should be categorized according to their nature and direct relationship to the goods purchased.<\/figcaption><\/figure>\n<\/section>\n<section id=\"chi-phi-mua-hang-tai-khoan-nao\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Chi_phi_mua_hang_hach_toan_vao_tai_khoan_nao\"><\/span>Which account should the cost of goods purchased be recorded in?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The account used depends on the buyer, the nature of the expenditure, and the accounting system applied by the business.<\/strong> For businesses applying Circular 200, goods are typically tracked in detail through accounts 1561 and 1562.<\/p>\n<figure class=\"bizzi-table-wrap\" tabindex=\"0\" role=\"region\" aria-label=\"Table for selecting accounts for accounting for purchase costs.\">\n<table>\n<caption>Frequently used accounts for each user group.<\/caption>\n<thead>\n<tr>\n<th scope=\"col\">Subject or expenditure<\/th>\n<th scope=\"col\">Frequently used account<\/th>\n<th scope=\"col\">Content of the report<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Purchase price of goods<\/td>\n<td><strong>TK 1561<\/strong><\/td>\n<td>The purchase value of goods<\/td>\n<\/tr>\n<tr>\n<td>Cost of purchasing goods<\/td>\n<td><strong>TK 1562<\/strong><\/td>\n<td>Procurement costs related to goods<\/td>\n<\/tr>\n<tr>\n<td>Raw materials and supplies are received into inventory.<\/td>\n<td><strong>Account 152<\/strong><\/td>\n<td>Original cost of raw materials and supplies<\/td>\n<\/tr>\n<tr>\n<td>Tools and equipment are received into inventory.<\/td>\n<td><strong>Account 153<\/strong><\/td>\n<td>Original price of tools and equipment<\/td>\n<\/tr>\n<tr>\n<td>Input VAT is deductible.<\/td>\n<td><strong>Account 133<\/strong><\/td>\n<td>Taxes are not added to the original price when eligible for deduction.<\/td>\n<\/tr>\n<tr>\n<td>You must pay the supplier.<\/td>\n<td><strong>Account 331<\/strong><\/td>\n<td>Payment obligations to the seller<\/td>\n<\/tr>\n<tr>\n<td>Pay now<\/td>\n<td><strong>Account 111, 112<\/strong><\/td>\n<td>Cash or bank deposits spent<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<aside class=\"bizzi-callout\" aria-label=\"Notes on accounting procedures\"><strong>Businesses apply a different accounting system.<\/strong>It is necessary to compare the accounting system and policies currently in use instead of mechanically copying journal entries. Accounts must accurately reflect the purchaser and the nature of the transaction.<\/p>\n<\/aside>\n<\/section>\n<section id=\"phan-biet-tk-1561-va-1562\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"TK_1561_va_TK_1562_khac_nhau_the_nao\"><\/span>What is the difference between account 1561 and account 1562?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Account 1561 reflects the purchase price of goods, while Account 1562 reflects the procurement costs associated with the goods and the allocation of those costs.<\/strong> Separating the two accounts helps businesses accurately determine the value of inventory and the cost of goods sold.<\/p>\n<figure class=\"bizzi-table-wrap\" tabindex=\"0\" role=\"region\" aria-label=\"Comparison table of accounts 1561 and 1562\">\n<table>\n<caption>Compare the period 1561 and the period 1562.<\/caption>\n<thead>\n<tr>\n<th scope=\"col\">Criteria<\/th>\n<th scope=\"col\">Account 1561 \u2013 Purchase price of goods<\/th>\n<th scope=\"col\">Account 1562 \u2013 Costs of purchasing goods<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Content of the report<\/td>\n<td>The purchase value of goods<\/td>\n<td>Transportation, loading and unloading, insurance, and other direct procurement costs.<\/td>\n<\/tr>\n<tr>\n<td>How to track<\/td>\n<td>Details by type, group, or item<\/td>\n<td>By shipment or cost group for allocation<\/td>\n<\/tr>\n<tr>\n<td>End-of-period processing<\/td>\n<td>The remaining portion continues to be held in inventory.<\/td>\n<td>Allocate funds to goods sold and remaining inventory according to a reasonable basis.<\/td>\n<\/tr>\n<tr>\n<td>Risks if incorrect recording occurs.<\/td>\n<td>Incorrect value of goods<\/td>\n<td>Incorrect cost of goods sold, profit, and ending inventory value.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<\/section>\n<section id=\"hach-toan-chi-phi-mua-hang\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Cach_hach_toan_chi_phi_mua_hang_theo_tung_truong_hop\"><\/span>How to account for the cost of goods purchased, depending on the specific case.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Before recording the transaction, the accountant needs to determine the type of asset purchased, the purpose of the expenditure, and the possibility of deducting VAT.<\/strong> These are the three factors that determine account recognition.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mua_hang_hoa_nhap_kho_chua_thanh_toan\"><\/span>Goods purchased and received into inventory, but not yet paid for.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"bizzi-formula\" role=\"note\" aria-label=\"Accounting entry for goods purchased and received into inventory, not yet paid for.\"><strong>Debit account 1561:<\/strong> Purchase price of goods<br \/>\n<strong>Debit Account 133:<\/strong> VAT is deductible, if the conditions are met.<br \/>\n<strong>Account 331 exists:<\/strong> Total amount payable to the seller<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phat_sinh_chi_phi_van_chuyen_boc_xep_dua_hang_ve_kho\"><\/span>Transportation and loading\/unloading costs are incurred to bring the goods to the warehouse.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"bizzi-formula\" role=\"note\" aria-label=\"Accounting entry for shipping and handling costs of purchased goods.\"><strong>Debit account 1562:<\/strong> Cost of purchasing goods<br \/>\n<strong>Debit Account 133:<\/strong> VAT is deductible, if the conditions are met.<br \/>\n<strong>There are accounts 111, 112, or 331:<\/strong> Total amount payable or due<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mua_nguyen_vat_lieu_nhap_kho\"><\/span>Purchase raw materials and store them in the warehouse.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"bizzi-formula\" role=\"note\" aria-label=\"Accounting entry for purchasing raw materials and receiving them into inventory.\"><strong>Debit Account 152:<\/strong> Cost of raw materials<br \/>\n<strong>Debit Account 133:<\/strong> VAT is deductible, if the conditions are met.<br \/>\n<strong>There are accounts 111, 112, or 331.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mua_vat_tu_su_dung_ngay_khong_qua_kho\"><\/span>Purchase supplies for immediate use, no warehousing required.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Purchases are recorded in expense accounts or cost aggregation objects appropriate to their intended use, such as direct material costs, manufacturing overhead, or administrative expenses.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chi_phi_van_chuyen_hang_ban_cho_khach\"><\/span>Shipping costs for goods sold to customers.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Delivery charges incurred after the purchase are fundamentally different from charges for bringing purchased goods to the warehouse. Businesses need to categorize them based on economic purpose and delivery terms, not just the service name on the invoice.<\/p>\n<figure class=\"bizzi-figure\"><img decoding=\"async\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/03-hach-toan-chi-phi-mua-hang.jpg\" alt=\"Illustrating how to account for the cost of goods purchased and the cost of transportation.\" width=\"1379\" height=\"777\" title=\"\"><figcaption>The choice of account depends on the target buyer and the economic purpose of the expenditure.<\/figcaption><\/figure>\n<\/section>\n<section id=\"phan-bo-chi-phi-mua-hang\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Cach_phan_bo_chi_phi_mua_hang_hop_ly\"><\/span>How to allocate purchasing costs effectively.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Procurement costs should be allocated according to criteria that are reasonably related to the causes of the costs and applied consistently.<\/strong> There is no single criterion that applies to all shipments.<\/p>\n<p class=\"bizzi-formula\" role=\"note\" aria-label=\"Procurement cost allocation formula\"><strong>Acquisition cost allocated to object A = Total acquisition cost to be allocated \u00d7 Criterion of A \/ Total criteria of all objects<\/strong><\/p>\n<figure class=\"bizzi-table-wrap\" tabindex=\"0\" role=\"region\" aria-label=\"Table for selecting criteria for allocating purchasing costs.\">\n<table>\n<caption>How to choose the allocation method<\/caption>\n<thead>\n<tr>\n<th scope=\"col\">Criteria<\/th>\n<th scope=\"col\">Suitable when<\/th>\n<th scope=\"col\">Risks to avoid<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Value of goods purchased<\/td>\n<td>Costs tend to be proportional to the value of each item.<\/td>\n<td>High-priced but lightweight goods may incur excessive shipping costs.<\/td>\n<\/tr>\n<tr>\n<td>Quantity<\/td>\n<td>The units of goods are relatively uniform.<\/td>\n<td>Not suitable if there is a large difference in size or weight.<\/td>\n<\/tr>\n<tr>\n<td>Weight<\/td>\n<td>Shipping costs are calculated primarily by weight.<\/td>\n<td>Reliable weight data is needed.<\/td>\n<\/tr>\n<tr>\n<td>Volume<\/td>\n<td>Bulky items and shipping costs depend on the space they occupy.<\/td>\n<td>The units of measurement must be standardized.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Phan_bo_chi_phi_thu_mua_cuoi_ky\"><\/span>Allocation of end-of-period procurement costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The cost of goods sold related to the purchase of goods is included in the cost of goods sold. The portion related to remaining inventory continues to be included in the inventory value.<\/p>\n<p class=\"bizzi-formula\" role=\"note\" aria-label=\"Formula for allocating procurement costs to goods sold.\"><strong>Acquisition costs allocated to goods sold = Acquisition costs to be allocated \u00d7 Item of goods sold \/ Total item of goods sold and ending inventory<\/strong><\/p>\n<\/section>\n<section id=\"vi-du-phan-bo-chi-phi-mua-hang\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Vi_du_phan_bo_chi_phi_mua_hang_cho_nhieu_mat_hang\"><\/span>For example, allocating the cost of goods sold to multiple items.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The example below illustrates how allocation is done based on the value of goods purchased.<\/strong> Businesses should only use this criterion when it reasonably reflects the relationship between incurred costs and individual items.<\/p>\n<aside class=\"bizzi-callout\" aria-label=\"Example data allocation\"><strong>Input data<\/strong><\/p>\n<ul>\n<li>Item A: purchase value 200 million VND.<\/li>\n<li>Item B: Purchase value 300 million VND.<\/li>\n<li>Transportation and handling costs to be allocated: 25 million VND.<\/li>\n<\/ul>\n<\/aside>\n<ol class=\"bizzi-step-list\">\n<li><strong>Step 1: Determine the total allocation criteria.<\/strong>Total value of goods purchased = 200 + 300 = 500 million VND.<\/li>\n<li><strong>Step 2: Allocate to item A<\/strong>25 \u00d7 200 \/ 500 = 10 million VND.<\/li>\n<li><strong>Step 3: Allocate to item B<\/strong>25 \u00d7 300 \/ 500 = 15 million VND.<\/li>\n<li><strong>Step 4: Determine the original cost after allocation.<\/strong>Item A has an original cost of 210 million VND; item B has an original cost of 315 million VND.<\/li>\n<\/ol>\n<aside class=\"bizzi-callout\" aria-label=\"Notes on selecting allocation criteria\"><strong>When should allocation by value not be used?<\/strong>If shipping costs are calculated primarily by weight and item A is significantly heavier, allocating by weight or volume might be a more accurate reflection.<\/p>\n<\/aside>\n<\/section>\n<section id=\"sai-sot-thuong-gap\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Sai_sot_thuong_gap_khi_hach_toan_va_phan_bo\"><\/span>Common errors in accounting and allocation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The most common mistake is classifying expenses by document name instead of economic purpose.<\/strong> This can distort inventory values, cost of goods sold, and profit margins.<\/p>\n<figure class=\"bizzi-table-wrap\" tabindex=\"0\" role=\"region\" aria-label=\"Error matrix and how to handle purchasing costs.\">\n<table>\n<caption>Common errors and how to fix them<\/caption>\n<thead>\n<tr>\n<th scope=\"col\">Error<\/th>\n<th scope=\"col\">Affect<\/th>\n<th scope=\"col\">How to handle it<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Combine the purchase price with the acquisition cost.<\/td>\n<td>There is a risk of duplication during distribution.<\/td>\n<td>Clearly separate the purchase price and the amount of acquisition to be allocated.<\/td>\n<\/tr>\n<tr>\n<td>Include all shipping costs in the cost of goods sold.<\/td>\n<td>Omitting costs that should be included in the cost of goods purchased.<\/td>\n<td>Determine the origin, destination, and purpose of the transportation.<\/td>\n<\/tr>\n<tr>\n<td>Add the deductible VAT to the cost price.<\/td>\n<td>This increases the incorrect value of inventory.<\/td>\n<td>Check the deduction conditions and track them in account 133.<\/td>\n<\/tr>\n<tr>\n<td>Not allocated to ending inventory.<\/td>\n<td>Making errors in cost of goods sold and profit for the period.<\/td>\n<td>Allocation between goods sold and remaining inventory.<\/td>\n<\/tr>\n<tr>\n<td>Use one criterion for all types of expenses.<\/td>\n<td>The allocated costs do not reflect the cause of their occurrence.<\/td>\n<td>Choose specific criteria based on the nature of the expenditure.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<\/section>\n<section id=\"checklist-kiem-soat\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Checklist_kiem_soat_chi_phi_mua_hang\"><\/span>Purchasing cost control checklist<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Businesses should thoroughly check all supporting documents, the purpose of the expenditure, and the allocation criteria before recording it in the books.<\/strong> The checklist below helps reduce the risk of missing documents or misclassification.<\/p>\n<aside class=\"bizzi-checklist\" aria-label=\"Checklist before accounting\"><strong>Before accounting<\/strong><\/p>\n<ul>\n<li>Compare the contract, purchase order, invoice, and warehouse receipt.<\/li>\n<li>Determine the party responsible for freight and the delivery point as agreed upon.<\/li>\n<li>Attach the shipping and handling invoices to the correct shipment.<\/li>\n<li>Check the eligibility for VAT deduction.<\/li>\n<li>Choose an attribution criterion that is explanatory.<\/li>\n<li>Apply consistent criteria across periods.<\/li>\n<li>Compare the allocated costs with the goods sold and the ending inventory.<\/li>\n<\/ul>\n<\/aside>\n<figure class=\"bizzi-figure\"><img decoding=\"async\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/04-luu-y-doi-voi-chi-phi-mua-hang.jpg\" alt=\"Points to consider when controlling and allocating purchasing costs.\" width=\"1378\" height=\"776\" title=\"\"><figcaption>Controlling documentation and allocation criteria helps reduce discrepancies between inventory and cost of goods sold.<\/figcaption><\/figure>\n<p>To reduce discrepancies between purchase documents, receipts, and payment requests, businesses should standardize them. <a href=\"https:\/\/bizzi.vn\/luu-do-quy-trinh-mua-hang\/\">purchasing process<\/a>, clearly defining responsibilities <a href=\"https:\/\/bizzi.vn\/cong-viec-cua-ke-toan-mua-hang\/\">purchasing accountant<\/a> and compare thoroughly. <a href=\"https:\/\/bizzi.vn\/hoa-don-dau-vao-la-gi\/\">input invoices<\/a>. At the management level, businesses can refer to additional guidelines. <a href=\"https:\/\/bizzi.vn\/cac-loai-chi-phi-doanh-nghiep-phan-loai-chi-tiet-va-cach-quan-ly-hieu-qua\/\">Classifying and managing business expenses<\/a>.<\/p>\n<\/section>\n<section id=\"quan-ly-chung-tu-va-thanh-toan\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Ket_noi_hach_toan_voi_quy_trinh_chung_tu_va_thanh_toan\"><\/span>Connect accounting with the documentation and payment process.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Accurate accounting depends on the quality of the input data.<\/strong> Businesses need to connect purchase orders, receipts, input invoices, shipping documents, and payment requests instead of processing each document separately.<\/p>\n<p>Standardizing invoice data helps accountants verify supplier information, value, tax, and related documents before recording. After the reconciliation step, the business can organize... <a href=\"https:\/\/bizzi.vn\/payment-request-la-gi\/\">payment request process<\/a> according to budget and approval authority.<\/p>\n<figure class=\"bizzi-figure\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/03\/bizzi-expense.jpg\" alt=\"Bizzi Expense cost management solution interface\" width=\"1376\" height=\"775\" title=\"\"><figcaption>Bizzi helps businesses digitize their proposal, approval, and cost control flows.<\/figcaption><\/figure>\n<aside class=\"bizzi-product-callout\" aria-label=\"Bizzi Solution\">\n<h3><span class=\"ez-toc-section\" id=\"Bizzi_ho_tro_o_buoc_nao\"><\/span>At what stage did Bizzi provide support?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bizzi provides solutions to help businesses process incoming invoices, manage payment requests, and control costs. The scope of implementation should be determined based on each business&#039;s accounting system, purchasing process, and approval policies.<\/p>\n<p><a class=\"template-button\" href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\">Register for a Bizzi solution consultation.<\/a><\/p>\n<\/aside>\n<\/section>\n<section id=\"cau-hoi-thuong-gap\" class=\"template-section bizzi-faq-list\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Cau_hoi_thuong_gap_ve_chi_phi_mua_hang\"><\/span>Frequently Asked Questions about Purchase Costs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The questions below focus on accounting accounts, transportation costs, VAT, and allocation criteria.<\/strong><\/p>\n<details>\n<summary>Which account should the cost of goods purchased be recorded in?<\/summary>\n<p>For businesses applying Circular 200, the purchase price of goods is usually reflected in account 1561, while the cost of purchasing goods may be accumulated in account 1562. For raw materials or tools and equipment, the commonly used accounts are account 152 or account 153.<\/p>\n<\/details>\n<details>\n<summary>Where are shipping costs associated with purchased goods accounted for?<\/summary>\n<p>Direct shipping costs to bring purchased goods to their current location and condition are typically included in the cost of goods sold or aggregated into the acquisition costs. Delivery charges to customers should be categorized according to the sales activity.<\/p>\n<\/details>\n<details>\n<summary>Is input VAT included in the cost of goods purchased?<\/summary>\n<p>Input VAT that is eligible for deduction is usually tracked in account 133 and is not included in the cost of goods sold. The portion of VAT that is not deductible needs to be handled according to the nature of the asset or related expense.<\/p>\n<\/details>\n<details>\n<summary>How are the costs of purchasing ending inventory handled?<\/summary>\n<p>The portion of procurement costs related to remaining inventory is retained in the inventory value. The portion related to goods sold is allocated to the cost of goods sold according to a reasonable basis.<\/p>\n<\/details>\n<details>\n<summary>Should allocation be based on value, quantity, or weight?<\/summary>\n<p>Businesses should choose the criterion that best reflects the cause of the cost. A fair value is appropriate when the cost is related to the value of the goods; weight or volume is often more appropriate for shipping costs.<\/p>\n<\/details>\n<\/section>\n<footer id=\"ket-luan\" class=\"template-section\">\n<h2 class=\"template-heading\"><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span>Conclude<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Purchase costs should be categorized by nature, recorded in the correct accounts, and allocated according to a reasonable criterion.<\/strong> Businesses should separate purchase prices from procurement costs, differentiate between shipping purchased goods and delivering goods to customers, and check tax deduction eligibility before recording transactions in the books.<\/p>\n<\/footer>\n<\/article>\n<\/div>\n<\/p>","protected":false},"excerpt":{"rendered":"<p>Purchasing costs are the direct expenses incurred to bring goods, raw materials, or tools and equipment to the destination...<\/p>","protected":false},"author":57,"featured_media":999971368,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[263,84],"tags":[],"class_list":["post-999971364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kien-thuc","category-thiet-lap"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999971364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999971364"}],"version-history":[{"count":14,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999971364\/revisions"}],"predecessor-version":[{"id":999981842,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999971364\/revisions\/999981842"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999971368"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999971364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999971364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999971364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}