Circular No. 38-TC/KBNN guides the accounting for foreign currency receipts and expenditures through the State Treasury.

CIRCULAR

CIRCULAR NO. 38/TC-KBNN OF JUNE 22, 1991 GUIDING THE ACCOUNTING OF FOREIGN CURRENCY INCOME AND EXPENSES THROUGH THE STATE TREASURY

Following Circular No. 27/TC-KBNN dated May 7, 1991 on the management of foreign currency through the State Treasury, the Ministry of Finance guides the accounting of foreign currency income and expenses through the State Treasury as follows:

 

1- Combating counterfeit goods is the responsibility of all ministries, sectors, People's Committees at all levels, political and social organizations, enterprises, business households, and the entire population.

1. The accounting of foreign currency income and expenses through the State Treasury shall record and reflect fully, promptly, and accurately the amounts of income, expenses, and balances on the foreign currency deposit accounts of the State Treasury opened at the Foreign Trade Bank and the Exchange Department. Simultaneously, it shall detail the national centralized foreign currency fund; the local budget foreign currency fund, temporarily collected and held foreign currency awaiting processing; the state financial reserve fund in foreign currency; and foreign currency-related settlement activities between the State Treasury and the Foreign Trade Bank (or the Exchange Department).

- Through accounting work, ensure compliance with regulations on the collection and payment of various types of foreign currency; detect and prevent all acts of embezzlement, waste, and improper use of foreign currency as stipulated by the state.

2. The accounting of foreign currency income and expenses through the State Treasury shall use the double-entry bookkeeping method. Daily entries on accounts and ledgers shall be made according to each transaction that occurs and reflected according to each type of original currency; at month-end, they shall be summarized and converted into US dollars (USD) based on the exchange rate statistics published by the Central Foreign Trade Bank and then converted into Vietnamese Dong according to the official exchange rate announced by the State Bank of Vietnam.

Detailed recording of each original currency shall uniformly use symbols agreed upon with the Central Foreign Trade Bank. Separate ledgers for principal and interest must be maintained for each type of foreign currency.

The accounting of foreign currency income and expenses through the State Treasury shall be carried out at the Branches of the State Treasury and the General Department of the State Treasury. The General Department of the State Treasury and Branches of the State Treasury shall open foreign currency deposit accounts and Vietnamese Dong deposit accounts at the Foreign Trade Bank (or the Exchange Department) where the State Treasury conducts foreign currency transactions.

3. On a daily, monthly, and annual basis, the General Department of the State Treasury and Branches of the State Treasury must prepare telegrams and reports on foreign currency income and expenses according to point 3, section II below:

 

II- DOCUMENTS, LEDGERS, AND ACCOUNTING REPORTS

1. Accounting Vouchers:

a) Documents for foreign currency income:

Treasury units shall base their monitoring, verification, and recording of foreign currency income on the following documents:

- Foreign currency collection order (used as a basis for comparison with the Foreign Trade Bank)

- Foreign currency purchase order ( - )

- Foreign currency loan contract ( - )

- Settlement report of outbound delegations ( - )

- Payment authorization for transferring funds ( - )

- Bank statement ( - )

- Transfer voucher

- Tax and fine collection order in foreign currency

- Foreign currency deposit slip.

b) Documents for foreign currency expenditures:

Treasury units shall base their monitoring, verification, and recording of foreign currency expenditures on the following documents:

- Foreign currency expenditure order

- Foreign currency sale order

- Request for foreign currency expenditure

- Notice of debt

- Transfer voucher

- Request for foreign currency transfer

- Currency conversion order.

The retention of these documents shall be arranged in chronological order and analyzed by type of original currency. They shall be organized into sets as follows:

- By foreign currency deposits

+ Arranged monthly

+ Within the month, arranged by type of original currency

- By Vietnamese Dong deposits.

+ Arranged monthly

+ Within the month, arrange documents under the following categories:

Ruble transfer payments (if applicable);

Dollar (USD) payments;

Non-trade payments;

Other payments.

2. Accounting ledgers.

Ledgers applied for foreign currency accounting through the treasury include the following types:

- Ledger tracking foreign currency deposits at the Foreign Trade Bank, model number S.40KB

- Ledger tracking deposits in Vietnamese Dong at the Foreign Trade Bank, model number S.41KB

- Ledger tracking centralized foreign currency fund, model number S.42.KB

- Ledger tracking foreign currency financial reserve fund, model number S.43KB

- Ledger tracking temporarily collected and held foreign currency, model number S.44KB

(The procedure for opening ledgers and recording entries is attached as an appendix).

3. Telegrams and accounting reports.

3.1. Telegrams.

Add to the daily telegram indicators of the State Treasury indicator 25 "foreign currency income from the state budget generated at the branch multiplied by the foreign currency buying rate published by the Foreign Trade Bank at the time of accounting."

The General Department of the State Treasury is responsible for summarizing the indicator 25 data reported by branches to report to the Ministry of Finance and plan adjustments to capital for units.

3.2. Accounting reports.

At month-end, treasury units (branch treasuries, general department treasuries) must prepare the following reports:

- Report on foreign currency income and expenditures.

- Account balance sheet.

- Balance Sheet.

- Separate accounting reports prepared in the following sequence and sent as follows:

+ Report on foreign currency income and expenditures (attached as an appendix), branches prepare two copies: one sent to the General Department of the State Treasury, one retained, including sections on foreign currency tax income, other state income (if applicable); temporarily collected and held foreign currency awaiting processing; foreign currency purchases and sales through the Foreign Trade Bank (if applicable); local budget foreign currency funds managed by localities. At the same time, prepare and send separately to the Department of Finance the portion of foreign currency belonging to the local budget. The General Department of the State Treasury summarizes the entire system, prepares three copies: one sent to the State Bank's Banking Department, one sent to the Department of Foreign Financial Affairs, one retained.

+ Account balance sheet, accounting balance sheet, branches prepare two copies, one sent to the General Department of the State Treasury, one retained. The General Department of the State Treasury prepares the account balance sheet and accounting balance sheet for foreign currency income and expenditure activities at the General Department of the State Treasury and aggregates them into the overall account balance sheet and accounting balance sheet for foreign currency for the entire system.

(Model and calculation indicators are attached as an appendix).

 

III- ACCOUNTING ACCOUNTS AND METHODS
ACCOUNTING RECORDS

1. Accounting accounts.

To account for foreign currency income and expenditures through the State Treasury, the State Treasury's accounting account system is supplemented with the following accounts and sub-accounts:

1.1. Account 98: Centralized foreign currency fund.

This account is used to account for the income, expenditure, and balance of various types of centralized foreign currency of the state; income and expenditure of various types of foreign currency of the local budget.

Debit side: reflects foreign currency expenditures.

Credit side: reflects foreign currency income.

Credit balance: reflects remaining foreign currency.

This account opens two sub-accounts:

- Subparagraph 981 Central Foreign Currency Fund: reflects all revenues, expenditures, and balances of foreign currencies of the State.

Regarding revenues, it includes the following items:

Item 1: Revenues from taxes collected from domestic units, economic organizations, and individuals.

Item 2: Revenues from the export of materials and goods by the State.

Item 3: Revenues from the purchase of foreign currencies by trading organizations.

Item 4: Revenues from oil commissions.

Item 5: Revenues from air transit fees over Vietnam's airspace.

Item 6: Revenues from taxes and fees collected from foreign-invested enterprises in Vietnam.

Item 7: Revenues from labor cooperation and experts.

Item 8: Revenues from entities with income in foreign currency according to regulations of the Ministry of Finance.

Item 9: Revenues from foreign loans.

Item 10: Revenues from foreign aid.

Item 11: Foreign currency revenues deposited by Treasury Collection Offices.

Item 12: Other revenues: interest on deposits, breach of contract penalties, refund of advance payments, payments from embassies, etc.

Regarding expenditures, it includes the following items:

Item 1: Non-trade payment expenditures.

Item 2: Expenditures for imports and transportation costs of materials and goods by the State.

Item 3: Expenditures for foreign debt repayment.

Item 4: Expenditures for lending.

Item 5: Expenditures for foreign currency sales.

Item 6: Expenditures for aid.

Item 7: Other expenditures: interest on loans, advance payments, procedural fees, etc.

This subparagraph is analyzed into principal amounts, interest, and by each type of original currency.

+ 981: principal amount

+ 981-02: interest revenue from deposits, interest paid on loans.

- Subparagraph 982: Local Government Foreign Currency Fund reflects all revenues, expenditures, and balances of foreign currencies managed by local governments.

Regarding the items of revenues and expenditures in this fund, the Ministry of Finance will provide detailed regulations. This subparagraph is also analyzed into principal amounts, interest, and by each type of original currency, similar to Subparagraph 981 above.

1.2. Subparagraph 508: Cash in Foreign Currencies (if applicable)

This subparagraph reflects the situation of revenues, expenditures, and cash balances in foreign currencies at the State Treasury.

Debit side: Records the amount of foreign currency cash received.

Credit side: Records the amount of foreign currency cash spent.

Debit balance: The remaining amount of foreign currency cash in the fund.

This subparagraph is analyzed by each type of original currency.

1.3. Subparagraph 512: Deposits of Foreign Currencies at the Commercial Bank (hereinafter referred to as CB)

This subparagraph reflects the increase, decrease, and remaining amounts of all types of foreign currencies deposited by the State Treasury at CB or its branches, foreign exchange departments in provinces.

All entries on Subparagraph 512 must be based on accounting vouchers such as debit and credit notices, transfer vouchers sent by CB to the State Treasury as original vouchers. The State Treasury prepares accounting vouchers for recording:

Debit side: Reflects foreign currency receipts deposited at CB.

Credit side: Reflects foreign currency expenditures.

Debit balance: Reflects the foreign currency deposits of the State Treasury currently held at CB.

- Accounting for foreign currency deposits is recorded and analyzed by each type of original currency, with unified symbols for each type of original currency according to the regulations of the Central CB.

For now, it includes the following symbols and will be adjusted or supplemented when new transactions arise.

+ 512-36: Hong Kong Dollar deposits.

+ 512-37: US Dollar.

+ 512-38: French Franc.

+ 512-39: Swiss Franc.

+ 512-40: German Mark.

+ 512-41: Japanese Yen.

+ 512-45: Thai Baht.

+ 512-48: Swedish Krona.

+ 512-52: Australian Dollar.

+ 512-54: Singapore Dollar.

+ 512-61: Belgian Franc.

+ 512-66: Dutch Guilder.

1.4. Subparagraph 514: Deposits in Vietnamese Dong at CB.

This subparagraph reflects the increase, decrease, and remaining amounts of Vietnamese Dong deposits of the State Treasury at CB for the purpose of purchasing and selling foreign currencies and settling related incidental expenses through the State Treasury.

Debit side: Reflects mission funds deposited.

Credit side: Reflects withdrawals or expenditures of Vietnamese Dong.

Debit balance: Remaining Vietnamese Dong at CB.

1.5. Subparagraph 660: Settlements in Vietnamese Dong at CB.

This subparagraph reflects the situation of revenues, expenditures, and settlements regarding the purchase and sale of foreign currencies, service fees for CB, interest payable to CB, and interest earned by the State Treasury at CB.

Debit side: Reflects expenditures made or settled.

Credit side: Reflects revenues received or settled.

Debit balance: Remaining funds at CB, not yet disbursed by the State Treasury.

Credit balance: Funds advanced by CB for settlement on behalf of the State Treasury.

Subparagraph 660 is analyzed and monitored as follows:

660-01 Settlements in Rubles (if applicable)

660-02 Settlements in US Dollars (USD)

660-03 Settlements in other foreign currencies

660-04 Other settlements

660-05 Advance payments from CB.

1.6. Subparagraph 662 - Settlements in foreign currencies with CB.

This subparagraph reflects foreign currency advances from CB to settle accounts with the Ministry of Finance, such as non-trade Ruble settlements (if applicable).

Debit side: Reflects foreign currencies already paid to CB.

Credit side: Reflects foreign currencies yet to be paid to CB.

Credit balance: Foreign currencies yet to be paid to CB.

This subparagraph monitors as follows:

662-01 Principal amounts due to be repaid.

662-02 Interest amounts due to be repaid.

1.7. Subparagraph 903 - Foreign currency loans.

This subparagraph reflects various foreign currencies borrowed by the Ministry of Finance from CB to settle payments from the Central Foreign Currency Fund.

Debit side: Records foreign currencies already settled and paid to CB.

Credit side: Records foreign currencies borrowed from CB.

Credit balance: Foreign currencies borrowed by the Ministry of Finance but not yet repaid to CB.

1.8. Subparagraph 923 - Temporarily Received and Held Foreign Currencies.

This subparagraph reflects temporarily received and held foreign currencies from other functional agencies (courts, Procuracy, police, customs, etc.) deposited at the State Treasury related to unresolved cases or unsettled claims.

Debit side: Records foreign currencies deposited into the budget or paid to beneficiaries.

Credit side: Records temporarily received and held foreign currencies from functional agencies deposited at the State Treasury.

Credit balance: Temporarily received and held foreign currencies not yet processed or settled for beneficiaries.

This sub-item monitors and analyzes each type of base currency and foreign currencies that have not been processed, or have been processed but not yet paid to the beneficiaries.

1.9. Sub-item 954 - State financial reserve fund in foreign currency.

This sub-item reflects foreign currencies decided by the State to be included in the reserve or withdrawn for use, managed at the State Treasury.

Debtor side: Record the types of foreign currency reserves issued for use according to the State's orders.

Creditor side: Record the types of foreign currency reserves received according to the State's orders.

Credit balance: The remaining foreign currency reserves managed by the Treasury.

This sub-item is analyzed and monitored by each type of base currency.

1.10. Sub-item 673 - Foreign currency loans awaiting processing.

This sub-item reflects foreign currency loans from the State's external debt, repaid by the Commercial Bank but not yet settled by the Ministry of Finance to the Commercial Bank, or other foreign currency loans advanced by the Commercial Bank to settle the State's external debt.

Debtor side: Foreign currency loans not yet settled awaiting processing.

Creditor side: Foreign currency loans already settled.

Debit balance: Remaining foreign currency loans not yet settled.

This sub-item is detailed by each type of foreign currency.

2.1. Accounting method for receiving and transferring foreign currency deposits and Vietnamese dong deposits at the State Treasury.

a) At the State Treasury Department

- Based on the reconciliation statement of foreign currency deposit accounts between the Department of Foreign Finance and the State Treasury Department, which matches the balances of related accounts opened at the Central Commercial Bank. The State Treasury's foreign currency accounting department must clearly identify the types of foreign currency deposits allocated to the following funds: centralized foreign currency fund of the State; foreign currency financial reserve fund, temporarily collected and held foreign currency awaiting processing, and deposits in Vietnamese dong for bookkeeping purposes:

+ Foreign currency deposits belonging to the centralized foreign currency fund of the State are recorded in detail by each type of foreign currency.

Debit Account 512

Credit Account 981

+ Foreign currency deposits belonging to temporarily collected and held foreign currency awaiting processing are recorded in detail by each type of foreign currency.

Debit Account 512

Credit Account 923

+ Foreign currency deposits belonging to the foreign currency financial reserve fund are recorded in detail by each type of foreign currency.

Debit Account 512

Credit Account 954

+ Based on the reconciliation statement of deposits in Vietnamese dong at the Commercial Bank, the accountant records:

Debit Account 514

Credit Account 660

+ For foreign currency loans from the State's external debt that the Commercial Bank has repaid but not yet settled by the Ministry of Finance, based on the reconciliation statement matching the loan account balances at the Commercial Bank, the accountant records:

Debit Account 67 (673)

Credit Account 90 (903)

+ For the outstanding debts of foreign currency loans advanced by the Commercial Bank to pay import debts under the agreements with socialist countries (import goods units have sold and paid taxes to the State budget), based on the reconciliation statement, the accountant records:

Debit Account 67 (673)

Credit Account 662

b) At the District State Treasury

- Based on the reconciliation statement between the Provincial Finance Department (or other agencies authorized by the Provincial People's Committee to manage foreign currency) and the District State Treasury, the State Treasury's foreign currency accounting department must identify foreign currency deposits, separately analyze them into the provincial budget foreign currency fund, temporarily collected and held foreign currency, and deposits in Vietnamese dong (if any), matching the balances on accounts opened at the Branch Commercial Bank (or Foreign Exchange Department) for bookkeeping purposes:

- Balance of foreign currency deposits belonging to the provincial budget foreign currency fund:

Debit Account 512

Credit Account 982

- Balance of temporarily collected and held foreign currency awaiting processing:

Debit Account 512

Credit Account 923

- Balance of deposits in Vietnamese dong (if any) remaining at the Branch Commercial Bank (or Foreign Exchange Department):

Debit Account 514

Credit Account 660.

2.2. Accounting for income and expenditure of the centralized foreign currency fund of the State and the provincial budget foreign currency fund.

a.1. The Central Commercial Bank, Provincial Branches of the Commercial Bank, and Foreign Exchange Departments directly collect foreign currency belonging to the centralized foreign currency fund of the State and the provincial budget foreign currency fund, etc.

- When receiving documents such as payment orders (tax payments, investment fees), notification of receipts (export goods), transfer vouchers (other foreign currency receipts) transferred by the Commercial Bank, the State Treasury accountant records based on the nature of each receipt and each type of base currency:

Example:

- If the receipt is US dollars, the accountant records (code 37)

Debit Account 512 - 37

Credit Account 981 - 01 - 37 (centralized foreign currency fund of the State)

or Credit Account 982 - 01 - 37 (provincial budget foreign currency fund)

- If the receipt is French Francs, the accountant records (code 38)

Debit Account 512 - 38

Credit Account 981 - 01 - 38 (centralized foreign currency fund of the State)

or Credit Account 982 - 01 - 38 (provincial budget foreign currency fund)

Other related issues (if any): In addition to the main task of assessing technologyand the environment, it is also necessary to consider and comment on otherrelated issues such as:

- Periodically, or at month-end, when receiving interest income documents: if it is US dollars, the accountant records:

Debit Account 512 - 37

Credit Account 981 - 02 - 37 (centralized foreign currency fund of the State)

or Credit Account 982 - 02 - 37 (provincial budget foreign currency fund)

a.2. In cases where the State Treasury directly collects foreign currency cash:

- When receiving documents for cash foreign currency payments, the accountant records:

Debit Account 508

Credit Account 981

If foreign currency cash is deposited into the bank, the accountant records:

Debit Account 512

Credit Account 508

+ Before closing the books at month-end, the accountant bases on the transaction volume and balances of each type of foreign currency to convert from base currency to USD and from USD to Vietnamese dong at the buying rate published by the Commercial Bank, recording in appropriate accounting accounts and preparing accounting reports (account balance sheet, accounting balance sheet).

+ In cases where local units pay taxes to the State budget in foreign currency as stipulated in point C, section 4.1 of Circular No. 27-TC/KBNN dated May 7, 1991, the State Treasury system processes accounting as follows:

At the District State Treasury:

- When receiving foreign currency collection documents sent by the Branch Commercial Bank (or Foreign Exchange Department), the accountant records:

Debit Account 512 (appropriate sub-item)

Credit Account 981 (appropriate sub-item)

Simultaneously, procedures are made to request the Commercial Bank to transfer the foreign currency amount to the Central Treasury, upon receipt of the notification from the Branch Commercial Bank confirming the transfer, the accountant records:

Debit Account 981 (appropriate sub-item)

Credit Account 512 (appropriate sub-item)

The accounting department of the State Treasury shall base on the amount of foreign currency transferred to calculate the equivalent in Vietnamese dong according to the buying rate published by the State Bank valid at the time of recording, and record it in the books as follows:

Debit Account 66 (661) (Central Government Receivables)

Credit Account 74 (State Budget Revenue)

When allocating to various levels of budget, record:

Debit Account 74

Credit Account 71

Credit Account 72 (if the tax has a specified allocation ratio for local budgets).

Upon receiving the capital transferred back from the Treasury Office for payment of the previously submitted foreign currency, the accountant records:

Debit Account 511

Credit Account 661 (Central Government Receipts)

At the Treasury Office:

Upon receiving the notification from the Foreign Trade Bank confirming receipt of the foreign currency transferred back by the branches, the accountant records:

Debit Account 512

Credit Account 981

Upon receiving the expenditure order from the central government to pay the full amount of foreign currency submitted to the Treasury Office, the accounting department records:

Debit Account 311

Credit Account 511

b) Foreign Currency Expenditure Accounting

All foreign currency expenditures from the centralized foreign currency fund of the State must be based on a foreign currency expenditure order issued by the Ministry of Finance; from the local budget foreign currency fund, such expenditures must be based on an expenditure order issued by the Provincial Department of Finance. The Treasury bases on these orders to issue a "foreign currency disbursement request" to the Foreign Trade Bank requesting the transfer from its account to the beneficiary. Upon receiving the debit note or transfer voucher from the Foreign Trade Bank, the accountant records the journal entry based on each type of foreign currency and each item of expenditure:

- If the expenditure is from the State's Foreign Trade Bank fund:

Debit Account 981

Credit Account 512

- If the expenditure is from the local budget foreign currency fund:

Debit Account 982

Credit Account 512

In cases where foreign currency expenditures replace central government expenditures in Vietnamese dong, the foreign currency accountant records the entries as directed above. The Financial Management Department coordinates with the State Budget Department to have the State Budget Department prepare the vouchers (collection orders, expenditure orders, settlement orders) to be sent to the Treasury. Upon receiving the collection orders, expenditure orders, and settlement orders, the accounting department implements the recording according to the revenue and expenditure recording method stipulated in Circular No. 229 - TC/KB dated October 12, 1990 of the Treasury Office.

c) Accounting for Foreign Currency Purchases and Sales

Companies, enterprises, collective units, and individuals holding foreign currency must sell their foreign currency to the Ministry of Finance according to the prescribed regulations; simultaneously, if there is a need to purchase foreign currency, the Ministry of Finance will consider and resolve it. The Ministry of Finance authorizes the Foreign Trade Bank to handle foreign currency purchase and sale procedures.

- Accounting for Foreign Currency Purchases

When there is a need to purchase foreign currency, if the deposit account in Vietnamese dong at the Foreign Trade Bank is depleted, the Ministry of Finance (or Provincial Department of Finance) must issue an expenditure order to the Treasury to transfer funds from the deposit account at the State Bank to the deposit account in Vietnamese dong at the Foreign Trade Bank.

The Treasury's accounting department, upon receiving the expenditure order, records:

Debit Account 311

Credit Account 511

- The foreign currency accountant, based on the "credit notice" or "transfer voucher from the Foreign Trade Bank" reporting the amount deposited into the Vietnamese dong deposit account, prepares the journal entry:

Debit Account 514

Credit Account 660

When the Foreign Trade Bank completes the foreign currency purchase transaction and sends the "transfer voucher" to the Treasury, the accountant prepares the journal entry based on the transfer voucher:

+ For the amount in Vietnamese dong, record:

Debit Account 660

Credit Account 514

+ For the purchased foreign currency amount, record:

Debit Account 512

Credit Account 981

At the Branch Treasury, if there is a purchase of foreign currency, it also follows the above accounting method when purchasing foreign currency: record provincial budget expenditure (Account 321) and record the local budget foreign currency fund income (Account 982).

- Accounting for Foreign Currency Sales

Upon receiving the debit note or transfer voucher from the Foreign Trade Bank regarding the sold foreign currency, the accountant prepares the journal entry:

Debit Account 981

Credit Account 512

Simultaneously, upon receiving the transfer voucher reporting the amount in Vietnamese dong received from selling the foreign currency, the accountant prepares the journal entry:

Debit Account 514

Credit Account 660

+ If the proceeds from selling the foreign currency are recorded as central government revenue as decided by the Ministry of Finance, the Treasury Office issues a voucher requesting the Central Foreign Trade Bank to transfer the funds into the Treasury's deposit account at the State Bank.

The foreign currency accounting department records:

Debit Account 660

Credit Account 514

Upon receiving the credit notice from the State Bank, the Treasury's accounting department records:

Debit Account 511

Credit Account 741 (State Budget Revenue) and allocate 100% to the central government budget (Account 711).

d) Accounting for Foreign Currency Loans and Repayments with the Foreign Trade Bank

+ In case the Ministry of Finance borrows from the Foreign Trade Bank; upon receiving the document (credit notice, transfer voucher) from the Foreign Trade Bank reporting the loan amount credited to the Treasury's foreign currency deposit account at the Foreign Trade Bank, the accountant records:

Debit Account 512

Credit Account 903

+ Upon receiving the expenditure order from the Ministry of Finance to repay the Foreign Trade Bank, the Treasury will issue a foreign currency disbursement request to the Foreign Trade Bank requesting the deduction from the Treasury's foreign currency deposit account to repay the Foreign Trade Bank. Upon receiving the debit note or transfer voucher from the Foreign Trade Bank, the accountant records:

Debit Account 903

Credit Account 512

+ In case the Ministry of Finance issues an expenditure order to repay foreign debt that the Foreign Trade Bank has advanced foreign currency to repay, from the centralized foreign currency fund of the State as stipulated in point 2.1, the Treasury will issue a foreign currency disbursement request to the Foreign Trade Bank requesting the deduction from the Treasury's foreign currency deposit account to repay the debt.

- Upon receiving the debit note or transfer voucher from the Foreign Trade Bank, the accountant records:

Debit Account 981

Credit Account 512

- Simultaneously, the accountant must record to settle all loans and debts, the accountant records:

Debit Account 903

Credit Account 67 (673)

- The advances made by the Foreign Trade Bank to repay debts, the accountant records:

and Debit Account 662

Credit Account 67 (673)

2.2. Accounting for Temporary Foreign Currency Receipts and Holds

The accounting procedures for temporary foreign currency receipts and holds must be carried out according to the Treasury's accounting regulations.

Relevant agencies (courts, prosecution offices, police, customs...) holding temporarily collected or held foreign currency must process the transfer of this currency to the State Treasury through the Foreign Trade Bank. Upon receiving the transfer voucher from the Foreign Trade Bank, the accountant records based on each type of temporarily collected or held foreign currency:

Debit Account 512

Credit Account 923

If cash is received directly, the accountant records:

Debit Account 508

Credit Account 923

When foreign currency cash is exported to the Vietnam Bank for Foreign Trade; upon receiving the notification from the Vietnam Bank for Foreign Trade regarding the foreign currency cash that has been deposited, the accountant records:

Debit Account 512

Credit Account 508

When competent authorities send the "record of temporary collection and retention of foreign currency" back to the recipient or remit it to the state budget; the State Treasury issues a "request for foreign currency payment sent to the Vietnam Bank for Foreign Trade requesting to process the transfer to the recipient."

- When issuing a transfer voucher to pay for the recipient, the accountant records:

Debit Account 923

Credit Account 512

When receiving a transfer voucher for the permitted bonus withdrawal according to the prescribed regulations, those agencies still have to deposit the entire foreign currency into the State Treasury; the State Treasury will pay Vietnamese currency to the units at the exchange rate published by the State Bank at that time according to the financial authority's payment order.

Upon receiving the debt notice or transfer voucher sent by the Vietnam Bank for Foreign Trade, the accountant records:

Debit Account 660 - 04

Credit Account 514 - 04

In cases where branches of the State Treasury generate transactions as stipulated in point 2.2, they should also record accounting entries as described above, but when collecting, they must record in sub-account 982.

Branches of the State Treasury handle the transfer of the aforementioned foreign currency to the National Treasury Office, the accountant records:

Debit Account 981

Credit Account 512

2.3 Accounting for the receipt and expenditure of the state financial reserve fund in foreign currency:

- According to the directive of the Council of Ministers, the Ministry of Finance implements the state financial reserve fund in foreign currency from the state budget funds to purchase foreign currency reserves or transfer from the centralized foreign currency fund of the state to the state foreign currency reserve fund.

Upon receiving the notification or transfer voucher from the Vietnam Bank for Foreign Trade regarding the purchase of foreign currency reserves (using central government budget funds), the accountant records:

Debit Account 512

Credit Account 95

Upon receiving the order from the competent authority (the Council of Ministers, the Ministry of Finance) to transfer the state foreign currency treasury fund to the financial reserve fund (if applicable); the accountant prepares a transfer voucher and records:

Debit Account 981

Credit Account 954

- According to the directive of the Council of Ministers, the Ministry of Finance issues an order to pay foreign currency, the State Treasury bases on the payment order to issue a request for foreign currency payment sent to the Vietnam Bank for Foreign Trade. Upon receiving the transfer voucher from the Vietnam Bank for Foreign Trade, the accountant records:

Debit Account 954

Credit Account 512

Upon receiving the order from the competent authority to transfer the financial reserve fund to the centralized foreign currency fund of the state (if applicable); the accountant prepares a transfer voucher and records:

Debit Account 954

Credit Account 981

 

IV - EFFECTIVE PROVISIONS

1. This Circular takes effect from July 1, 1991.

2. Based on the above provisions:

- The National Treasury Office is responsible for guiding the State Treasury system on opening accounts for transactions with the Vietnam Bank for Foreign Trade and defining the forms, accounting books, and reports to uniformly implement foreign currency accounting transactions.

- Relevant units in the financial systems at all levels shall implement the provisions of this Circular.