Circular No. 103/2005/TT-BTC guiding accounting software standards and conditions

CIRCULAR

Guidelines for standards and conditions of accounting software

Pursuant to the Accounting Law dated June 17, 2003;

Pursuant to Decree No. 128/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in state accounting;

Pursuant to Decree No. 129/2004/ND-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain articles of the Accounting Law applicable to business operations;

To provide a basis for accounting units to select appropriate accounting software and for software production units to refer to when producing accounting software, the Ministry of Finance guides the standards and conditions of accounting software applicable at accounting units as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. This Circular applies to accounting units that perform accounting on computers using accounting software. When performing accounting on computers using accounting software, accounting units must apply the standards and conditions of accounting software guided in this Circular to select appropriate accounting software suitable for their software application conditions.

2. When applying accounting software, in addition to ensuring that accounting work complies with current legal regulations on accounting, accounting units must also apply specific regulations on the standards and conditions of accounting software guided in this Circular.

3. Units providing accounting software must base on current accounting regulations and refer to the standards and conditions of accounting software guided in this Circular to design and produce accounting software suitable for the requirements of accounting units.

4. The terms in this Circular are understood as follows:

Accounting software is a set of programs used to automatically process accounting information on computers, starting from the entry of original vouchers, classification of vouchers, processing information on vouchers according to the procedures of the accounting system to the printing of accounting ledgers and financial reports, management accounting reports.

Accounting software standards are mandatory or guiding criteria regarding the quality and technical features of accounting software serving as a basis for accounting units to select appropriate accounting software and for software production units to refer to when producing accounting software.

Application conditions are requirements concerning physical infrastructure, control regulations, organizational structure, and personnel to carry out accounting work using accounting software at the unit.

II. SPECIFIC PROVISIONS

1. Standards of accounting software applicable at accounting units

1.1. Accounting software must support users in complying with State regulations on accounting; when using accounting software, it shall not alter the nature, principles, and methods of accounting as stipulated in current legal documents on accounting.

Accounting software applied at accounting units must meet the requirements of current laws on accounting as follows:

a) For accounting vouchers: Accounting vouchers if created and printed on computers through accounting software must ensure the content of accounting vouchers as prescribed in Article 17 of the Accounting Law and specific regulations for each type of accounting voucher in current accounting systems. Accounting units may supplement additional contents into accounting vouchers created on computers according to their management requirements, except for mandatory accounting vouchers that must comply with prescribed formats. Electronic accounting vouchers used to record in accounting ledgers through accounting software must comply with regulations on accounting vouchers and specific regulations on electronic vouchers.

b) For accounting accounts and accounting methods: The accounting account system used and the accounting methods established in accounting software must comply with the provisions of current accounting systems consistent with the nature of operations and management requirements of the unit. The coding of accounts in the account system and accounting objects must ensure consistency, systematicity, and facilitate the consolidation and analysis of information at the industry and unit levels.

c) For accounting ledger systems: Accounting ledgers built in accounting software when printed must meet the following requirements: Ensure complete accounting ledgers; ensure relationships between ledgers; ensure the ability to check and reconcile figures between ledgers; must include essential contents as prescribed in current accounting systems; figures reflected in ledgers must be derived from figures on accessed vouchers; ensure accuracy when transferring balances from one ledger to another. Accounting units may supplement additional indicators into ledgers according to their management requirements.

d) For financial statements: Financial statements built in accounting software when printed must conform to the format, content, and calculation methods of indicators as prescribed in current accounting systems suitable for each field. Coding of financial statement indicators must ensure consistency and facilitate the consolidation of accounting data among subordinate units and related units.

e) Numerals and writings in accounting: Numerals and writings in accounting on the interface of software and when printed must comply with the provisions of the Accounting Law. If accounting units need to use foreign languages in ledgers, they can design bilingual or parallel versions in foreign languages but must be consistent with the Vietnamese version. Each screen interface must be easy to understand, access, and search.

f) Printing and storing accounting documents: Accounting documents printed from accounting software must have all legal elements as prescribed; ensure consistency between accounting data stored on computers and accounting data on ledgers, financial statements printed from computers for storage. The retention period for accounting documents on computers is implemented according to the current regulations on the retention period for accounting documents. During the retention period, accounting units must ensure technical conditions to read stored documents.

1.2. Accounting software must have upgrade capabilities, able to modify and supplement appropriately with changes in accounting systems and financial policies without affecting existing databases.

a) Possesses the ability to ensure the initial data declaration phase, including supplementing new accounting vouchers, modifying forms, and recording contents of some accounting vouchers already used in the system. It can eliminate unused accounting vouchers without affecting the system.

b) Can supplement new accounts or change the content and calculation methods for accounts already used in the system. Unused accounts can be eliminated without affecting the system.

c) Can supplement new accounting ledger models or modify forms, contents, and recording methods of ledgers already used in the system while ensuring systematic connectivity with other ledgers. Unused ledgers can be eliminated without affecting the system.

d) Can supplement or modify forms, contents, methods of preparation, and presentation of financial reports already used in the system. Unused financial reports can be eliminated without affecting the system.

1.3. Accounting software must automatically process and ensure the accuracy of accounting figures.

a) Automatically process and retain data based on principles of compliance with current accounting procedures and calculation methods for indicators on financial reports.

b) Ensure consistency and non-redundancy among accounting figures.

c) Possess the ability to automatically forecast, detect, and prevent errors when entering data and during the processing of accounting information.

1.4. Accounting software must ensure information security and data safety.

a) Possess the ability to assign permissions to each user according to their functions, including: Chief Accountant (or accounting supervisor) and accountants. Each position has clearly defined responsibilities and authorities, ensuring that those not responsible cannot access others' work in the accounting software without the consent of those responsible.

b) Possess the ability to track users according to criteria such as: Time of accessing accounting information into the system, actions performed by the user in the system, objects affected by these actions,...

c) Possess the ability to record traces in the accounting ledger regarding corrections made to officially accessed accounting figures, consistent with prescribed ledger correction methods; ensuring only those responsible have the authority to correct errors in officially accessed transactions.

d) Possess the ability to recover accounting data and information in cases of simple technical issues arising during use.

2. Conditions for accounting software

a) Accounting software must be named and clearly described regarding its origin, technical features, and compliance with standards and guidelines set forth in this Circular and current accounting regulations before being put into use.

b) When put into use, accounting software must come with specific guidance materials to help users operate safely and handle simple malfunctions.

c) Accounting software provided by organizations or individuals outside the accounting unit must be covered by a warranty period agreed upon by both parties, at least covering one fiscal year's accounting work.

3. Conditions for applying accounting software

3.1. Ensuring technical conditions

a) The accounting unit must base its selection of accounting software on its organizational structure, production and business activities, and overall management requirements, as well as specific departmental needs. The selected software must meet standards and conditions suitable for the organization's operations and management requirements.

b) The accounting unit must equip itself with appropriate IT systems in accordance with management requirements, the level of management expertise, and the level of computer proficiency among managers and accounting staff.

c) The accounting unit may conduct trial operation of the accounting software before formal implementation, but the trial must be conducted concurrently with manual bookkeeping (if the unit has not yet implemented accounting software) or alongside the existing software (if the unit has already implemented accounting software). After the trial period, if the software meets the standards and accounting requirements of the unit, it will be formally implemented.

d) The accounting unit must establish rules for using accounting software on computers according to the following requirements: Managing the server (if applicable); managing data; checking and controlling the entry of external information into the system; regularly backing up data; assigning permissions for data entry and processing machines; defining the functions of each person within the accounting structure.

đ) The accounting unit must organize the provision and use of secure storage devices for the system, arranged and operated according to technical requirements.

3.2. Ensuring human resource and organizational conditions for the accounting department

a) The accounting unit must select or train accounting personnel with sufficient professional knowledge, accounting skills, and computer usage proficiency to meet the requirements for using accounting software on computers.

b) The accounting unit must plan and implement the following tasks: Entering vouchers into the machine; checking the entry of data into the machine; performing tasks on the machine as required by the software; analyzing figures on accounting ledgers and financial reports; network management and accounting information management.

c) The accounting unit must clearly define the responsibilities, data security requirements for computers; the functions and duties of each user in the system; issue data management regulations, define the functions and authorities of each employee; specify categories of information not allowed to circulate.

3.3. Ensuring uniformity in accounting work

For accounting units with subordinate accounting units (Companies, Corporations, Parent Companies,...), they must prepare consolidated or integrated financial statements and direct subordinate accounting units to use accounting software that facilitates information and report data connection.

4. Applying standards and conditions for accounting software

a) The accounting unit must select accounting software that meets the standards for accounting software as stipulated in Point 1.1, Section 1, Part II of this Circular.

b) An accounting unit that does not yet have all the conditions to apply accounting software as specified in Section 3, Part II of this Circular may choose accounting software that does not fully meet the standards set out in Points 1.2, 1.3, and 1.4, Section 1, Part II of this Circular.

c) An accounting unit that has all the conditions specified in Section 3, Part II of this Circular and has requirements for network connectivity, comprehensive information aggregation on a wide scale, speed, daily operations, etc., should select accounting software that fully meets the guidance standards set out in this Circular and other higher standards.

III. IMPLEMENTATION

1. This Circular takes effect fifteen days after its publication in the Official Gazette.

2. The State encourages accounting units to apply accounting software, but such software must comply with the standards and conditions outlined in this Circular to enhance the effectiveness of accounting work at the unit.

3. If an accounting unit currently using accounting software finds that it does not meet the standards and conditions outlined in this Circular, it must develop a plan to upgrade and improve the existing software to meet these standards and conditions.

4. The head, chief accountant (or person in charge of accounting) of accounting units applying accounting software in their accounting work shall be responsible for organizing and implementing the selection of accounting software according to the standards and conditions outlined in this Circular.

During implementation, if there are any difficulties, the units are requested to promptly report them to the Ministry of Finance for research and resolution.