{"id":999972379,"date":"2025-04-23T08:44:22","date_gmt":"2025-04-23T01:44:22","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999972379"},"modified":"2026-08-31T09:29:01","modified_gmt":"2026-08-31T02:29:01","slug":"production-cost-accounting","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/production-cost-accounting\/","title":{"rendered":"What is production cost accounting? How to accumulate costs according to Circular 133 and Circular 99?"},"content":{"rendered":"<p><b>Production cost accounting<\/b><span style=\"font-weight: 400;\"> Accounting is not just about recording raw materials, wages, and factory expenses. It also involves correctly determining the accounting system, cost aggregation objects, allocation methods, the value of work-in-progress, and the timing of transferring costs to finished goods or cost of goods sold.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For businesses applying <\/span><b>Circular 133<\/b><span style=\"font-weight: 400;\">, Production costs are usually recorded directly in account 154. Meanwhile, according to <\/span><b>Circular 99\/2025\/TT-BTC<\/b><span style=\"font-weight: 400;\">, Businesses use accounts 621, 622, and 627 to aggregate each item before transferring it to account 154. This article separates the two streams to help accountants minimize confusion when making journal entries and calculating costs.<\/span><\/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 eztoc-toggle-hide-by-default' ><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\/production-cost-accounting\/#Hach_toan_chi_phi_san_xuat_la_gi\" >What is production cost accounting?<\/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\/production-cost-accounting\/#Doanh_nghiep_ap_dung_Thong_tu_133_hay_Thong_tu_99\" >Should businesses apply Circular 133 or Circular 99?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Pham_vi_ap_dung_Thong_tu_133\" >Scope of application of Circular 133<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Pham_vi_ap_dung_Thong_tu_99\" >Scope of application of Circular 99<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Bang_chon_luong_hach_toan_phu_hop\" >Table for selecting appropriate accounting flow<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Xac_dinh_doi_tuong_tap_hop_chi_phi_va_doi_tuong_tinh_gia_thanh\" >Identify the cost accumulation objects and cost calculation objects.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Doi_tuong_tap_hop_chi_phi_co_the_la_gi\" >What could be the objects of cost aggregation?<\/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\/production-cost-accounting\/#Cach_lua_chon_doi_tuong_tap_hop_chi_phi\" >How to choose cost aggregation objects<\/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\/production-cost-accounting\/#Khi_nao_doi_tuong_tap_hop_chi_phi_khac_doi_tuong_tinh_gia_thanh\" >When is a cost aggregation object different from a cost calculation object?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chi_phi_nao_duoc_tinh_vao_gia_thanh_san_xuat\" >What costs are included in the production cost?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chi_phi_nguyen_vat_lieu_truc_tiep\" >Direct material cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chi_phi_nhan_cong_truc_tiep\" >Direct labor costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chi_phi_san_xuat_chung\" >General manufacturing costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Khoan_nao_khong_duoc_tinh_vao_gia_thanh_san_xuat\" >Which items are not included in the production cost?<\/a><\/li><\/ul><\/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\/production-cost-accounting\/#TK_154_621_622_va_627_duoc_su_dung_nhu_the_nao\" >How are accounts TK 154, 621, 622, and 627 used?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#TK_154_dung_de_lam_gi\" >What is account 154 used for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#TK_621_dung_de_lam_gi\" >What is account 621 used for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#TK_622_dung_de_lam_gi\" >What is account 622 used for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#TK_627_dung_de_lam_gi\" >What is account 627 used for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#TK_1541_1542_va_1547_la_gi\" >What are the periods 1541, 1542, and 1547?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Phan_biet_TK_154_621_622_va_627\" >Distinguish between accounts 154, 621, 622, and 627.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Cach_hach_toan_chi_phi_nguyen_vat_lieu_truc_tiep\" >Methods for accounting for direct material costs.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Xuat_nguyen_vat_lieu_tu_kho_de_san_xuat\" >Releasing raw materials from the warehouse for production.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Mot_so_truong_hop_can_xu_ly_rieng\" >Some cases require separate handling.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Cach_hach_toan_chi_phi_nhan_cong_truc_tiep\" >How to account for direct labor costs.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Theo_Thong_tu_133\" >According to Circular 133<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Theo_Thong_tu_99\" >According to Circular 99<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Cach_hach_toan_chi_phi_san_xuat_chung\" >Methods for accounting for manufacturing overhead costs.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Luong_nhan_vien_quan_ly_phan_xuong\" >Salary of workshop manager<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Khau_hao_may_moc_va_nha_xuong\" >Depreciation of machinery and factory buildings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Phan_bo_cong_cu_dung_cu\" >Allocation of tools and equipment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Dien_nuoc_va_dich_vu_mua_ngoai\" >Electricity, water, and utilities are purchased from external suppliers.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Phan_bo_chi_phi_san_xuat_chung\" >Allocation of manufacturing overhead costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chi_phi_vuot_muc_binh_thuong_duoc_hach_toan_nhu_the_nao\" >How are expenses exceeding normal levels accounted for?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Cach_xac_dinh_chi_phi_vuot_muc_binh_thuong\" >How to determine excess expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#But_toan_theo_Thong_tu_133\" >Accounting entries according to Circular 133<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#But_toan_theo_Thong_tu_99\" >Accounting entries according to Circular 99<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Danh_gia_san_pham_do_dang_cuoi_ky\" >Evaluation of work-in-progress at the end of the period<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Vi_sao_phai_danh_gia_san_pham_do_dang\" >Why is it necessary to evaluate work-in-progress products?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Du_lieu_can_thu_thap\" >Data to be collected<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Phuong_phap_danh_gia_san_pham_do_dang\" >Methods for evaluating work-in-progress inventory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Dau_hieu_so_du_TK_154_bat_thuong\" >Signs of an unusual balance in account 154.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Cach_tinh_gia_thanh_san_pham_hoan_thanh\" >How to calculate the cost of finished products<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Cong_thuc_tinh_tong_gia_thanh\" >Formula for calculating total cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Gia_thanh_don_vi\" >Unit cost<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Hach_toan_khi_san_pham_hoac_dich_vu_hoan_thanh\" >Accounting when a product or service is completed.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#San_pham_hoan_thanh_nhap_kho\" >Finished products are moved into the warehouse.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#San_pham_hoan_thanh_ban_thang_khong_qua_kho\" >Finished products are sold directly without going through a warehouse.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Dich_vu_hoan_thanh\" >Service completed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#San_pham_hong_va_ton_that\" >Defective products and losses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Vi_du_hach_toan_chi_phi_san_xuat_va_tinh_gia_thanh\" >Examples of accounting for production costs and calculating the cost of goods sold.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-52\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Du_lieu_dau_vao\" >Input data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-53\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Hach_toan_theo_Thong_tu_133\" >Accounting according to Circular 133<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-54\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Xac_dinh_tong_chi_phi_truoc_khi_tinh_do_dang\" >Determine the total cost before calculating the work in progress.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-55\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Neu_ap_dung_Thong_tu_99_thi_thay_doi_the_nao\" >What changes would occur if Circular 99 were implemented?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-56\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chung_tu_can_co_khi_hach_toan_chi_phi_san_xuat\" >Documents required when accounting for production costs.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-57\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chung_tu_nguyen_vat_lieu\" >Material documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-58\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chung_tu_nhan_cong\" >Labor documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-59\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chung_tu_chi_phi_san_xuat_chung\" >General manufacturing overhead cost voucher<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-60\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chung_tu_do_dang_va_thanh_pham\" >Work in progress and finished goods documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-61\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Truong_hop_nhan_vien_thanh_toan_ho_doanh_nghiep\" >In the case where an employee makes payments on behalf of the company...<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-62\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Checklist_kiem_tra_truoc_khi_khoa_so_chi_phi_san_xuat\" >Checklist for checking before closing the production cost books.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-63\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Checklist_chung\" >General Checklist<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-64\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Kiem_tra_rieng_theo_Thong_tu_133\" >Separate inspection according to Circular 133<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-65\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Kiem_tra_rieng_theo_Thong_tu_99\" >Separate inspection according to Circular 99<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-66\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Nhung_loi_thuong_gap_khi_hach_toan_chi_phi_san_xuat\" >Common mistakes when accounting for production costs.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-67\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Bizzi_ho_tro_khau_nao_trong_quy_trinh_chi_phi_san_xuat\" >Which stage of the production costing process does Bizzi support?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-68\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Cau_hoi_thuong_gap_ve_hach_toan_chi_phi_san_xuat\" >Frequently Asked Questions about Production Cost Accounting<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-69\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Hach_toan_chi_phi_san_xuat_dung_tai_khoan_nao\" >Which accounts are used for accounting for production costs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-70\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#TK_154_co_so_du_cuoi_ky_khong\" >Does account 154 have a closing balance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-71\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#TK_1541_1542_va_1547_la_gi-2\" >What are the periods 1541, 1542, and 1547?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-72\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Thong_tu_133_co_TK_621_622_va_627_khong\" >Does Circular 133 include accounts 621, 622, and 627?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-73\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Tien_dien_san_xuat_hach_toan_vao_tai_khoan_nao\" >Which account should electricity costs for production be recorded in?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-74\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Khi_nao_chuyen_TK_154_sang_TK_155\" >When should account 154 be transferred to account 155?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-75\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Khi_nao_chuyen_TK_154_sang_TK_632\" >When should account 154 be transferred to account 632?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-76\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Chi_phi_ban_hang_co_duoc_dua_vao_gia_thanh_khong\" >Are selling expenses included in the cost of goods sold?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-77\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Co_duoc_phan_bo_toan_bo_chi_phi_san_xuat_chung_vao_san_pham_khong\" >Is it permissible to allocate all manufacturing overhead costs to the product?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-78\" href=\"https:\/\/bizzi.vn\/en\/production-cost-accounting\/#Ket_luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Hach_toan_chi_phi_san_xuat_la_gi\"><\/span><b>What is production cost accounting?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Production cost accounting<\/b><span style=\"font-weight: 400;\"> Work-in-process is the process of recording, collecting, and allocating costs incurred in the production of a product or the provision of a service. The results of this process are used to determine work-in-process costs and calculate the cost of finished products or services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In essence, accountants need to perform three main tasks:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Determine whether the expense falls under production activities.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Link the expenditure to the correct cost recipient.<\/b><span style=\"font-weight: 400;\">, For example, products, orders, contracts, processes, or workshops.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dividing costs between finished goods and work-in-progress.<\/b><span style=\"font-weight: 400;\"> at the end of the term.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Three concepts can be distinguished:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Concept<\/b><\/td>\n<td><b>Content<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Production costs incurred<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Expenses incurred to produce a product or service during the period.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Work-in-process inventory costs<\/b><\/td>\n<td><span style=\"font-weight: 400;\">The portion of costs incurred but not yet related to completed products or work.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Cost of finished product<\/b><\/td>\n<td><span style=\"font-weight: 400;\">The total cost is determined for the volume of products and services completed.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Therefore, <\/span><b>The total production costs incurred during the period do not automatically equal the total cost of finished products.<\/b><span style=\"font-weight: 400;\">. If there is work-in-progress remaining at the end of the period, the corresponding costs will continue to be tracked in account 154.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, electricity used for production machinery may be a production cost, while electricity for the sales department is not a production cost. Similarly, the wages of direct production workers are direct labor costs, while the salaries of sales staff are not production costs.<\/span><\/p>\n<p><b>The nature and purpose of the expense are more important than the name on the invoice.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If you want to differentiate more broadly between cost categories in a business, you can refer to the article.<\/span><a href=\"https:\/\/bizzi.vn\/hach-toan-chi-phi-la-gi-bi-quyet-quan-ly-chi-phi-doanh-nghiep-hieu-qua\/\"> <span style=\"font-weight: 400;\">What is cost accounting? The secret to effective business cost management<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Doanh_nghiep_ap_dung_Thong_tu_133_hay_Thong_tu_99\"><\/span><b>Should businesses apply Circular 133 or Circular 99?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Circular 133 and Circular 99 are two different accounting regulations. Businesses need to base their decisions on which one. <\/span><b>chosen accounting system, fiscal year, and applicable accounting policies<\/b><span style=\"font-weight: 400;\"> to determine the appropriate accounting system and transfer flow.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pham_vi_ap_dung_Thong_tu_133\"><\/span><b>Scope of application of Circular 133<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Circular 133\/2016\/TT-BTC<\/b><span style=\"font-weight: 400;\"> Issued to guide the accounting regime for small and medium-sized enterprises. According to this accounting flow, production costs are typically aggregated directly into... <\/span><b>Account 154 \u2013 Cost of production and business in progress<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses can open detailed accounts for account 154 as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Order.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contract.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Factory.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expense item.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The important point is that it should not be assumed that all small and medium-sized enterprises (SMEs) must automatically apply Circular 133. Businesses need to check the accounting system they are currently using.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pham_vi_ap_dung_Thong_tu_99\"><\/span><b>Scope of application of Circular 99<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Circular 99\/2025\/TT-BTC<\/b><span style=\"font-weight: 400;\"> Circular 99 is the new corporate accounting system of the Ministry of Finance, effective from January 1, 2026, and applicable to fiscal years beginning on or after this date. Circular 99 replaces Circular 200\/2014\/TT-BTC within the scope stipulated in the implementing provisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the production cost accounting flow according to Circular 99:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Account 621:<\/b><span style=\"font-weight: 400;\"> Direct material costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Account 622:<\/b><span style=\"font-weight: 400;\"> Direct labor costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Account 627:<\/b><span style=\"font-weight: 400;\"> General manufacturing costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Account 154:<\/b><span style=\"font-weight: 400;\"> Work-in-progress production and business costs after aggregation and transfer.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Ministry of Finance also confirmed that Circular 99 applies accordingly. <\/span><b>fiscal year beginning on or after January 1, 2026<\/b><span style=\"font-weight: 400;\">. For example, a business with a fiscal year from October 1, 2025 to September 30, 2026, that has not yet switched to Circular 99 from January 1, 2026, will apply it from the fiscal year beginning October 1, 2026.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bang_chon_luong_hach_toan_phu_hop\"><\/span><b>Table for selecting appropriate accounting flow<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Criteria<\/b><\/td>\n<td><b>Circular 133<\/b><\/td>\n<td><b>Circular 99<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Typical business group<\/span><\/td>\n<td><span style=\"font-weight: 400;\">SMEs apply the corresponding regime.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Businesses are adopting a new accounting system.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Direct materials<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Collect directly into account 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Through account 621<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Direct labor<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Collect directly into account 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Through account 622<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">General manufacturing costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Collect directly into account 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Through account 627<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">End of term<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Tracking on account 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Transfer accounts 621, 622, and 627 to account 154.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Incomplete<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account 154<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Two streams should not be mixed in the same accounting entry.<\/b><span style=\"font-weight: 400;\"> Before making an accounting entry, the accountant should check:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which business group does this company belong to?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What accounting system is currently being used?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When does the current fiscal year begin?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is the category of business accounts currently in use?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are the internal accounting policies regarding the opening of detailed accounts?<\/span><\/li>\n<\/ol>\n<figure style=\"width: 1920px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" title=\"Overview diagram of the role of production accounting in SME enterprises according to Circular 133\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/01-ke-toan-san-xuat-la-gi.jpg\" alt=\"Should businesses apply Circular 133 or Circular 99?\" width=\"1920\" height=\"1080\" \/><figcaption class=\"wp-caption-text\">Businesses need to determine the appropriate chart of accounts and transfer flows based on their chosen accounting system, fiscal year, and applicable accounting policies.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Xac_dinh_doi_tuong_tap_hop_chi_phi_va_doi_tuong_tinh_gia_thanh\"><\/span><b>Identify the cost accumulation objects and cost calculation objects.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Cost aggregation object<\/b><span style=\"font-weight: 400;\"> It is where incurred expenses are received; and <\/span><b>cost calculation object<\/b><span style=\"font-weight: 400;\"> It is a product, service, or completed work for which the cost needs to be determined.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Doi_tuong_tap_hop_chi_phi_co_the_la_gi\"><\/span><b>What could be the objects of cost aggregation?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Depending on the production model, businesses can aggregate costs as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Each product individually.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product group.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Order.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contract.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Factory.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Necklace.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production order.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cach_lua_chon_doi_tuong_tap_hop_chi_phi\"><\/span><b>How to choose cost aggregation objects<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Four questions can be asked:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is the expenditure directly attributable to any particular product?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does the business have data on production output or completion levels?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Should businesses calculate costs based on products, orders, or contracts?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does the documentation system and software provide consistent tracking for that object?<\/span><\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Khi_nao_doi_tuong_tap_hop_chi_phi_khac_doi_tuong_tinh_gia_thanh\"><\/span><b>When is a cost aggregation object different from a cost calculation object?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">For example, a business aggregates costs according to <\/span><b>factory<\/b><span style=\"font-weight: 400;\">, However, a workshop produces two products, A and B. In this case, the workshop is the cost aggregation object, while A and B are the cost calculation objects. The workshop&#039;s shared costs must have a suitable method for allocation to each product.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overly comprehensive tracking can prevent businesses from calculating the cost of each product; conversely, opening too many detailed codes increases the volume of reconciliation. Therefore, the detailed code for account 154 and the cost aggregation object should be established. <\/span><b>before the document is generated<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chi_phi_nao_duoc_tinh_vao_gia_thanh_san_xuat\"><\/span><b>What costs are included in the production cost?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Production costs typically include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Direct material costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Direct labor costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">General production costs are allocated appropriately.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Not all expenses incurred at the factory are included in the cost of goods sold. Selling expenses, administrative expenses, and other expenses not related to the production process are not included in the cost of goods sold simply because they occurred in the same period.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chi_phi_nguyen_vat_lieu_truc_tiep\"><\/span><b>Direct material cost<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It may include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Main ingredient.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Auxiliary materials.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accessory.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Semi-finished products are purchased from external suppliers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Direct fuel use.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Packaging constitutes part of the product if appropriate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other materials are directly involved in product creation.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Materials used specifically for a particular product should be recorded directly for that product. Materials used in common require a basis for allocation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If excess materials are returned to inventory, the corresponding expense must be treated as a suitable cost reduction. Recovered scrap materials of value should also be considered for reducing product costs in accordance with the nature of the transaction.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chi_phi_nhan_cong_truc_tiep\"><\/span><b>Direct labor costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It may include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wages for direct production workers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allowances are linked to production work.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payroll deductions are the responsibility of the employer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Direct outsourcing of labor is permitted if there are sufficient grounds.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Supervisory salaries are typically classified as general manufacturing overheads. If an employee is involved in multiple production runs, the business needs a basis for allocation such as time sheets, production output, or actual time spent, rather than using an estimated rate without supporting documentation.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chi_phi_san_xuat_chung\"><\/span><b>General manufacturing costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Common expenses:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Salary of a factory manager.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shared materials.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tools and equipment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Depreciation of machinery, equipment, and factory buildings.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electricity, water, and fuel are shared.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Repair and maintenance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Outsourced services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other expenses for workshop operations.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Khoan_nao_khong_duoc_tinh_vao_gia_thanh_san_xuat\"><\/span><b>Which items are not included in the production cost?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Expenditure<\/b><\/td>\n<td><b>Is this included in the cost?<\/b><\/td>\n<td><b>The handling method requires attention.<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Main raw materials<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes, if it serves production.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Direct assembly<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Shared supplies<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Have<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Allocation based on appropriate criteria<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Direct labor wages<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Have<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Allocation if working with multiple objects<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Manager&#039;s salary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Have<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Usually included in general production costs.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Electrical appliances manufacturing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Have<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Grouping\/allocation by usage level<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cost of sales<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Are not<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Track sales costs by their nature.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Business management costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Are not<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not included in production costs.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Financial costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Are not<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not included in production costs.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Costs exceed normal levels.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not default<\/span><\/td>\n<td><span style=\"font-weight: 400;\">They must be identified and dealt with separately.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other period expenses<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not default<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Determine the correct accounting period.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"TK_154_621_622_va_627_duoc_su_dung_nhu_the_nao\"><\/span><b>How are accounts TK 154, 621, 622, and 627 used?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Account 154 reflects work-in-progress production and business costs. According to Circular 133, production costs are usually accumulated directly in Account 154. Meanwhile, according to Circular 99\/2025\/TT-BTC, businesses can accumulate production costs through Accounts 621, 622, and 627 before transferring them to Account 154.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"TK_154_dung_de_lam_gi\"><\/span><b>What is account 154 used for?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">TK 154 \u2013 <\/span><b>Work-in-progress production costs<\/b><span style=\"font-weight: 400;\"> It is used to reflect and aggregate costs related to products, work, or services that are not completed at the end of the period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In practice, account 154 can be used to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gather all production costs incurred during the period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track the costs of unfinished products, orders, jobs, or services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Receive expenses from accounts 621, 622, and 627 in the accounting flow according to Circular 99.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Directly record production costs within the framework of Circular 133.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track costs in detail by product, order, workshop, or process depending on the company&#039;s cost management model.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Account 154 <\/span><b>There may be a debit balance at the end of the period.<\/b><span style=\"font-weight: 400;\">, This reflects the portion of work-in-progress production and business costs that have not yet been included in the cost of completed products, services, or work.<\/span><\/p>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> The balance in account 154 is not the amount of money the business has not yet paid to suppliers. This is... <\/span><b>work-in-progress production costs<\/b><span style=\"font-weight: 400;\"> The data is being compiled and is awaiting processing according to the cost calculation procedure.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"TK_621_dung_de_lam_gi\"><\/span><b>What is account 621 used for?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the accounting flow according to <\/span><b>Circular 99\/2025\/TT-BTC<\/b><span style=\"font-weight: 400;\">, TK 621 is used for aggregation. <\/span><b>direct material cost<\/b><span style=\"font-weight: 400;\"> arising from production activities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses can track costs in account 621 by cost object such as product, order, process, or appropriate costing object.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In principle, after direct material costs are collected, the appropriate portion will be processed and transferred to account 154 for cost calculation purposes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Certain expenses exceeding normal levels need to be identified and handled separately according to regulations, instead of being automatically included in the product price.<\/span><\/p>\n<p><b>Key features to remember:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The collection of direct material costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track expenses by the entity responsible for the cost.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At the end of the period, transfer the appropriate portion of the expenses to account 154.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There are no ending balances for this account flow.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"TK_622_dung_de_lam_gi\"><\/span><b>What is account 622 used for?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Account 622 is used in the Circular 99 flow to aggregate data. <\/span><b>direct labor costs<\/b><span style=\"font-weight: 400;\"> related to the production process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Direct labor and wage costs, determined for each product, order, process, or appropriate cost object, can be aggregated in this account.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the end of the period, the appropriate portion of the expenses is transferred to account 154 to continue serving the process of accumulating and calculating the cost of goods sold.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses also need to differentiate between normal labor costs and those exceeding normal levels in order to handle them according to regulations.<\/span><\/p>\n<p><b>Key features to remember:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compile salaries and direct labor costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track by product, order, or process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At the end of the period, transfer the appropriate amount to account 154.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There are no ending balances for this account flow.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"TK_627_dung_de_lam_gi\"><\/span><b>What is account 627 used for?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Account 627 is used in the Circular 99 flow to aggregate data. <\/span><b>workshop service and management costs<\/b><span style=\"font-weight: 400;\"> or general production costs related to the production process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unlike direct material and labor costs, which can be relatively clearly identified for each item, manufacturing overhead costs are usually related to multiple products or processes. Therefore, businesses need to determine appropriate allocation criteria for overhead costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the end of the period, the appropriately allocated portion of general production costs will be transferred to account 154.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For <\/span><b>Unallocated fixed manufacturing overhead costs<\/b><span style=\"font-weight: 400;\">, Businesses need to handle this separately according to regulations instead of automatically including it in the product price.<\/span><\/p>\n<p><b>Key features to remember:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gathering costs for workshop maintenance and management.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Distinguish between costs that can be recognized directly and shared costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Allocate the appropriate portion of the expenses to account 154.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There are no ending balances for this account flow.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"TK_1541_1542_va_1547_la_gi\"><\/span><b>What are the periods 1541, 1542, and 1547?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">TK 1541, 1542 or 1547 is usually <\/span><b>Detailed accounts are set up by the business or accounting software.<\/b><span style=\"font-weight: 400;\"> These account codes are for the purpose of tracking expenses. It should not be assumed that these account codes have the same mandatory meaning for all businesses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Depending on management needs, businesses can detail account 154 as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expense item.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Order.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Factory.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Type of activity.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Therefore, when encountering codes like <\/span><b>1541, 1542, 1547<\/b><span style=\"font-weight: 400;\">, The accountant needs to check. <\/span><b>The company&#039;s own chart of accounts and internal accounting policies.<\/b><span style=\"font-weight: 400;\"> before determining the content of the complaint.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do not set it as the default:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Account 1541 always represents the cost of raw materials.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Account 1542 is mandatory for labor costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Account 1547 is always a general manufacturing cost.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The method of opening detailed accounts should be consistent with the accounting system currently applied by the business and the actual management requirements.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phan_biet_TK_154_621_622_va_627\"><\/span><b>Distinguish between accounts 154, 621, 622, and 627.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Account<\/b><\/td>\n<td><b>Content of the report<\/b><\/td>\n<td><b>In which flow is it applied?<\/b><\/td>\n<td><b>Is there an ending balance?<\/b><\/td>\n<td><b>Is there a transfer?<\/b><\/td>\n<td><b>Points of confusion<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Account 154<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Work-in-progress production costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Circular 133 and is the account for receiving expenses after aggregation according to the flow of Circular 99.<\/span><\/td>\n<td><b>There may be<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Receive expenses transferred from cost aggregation accounts in the flow of Circular 99.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not an outstanding debt.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>TK 621<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Direct material cost<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Circular 99<\/span><\/td>\n<td><b>Are not<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Yes, transfer the appropriate amount to account 154.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not all material costs are automatically considered direct costs.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>TK 622<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Direct labor costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Circular 99<\/span><\/td>\n<td><b>Are not<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Yes, transfer the appropriate amount to account 154.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">This does not correspond to the company&#039;s overall personnel costs.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>TK 627<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Workshop service and management costs\/general production costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Circular 99<\/span><\/td>\n<td><b>Are not<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Yes, allocate and transfer the appropriate portion to account 154.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">It is necessary to distinguish between general production costs and business management costs.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Simply put:<\/b><span style=\"font-weight: 400;\"> in the flow of Circular 99, <\/span><b>Accounts 621, 622, and 627 are expense aggregation accounts categorized by group.<\/b><span style=\"font-weight: 400;\">, then the appropriate costs are transferred back <\/span><b>154<\/b><span style=\"font-weight: 400;\"> to continue accumulating production costs and calculating the cost of goods sold. Meanwhile, according to Circular 133, production costs are usually accumulated directly into Account 154.<\/span><\/p>\n<p><b>Note regarding scope of application:<\/b><span style=\"font-weight: 400;\"> The choice of accounts and how to open them in detail depends on the accounting system the business is using, its production characteristics, and its accounting policies. One should not mechanically apply the chart of accounts used by one business to another.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From the function of each account, we can continue to explore further. <\/span><b>How to account for each group of production costs<\/b><span style=\"font-weight: 400;\"> and how to handle the process of gathering costs to calculate the cost of goods sold.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cach_hach_toan_chi_phi_nguyen_vat_lieu_truc_tiep\"><\/span><b>Methods for accounting for direct material costs.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Direct material costs must be recognized for the specific product, order, or process using the material.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Xuat_nguyen_vat_lieu_tu_kho_de_san_xuat\"><\/span><b>Releasing raw materials from the warehouse for production.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>According to Circular 133:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit Account 154 \u2013 Details by recipient<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Have account 152<\/span><\/p>\n<p><b>According to Circular 99:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit Account 621 \u2013 Details by recipient<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Have account 152<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The key point is that the delivery note must link the material to the corresponding product or production order.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mot_so_truong_hop_can_xu_ly_rieng\"><\/span><b>Some cases require separate handling.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Excess materials are returned to the warehouse:<\/b><span style=\"font-weight: 400;\"> The accumulated expenses for that item need to be recorded as a reduction.<\/span><\/p>\n<p><b>Common materials:<\/b><span style=\"font-weight: 400;\"> If it is not possible to directly identify an allocation for a specific product, a rational allocation criterion should be chosen.<\/span><\/p>\n<p><b>Materials used in excess of normal levels:<\/b><span style=\"font-weight: 400;\"> The entire excess amount should not be automatically included in the cost; the cause, standard, and nature of the excess must be determined before any action is taken.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cach_hach_toan_chi_phi_nhan_cong_truc_tiep\"><\/span><b>How to account for direct labor costs.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Direct labor costs are expenses associated with the direct labor involved in producing a product or providing a service.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Theo_Thong_tu_133\"><\/span><b>According to Circular 133<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Debit account 154<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There are accounts 334, 338<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Theo_Thong_tu_99\"><\/span><b>According to Circular 99<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Debit account 622<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There are accounts 334, 338<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Circular 99, Account 622 is used to accumulate direct labor costs before transferring the appropriate portion to Account 154.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When allocating labor to multiple products, businesses need to consider factors such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Timesheet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production order.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Acceptance report if the labor is outsourced.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Allocations should not be based solely on estimates without supporting documentation.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cach_hach_toan_chi_phi_san_xuat_chung\"><\/span><b>Methods for accounting for manufacturing overhead costs.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">General manufacturing overhead costs are expenses incurred to support the operation of the workshop but cannot be, or do not need to be, directly recorded for each product immediately upon occurrence.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Luong_nhan_vien_quan_ly_phan_xuong\"><\/span><b>Salary of workshop manager<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>According to Circular 133:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 154<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There are accounts 334, 338<\/span><\/p>\n<p><b>According to Circular 99:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 627<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There are accounts 334, 338<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Khau_hao_may_moc_va_nha_xuong\"><\/span><b>Depreciation of machinery and factory buildings<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>According to Circular 133:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 154<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There is account number 214.<\/span><\/p>\n<p><b>According to Circular 99:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 627<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There is account number 214.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phan_bo_cong_cu_dung_cu\"><\/span><b>Allocation of tools and equipment<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>According to Circular 133:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 154<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Have account 242<\/span><\/p>\n<p><b>According to Circular 99:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 627<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Have account 242<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dien_nuoc_va_dich_vu_mua_ngoai\"><\/span><b>Electricity, water, and utilities are purchased from external suppliers.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If the conditions for deductible VAT are met, the tax portion is processed according to current tax regulations; the portion of production costs is aggregated according to the accounting system applied by the enterprise.<\/span><\/p>\n<p><b>According to Circular 133:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 154<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debit the VAT account for deductible expenses (if eligible).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There is an associated account.<\/span><\/p>\n<p><b>According to Circular 99:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 627<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debit the VAT account for deductible expenses (if eligible).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There is an associated account.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phan_bo_chi_phi_san_xuat_chung\"><\/span><b>Allocation of manufacturing overhead costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Exclusive costs can be aggregated directly. Shared costs must be allocated based on appropriate criteria.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Cost Type<\/b><\/td>\n<td><b>Reference criteria<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Electronics<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Machine time<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Manager&#039;s salary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Labor hours or labor costs<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Factory depreciation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Area or capacity<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Machine maintenance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Machine or production line used<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">It is not advisable to automatically allocate all costs based on revenue. The criteria must be well-founded and applied consistently, or have justification when changes are made.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Circular 99, the appropriately allocated portion of general production costs is transferred:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 154<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Have account 627<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chi_phi_vuot_muc_binh_thuong_duoc_hach_toan_nhu_the_nao\"><\/span><b>How are expenses exceeding normal levels accounted for?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Excessive direct material and labor costs, along with unallocated fixed manufacturing overheads, are not included in the value of the finished product or work-in-progress.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cach_xac_dinh_chi_phi_vuot_muc_binh_thuong\"><\/span><b>How to determine excess expenses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A fixed ratio should not be used for all businesses. Consider the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Material consumption standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Labor standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Normal power output.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Technological process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Actual output.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Data from normal operating periods.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reasons for the machine stopping.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Defective product report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consumption report.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For example:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High material waste due to incorrect handling.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overtime was incurred due to the need to rework the product.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The plant is operating below its normal capacity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The machine was down for an extended period, but all fixed costs were still allocated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The number of defective products exceeds the allowed limit.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"But_toan_theo_Thong_tu_133\"><\/span><b>Accounting entries according to Circular 133<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Since the costs are directly recorded in account 154, the portion not included in the inventory value can be disposed of as follows:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 632<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There is account number 154.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"But_toan_theo_Thong_tu_99\"><\/span><b>Accounting entries according to Circular 99<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Direct materials exceeded the limit:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 632<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There is account 621.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Direct labor overrun:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 632<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There is account number 622.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unallocated fixed manufacturing overhead costs:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debit account 632<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Have account 627<\/span><\/p>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> Recording an expense in account 632 does not guarantee that the expense will be considered deductible when determining corporate income tax. Accountants need to separate the following:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Can this expense be included in the inventory value\/cost of goods sold?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Does the expenditure meet the conditions for being deductible for corporate income tax purposes?<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Danh_gia_san_pham_do_dang_cuoi_ky\"><\/span><b>Evaluation of work-in-progress at the end of the period<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Work in progress<\/b><span style=\"font-weight: 400;\"> These are products or tasks that have incurred costs but are not yet completed at the end of the period. The corresponding costs continue to be tracked in Account 154.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Vi_sao_phai_danh_gia_san_pham_do_dang\"><\/span><b>Why is it necessary to evaluate work-in-progress products?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Incomplete evaluation helps to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do not transfer all costs to finished products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoid increasing the cost of finished products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accurately reflect the remaining work on account 154.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure that data between periods is comparable.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine the correct cost of goods sold when the product is sold.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Du_lieu_can_thu_thap\"><\/span><b>Data to be collected<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Accountants should have:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Quantity of work-in-progress products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The process is currently underway.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Level of completion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The raw materials have been brought in.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Working hours.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Time machine.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The product is defective.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Scrap metal.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inventory record.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Confirmation from the production department.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Phuong_phap_danh_gia_san_pham_do_dang\"><\/span><b>Methods for evaluating work-in-progress inventory<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>According to direct material costs:<\/b><span style=\"font-weight: 400;\"> This is appropriate when raw materials account for a large proportion and are introduced from the beginning of the process.<\/span><\/p>\n<p><b>Based on equivalent completed output:<\/b><span style=\"font-weight: 400;\"> This is suitable when there are many work-in-progress products and the business can determine the level of completion.<\/span><\/p>\n<p><b>According to the planned budget or costs:<\/b><span style=\"font-weight: 400;\"> This is suitable when the business has a reliable standards system and a relatively stable production process.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dau_hieu_so_du_TK_154_bat_thuong\"><\/span><b>Signs of an unusual balance in account 154.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The order has been completed, but there is still a balance remaining.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The details code has a negative balance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The costs are outstanding over several periods, but there is no production.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Work in progress is increasing rapidly while production remains stable.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is no inventory record.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The product has been cancelled, but the costs have not yet been processed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The detailed ledger does not match the cost breakdown.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Cach_tinh_gia_thanh_san_pham_hoan_thanh\"><\/span><b>How to calculate the cost of finished products<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The cost of a finished product is determined from the beginning work-in-process inventory, expenses incurred during the period, cost-reduction items, and ending work-in-process inventory.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cong_thuc_tinh_tong_gia_thanh\"><\/span><b>Formula for calculating total cost<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Total cost of finished products<\/span><\/p>\n<p><span style=\"font-weight: 400;\">= Beginning work-in-process inventory cost<\/span><\/p>\n<p><span style=\"font-weight: 400;\">+ Production costs incurred during the period<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Items that reduce production costs<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Ending work-in-process inventory costs<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Gia_thanh_don_vi\"><\/span><b>Unit cost<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Unit cost<\/span><\/p>\n<p><span style=\"font-weight: 400;\">= Total cost of finished products<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Number of finished products meeting standards<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In there:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Incomplete at the beginning of the period:<\/b><span style=\"font-weight: 400;\"> Expenses carried over from the previous period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Amounts incurred during the period:<\/b><span style=\"font-weight: 400;\"> raw materials, labor, and general manufacturing costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Discount amount:<\/b><span style=\"font-weight: 400;\"> Excess materials, scrap, compensation, or appropriate recoverable value.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Incomplete at the end of the term:<\/b><span style=\"font-weight: 400;\"> The cost of an unfinished product.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Output completed:<\/b><span style=\"font-weight: 400;\"> Number of products that meet the criteria for recognition.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Common errors include failing to deduct work-in-progress at the end of the period, not handling excess\/scrap materials, allocating costs to defective products, or assigning all overhead costs to a single product type.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Hach_toan_khi_san_pham_hoac_dich_vu_hoan_thanh\"><\/span><b>Accounting when a product or service is completed.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"San_pham_hoan_thanh_nhap_kho\"><\/span><b>Finished products are moved into the warehouse.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When the product is completed, eligible for inventory, and the cost has been determined, the accountant transfers the corresponding expense from account 154 to account 155:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debit Account 155<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There is account number 154.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The file typically includes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Warehouse receipt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Internal acceptance report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cost calculation sheet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Verify the quality if applicable.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"San_pham_hoan_thanh_ban_thang_khong_qua_kho\"><\/span><b>Finished products are sold directly without going through a warehouse.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Not all finished products are required to go through account 155. If the product is delivered directly to the customer, the accountant needs to handle it according to the nature of the transaction and the accounting system applied by the enterprise. The timing of recording the cost of goods sold must be consistent with the timing of recording the sales transaction.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dich_vu_hoan_thanh\"><\/span><b>Service completed<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The cost of unfinished services continues to be tracked in account 154. When the service is completed, the cost is transferred to the cost of goods sold under appropriate recognition conditions.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"San_pham_hong_va_ton_that\"><\/span><b>Defective products and losses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When a defective product is received, the following steps should be taken:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify the cause.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Distinguish between within-registration and outside-registration portions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine the salvage value.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine liability for compensation, if any.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do not automatically include all losses in the price of a good product.<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Vi_du_hach_toan_chi_phi_san_xuat_va_tinh_gia_thanh\"><\/span><b>Examples of accounting for production costs and calculating the cost of goods sold.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For easier tracking, let&#039;s assume the business is a manufacturer. <\/span><b>Product A in January 2026<\/b><span style=\"font-weight: 400;\"> and are currently applying Circular 133.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Du_lieu_dau_vao\"><\/span><b>Input data<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Item<\/b><\/td>\n<td><b>Amount<\/b><\/td>\n<td><b>Object<\/b><\/td>\n<td><b>Document<\/b><\/td>\n<td><b>How to handle it<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Incomplete at the beginning of the period<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Product A<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Incomplete table<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Carried over from the previous period<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Raw materials are withdrawn from inventory.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">100 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Warehouse delivery note<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Gather at 154<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Workers&#039; wages<\/span><\/td>\n<td><span style=\"font-weight: 400;\">50 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Salary scale<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Gather at 154<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">PX Manager Salary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">PX A<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Salary scale<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Gather at 154<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Machine depreciation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">PX A<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Depreciation schedule<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Gather at 154<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Electrolysis workshop<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">PX A<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Electricity bill<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Gather at 154<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Excess materials are returned.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Re-entry form<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cut the cost<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Incomplete at the end of the term<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Inventory record<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Retain over 154<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Hach_toan_theo_Thong_tu_133\"><\/span><b>Accounting according to Circular 133<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><b> Export raw materials<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Debit Account 154: 100 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Account 152 has 100 million.<\/span><\/p>\n<ol start=\"2\">\n<li><b> Record direct labor wages<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Debit Account 154: 50 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Account 334 has 50 million.<\/span><\/p>\n<ol start=\"3\">\n<li><b> Record the workshop manager&#039;s salary.<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Debit Account 154: 15 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Account 334 has 15 million.<\/span><\/p>\n<ol start=\"4\">\n<li><b> Record depreciation<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Debit Account 154: 10 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Account 214 has 10 million.<\/span><\/p>\n<ol start=\"5\">\n<li><b> Factory electrolysis recording<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Debit Account 154: 20 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0There is an account balance of 20 million.<\/span><\/p>\n<ol start=\"6\">\n<li><b> Excess materials are returned to the warehouse.<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Debit Account 152: 5 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Account 154 has 5 million.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Xac_dinh_tong_chi_phi_truoc_khi_tinh_do_dang\"><\/span><b>Determine the total cost before calculating the work in progress.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Beginning balance: 20 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">+ Additional costs of 195 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Excess materials worth 5 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">= 210 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After identification <\/span><b>Unfinished business at the end of the period: 30 million<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cost of finished product<\/span><\/p>\n<p><span style=\"font-weight: 400;\">= 210 million \u2013 30 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">= 180 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the business produces 1,000 products that meet the standards:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unit cost<\/span><\/p>\n<p><span style=\"font-weight: 400;\">= 180 million \/ 1,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">= 180,000 VND\/product<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When finished products are ready for warehousing:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debit Account 155: 180 million<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0Account 154 has 180 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ending balance of account 154 is still <\/span><b>30 million<\/b><span style=\"font-weight: 400;\">, This reflects the cost of work-in-progress. This is why the total cost incurred does not equate to the cost of the finished product.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Neu_ap_dung_Thong_tu_99_thi_thay_doi_the_nao\"><\/span><b>What changes would occur if Circular 99 were implemented?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There&#039;s no need to rewrite the entire example. The original set flow changes as follows:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Expenditure<\/b><\/td>\n<td><b>According to Circular 133<\/b><\/td>\n<td><b>According to Circular 99<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Direct materials<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">TK 621<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Direct labor<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">TK 622<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">General manufacturing costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">TK 627<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Transfer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Do not use accounts 621, 622, and 627 unless you are using these accounts.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Debit 154 \/ Credit 621, 622, 627<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Incomplete at the end of the term<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account 154<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">finished product<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Debit 155\/Credit 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Debit 155\/Credit 154<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> The example above only illustrates the process of cost aggregation and calculation. In practice, businesses need to base their calculations on the accounting system, accounting policies, supporting documents, and cost calculation methods currently in use.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chung_tu_can_co_khi_hach_toan_chi_phi_san_xuat\"><\/span><b>Documents required when accounting for production costs.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The accounting entry must be supported by documentation proving the actual expenditure incurred, serving production purposes, and attributed to the correct recipient.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chung_tu_nguyen_vat_lieu\"><\/span><b>Material documents<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contract.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Order.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bill.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Warehouse receipt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Warehouse release form.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production order.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Material consumption standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Record of excess or shortage of materials.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Scrap metal record.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Chung_tu_nhan_cong\"><\/span><b>Labor documents<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employment contract or subcontracting agreement.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Timesheet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payroll.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Salary allocation table.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment voucher.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Minutes of acceptance of outsourced labor.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Chung_tu_chi_phi_san_xuat_chung\"><\/span><b>General manufacturing overhead cost voucher<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Electricity, water, and utility bills.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Depreciation calculation sheet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tool and equipment allocation table.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Table of shared expense allocation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Repair and maintenance records.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Machine shutdown report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The basis for selecting the allocation criteria.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Chung_tu_do_dang_va_thanh_pham\"><\/span><b>Work in progress and finished goods documents<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Incomplete inventory report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Process report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cost calculation sheet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Finished Goods Inventory Receipt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Defective product report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Acceptance report.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Businesses can refer to this for more information.<\/span><a href=\"https:\/\/bizzi.vn\/cach-quan-ly-chung-tu-ke-toan\/\"> <span style=\"font-weight: 400;\">Detailed instructions on how to manage accounting documents effectively and legally<\/span><\/a><span style=\"font-weight: 400;\"> To standardize the process of collecting and storing records.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Truong_hop_nhan_vien_thanh_toan_ho_doanh_nghiep\"><\/span><b>In the case where an employee makes payments on behalf of the company...<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Cases where employees make advance payments to the company should be separated from advance payment transactions. The company should have internal regulations allowing employees to make payments on behalf of others, including purchase records, invoices bearing company information, documents proving employee payments to suppliers, reimbursement requests, and documents showing the company&#039;s reimbursement to the employee.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regarding taxes, it is not advisable to conclude that an expense is definitely deductible or taxable simply because there is an invoice. Simultaneously, it is necessary to check the VAT regulations, non-cash payment conditions, and conditions for deductible expenses when calculating corporate income tax according to current regulations. The outline also notes that Decree 181\/2025\/ND-CP on VAT and current regulations on corporate income tax should be checked when handling this transaction.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Checklist_kiem_tra_truoc_khi_khoa_so_chi_phi_san_xuat\"><\/span><b>Checklist for checking before closing the production cost books.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The ending balance of account 154 should reflect the costs of products, work, or services that have not yet been completed.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Checklist_chung\"><\/span><b>General Checklist<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The correct accounting system has been determined.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do not mix accounting entries from Circular 133 and Circular 99.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Each expenditure has a designated recipient.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Direct and shared costs are properly categorized.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shared funds have been allocated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The allocation criteria are well-founded.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Selling and administrative expenses are not included in the cost of goods sold.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The excess material has been returned.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scrap materials have been processed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The excess expenses have been separated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Work-in-progress inventory is available.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Completed orders no longer have outstanding charges.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is no negative TK 154 code.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detailed cost breakdown sheet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The total detailed ledger matches the general ledger.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The completed output matches the warehouse receipt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ending balances can be explained by individual account.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Kiem_tra_rieng_theo_Thong_tu_133\"><\/span><b>Separate inspection according to Circular 133<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The costs are correctly recorded in account 154.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do not use accounts 621, 622, and 627 as the default if the business has not opened and implemented these accounts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Account 154 details are sufficient to distinguish between raw materials, labor, and overhead costs.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Kiem_tra_rieng_theo_Thong_tu_99\"><\/span><b>Separate inspection according to Circular 99<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accounts 621, 622, and 627 have been transferred at the end of the period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The expense aggregation accounts no longer have a balance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any amount exceeding the normal limit should not be transferred to account 154.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The unallocated portion of fixed manufacturing overhead costs has been treated separately.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The balance of account 154 should not be adjusted with a single general entry simply to match the books. If there is a discrepancy, it is necessary to trace back to the supporting documents, the aggregation objects, and the allocation criteria.<\/span><\/p>\n<figure style=\"width: 1920px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" title=\"Diagram of accounting for industrial production costs according to Circular 133\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/04\/hach-toan-nganh-cong-nghiep.jpg\" alt=\"Checklist for checking before closing the production cost books.\" width=\"1920\" height=\"1080\" \/><figcaption class=\"wp-caption-text\">This checklist outlines the important steps to take before closing the production cost books (Account 154) and calculating the cost of goods sold, helping accountants ensure the accuracy and validity of the data.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Nhung_loi_thuong_gap_khi_hach_toan_chi_phi_san_xuat\"><\/span><b>Common mistakes when accounting for production costs.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Common errors often lie not in the debit\/credit syntax but in the fact that <\/span><b>Choosing the wrong accounting method, misclassifying expenses, or lacking a basis for allocation.<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Error<\/b><\/td>\n<td><b>Token<\/b><\/td>\n<td><b>Affect<\/b><\/td>\n<td><b>How to check\/how to fix<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Use accounts 621, 622, and 627 without checking the settings.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The journal entry is inconsistent with accounting policy.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Incorrect assembly flow<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Determine the accounting method first.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Include all factory overhead costs in the cost price.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Unusual price increase<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Incorrect inventory value<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Reclassification by nature<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Do not open details for account 154.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The cost cannot be determined for any particular product.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Difficult to determine the cost.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Open details by object<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Do not attach documents to the product\/order.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The file lacks supporting evidence.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Difficult to verify<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Add production code\/order<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">The allocation of overhead costs is unfounded.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rate of change varies by period<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Inconsistent pricing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Develop appropriate criteria<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Do not dispose of excess\/waste materials.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Costs cannot be reduced.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The cost is high.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Check the re-entry form and the recall record.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">No incomplete evaluation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account 154 does not reflect the truth.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Incorrect pricing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">End-of-period inventory<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Completed orders are still pending at 154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">There is a balance even though the task has been completed.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Difficult to compare<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Check the cost sheet and inventory records.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Incorporate extraordinary costs into a good product.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Prices have increased dramatically.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Incorrect classification<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Determine the excess amount.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Do not compare the price list with the records.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Two different sets of data<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Incorrect reporting<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Detailed-to-summary comparison<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Mixing accounting entries from Circular 133 and Circular 99<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Some items go into account 154, some into accounts 621\/622\/627, which are not in accordance with policy.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Difficult to control<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Identify an application flow.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">There is an invoice, but the production records are missing.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Only input invoices<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Lack of evidence<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Add input\/output slips, acceptance certificates, production orders, etc.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Bizzi_ho_tro_khau_nao_trong_quy_trinh_chi_phi_san_xuat\"><\/span><b>Which stage of the production costing process does Bizzi support?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Bizzi can be used in <\/span><b>The process includes creating payment requests, approval, invoice collection, and document reconciliation.<\/b><span style=\"font-weight: 400;\">. The classification, allocation, and accounting of production costs remain the responsibility of the accountant according to the accounting system currently in effect.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In reality, the bottleneck before the closing date may not lie in the accountant knowing which journal entry to make, but rather in the fact that the supporting documents have not arrived in full or are scattered.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The documents come from multiple departments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The invoice arrived late.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The request for expenditure lacks approval.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment documents are not attached to invoices.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accountants must perform a manual review before closing the books.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is difficult to track advances and reimbursements.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">At this process level, Bizzi can provide support:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Create a payment request.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set up the approval flow.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collect invoices and supporting documents.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supports invoice data extraction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reconcile invoices against transactions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manage spending limits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track expenses by department.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Support the advance payment and reimbursement process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Connect data with other systems within the supported range.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Businesses can refer to<\/span><a href=\"https:\/\/bizzi.vn\/so-hoa-quy-trinh-tao-duyet-chi-phi-sieu-don-gian-voi-bizzi-expense\/\"> <span style=\"font-weight: 400;\">Digitize the expense creation and approval process with Bizzi Expense.<\/span><\/a><span style=\"font-weight: 400;\"> If the current bottleneck lies in the process of proposing, approving, and compiling expense documents.<\/span><\/p>\n<p><b>It is necessary to distinguish clearly:<\/b><span style=\"font-weight: 400;\"> Bizzi is not a replacement for manufacturing accounting software and should not be construed as a tool for automatically calculating costs, valuing work-in-progress, automatically allocating manufacturing overhead, or automatically determining deductible expenses for tax purposes.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cau_hoi_thuong_gap_ve_hach_toan_chi_phi_san_xuat\"><\/span><b>Frequently Asked Questions about Production Cost Accounting<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Hach_toan_chi_phi_san_xuat_dung_tai_khoan_nao\"><\/span><b>Which accounts are used for accounting for production costs?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Follow the flow <\/span><b>Circular 133<\/b><span style=\"font-weight: 400;\">, Production costs are typically grouped directly into... <\/span><b>Account 154<\/b><span style=\"font-weight: 400;\">. According to <\/span><b>Circular 99<\/b><span style=\"font-weight: 400;\">, Direct material costs, direct labor costs, and manufacturing overhead costs are respectively aggregated through <\/span><b>Accounts 621, 622 and 627<\/b><span style=\"font-weight: 400;\">, then transfer to account 154. Businesses need to check the accounting system they are currently applying.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"TK_154_co_so_du_cuoi_ky_khong\"><\/span><b>Does account 154 have a closing balance?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Have.<\/b><span style=\"font-weight: 400;\"> The debit balance of account 154 may reflect the cost of unfinished products, work, or services. This is work-in-progress cost, not an amount the business has not yet paid.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"TK_1541_1542_va_1547_la_gi-2\"><\/span><b>What are the periods 1541, 1542, and 1547?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is usually <\/span><b>Detailed accounts are set up by the business or software.<\/b><span style=\"font-weight: 400;\">, Therefore, there is no fixed meaning that applies to all businesses. Businesses can detail accounts by item, product, workshop, or type of activity. It is necessary to check the internal account catalog before concluding which item accounts 1541, 1542, or 1547 represent.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Thong_tu_133_co_TK_621_622_va_627_khong\"><\/span><b>Does Circular 133 include accounts 621, 622, and 627?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is not advisable to mechanically apply accounting flows 621, 622, and 627 to businesses that are accumulating costs using the default system of Circular 133. According to the business process outline, Circular 133 directly accumulates production costs into account 154; businesses need to check their accounting policies and actual account list.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tien_dien_san_xuat_hach_toan_vao_tai_khoan_nao\"><\/span><b>Which account should electricity costs for production be recorded in?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If a business applies the regulations outlined in Circular 133, electricity costs for production are typically aggregated into... <\/span><b>Account 154<\/b><span style=\"font-weight: 400;\">. According to Circular 99, if it is a common expense of the workshop, it is usually grouped into... <\/span><b>TK 627<\/b><span style=\"font-weight: 400;\">, Then, allocate the appropriate amount to account 154. If electricity is used for multiple departments, a basis for allocation is required.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Khi_nao_chuyen_TK_154_sang_TK_155\"><\/span><b>When should account 154 be transferred to account 155?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Once the product is completed, meets the warehousing requirements, and the business has determined a suitable cost, the corresponding expenses are transferred to account 155.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Khi_nao_chuyen_TK_154_sang_TK_632\"><\/span><b>When should account 154 be transferred to account 632?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Depending on the nature of the transaction and the accounting system applied, account 154 may be transferred to cost of goods sold when completed products or services are directly recognized in the cost of goods sold, or when dealing with items not included in the inventory value according to regulations.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chi_phi_ban_hang_co_duoc_dua_vao_gia_thanh_khong\"><\/span><b>Are selling expenses included in the cost of goods sold?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Are not.<\/b><span style=\"font-weight: 400;\"> Selling expenses are not part of the product creation process and therefore should not be included in the cost of production simply because they are incurred in the same period.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Co_duoc_phan_bo_toan_bo_chi_phi_san_xuat_chung_vao_san_pham_khong\"><\/span><b>Is it permissible to allocate all manufacturing overhead costs to the product?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Not by default.<\/b><span style=\"font-weight: 400;\"> Only the portion of production-related costs that are reasonably allocated should be included in the cost of goods sold. Unallocated fixed overhead costs must be treated separately according to applicable accounting regulations.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Production cost accounting<\/b><span style=\"font-weight: 400;\"> It should be viewed as a control chain from the moment a cost is incurred until the product is completed, rather than simply choosing a debit\/credit account.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before making a journal entry, the accountant should check... <\/span><b>correct accounting procedures<\/b><span style=\"font-weight: 400;\">. This is particularly important given that Circular 99\/2025\/TT-BTC has been in effect since 2026 for the fiscal years within its scope of application. Subsequently, businesses need to correctly identify the relevant regulations. <\/span><b>cost aggregation objects, cost items, and allocation criteria<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the end of the period, not all incurred costs should be transferred to finished goods. Accountants need to evaluate work-in-progress, handle excess materials, scrap, and any excess expenses before determining the cost of goods sold. The cost of unfinished goods continues to be reflected in account 154.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For businesses with a large volume of production documents, the issue lies not only in the accounting entries but also in the process of... <\/span><b>Invoices, payment requests, approvals, payment vouchers, and acceptance records are collected from various departments.<\/b><span style=\"font-weight: 400;\">. In that case, digitizing the request, approval, and document compilation processes can help accountants reduce the amount of manual verification work required before closing the books.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bizzi could be considered at this process layer to provide support. <\/span><b>Collecting documents, creating and approving expense requests, extracting invoice data, reconciling documents, and tracking expenses.<\/b><span style=\"font-weight: 400;\">; However, the determination of costs, valuation of work in progress, and final accounting still need to be carried out according to the accounting policies and practices of the enterprise.<\/span><\/p>\n<p><b><i>Register to schedule a trial of the solution here: <\/i><\/b><a href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\"><b><i>https:\/\/bizzi.vn\/dang-ky-dung-thu\/<\/i><\/b><\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Production cost accounting is not just about recording raw materials, wages, and factory expenses. Accountants also have to\u2026<\/p>","protected":false},"author":57,"featured_media":999982194,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[263,86],"tags":[],"class_list":["post-999972379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kien-thuc","category-giam-sat"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999972379","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=999972379"}],"version-history":[{"count":9,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999972379\/revisions"}],"predecessor-version":[{"id":999982195,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999972379\/revisions\/999982195"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999982194"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999972379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999972379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999972379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}