TABLE OF CONTENT

Chapter 1 ............................................................................................................................... 2
LITTERRATURE REVIEW ON REPORTING AND ANALYSING INVENTORY ......... 2
1.1. Definition and classification of inventory ........................................................... 2
1.1.1. Definition of inventory .................................................................................... 2
1.1.2. Classification of inventory .............................................................................. 3
1.2. Determining inventory quantities ........................................................................ 3
1.2.1. Taking a physical inventory............................................................................ 3
1.2.2. Determining ownership of goods.................................................................... 4
1.3. Inventory costing ................................................................................................... 4
1.3.1. Purchases of merchandise .............................................................................. 4
1.3.2. Sales of merchandise ...................................................................................... 5
1.4. Reporting inventory ............................................................................................ 10
1.4.1. Income Statement effects .............................................................................. 11
1.4.2. Balance Sheet effects .................................................................................... 12
1.4.3. Tax effects ..................................................................................................... 12
1.5. Analysis of inventory........................................................................................... 12
1.5.1. Inventory turnover ratio ............................................................................... 13
1.5.2. LIFO reserve ................................................................................................. 13
Chapter 2 ............................................................................................................................. 14
REPORTING AND ANALYSING INVENTORY AT NORTH VETERINARY
MEDICINE LIMITED COMPANY ................................................................................... 14
2.1. Generals of North veterinary medicine limited company ............................... 14
2.1.1. Formation and development ......................................................................... 14
2.1.2. Field of business ........................................................................................... 15
2.1.3. Manufactoring process ................................................................................. 15
2.1.4. Organisation structure .................................................................................. 17
2.1.5. Businness performance ................................................................................ 18
2.2. Reporting and analysing inventory at the company ........................................ 19
2.2.1. Documents circulation .................................................................................. 19
2.2.2. Inventory costing ........................................................................................... 20
2.2.3. Reporting inventory ...................................................................................... 22
2.2.4. Analysis of inventory..................................................................................... 29
2.3. Findings ................................................................................................................ 29
2.3.1. Strengths........................................................................................................ 29
 2.3.2. Weaknesses .................................................................................................... 30
Chapter 3 ............................................................................................................................. 31
RECOMMENDATIONS TO IMPROVE REPORTING AND ANALYSING
INVENTORY AT NORTH VETERINARY MEDICINE LIMITED COMPANY ........... 31
3.1. Development plan of North veterinary medicine limited company ................ 31
3.1.1. Business development plan ........................................................................... 32
3.1.2. Objectives of developing the activity of reporting and analysing inventory33
3.2. Implications proposed to the company to improve reporting and analysing
inventory ......................................................................................................................... 34
3.2.1. Inventory check book .................................................................................... 34
3.2.2. Provision for devaluation of stocks .............................................................. 36
3.2.3. Establish the account “Goods in transit” .................................................... 36
3.2.4. Apply Accounting softwares ......................................................................... 37
3.2.5. Improve documents movement process ........................................................ 37
 TABLE OF FIGURE

Table 1.1: Example of inventory costing at Houston Electronics ......................................... 6

Table 1.2: FIFO cost of goods available for sale at Houston Electronics ............................ 7
Table 1.3: FIFO ending inventory at Houston Electronics ................................................... 7
Table 1.4: FIFO cost of goods sold at Houston Electronics .............................................. 7
Table 1.5: LIFO cost of goods available for sale at Houston Electronics ............................ 8
Table 1.6: LIFO ending inventory at Houston Electronics ................................................... 8
Table 1.7: LIFO cost of goods sold at Houston Electronics ................................................ 9
Table 1.8: Average cost of goods available for sale at Houston Electronics ........................ 9
Table 1.9: Average ending inventory at Houston Electronics ............................................ 10
Table 1.10: Average cost of goods sold at Houston Electronics ........................................ 10
Table 1.11: Comparison of three assumed cost methods in income statement at Houston
Electronics ........................................................................................................................... 11
Diagram 2.1: Drugs manufacturing process at North veterinary medicine Co.,Ltd....Error!
Bookmark not defined.
Diagram 2.2: Organisational structure of North veterinary medicine Co.,Ltd ...........Error!
Bookmark not defined.
Table 2.1: Income statement of the year end 2011 and 2012 of North veterinary medicine
Co.,Ltd ................................................................................. Error! Bookmark not defined.
Diagram 2.3: Documents circulation process at North veterinary medicine Co.,Ltd..Error!
Bookmark not defined.
Table 2.2: Account Cost of goods sold at North veterinary medicine Co.,Ltd .................... 21
Table 2.3: Stock card of the inventory Sulpha dimidin at North veterinary medicine Co.,Ltd
............................................................................................................................................. 22
Table 2.4: Inwards notes of 30th November 2012 at North veterinary medicine Co.,Ltd ... 23
Table 2.5: Subcidiary ledger of the month of November 2012 at North veterinary medicine
Co.,Ltd ................................................................................................................................. 24
Table 2.6: Stock movement summary of the month of November 2012 at North veterinary
medicine Co.,Ltd .................................................................................................................. 25
Table 2.7: Liquidation record of the year end 2012 at North veterinary medicine Co.,Ltd
............................................................................................. Error! Bookmark not defined.
Table2.8: Inventory turnover ratio and Days in inventory of 2011-2013 period at North
veterinary medicine Co.,Ltd................................................................................................. 29
Table 3.1. Stock movement target of North veterinary medicine Co.,Ltd in 2015 .......Error!
Bookmark not defined.
Table 3.2: Financial plan of North veterinary medicine Co.,Ltd in 2015 ........................... 33
Table 3.3: Purposed Inventory check book at North veterinary medicine Co.,Ltd ............. 35
Figure 3.1: Quickuse accounting software .......................................................................... 37
Table 3.4. Proposed documents recept note at North veterinary medicine Co.,Ltd ............ 38
 ~1~

INTRODUCTION
One of major goals in managing a business is to store the least amount of inventory
while maintaining specific operating requirements. Ideally, the inventory control
allows the business to supply needs in regards to production or to the customer at
the precise moment needed, at the minimal price. Successful inventory control
keeps waste and surplus at a minimum and efficiently handles storage, production
and distribution of inventory. That is the reason why, in order for business and
supply chains to run effectively and efficiently they must meet all the listed
requirements for effective inventory management. Some of the main concerns are
the level of customer service and the cost of ordering, storing, and carrying
inventory. Therefore, inventory must be managed wisely.
Reporting and analysing inventory plays a vital role in managing a company's
inventory. Basically, its function is to monitor the net worth of goods and maintain
accurate records at all times. In addition, this process helps the company to
determine its profitability and ensure accurate financial statements through specific
tasks including supervising inventory counts, inputting inventory data, evaluating
reports, checking discrepancies and presenting findings.
As a manufacturer and retailer, the operation of North veterinary medicine limited
company need to be precise and effectiveness in inventory management. With
expectation to study this subject, I have spent 5 weeks working as an intern in
Accounting department of North veterinary medicine limited company.
Consequently, I chose the topic: ”Reporting and analysing inventory at North
veterinary medicine limited company” for my internship report.
The report is divided into three main chapters:
 Chapter 1: Literature review on Reporting and analysing inventory
 Chapter 2: Reporting and analysing inventory at North veterinary medicine
limited company
 Chapter 3: Recommendations to improve reporting and analysing inventory
at North veterinary medicine limited company
I would like to thank the company's director, the staff and my tutor, Mrs. Le Thi
Phuong Dung for helping me to finish this report.
 ~2~

Chapter 1

LITTERRATURE REVIEW ON REPORTING AND

ANALYSING INVENTORY

1.1. Definition and classification of inventory

1.1.1. Definition of inventory
“Inventory is an asset that is owned by a business that has the express purpose of
being sold to a customer. This includes items sold to end customers or distributors.
It includes raw materials, work in process, and finished goods. The management of
inventory is a key concern of all businesses. If a company's inventory level is too
low, it risks delays in fulfilling it's customers orders. If the inventory is too high, it
is tying up dollars that can be better used in other areas. It also risks obsolescence
and spoilage. Successful businesses keep their inventory turns high, but also keep
their service level at or above the industry standard.”
(Source: InventoryDefinition.com)

“The value of materials and goods held by an organisation to support production

(raw materials, subassemblies, work in process), support activities (repair,
maintenance, consumables), or for sale or customer service (merchandise, finished
goods, spare parts).
Inventory is often the largest item in the current assets category, and must be
accurately counted and valued at the end of each accounting period to determine
a company's profit or loss. Organizations whose inventory items have a large unit
cost generally keep a day to day record of changes in inventory (called perpetual
inventory method) to ensure accurate and on-going control. Organizations with
inventory items of small unit cost generally update their inventory records at the end
of an accounting period or when financial statements are prepared (called periodic
inventory method). GAAP require that inventory should be valued on the basis of
either its cost price or its current market price whichever is lower of the two to
 ~3~

prevent overstating of assets and earning due to sharp increase in the inventory's
value in inflationary periods. The optimum level of inventory for an organization is
determined by inventory analysis. Called also stock in trade, or just stock.”
(Source: BusinessDictionary.com)

1.1.2. Classification of inventory

How a company classifies its inventory depends on whether the firm is a
merchandiser or a manufacturer. In a merchandiser, inventory consists of many
different items but with two common characterisitics:
 Owned by the company
 In form ready for sale to customers
Thus, merchandisers need only one inventory classification – merchandise
inventory – to describe the many different items that make up the total inventory.

In a manufacturing company, some inventory may not yet be ready for sale. As a
result, manufacturers classify inventory into three main categories:
 Finished goods inventory: manufactured items that are completed and ready
for sale.
 Work in process: the portion of manufactured inventory that has begun the
production process but is not yet complete.
 Raw materials: the basic goods that will be used in production but have not
yet been placed into production.

1.2. Determining inventory quantities

No matter which inventory system they are using, all companies need to determine
inventory quantities at the end of the accounting period. The process of determining
inventory quantities involves two steps.
1.2.1. Taking a physical inventory
This process involves activities such as actually counting, weighing, measuring
each kind of inventory on hand. In many companies, taking an inventory is a
formidable task. An inventory count is generally more accurate when a limited
 ~4~

number of goods are being sold or received during the counting. Consequently,
companies often take inventory when the business is closed or slow.

1.2.2. Determining ownership of goods

One challenge in determining inventory quantities is making sure the company
owns the inventory. To determine ownership of goods, two special kinds of goods
must be considered:
 Goods in transit: goods purchased which have not yet been received or goods
sold which have not yet been delivered.
 Consigned goods: goods hold of other parties to sale without taking
ownership.

1.3. Inventory costing

The basic requirement for counting an item in inventory is economic control rather
than physical possession. Therefore, when a company purchases inventory, the item
is included in the purchaser’s inventory even if the purchaser does not have physical
possession of those items.
Inventory is usually classified in its own category as an asset on the balance sheet,
following receivables. It is important to note that the balance sheet’s inventory
account should also reflect costs directly or indirectly incurred in making an item
ready for sale, including the purchase price of the item as well as the freight,
receiving, unpacking, inspecting, storage, maintenance, insurance, taxes, and other
costs associated with it.
1.3.1. Purchases of merchandise
Companies normally record purchases when they receive the goods from the seller.
Every purchase should be supported by business documents that provide written
evidence of the transaction – a purchase invoice – which indicates the total purchase
price and other relevant information. However, the purchaser does not prepare a
separate purchase invoice. Instead, the purchaser uses a copy of the sales invoice
sent by the seller.
 ~5~

Under the perpetual inventory system, companies record purchases of merchandise

in the Inventory account.
 Freight costs
The transporting costs of the goods to the buyer’s place of business could be
charged to either the seller or the buyer.
If freight costs incurred by the buyer, they are part of the cost of purchasing
merchandise and are recorded directly to the Inventory account.
In contrast, freight costs incurred by the seller on outgoing merchandise are an
operating expense to the seller. In this case, the seller usually establish a higher
invoice price for the goods, to cover the expense of shipping.
 Purchase returns and allowances
A purchaser may be dissatisfied with the merchandise received because the goods
are damaged or defective, or inferior quality, or do not meet the purchaser’s
specifications. In such cases, the purchaser may return the goods to the sellerfor
credit or cash refund. This is known as a Purchase return. Alternatively, the
purchaser may choose to keep the merchandise if the seller is willing to grant a
reduction of the purchase price. This is known as a Purchase allowance.

 Purchase discounts
The credit terms of a purchase on account may permit the buyer to claim a cash
discount for prompt payment. This is called a Purchase discount, which offers
advantages to both parties: the buyer saves money and the seller is able to shorten
the operating cycle by converting accounts receivable into cash earlier.

1.3.2. Sales of merchandise

Inventory is accounted for at cost. Cost includes all expenditures necessary to
acquire goods and place them in condition ready for sale. After having determined
the quantity of inventory, company applies unit costs to the quantity to determine
the total cost of inventory and of cost of good sold. According to different times and
prices of purchase and sale, we have alternative inventory costing methods.
 ~6~

a. Specific identification
Specific identification requires the company to keep records of the original cost of
each individual inventory item. This method used to be only possible when
company sold a limited variety of high-unit-cost items that could be identified
clearly from the time of purchase through the time of sale. Today, with bar coding,
electronic product codes, radio frequency identification, it is possible to nearly any
type of product. However, this practice is still relatively rare.

b. Cost flow assumptions

These methods differ from specific identification in that they assume flows of costs
that may be unrelated to the actual physical flow of goods. To demonstrate these
methods, we use a periodic inventory system. Firstly, we know the cost of goods
sold formula in periodic inventory system as:
(Beginning inventory + Purchases) – Ending inventory = Cost of goods sold

Table 1.1: Example of inventory costing at Houston Electronics

Houston Electronics
Unit:USD
Date Explanation Units Unit cost Total cost
Jan. 1 Beginning inventory 100 $10 $1,000
Apr. 15 Purchase 200 11 2,200
Aug. 24 Purchase 300 12 3,600
Nov. 27 Purchase 400 13 5,200
Total units available for sale 1,000 $12,000
Units in ending inventory 450
Units sold 550
(Source: Kimmel ; Weygandt ; Kieso, 2010)
We will in turn apply three assumed cost flow methods:
 First-In, First-Out (FIFO):
The FIFO method assumes that the earliest goods purchased are the first to be sold.
FIFO often parallels the actual physical flow of merchandise because it generally is
 ~7~

good business practice to sell the oldest units first. Under this method, the costs of
the earliest goods purchased are the first to be recognised in determining cost of
goods sold, regardless which units were actually sold.

Table 1.2: FIFO cost of goods available for sale at Houston Electronics
Cost of goods available for sale
Unit:USD
Date Explanation Units Unit cost Total cost
Jan. 1 Beginning inventory 100 $10 $1,000
Apr. 15 Purchase 200 11 2,200
Aug. 24 Purchase 300 12 3,600
Nov. 27 Purchase 400 13 5,200
Total 1,000 $12,000
(Source: Kimmel ; Weygandt ; Kieso, 2010)

Table 1.3: FIFO ending inventory at Houston Electronics

Ending inventory
Unit:USD
Date Units Unit cost Total cost
Nov. 27 400 $13 $5,200
Aug. 24 50 12 600
Total 450 $5,800
(Source: Kimmel ; Weygandt ; Kieso, 2010)

Table 1.4: FIFO cost of goods sold at Houston Electronics

Cost of goods sold
Unit:USD
Cost of goods available for sale $12,000
Less: Ending inventory 5,800
Cost of goods sold $6,200
(Source: Kimmel ; Weygandt ; Kieso, 2010)
 ~8~

Under FIFO, since it assumed that the first purchase were the first sell, ending
inventory is based on the prices of the most recent units purchased. Therefore,
company determines the cost of ending inventory by taking the unit cost of the most
recent purchase and working backward untill all units of inventory have been
costed.

 Last-In, First-Out (LIFO):

The LIFO method assumes that the latest goods purchased are the first to be sold.
LIFO usually coincides with the actual physical flow of inventory.
Table 1.5: LIFO cost of goods available for sale at Houston Electronics
Cost of goods available for sale
Unit:USD
Date Explanation Units Unit cost Total cost
Jan. 1 Beginning inventory 100 $10 $1,000
Apr. 15 Purchase 200 11 2,200
Aug. 24 Purchase 300 12 3,600
Nov. 27 Purchase 400 13 5,200
Total 1,000 $12,000
(Source: Kimmel ; Weygandt ; Kieso, 2010)

Table 1.6: LIFO ending inventory at Houston Electronics

Ending inventory
Unit: USD
Date Units Unit cost Total cost
Jan. 1 100 $10 $1,000
Apr. 15 200 11 2,200
Aug. 24 150 12 1,800
Total 450 $5,000
(Source: Kimmel ; Weygandt ; Kieso, 2010)
 ~9~

Table 1.7: LIFO cost of goods sold at Houston Electronics

Cost of goods sold

Unit:USD
Cost of goods available for sale $12,000
Less: Ending inventory 5,000
Cost of goods sold $7,000
(Source: Kimmel ; Weygandt ; Kieso, 2010)
Under LIFO, since it assumed that the first sell were the most recent purchase,
ending inventory is based on the prices of the oldest units purchased. Therefore,
company obtains the cost of ending inventory by taking the unit cost of the earliest
goods available for sale and working forward untill all units of inventory have been
costed.

 Average-Cost
The average –cost method allocates the cost of cost available for sale on the basis of
the weighted-average unit cost incurred, which has the formula as:
Cost of goods ÷ Total units = Weighted-average
available for sale available for sale unit cost

The company then applies the weighted-average unit cost to the units on hand to
determine the cost of ending inventory.
Table 1.8: Average cost of goods available for sale at Houston Electronics
Cost of goods available for sale
Unit:USD
Date Explanation Units Unit cost Total cost
Jan. 1 Beginning inventory 100 $10 $1,000
Apr. 15 Purchase 200 11 2,200
Aug. 24 Purchase 300 12 3,600
Nov. 27 Purchase 400 13 5,200
Total 1,000 $12,000
(Source: Kimmel ; Weygandt ; Kieso, 2010)
 ~ 10 ~

Table 1.9: Average ending inventory at Houston Electronics

Ending inventory
Unit:USD
$12,000 ÷ 1,000 = $12,000
Units Unit cost Total cost
450 $12 $5,400
(Source: Kimmel ; Weygandt ; Kieso, 2010)

Table 1.10: Average cost of goods sold at Houston Electronics

Cost of goods sold
Unit:USD
Cost of goods available for sale $12,000
Less: Ending inventory 5,400
Cost of goods sold $6,600
(Source: Kimmel ; Weygandt ; Kieso, 2010)

1.4. Reporting inventory

All of the three assumed cost flow methods are acceptable widely. Therefore, the
reason of choosing to adopt which of them depends on company’s goals. Generally,
it involves these following factors.
 ~ 11 ~

1.4.1. Income Statement effects

Table 1.11: Comparison of three assumed cost methods in income statement at
Houston Electronics
Houston Electronics
Income Statements
Unit: USD
FIFO LIFO Average-Cost
Sales revenue $18,500 $18,500 $18,500
Beginning inventory 1,000 1,000 1,000
Purchases 11,000 11,000 11,000
Cost of goods available for sale 12,000 12,000 12,000
Less: Ending inventory 5,800 5,000 5,400
Cost of goods sold 6,200 7,000 6,600
Gross profit 12,300 11,500 11,900
Operating expenses 9,000 9,000 9,000
Income before taxes 3,300 2,500 2,900
Income tax expense (30%) 990 750 870
Net income $2,310 $1,750 $2,030
(Source: Kimmel ; Weygandt ; Kieso, 2010)

We can see clearly that the cost of goods available for sale is the same under three
inventory cost flow methods. However, the ending inventory and the cost of goods
sold are different. This difference is due to the unit cost that company allocated to
cost of goods sold and ending inventory, which results in a corresponding difference
in income before taxes. For Maria Electronics, it is a $800 gap between FIFO and
LIFO cost of goods sold.
In most instances, prices rise over time according to inflation. As a result, FIFO
produces the highest net income because the lower unit costs of the first units
purchased are matched against revenues, LIFO reports the lowest and Average-cost
falls in the middle.
 ~ 12 ~

To management, higher net income is an advantage. It causes external users to view

the company more favorably. Therefore, companies tend to prefer FIFO for higher
net income.

1.4.2. Balance Sheet effects

A major advantage of FIFO is that along with inflation, costs allocated to ending
inventory will approximate their current costs. For Maria Electronics, 400 of the
450 units in the ending inventory are costed at the higher Nov. 27 unit cost of $13.
Conversely with LIFO method when the costs allocated to ending inventory may be
understated in terms of current cost and it becomes greater over time.

1.4.3. Tax effects

We have seen that both inventory on the balance sheet and net income on the
income statement are higher with FIFO in period of inflation. Yet, many companies
use LIFO. The reason is that LIFO resultes in the lowest income taxes, because of
lower net income. In the case of Maria Electronics, income taxes are $750 under
LIFO compared to $990 of FIFO.

1.5. Analysis of inventory

Given the significant costs and benefits associated with inventory, companies spend
considerable amounts of time calculating what the optimal level of inventory should
be at any given time, and changes in inventory levels can send mixed messages to
investors. Increases in inventory may signal that a company is not selling
effectively, is anticipating increased sales in the near future (such as during the
holidays), or has an inefficient purchasing department. In contrast, declining
inventories may signal that the company is selling more than it expected, has a
backlog, is experiencing a bloackage in its supply chain, is expecting lower sales, or
is becoming more efficient in its purchasing activity.
For trade companies, managing inventory levels can be one of the most critical
tasks. Having too much inventory on hand costs the company in storage, interest…
 ~ 13 ~

But having too little inventory on hand results in lost sales. That is the reason why
evaluating inventory levels is concerned here.
1.5.1. Inventory turnover ratio
Inventory turnover ratio = Cost of goods sold ÷ Average inventory
The inventory turnover ratio indicates how quickly company sells its goods – the
number of times the average inventory “turns over” during the year.
Days in inventory = 365 ÷ Inventory turnover ratio
Inventory turnover can be divided into 365 days to compute Days in inventory ,
which indicates the average number of days inventory is held.
High inventory turnover – low Days in inventory – indicates that company has
minimal funds tied up in inventory, which means it has a minimal amount of
inventory on hand at one time. Although minimising the funds tied up in inventory
is efficient, too high an inventory turnover ratio may indicate that company is losing
sales opportunities because of inventory shortage. Thus, management should
monitor this ratio to achieve the best balance of inventory levels.

1.5.2. LIFO reserve

Use of different inventory cost flow assumptions complicates comparation of
companies’ results. Therefore, companies using LIFO are required to report the
difference between inventory reported using LIFO and FIFO. This amount is called
LIFO reserve, which enables to make adjustments.
Because there are several ways to account for inventory and because some
industries require more inventory than others, comparison of inventories is
generally most meaningful among companies within the same industry using the
same inventory accounting methods, and the definition of a “high” or “low”
inventory level should be made within this context.
 ~ 14 ~

Chapter 2

REPORTING AND ANALYSING INVENTORY AT NORTH

VETERINARY MEDICINE LIMITED COMPANY

2.1. Generals of North veterinary medicine limited company

2.1.1. Formation and development
 Company name: North veterinary medicine limited company
 Abbreviation: North veterinary medicine Co., Ltd
 Head office: No107 A12 Phuong Mai street, Dong Da district, Hanoi
 Phone: 043.6649.342 Fax: 043.8643.332
 Email: thuymienbac@gmail.com
North veterinary medicine limited company was founded by Mr. Director Pham
Ngan, according to the certificate of business register No 0102006734 authorised by
The service of planning and investment of Hanoi city on 18/10/2002. The company
does business in veterinary medicine field, with a charter capital of 1 billion VND.
Specifically, the company operates in:
 Researching, manufacturing, selling veterinary drugs and materials
 Consulting, receiving, transfering technology in veterinary and breeding
 Selling ingredients and materials to manufacturing veterinary drugs and
feeds
 Trading agency and consignment
By 2012 the company has over 100 authorized products produced and circulated in
the market, the company always aim to bring the highest return for the people in the
form of seminars, technical consultancy, supply veterinary medicinal products
which are rich in variety, packaging specifications with the highest quality and most
reasonable price.
 ~ 15 ~

2.1.2. Field of business

In the present, the company manufactures over 30 veterinary products such as
antibiotic, vitamin, premix, enzyme, antiphlogistic… with effect to prevent and cure
deases of cattles, domestic fowls, also foster the growth of them to reach farming
targets.

2.1.3. Manufactoring process

The company purchases pre-processing ingredients, then combines them into
specific medications. Therefore, the manufacturing process of the company includes
only few automatic stages, the rest is handwork. The company has two main
products: liquid drugs and powder drugs.
a. Liquid drugs manufacturing process (7 stages)
 Stage 1: Preparation of materials, including main ingredients and dried,
sterilised bottles.
 Stage 2: Dispensation, including main ingredients and solvent concoction.
 Stage 3: Filtration
 Stage 4: Dividing filtrated drugs into bottles through automatic divider.
 Stage 5: Bottles, boxes, bathes labelling.
 Stage 6: Products quality testing (KCS).
 Stage 7: Warehousing.
b. Powder drugs manufacturing process (5 stages)
 Stage 1: Preparation of materials, including main ingredients, subsidiary
ingredients and packages.
 Stage 2: Dispensation, including concoction of each element and excipients.
 Stage 3: Dividing dispensed drugs through automatic divider, sealing packs,
packaging into bags.
 Stage 4: Products quality testing (KCS).
 Stage 5: Warehousing.
 ~ 16 ~

Diagram 2.1: Drugs manufacturing process at North veterinary medicine Co.,Ltd

Measure Inspect
ingredients, drugs,
auxiliaries excipients

Dissolve drugs

Test
Filtrate semi
products

Divide dose,
Treated bottles bottle,
stopper

Label
and Test product
package

Warehouse

(Source: North veterinary medicine Co.,Ltd documents)

 ~ 17 ~

2.1.4. Organisation structure

Diagram 2.2: Organisational structure of North veterinary medicine Co.,Ltd

Director

Accounting and Quality control

Logistics
Finance department Factories
department
department (KCS)

Factory 1 Factory 2

(Source: North veterinary medicine Co.,Ltd documents)

 Director: Managing and operating all activities of the company, being legal
representative of the company, being legally responsible for all operations
and results of the company.
 Accounting and Finance department: Proffestionally managing finance and
accounting issues of the company, including supervising business
performances, observance of legislation, providence of economic documents.
 Logistics department: Ensuring shipments to materials suppliance for
production, products preservation and shipments of products to merchandise.
 Quality control department (KCS): Inspecting receipted materials and
deliveried products, ensuring quality requirements of merchandised products.
 Factories: Reasonably arranging and managing human resource placement,
executing production along with technological process:
- Factory 1: Production of powder drugs such as Anticoli, Ampicoli Oral,
Mequin, Coccicid, N-Colidin…
- Factory 2: Production of liquid drugs such as Ticol, Neocil, Dolin LA, N-
Fluquin, N-Enxin…
 ~ 18 ~

2.1.5. Businness performance

Table 2.1: Income statement of the year end 2011 and 2012 of North veterinary
medicine Co.,Ltd
North veterinary medicine company
Income Statement
(Unit:Million VND)
Difference
2011 2012
Absolute %
Sales revenue
Sales revenue 3,230.588 3,598.657 368.068 11.39
Less: Sales R&A
Sales discounts
Net sales 3,230.588 3,598.657 368.068 11.39
Cost of goods sold 1,499.184 1,811.1 311.915 20.8
Gross profit 1,731.404 1,787.557 56.152 3.24
Operating expenses 783.357 882.393 99.035 12.64
Income from operations 948.047 905.164 -42.882 -4.52
Other revenues and gains
Interest revenue 822.206 5.376 4.554 553.9
Other expenses and losses
Interest expense 39 267.5 228.5 585.9
Income before taxes 909.869 643.04 266.828 29.3
Income tax expense 227.467 160.76 66.707 29.3
Net income 682.401 482.28 200.121 29.3

(Source: North veterinary medicine Co.,Ltd documents)

 Comments:
In these recent years (2011-2012), North veterinary medicine limited company has
achieved complimental results. In 2012, although the economic environment
 ~ 19 ~

provides obstacles but all managers and employees have made big efforts to help
the company stand firmly and moreover reach set goals:
- Sales revenue in 2012 increases 368,068,800 VND (11.39%) compared to
which in 2011.
- Interest revenue rises 4,554,294 VND (553.9%)
- Income before taxes goes up an amount of 266,828,396 VND (29.3%)
As all operating indicators (revenue, profit, income) increase, the company would
have great hinge to higher level of development in the future.

2.2. Reporting and analysing inventory at the company

2.2.1. Documents circulation
Diagram 2.3: Documents circulation process at North veterinary medicine Co.,Ltd

Stock cards

Inwards notes Outwards notes

Subsidiary ledger

Stock movement summary

Accounting summary
 ~ 20 ~

Daily note
Monthly or period note
Checking, comparation

(Source: North veterinary medicine Co.,Ltd documents)

As a manufacturer, inventory of North veterinary medicine limited company is

classified into three categories: Finished goods, Work in process and Raw materials
which including items such as: labels, aluminous bags, glass bottles, carton baths,
drugs ingredients…
The company uses Account N152 – Ingredients, auxiliaries for this term.

2.2.2. Inventory costing

 Inwards costing
Real price = Purchase + Purchase + Unreturna + Purchase
of inwards invoice costs ble taxes discounts
(if any)
- Purchase costs: freight costs, loading costs, unloading costs, preservation
costs, assessment losses…
- Unreturnable taxes: Import tax, VAT.
- Purchase discounts: Sales discounts, Sales returns and allowances.

 Delivery costing
North veterinary medicine limited company applies FIFO assumed cost flow
method: the earliest goods purchased are the first to be sold. The account Cost of
goods sold is recorded as below.
 ~ 21 ~

Table 2.2: Account Cost of goods sold at North veterinary medicine Co.,Ltd
Type No S03b-DN
North veterianry medicine Co.,Ltd (QĐ No 15/2006/QĐ-BTC)

GENERAL LEDGER
For the end of year 2012
Account: Cost of goods sold
Unit: VNĐ
Document Contra Amount
Order Explanation
No Date account Debit Credit
Opening balance
1 PX 1/8 Sales to Hợp Tác 111 1.204.625
1/8 pharmacy
2 PX 2/8 Use for production 154 2.451.819
2/8 of N – Sulmedia 10g
… …
Total 95.667.705 95.667.705
Open book date: 1/1/2012
31st December 2012

Secretary Accountant cheff Director

(Signature) (Signature) (Signature, stamp)

(Source: North veterinary medicine Co.,Ltd documents)

 ~ 22 ~

2.2.3. Reporting inventory

At North veterinary medicine limited company, the quantity of transactions and
documents is not very large, that is why the documents circulation is quite simple
and is illustrated in order as below:
Table 2.3: Stock card of the inventory Sulpha dimidin at North veterinary medicine
Co.,Ltd
North veterianry medicine Co.,Ltd Type No S12-DN
(QĐ No 15/2006/QĐ-BTC )

STOCK CARD
November 2012
Inventory name: Sulpha dimidin
Unit: kg
Document number Occurred Quantity
Explanation
Inward Outward date Inward Outward Stock
Opening
stock
PN
Receipt 11/11 340 264
01/11
… …
PX 30/11 Sales 30/11 80 105
… …
Total 569 500
Closing stock 84
30th December 2012

Bookkeeper Chief accountant Director

(Signature) (Signature) (Signature, stamp)

(Source: North veterinary medicine Co.,Ltd documents)

 ~ 23 ~

Table 2.4: Inwards notes of 30th November 2012 at North veterinary medicine
Co.,Ltd

North veterianry Type No: 01 - VT

medicine Co.,Ltd (QĐ No: 48/2006/QĐ- BTC)
Inwards note
30th November 2012
Receipter: Trần Thị Thoa
Bill No: 0000109 at 30th November 2012 of Hồng Anh Company
Receipt at: Raw materials
Quantity Unit
Order Inventory name Code Unit In Real cost Total cost
paper quantity (VND)
Label N –
1 Pcs 340 318 108.120
Coccicid 500g
Box N – Mequin
2 Pcs 620 1.900 1.178.000
10g
3 Carton bath Pcs 620 5.900 3.658.000
Total 4.944.120

Total cost (in word): Five million four hundreds twenty four thousands one hundred
twenty.
30th November 2012
Bookeeper Deliverer Storekeeper Chief accountant
(Signature) (Signature) (Signature) (Signature)

(Source: North veterinary medicine Co.,Ltd documents)

 ~ 24 ~

Table 2.5: Subcidiary ledger of the month of November 2012 at North veterinary medicine Co.,Ltd
Type No S10-DN
North veterinary medicine Co.,Ltd (QĐ No 15/2006/QĐ-BTC)
SUBCIDIARY LEDGER
November 2012
Inventory name: Sulpha dimidin
Document Contra Unit Inwards Outwards Stocks
Explanation
No Date account cost Qty Amount Qty Amount Qty Amount
Opening stock 152 174.286 275 47.928.650
32 6/11 Ruby limited Co.,Ltd 111 182.857 250 45.714.250
38 30/6 Use for production of N – Coccicid 154 174.286 40 6.971.440
100g
39 30/6 Use for production of N – Sulmedia 154 182.857 20 3.657.140
10g
250 45.714.250 40 10.628.580 230 42.057.110
30th November 2012
Bookeeper Chief accountant Director
(Signature) (Signature) (Signature, stamp)

(Source: North veterinary medicine Co.,Ltd documents)

 ~ 25 ~

Table 2.6: Stock movement summary of the month of November 2012 at North veterinary medicine Co.,Ltd

North veterinary medicine Co.,Ltd

STOCK MOVEMENT SUMMARY
November 2012
Or Inventory Unit Opening stock Inward stock Outward stock Closing stock
Unit
der name cost Qty Amount Qty Amount Qty Amount Qty Amount
Powder drugs
N – Coccicid
1 Pack 3.800 13.304 50.555.200 0 0 7.952 30.217.600 5.352 20.337.600
20gr
2 N - Doxycin Pack 3.300 7.630 25.179.000 0 0 6.650 21.945.000 980 3.234.000
N – Oxycol
3 Pack 750 13.400 10.050.000 10.000 7.500.000 12.700 9.525.000 10.700 8.025.000
10gr
Ampicoli –
4 Pack 3.800 12.394 47.097.200 42.000 159.600.000 40.600 154.280.000 13.794 52.417.200
Oral 50g
N – Sulmedia
5 Pack 1.500 19.794 29.691.000 60.000 90.000.000 61.900 92.850.000 17.894 26.841.000
10g
6 N – Anticoli Pack 1.000 11.200 11.200.000 26.000 26.000.000 29.150 29.150.000 8.050 8.050.000
 ~ 26 ~

10g
N – Mequin
7 Pack 5.200 7.850 40.820.000 6.000 31.200.000 6.050 31.460.000 7.800 40.560.000
50gr
N – Doxycoli
8 Pack 11.000 2.284 25.124.000 2.000 22.000.000 1.880 20.680.000 2.404 26.444.000
100gr
… … … … …
Liquid drugs
N – Tikana
50 Bottle 1.200 0 0 20.000 24.000.000 20.000 24.000.000 0 0
5ml
Anagin C
51 Bottle 1.600 5.632 9.011.200 10.000 16.000.000 15.632 25.011.200 0 0
10ml
52 Gentylosin Bottle 1.600 3.341 5.345.600 20.000 32.000.000 23.341 37.345.600 0 0
N – Enxin
53 Bottle 9.300 998 9.281.400 2.000 18.600.000 2.998 27.881.400
100ml
54 Neocin 10ml Bottle 800 1.350 1.080.000 20.000 16.000.000 21.350 17.080.000 0 0
55 Ticol 20ml Bottle 4.800 1.533 7.358.400 10.000 48.000.000 11.533 55.358.400 0 0
Dolin LA
56 Bottle 3.500 48 168.000 0 0 48 168.000 0 0
20ml
 ~ 27 ~

57 Colison 20ml Bottle 2.800 97 271.600 0 0 97 271.600 0 0

N – Fluquin
58 Bottle 1.400 3.800 5.320.000 10.000 14.000.000 13.800 19.320.000 0 0
10ml
N – Coli –
59 Bottle 750 9.010 6.757.500 0 0 9.010 6.757.500 0 0
Prim 10ml
… … … … …
1.182.897.950 1.463.618.800 1.772.624.000 873.892.750

Bookkeeper Chief accountant Director

(Signature) (Signature) (Signature, stamp)

(Source: North veterinary medicine Co.,Ltd documents)

 ~ 28 ~

Table 2.7: Liquidation record of the year end 2012 at North veterinary medicine
Co.,Ltd

North veterinary medicine Co.,Ltd 31st November 2012

LIQUIDATION RECORD
According to the production and sales of the year end 2011, North veterinary
medicine Co., Ltd has done the stock taking activity and has recognised a quantity
of inventory purchased for quite long time. This meeting takes place with purpose
of making liquidation of this quantity of inventory.
 Attendees
Dương Thị Thanh Hà – Chief accountant
Phạm Thị Hoa – Factory manager
Phạm Thị Hằng – Storekeeper
 Liquidation inventory
Sulph diazin: 25kg x 160,000 = 4,000,000 VND
Thiaphenicol: 25kg x 780,900 = 19,522,500 VND
Cremophos: 60kg x 205,000 = 12,300,000 VND

Total amount: 35,822,500 VND

Chief accountant Storekeeper Factory manager Director

(Signature) (Signature) (Signature) (Signature, stamp)

(Source: North veterinary medicine Co.,Ltd documents)

 ~ 29 ~

2.2.4. Analysis of inventory

 Inventory turnover ratio
Table2.8: Inventory turnover ratio and Days in inventory of 2011-2013 period at
North veterinary medicine Co.,Ltd
Unit: VND
2011 2012 2013

1.499.184.000
Inventory turnover ratio = = 2,8 3,5 4,0
(182.897.905+873.892.750)/2

365
Days in inventory = = 130 104 98
2,8
(Source: North veterinary medicine Co.,Ltd documents)

The Inventory turnover ratio of North veterinary medicine limited company is low –
Days in inventory is high, which means the company has maximal funds tied up in
inventory, the company keeps a large quantity of inventory. This provides
advantage in catching up business opportunities, but in the mean time increases
inventory costs.
The indicator of Inventory turnover ratio got higher over time, which means Days in
inventory decreases, is a positive signal to the level of inventory maintained of the
company.
 LIFO reserve
North veterinary medicine limited company uses FIFO assumed cost flow method,
that is why it does not need to calculate the indicator LIFO reserve.

2.3. Findings
2.3.1. Strengths
Generally, accounting management of North veterinary medicine limited company
works effectively. The accounting and finance department is centralisingly, orderly
structured, which adapts to the company’s operation. Accountants are educated,
 ~ 30 ~

active and experient. Accounting documents and circulation process are applied
rightly and approppriately.
The activity of reporting and analysing inventory have advantages as well.
 Stock purchase, sale and management: The company is doing well in
accounting for inventory, from purchase planning to sales, which ensure the
quantity and quality of merchandise products.
 The documents circulation process is simple, easy to follow, to inspect, to
compare and calculate, which is approppriate to the products’ characteristics.
 Inventory is often and continuously checked, inspected as requirements of
the company’s business field.
 The company uses real price formula for inventory, and FIFO assumed cost
flow method, which provide the in-time data to the company to assess
inventory costs and for farther management activites. This method also
provides a closer price with the market price, which makes accounting data
more realistic meaning.

2.3.2. Weaknesses
Along with advantages, the activity of reporting and analysing inventory exists
some weaknesses.
 The circulation of documents among departments occurs not often enough,
which causes data sometime be missed and hard to follow. Otherwise, the
lack of Acceptance report could cause ignorance of the receptant in case of
missing documents.
 The company scope is small, so are employees.
 The provision for devaluation of stocks has not been performed. When the
market price fluctuates, inventory costs would be influenced.
 Inventory report is an important activity, though which is not very seriously
considered.
 Accountants duties are not clearly classified, each has big quantity of tasks to
do so performances would be down.
 ~ 31 ~

Chapter 3

RECOMMENDATIONS TO IMPROVE REPORTING AND

ANALYSING INVENTORY AT NORTH VETERINARY
MEDICINE LIMITED COMPANY
3.1. Development plan of North veterinary medicine limited
company
As a developing country, with over 70% of the population who work in agriculture
and breeding, Vietnamese market provides many opportunities to the veterinary
medicine field. North veterinary medicine limited company is operating well, but it
is necessary for the company to take opportunities and plan for future development.
At the national level, the awareness that enterprises are central to the economic and
social development has been confirmed, from that perception, the government will
complete and promulgate policies to encourage economic investment enterprises
business in the near future.
The positive reputation of North veterinary medicine Co.,Ltd with the commercial
sector, suppliers, business enterprises and industries will create the basic premise
for the company to take advantage of business opportunities to make a profit.
The determination of the collective efforts of the Director and all employees, along
with the quality of the human resources of the company in implementing better
business philosophy, for the benefit of all shareholders will be the deciding factor to
business results of the company.
With good business conditions, the financial situation of a healthy company with a
management process: accurate – promptly - intelligible - honest and legal, not only
in the stages of the production process but also in the business of information
disclosure has and will create confidence for our partners, shareholders of the
company and the agency relationship with the company.
The company’s operation structure and management, and the qualified personel
who properly invested to update their knowledge, be active, creative, sensitive to
adapt to the situation, to overcome difficulties to capture business opportunities.
 ~ 32 ~

3.1.1. Business development plan

North veterinary medicine limited company’s business target in the next financial
year is to maintain and increase income before taxes to 50% compared to the recent
financial year.
Table 3.1. Stock movement target of North veterinary medicine Co.,Ltd in 2015
Inventory Opening Inward Outward Closing
Unit
name stock stock stock stock
Powder
drugs
N– Pack 200.555.200 50.304.000 100.217.600 150.641.600
Coccicid
N– Pack 120.179.000 75.000.000 80.945.000 114.234.000
Doxycin
N– Pack 50.050.000 25.500.000 30.525.300 45.024.700
Oxycol
…
Liquid
drugs
Anagin C Bottle 35. 011.200 72.000.000 96.000.000 11.011.200
Gentylosin Bottle 29.345.600 112.000.000 100.375.500 40.970.100
Neocin Bottle 10.260.400 24.700.000 28.960.400 6.000.000
…
(Source: North veterinary medicine Co.,Ltd documents)
 ~ 33 ~

Table 3.2: Financial plan of North veterinary medicine Co.,Ltd in 2015

Sales revenue
Sales revenue 5.230.000.000
Less: Sales returns and allowances
Sales discounts
Net sales 5.230.000.000
Cost of goods sold 1.924.000.000
Gross profit 3.306.000.000
Operating expenses 1.783.000.000
Income from operations 1.523.000.000
Other revenues and gains
Interest revenue 1.822.000.000
Other expenses and losses
Interest expense 993.000.000
Income before taxes 2.352.000.000
Income tax expense 588.000.000
Net income 1.764.000.000
(Source: North veterinary medicine Co.,Ltd documents)

3.1.2. Objectives of developing the activity of reporting and

analysing inventory
 To better accounting activity is to well manage inventory, maintaining an
approppriate quantity of inventory to ensure the company’s continuous
operation process, avoiding interruption or overcost.
 To well manage inventory is to better reporting and analysing inventory,
providing adequate, righteous, authentic and in-time data in reporting,
measuring and inspecting.
 A good inventory management facilitates the decision making process of
managers on short term, long term business plan, therefore makes profit to
the company.
 ~ 34 ~

 The business goal of every company is profit maximisation. To achieve this

goal, essentially the company needs to minimise expenses. Improving
inventory accounting to well manage costs serves this purpose as well.

3.2. Implications proposed to the company to improve reporting

and analysing inventory
Any change or improvement in reporting and analysing inventory, as well as any
accounting activity must observe accounting assumptions (economic entity
assumption, monetary unit assumption, time period assumption) and principles (cost
principle, full disclosure principle, going concern principle, matching principle,
revenue recognition principle) and other rules (materiality, conservatism, reliable
and verifiable and objective, consistency, comparability). Furthermore, it is required
to comply with the Accounting standards of Vietnam, the regulations issued by
Ministry of Finance of methods for implementing accounting systems, documents,
accounts. Although each company could improve the implementation in accordance
with real management situation, but the framework must respect to the regime of
financial management.
3.2.1. Inventory check book
North veterinary medicine limited company is doing business in medicine field,
supplying drugs and materials for breeding. The quantity of products therefore is
huge and various. Recently, the company manages products through ingredients and
characteristics, which could causes missing or confusing mistakes. In my opinion,
North veterinary medicine should establish a consistent Inventory inspection system
through “Inventory check book”.
Inventory check book is a check list which gathers all ingredients and materials that
had been and have been using in production. Inventory are followed by groups,
types and specifications in an tightly logical way. The point is to establish a coding
system which is simple, ordered, exclusive, easy to search and supplement. The
coding system could be established basing on characteristics such as:
 Product groups quantity of each inventory (ingredients and materials)
 Types quantity in each group
 ~ 35 ~

 Specifications quantity in each type

Having an Inventory check book brings advantages in inventory management to the
company. Firstly it helps employees to avoid mistakes, to facilitate duties concerned
inventory flow system. Accountants and storekeepers have a consistent foundation
to write further documents such as Inventory reports or Stock movement
summaries, and do further professions. Inventory check book coordiantes better
with Accounting softwares, which provide a huge support to accounting activities of
the company. Therefore, the company saves time, human resource and mistake
while improves the activity of accounting for inventory.

Table 3.3: Purposed Inventory check book at North veterinary medicine Co.,Ltd
Number
Check code Inventory name Unit Note
Group Type
156 Powder drugs
1561.1 N - Coccicid Pack
1561.1.1 N – Coccicid 20gr Pack
1561.1.2 N – Coccicid 100gr Pack
1561.1.3 N – Coccicid 1kg Pack
1561.2 Ampicoli – Oral
1561.2.1 Ampicoli – Oral 20gr Pack
1561.2.2 Ampicoli – Oral 50gr Pack
1561.2.3 Ampicoli – Oral 100gr Pack
1561.2.4 Ampicoli – Oral 1kg Pack
… …
158 Liquid drugs
1581.1 Anagin C Bottle
1581.1.1 Anagin C 10ml Bottle
1581.1.2 Anagin C 20ml Bottle
1581.1.3 Anagin C 100ml Bottle
… …
 ~ 36 ~

3.2.2. Provision for devaluation of stocks

At the end of financial year, the company should establish provision for devaluation
of stocks. According to Circular No34/2011/TT – BTC, the provision for
devaluation of stocks is recorded as operating expense of this financial year, which
provides a financial supply for the company to cover expected losses, maintains the
company’s capital. Besides, the provision for devaluation of stocks expresses
inventory values, investment values and accounts receivable values.
Subjects for this activity include all types of inventory: Finished goods, Work in
process and Raw materials which have conditions as below:
 Reliable documents which prove the inventory prices
 Ownerships belongs to the company
The provision for devaluation of stocks would be measured as the formula:
Provision for Real quantity of (Real price LCM value
= x -
devaluation level inventory of inventory of inventory)

 Real price of inventory measured by formula of inventory costing as above

 LCM value (low-of-cost-or-market): the method of evaluating costs when the
value of inventory is lower then its costs

3.2.3. Establish the account “Goods in transit”

This account is used when goods purchased which are belong to the company that
have not yet been received, or goods sold that have not yet been delivered.the
account Goods in transit could be determined as follow:

Debit Credit
Price of goods purchased Price of goods purchased have been
received
 ~ 37 ~

3.2.4. Apply Accounting softwares

Recently, North veterinary medicine limited company does accounting management
manually on the computer with Microsoft Excel. This method is complicated, time
taking and low productive. In my opinion, the company should consider to apply
Accounting softwares in management with purpose of time and cost saving. There
are many simple and uncharged Accounting softwares such as: MISA, SMART,
FAST, SQL, QUICKUSE… Each has particular advantages and is approppriate
with different methods of accounting that that company are using.

Figure 3.1: Quickuse accounting software

(Source: alibaba.com)

3.2.5. Improve documents movement process

The company should specifically stipulate time of documents delivered and recept
among Accounting department and storekeeper. This would help information and
data flow be often and continuous. The company should have sanction for late
delivered and recept documents as well.
The movement of documents among departments should be recorded in paper with
signature of the delivers and recepters. By that, missing or mistaken documents
would be responsible by the right person. The purpose of this stipulation is to well
 ~ 38 ~

manage documents movement and to teach employees to be more responsible to the

company.
Table 3.4. Proposed documents recept note at North veterinary medicine Co.,Ltd
North veterinary medicine Co.,Ltd

DOCUMENT RECEPT NOTE

Date:…

Inventory name Document quantiy Document number Amount

Date:…

Receipter Deliverer
(Signature) (Signature)
 ~ 39 ~

CONCLUSION
With the purpose of becoming nationwide veterianry medicine company and
establishing a strong system of reporting and analysing inventory, North veterinary
medicine limited company has incessantly made much efforts and achieved
significant results. Although it remains some weaknesses in the performance of
reporting and analysing inventory, it has a big potentiality to be completed in the
future.
Thanks to the staff of Accounting and Finance department of North veterinary
medicine Co.,Ltd during the time I worked as an intern here, I had the opportunity
to observe and understand more about the reporting and analysing inventory
process. Therefore my report named ”Reporting and analysing inventory at
North veterinary medicine limited company” is completed with realistic and
useful findings:
 With scope of a small company, North veterinary medicine limited company
is doing quite well in accounting activity, specifically in reporting and
analysing inventory.
 Despite strengths, the company’s reporting and analysing inventory exists
weaknesses in the circulation of documents and accountants’ duties
arrangement.
 To improve the performance of reporting and analysing inventory at North
veterinary medicine limited company, some recommendations I have
researched and provided as added documents and accounts, documents
movement process improvement, Accounting softwares appliance.
Despite my efforts, it is impossible to avoid some mistakes due to my limitation of
time. I really hope to receive suggestions and feedbacks from teachers and readers
to improve my report.
I would like to express my gratitude to the director of North veterinary medicine
limited company and the staff of Accounting and Finance department for their help
and give so many thanks to my teacher, Mrs. Le Thi Phuong Dung for her
instruction.
 ~ 40 ~

REFERENCE
1. Anon., n.d. 2011 business plan. tsccantho.com.vn.
2. Anon., n.d. inventory. businessdictionary.com .
3. Anon., n.d. Inventory. investinganswers.com.
4. Anon., n.d. Inventory Definition. inventorydefinition.com.
5. North veterinary medicine, l. c., 2012. Documents, s.l.: s.n.
6. Paul D. Kimmel PhD, CPA; Jerry J. Weygandt PhD, CPA; Donald E. Kieso
PhD, CPA, 2010. Accounting, tools for business decision making. s.l.:John
Wiley & Sons, Inc.
7. Thi Lan Anh, B., 2013. Final thesis, s.l.: s.n.