CIRCULAR

Guidelines on the origin and accounting for midday meal expenses

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 Based on the notification No. 28-TB dated April 27, 1979 of the Standing Committee of the Council of Ministers and Circular No. 11/LĐ-TT dated August 28, 1979 of the Ministry of Labor regarding midday meals for workers and staff of state-owned enterprises and joint ventures, the Ministry of Finance provides guidelines on the sources of funds and accounting for midday meal expenses as follows:

I. ON THE SOURCES OF FUNDS FOR MIDDAY MEAL EXPENSES.

1. For enterprises permitted by competent authorities (the Prime Minister permits new enterprises taking over in the South according to Circular No. 1/TTg dated August 17, 1976; the Council of Ministers permits heavy industries in the North according to Decision No. 37/CP dated February 9, 1978; the Ministry of Labor permits enterprises meeting conditions for midday meals according to Circular No. 11/LĐ-TT dated August 28, 1979), the expenses for midday meals shall be covered by the following sources of funds:

- The amount of 0đ,50 per meal shall be included in the cost of production and accounted under the item of allowances outside salary for workers and staff.

- The management and service costs for midday meals will be contributed by the diners at 5% of the meal cost and subsidized by the State budget at 3đ per meal including 60 meals per month (including two main meals, midday meal, and night shift allowance). If insufficient, the enterprise shall use welfare funds to cover the deficit by subsidizing the canteen.

2. For enterprises organizing midday meals without being within the scope of permission from competent authorities mentioned above, the enterprise must create its own source of funds for expenses, which cannot be included in the cost of production. The enterprise may use part of the profit retained for the three enterprise funds from products produced outside the national plan and from high-profit registered plans. In this case, the enterprise must balance its own capital with the need for expenditure.

In cases where the actual expenditure for midday meals is less than the profit retained for the three enterprise funds, the remaining profit from products produced outside the plan and from high-profit registered plans shall be allocated to the enterprise funds according to the current ratio.

II. ON THE ACCOUNTING OF MIDDAY MEAL EXPENSES

1. For enterprises permitted to include midday meal expenses in the cost of production.

a. When including midday meal allowances in the cost of production, record:

Debit relevant accounts (20, 23, 24, 25, 26)

Credit Account 69 - payment to cadres, workers, and staff

                   (Allowances outside salary)

b. When making actual payments:

Debit Account 69 - payment to cadres, workers, and staff

Credit relevant accounts (Account 50, 51 ...)

2. For enterprises covering midday meal expenses with a portion of the profit retained for the three enterprise funds from products produced outside the national plan and from high-profit registered plans.

a. When calculating the midday meal allowance, record:

Debit Account 80 - retained earnings (80.5)

Credit Account 69 - payment to cadres, workers, and staff

b. When making actual payments:

Debit Account 69

Credit relevant accounts (Account 50, 51...)

c. At year-end settlement:

+ If the expenditure for midday meals equals or is less than the retained profit of the enterprise, then record:

Debit Account 99 - profit and loss

Credit Account 80 - retained earnings (80.5)

+ If the expenditure for midday meals exceeds the retained profit, transfer the amount retained to Account 99 (profit from products produced outside the plan and high-profit registered plans).

Any excess expenditure must be covered by the enterprise's welfare fund and recorded as:

Debit Account 87 - enterprise funds (87.3)

Credit Account 80 - retained earnings (80.5)

During implementation, it is requested that ministries, sectors, and localities regularly inspect and guide subordinate units to uniformly implement these guidelines and if necessary, discuss with the Ministry of Finance to resolve newly arising financial and accounting issues./.