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Manufacturing accounting under Circular 99 and 133¶

On a company whose chart of accounts is Vietnamese, under Circular 99/2025/TT-BTC or Circular 133/2016/TT-BTC, manufacturing accounting follows the Vietnamese rules: the work center time is charged to manufacturing overhead (627) or to work in progress (154), not to the cost of goods sold, and the work in progress entry credits each component to its own stock account (152 for materials, 156 for goods).

Who	Chief accountants and cost accountants of Vietnamese manufacturing companies.
App	Invoicing, Manufacturing

Before you start

The company uses the chart of accounts of Circular 99 or Circular 133 of the Vietnam Chart of Accounts - Circular 99 and 133 module.
Manufacturing Accounting - Vietnam and Manufacturing WIP Accounting - Vietnam install themselves with the Vietnamese chart of accounts and the manufacturing accounting modules.
The settings need the Invoicing ‣ Administrator access right.

The example company uses the chart of accounts of Circular 99.

Which accounts does each circular use?¶

Account	Circular 99	Circular 133
Default Work Center Expense Account	627 Manufacturing overhead	154 Work in progress
Production WIP Account	154 Work in progress	154 Work in progress
Production WIP Overhead Account	627 Manufacturing overhead	not set: the Production Account of the product categories (154) is used
Component credit of the work in progress entry	the Stock Valuation Account of each component category (152, 156)	the Stock Valuation Account of each component category (152, 156)

The accounts are loaded with the chart of accounts and can be changed in Invoicing ‣ Configuration ‣ Settings, section MRP Accounting.

Why does the work center need its own expense account?¶

When a manufacturing order is done, the cost of the work center time is credited to the Expense Account of the work center. A work center without one uses the Expense Account of the product category (632), which would charge production labour and machine time straight to the cost of goods sold instead of the production cost.

Go to Invoicing ‣ Configuration ‣ Settings, section MRP Accounting. Default Work Center Expense Account is 627 under Circular 99 and 154 under Circular 133.
A new work center gets this account in Expense Account, on its General Information tab. The work centers that existed before keep their own account: check them in Manufacturing ‣ Configuration ‣ Work Centers.

The default is set for a Vietnamese company that has no done manufacturing order yet, and for every Vietnamese chart of accounts loaded later. A company that already has done orders keeps its setting unchanged: set Default Work Center Expense Account yourself. A default you set is kept, also when the chart of accounts is reloaded.

How is each component credited in the work in progress entry?¶

Post WIP Accounting Entry credits each component to the Stock Valuation Account of its own product category, one line per account, instead of one line on the default account of the company. Check the account on the category in Inventory ‣ Configuration ‣ Product Categories; a change of the account applies to the next entry.

The product category Raw materials with the stock valuation account 152

In the example, the entry of the order in progress credits 152 with the oak boards, 156 with the screws and 627 with the work center time, and debits 154 with the total, see Post work in progress entries at period end.

What happens when the consumption of a done order changes?¶

When the inbound and outbound accounts of the production location are the same account (154), a change of the consumption of a done order is moved to the finished goods, even when Automatically create accounting entries to work in progress is off, so that the work in progress account returns to zero.

How are subcontracted materials valued?¶

On a Vietnamese chart of accounts, the subcontracting locations are set to Carried in Work in Progress: materials sent to the subcontractor leave stock and are carried in 154 until the goods come back. See Post work in progress entries at period end and Accounting for Subcontracting Goods Valuation.

Common errors¶

Problem	What to do
The labour of the orders is posted to 632.	The work center has no Expense Account. Set it, and set Default Work Center Expense Account for the next work centers.
The work in progress entry credits a single 156 line for all components.	The component categories use the same Stock Valuation Account. Set 152 on the categories of materials.
Default Work Center Expense Account is empty.	The company had done orders when the module was installed. Choose the account yourself.

Next steps¶

Post work in progress entries at period end: post the work in progress at period end.
Standard production costs for work centers: the cost of the work centers.