1988: Back to the human world for a few years

Chapter 434: Ant Moving
Dahua Company organized all the accounting personnel in its tertiary industry units to come to the headquarters for closed training, which had a far-reaching impact on those units.

The accounting sharing model has certainly caused a huge sense of crisis among a large number of managers, but the transfer of the old accountants who were originally responsible for accounting has made the management of these units face another extremely embarrassing and cruel reality.

Most of the management have no knowledge of finance at all... Even the vice presidents in charge of finance in each unit are only able to understand the balance sheet.

Although it has always been a common problem for many companies today that laymen manage professionals, these people will only feel great regret when they are really faced with a crisis.

Damn it, if I had known earlier, I would have nominated one or two professionals with a finance background to be vice presidents.

The headquarters has now begun to investigate one by one. If I want to save my life and property, I have to pay off all the mess before the headquarters finds out about me.

But the problem is that in order to keep the current lucrative job, they can find ways to spit out the fat they have eaten at all costs, even if it means seeking third-party private lending.

But the terrible thing is...

Without the guidance of trusted professionals, they were at a loss as to how to make up these accounts without being discovered by the people at the headquarters!
You have to know that how to fill in the account is a science. If you just foolishly find a reason to pay the money back, it can be regarded as confessing and repenting at most.

The headquarters may not punish you so harshly because of your good attitude, but you will definitely lose your current position.

MD, without this current position, the possibility of continuing to make money after the storm has settled will no longer exist. How are they going to repay the debts and interest they have incurred from borrowing money from everywhere?
If that's the case, then I might as well be invited directly to the Discipline Inspection Section of the headquarters for tea. There's no way out anyway, so I might as well stay in prison for ten or twenty years... If all else fails, eating some peanuts will also be a relief!

of course.

If possible, no one would want to isolate themselves from the world.

Although the management of these tertiary industry units are just a group of small ants to the command center and Dahua Company, objectively speaking, these people are also considered to be well-known figures in today's society.

Since he is a well-known figure, his connections and social resources are naturally not as poor as those of an ordinary person; although there is currently no way to find a solution from the internal system, it is possible to seek support from the outside.

Therefore, less than a week after Dahua Company's internal control adjustment work began, the brokers in these tertiary industry units suddenly became active...

………………

Xiajin, Nancheng Street, intersection.

Although it was already midsummer and it was three o'clock in the afternoon when even dogs were reluctant to move, two groups of guests still suddenly poured into the famous Second Restaurant.

After being introduced by a well-known local broker, Huang Haisheng glanced at Director Li who was smiling beside him calmly, then extended his right hand enthusiastically: "Mr. Zhang, nice to meet you, nice to meet you!"

A man in a suit who looked a bit wealthy shook hands with him with a fake smile, then took out a handkerchief from his pocket without any respect and began to wipe the sweat from his forehead impatiently: "I heard from Liuzi that you need help crossing the bridge now?"

Seeing Huang Haisheng and Director Li's faces flashing with displeasure, the broker nicknamed Liuzi quickly interrupted with a smile: "Boss Zhang is a well-connected person in Yangxin. Not only does he like making friends, but he is also famous for his loyalty... Director Li, Deputy Director Huang, we are all family, and Boss Zhang has always been a straightforward person, so there is no need for everyone to hide anything."

According to what the broker said before the meeting, Mr. Zhang was a big Buddha whom he had to help find with great favors; and judging from the attitude shown by Liuzi now, in the eyes of a certain shrewd person, Mr. Zhang's weight is obviously much more important than the two real employers, Director Li and Huang Haisheng.

After all, Director Li and Huang Haisheng were both experienced people who had been working on the edge of the system for more than a decade. Although they did not like the indifference shown by Mr. Zhang as soon as they met, and also did not like the snobbish attitude of the broker Liuzi, the more so, the more they looked forward to Mr. Zhang, who was said to have come from Yangxin County.

Huang Haisheng quickly calmed down and looked at Mr. Zhang in front of him very sincerely: "Since Liuzi has said so, then we will not hide it... Yes, Xiamei Sportswear Factory does need to find a noble person to help guide the way across the bridge, and it has to be quick... Mr. Zhang, don't worry, we are friends now, and we will not forget this kindness after the matter is accomplished."

Mr. Zhang seemed to be quite satisfied with Huang Haisheng's decent attitude, and he hummed softly: "How much accounts does your Xiamei Sportswear Factory need help to cover up?"

Huang Haisheng hesitated for a moment after hearing this. He then exchanged glances with Director Li next to him and gritted his teeth, "At least 1100 million, and it's best to get it done within half a month!"

!!!

1100! ?

Even though Liuzi, the broker, had seen many ups and downs over the years, he was still genuinely shocked.

This is too scary!

You have to know that it was still 1990, and the Xiamei Sportswear Factory was barely a medium-sized tertiary industry unit.

Just as Lao Liu had introduced before, Mr. Zhang was indeed not an ordinary person. After hearing the number 1100 million, which was enough to scare people to death at the time, there was no big fluctuation on his face. He just pondered for a while, then curled up his palms and knocked them on the table, obviously lost in thought.

Knock~
Knock~
Knock~
The slightly annoying knocking on the table lasted for dozens of times before Mr. Zhang raised his head and said, "I can help you with this, but let me be frank. This is the first time we've worked together and we're not related, so... I'll pay you 300 million yuan for your hard work. I'll pay you when I see the money!"

hiss~
Director Li and Huang Haisheng both gasped.

Damn~
300?
black!
It’s so damn dark!

This is even worse than borrowing money at high interest rates.

However, the more the other party did this, the more they believed that the other party could indeed help them.

After a moment of hesitation, Director Li spoke up: "Boss Zhang, if you can really help, 300 million is the reward for your hard work... But in this case, the account that needs to be covered up is not 1100 million, but 1300 million!"

Obviously, the amount that Xiamei Sportswear Factory really needed to fill in the account was 1300 million. However, judging from the fact that Director Li agreed to pay 300 million out of his own pocket without hesitation, the management of Xiamei Sportswear Factory has made a lot of money over the years... You have to understand that this is filling in the account, not writing off the account. The 1300 million must be paid back to the factory in real money.

Just as Liuzi said, Mr. Zhang was indeed a generous man. He slammed the table after hearing what Liuzi said, "Great! That's straightforward! 1300 million is 1300 million! Director Li, Deputy Director Huang, I'm friends with you two!"

Although Huang Haisheng had a smile on his face, his eyes twitched. Then he asked in an exploratory manner: "Mr. Zhang, since we are all honest friends, I would like to ask... How do you plan to help us cover up this 1300 million account?"

At this point, Huang Haisheng added, "Mr. Zhang, it's not that we don't believe you, but Liuzi may have told you some information before. Most of the past account books of Xiamei Sportswear Factory have been handed over to the headquarters. Although the headquarters may not have checked these account books yet due to lack of manpower, it is not an easy task to find a way to quietly make up the 1300 million."

It has to be said that although people like Huang Haisheng and Director Li do not have any financial knowledge, they are very familiar with some of the rules of the game in the system... They are not the only ones who have handled this money, so as long as they can make up the money and make the financial books form a closed loop that is barely acceptable, then there is a high probability that this matter will just pass.

Mr. Zhang smiled nonchalantly when he heard this: "Deputy Director Huang, don't worry about this. Since I've accepted this job, I will naturally find a way."

At this point, Mr. Zhang impatiently wiped the sweat off his face with a handkerchief. "Let me put it this way. For companies like yours that have reached a certain scale, the most time-consuming and difficult account to check is the hidden debt... So, in this case, in the form of [inventory impairment provision], these hidden debts can be mixed into the new business in the name of cost, and then the money can be added in a roundabout way, right?"

Inventory impairment provision?

Confusing it with new business in the name of cost?
Huang Haisheng and Director Li, who had only a superficial understanding of financial knowledge, looked at each other in bewilderment.

Upon seeing this, Mr. Zhang showed an impatience as if he was talking to a deaf person, but he seemed to remember that this was a large order with a profit of up to 300 million after all, so he patiently explained it briefly.

………………

The so-called "inventory impairment provision" is actually a very simple financial knowledge. You will understand it all once you understand the underlying logic of accounting entries.

Here is a simple example:
Suppose a company has a batch of inventory, the quantity is 100, the purchase price is 150 yuan per piece, and each time an inventory is sold, it will incur sales expenses of 20 yuan.

If the current market price of this batch of inventory is 140 yuan per piece, according to Article 1 of Enterprise Accounting Standard No. - Inventories, if the inventory cost is higher than its net realizable value, an inventory impairment provision should be made and included in the current period's profit and loss. (Net realizable value refers to the estimated selling price of inventory in daily activities minus the estimated cost to be incurred until completion, estimated sales expenses, and related taxes.)
Therefore, the net realizable value of this batch of inventory = (140-20)X100 = 12000 yuan;
The inventory cost = 150X100 = 15000 yuan;
Did you notice that the inventory cost is higher than the net realizable value? Then according to accounting standards, it is necessary to make provision for inventory impairment for this batch of inventory.

Inventory impairment provision = cost - net realizable value = 15000-12000 = 3000 yuan.

Therefore, the accounting entry in the ledger will be shown as:
Debit: Asset impairment loss of RMB 3000.

Credit: Inventory impairment provision of RMB 3000.

However, it should be noted that according to Article 1 of Enterprise Accounting Standard No. - Inventories:
1. The net realizable value of inventories held for the purpose of executing a sales contract or a service contract shall be calculated based on the contract price;

2. If the quantity of inventory held by an enterprise exceeds the quantity ordered in the sales contract, the net realizable value of the excess inventory should be calculated based on the general sales price.

That is, if a sales contract has been signed with a downstream customer for this batch of inventory, then its selling price is the contract price, not the market price, and the contract price is needed to calculate its net realizable value.

That is to say, if one month later, due to changes in market supply and demand, the market price of this batch of inventory rises to 200 yuan per piece,
At this time, the net realizable value of this batch of inventory = (200-20)x100=18000 yuan.

Since a provision of 3000 yuan has been made for the inventory impairment of this batch of inventory, the book value of this batch of inventory = purchase cost - inventory impairment provision = 15000-3000 = 12000 yuan;
The difference between net realizable value and book value = 18000-12000 = 6000 yuan.

Now, here comes the interesting part.

According to Article 1 of Enterprise Accounting Standard No. - Inventories: On the balance sheet date, an enterprise shall determine the net realizable value of inventory. If the factors that previously reduced the value of inventory have disappeared, the amount of the reduction shall be restored and reversed within the amount of inventory impairment provision previously made, and the reversed amount shall be included in the current period's profit and loss.

Therefore, although the difference between the net realizable value and the book value is already 6000 yuan, it can only be reversed within the original amount of inventory impairment provision of 3000 yuan, that is, only 3000 yuan can be reversed.

So at this point, the accounting entry should be as follows: Debit: Inventory loss provision 3000.

Credit: Asset impairment provision 3000.

At this point, the book value of this batch of inventory = 12000 + 3000 = 15000 yuan, which is restored to the original purchase price;
如果按照200/件的售价全部售出，则可以实现利润=(售价-销售费用)X数量-成本=(200-20)X10-15000=3000元

At this point, a complete accounting entry for the provision and reversal of inventory impairment has been completed.

………………

After a brief overview, Mr. Zhang looked at Huang Haisheng and Director Li meaningfully: "Director Li, Deputy Director Huang, now you understand, your sportswear factory's account books have not been fully submitted yet. As long as you take advantage of this opportunity to quickly sign a few long-term cooperation large-volume order contracts, and then slightly change the contract signing date, the 1300 million can be replenished to the factory through the subsequent new inventory impairment provision and transfer."

At this point, Mr. Zhang smiled slightly and said, "In fact, if you two are sure, you don't have to pay back all of the 1300 million. You can appropriately recover some of the losses by controlling the [net realizable value]... Of course, how to judge the scale of this matter is entirely up to you two. I am just a friend who helps you cross the bridge, and I can't make decisions for you."

Huang Haisheng was still excited when he heard that he could recover the losses appropriately, but Director Li waved his hand without hesitation: "Boss Zhang, thank you for your kindness, but things have their priorities. At this moment, it is better to pay back the 1300 million first. As for recovering the losses... we will talk about it later!"

Although he still didn't quite understand what was said, as a veteran, he knew very well how to survive in the system...Now that Dahua Company has started to play for real, and even his backers don't dare to say a word, he'd better not have any crooked ideas and just pay back the 1300 million.

Again, perhaps in the eyes of ordinary people, whether it is a state-owned enterprise or a central enterprise, it is actually just like that, it is nothing more than relying on its unique position to be so big and unbreakable;
But only people like him who have been in the system for more than ten years and have some influence know that there are actually a lot of powerful people in this system. It doesn't make sense that a country bumpkin boss from Yangxin can think of a solution that the ruthless people in the headquarters can't think of.

In a word: if you want to get involved in the underworld, you must have a proper attitude. Since you are a small demon soldier who cannot show up on the stage, when the gods above are fighting, you should just wait obediently with fruits and vegetables in your hands. Don't think that you can become the Monkey King just because you have been a mountain king in the mortal world for a few days.

Thinking of this, Director Li took a deep breath and said, "Boss Zhang, to be honest, Deputy Director Huang and I don't really know much about this... Just tell me, what should we do next?"

President Zhang looked at him in surprise, then nodded approvingly: "You are indeed worthy of being Director Li... I'm grateful for your advice!"

After saying that, Mr. Zhang put away the handkerchief that he had been holding since they met, and sat up straighter. "Director Li, Deputy Director Huang, what you two have to do is actually very simple... Yangxin County just held the first Pear Blossom Fair and Economic and Trade Fair in April this year. Did you know about this?"

Director Li and Huang Haisheng looked at each other and said, "I've heard a little bit about it."

In recent years, relying on its geographical advantage, various parts of Shandong and Qilu have organized countless economic and trade fairs under various names. The economic and trade fair held in Yangxin County last year during the Pear Blossom Festival had a very fashionable meaning of "culture as the stage, economic and trade as the show", so they had indeed heard of it.

Mr. Zhang nodded again after hearing this: "To be honest, I have a small import and export trading company in Xinyang County... Although the business scale is not very good, we still have some export targets for various products."

Director Li and Huang Haisheng looked at each other, suppressed their excitement, and nodded again.

Mr. Zhang sighed softly: "With the Asian Games about to be held, all kinds of sports-related products are starting to sell well... This is the case both in China and abroad."

"So, anyone with a bit of foresight can see that even if the Asian Games are over, this sports trend will not dissipate in a short time... Of course, talents like Director Li and Deputy Director Huang are even more insightful. As early as mid-May, before the concept of sports was completely hyped up, they had already seen this market trend... Well, I have to say that you two are truly outstanding people. Your insight is amazing!"

Director Li and Huang Haisheng's eyes lit up when they heard this. Although they didn't know why General Manager Zhang suggested that they "change" the signing time of the business contract to mid-May, if this matter was really just let it go, when everything calmed down, they might be rewarded by their superiors for their "market insight", and they might even be able to move to a higher position.

Seeing this, Mr. Zhang smiled again and continued to talk: "So, as early as May 5, your company cooperated with Yangxin County Pan Asia Sporting Goods Sales Company and signed a business contract with a total amount of up to 17 million."

Ok? ? ?
Huang Haisheng couldn't help but interrupt: "Mr. Zhang, wasn't it 1300 million? How did it become a 700 million contract?"

Mr. Zhang glanced at it and ignored it, saying to himself, "This is a gambling contract that combines OEM and underwriting."

"To put it simply, Yangxin County Pan Asia Sports Goods Sales Company and Xiajin Xiamei Sportswear Factory are both optimistic about the future sportswear market and believe that with the successful hosting of the Asian Games, the sales of sportswear at home and abroad, especially sportswear made of mid-to-high-end fabrics, will usher in an explosive period."

"But at the same time, as the host country of the Asian Games, China will certainly face the contradiction between strong market demand and insufficient production capacity of mid-to-high-end fabric sportswear during this period."

“So after friendly discussions between the two parties, the cooperation intention was reached as follows:”

"In order to better tap the market potential of mid-to-high-end fabric sportswear, Yangxin County Pan Asia Sports Goods Sales Company and Xiajin Xiamei Sportswear Factory decided to cooperate sincerely, regard each other as first-level partners, and give each other due treatment;"

"In the cooperation project of mid-to-high-end fabric sportswear in 1990-1991, Yangxin County Pan Asia Sports Goods Sales Company was responsible for channel development and sales; Xiajin Xiamei Sportswear Factory was responsible for the introduction, production, storage and transportation of raw materials for mid-to-high-end sportswear... Of course, the brand of this batch of mid-to-high-end fabric sportswear belongs to Yangxin County Pan Asia Sports Goods Sales Company."

"Based on the above principles, the two parties signed a production contract for 32 pieces of clothing with a value of 700 million yuan."

"This was originally a very normal contract for processing by consignment, but during the cooperation process, Xiajin Xiamei Sportswear Factory discovered that Yangxin County Pan Asia Sports Goods Sales Company had not paid for the goods except for the initial deposit of 6 yuan until June 25;"

"So Director Li and Deputy Director Huang went to the other party angrily, only to find out that the other party was actually a shell company with no qualifications and no extra money in the account;"

"At the same time, you two also discovered that although the other party does not have the money to pay the clothing factory for the goods, it is actively looking for and expanding sales channels for this batch of clothing, and has many related consignment projects under discussion;"

"However, contrary to what one might imagine, the reason why Yangxin County Pan Asia Sports Goods Sales Company did not pick up any more goods from Xiajin Xiamei Sportswear Factory except for the first batch of 3 OEM sportswear and kept using Xiajin Xiamei Sportswear Factory as a storage center was not because they could not sell them, but because they were hyping up this batch of OEM clothing."

"The previous judgment was correct. With the upcoming Asian Games, there is a huge demand gap for China's mid-to-high-end fabric sportswear, especially branded sportswear made of mid-to-high-end fabrics... And what Yangxin County Pan Asia Sports Goods Sales Company did was to take advantage of its exclusive sales qualifications for the brand's clothing, while being reluctant to sell, and borrowing money at all costs to promote and build momentum at home and abroad, so as to achieve the goal of increasing the terminal sales price... If the terminal sales price is raised, then the distribution price of these clothes will also be raised. Yangxin County Pan Asia Sports Goods Sales Company can earn much more than the conventional model. This is a very simple truth, isn't it?"

After a slight pause, Mr. Zhang looked at the two with a smile: "However, I don't know whether Yangxin County Pan Asia Sports Goods Sales Company can finally achieve its goal, but its behavior has obviously violated the interests of Xiajin Xiamei Sportswear Factory... It costs a lot of money for a clothing factory to produce these OEM sportswear. Moreover, using the clothing factory as a storage center has greatly increased the operating costs of the clothing factory. Director Li and Deputy Director Huang, who are determined to protect the national assets, naturally will not do this."

"But let's be honest. Although Director Li and Deputy Director Huang have good intentions, the objective situation of Yangxin County Pan Asia Sporting Goods Sales Company is there. It is absolutely unrealistic for you to ask them to continue to perform the original OEM contract... After all, in order to promote this batch of clothing, they borrowed a huge sum of 600 million yuan and spent it on various domestic and foreign media... But this also shows their determination and confidence in this hype plan."

"So after thinking about it, the two sides negotiated a new solution... The status of the two parties as first-level partners remains unchanged. After completing 65% of the OEM production tasks, Xiajin Xiamei Sportswear Factory, in order to avoid major damage to state-owned assets, and after several evaluations, believed that the plan of Yangxin County Pan Asia Sports Goods Sales Company was highly feasible, so it simply decided not to pay the subsequent payment for the goods, but to directly invest in the project. After the clothes are sold, the two parties will share dividends according to the proportion of project shares."

"As a result, Yangxin County Pan Asia Sports Goods Sales Company refused to do so, thinking that the Asian Games would be held in two months, and that they had paid a huge price and effort in the early stage, so Xiajin Xiamei Sportswear Factory was just reaping the fruits of its labor!"

"But after evaluating the various financial statements of Yangxin County Pan Asia Sporting Goods Sales Company, Director Li and Deputy Director Huang were very optimistic about this cooperation model. After all, how much money can you make from OEM production? Compared with this way of selling brands, the profit is far less. So they directly threatened... Either pay according to the original contract now, or accept the new cooperation plan, otherwise they will sue the other party for fraud and damage to state-owned assets!"

"Finally, after a long tug-of-war, the other party accepted the new cooperation plan of Director Li and Deputy Director Huang, but with an additional plan... Xiajin Xiamei Sportswear Factory can invest in the project to reap the fruits, but as a condition, it must compensate Yangxin County Pan Asia Sports Goods Sales Company for the 600 million yuan in publicity expenses paid in the early stage. Both parties must follow the publicity plan of Yangxin County Pan Asia Sports Goods Sales Company and share the subsequent marketing and publicity expenses according to their respective shareholding ratios."

At the end, General Manager Zhang sighed and said, "Anyone with a brain can see that Xiajin Xiamei Sportswear Factory has gained a huge advantage in this matter, so Director Li and Deputy Director Huang agreed to this condition without any hesitation;"

"However, good things take time. Yangxin County Pan Asia Sporting Goods Sales Company will be able to complete the project in two or three months at most. After all, it is not so easy to agree to it. Therefore, even though Director Li and Deputy Director Huang used various means, they did not officially change the contract with Yangxin County Pan Asia Sporting Goods Sales Company until tomorrow. "

"Of course, Director Li and Deputy Director Huang are the main leaders of Xiajin Xiamei Sportswear Factory. In order not to affect morale, this matter has never been told to the employees. Therefore, it is normal that no news has been spread in the factory... What do you think?"

The expressions of Director Li and Huang Haisheng had long since changed from half-belief and half-doubt at the beginning to admiration.

Damn it, Mr. Zhang not only provided them with an alternative solution to fill in the accounts by means of provision for inventory impairment and reversal, but also paved a smooth road for them to advance or retreat!
This 300 million yuan hard work fee...

Well worth it!
………………

Two days later, Sister Meng frowned when she saw the several contracts and a pile of account books that Huang Haisheng had never seen before.

Contract changes?

It also involves 700 million OEM production a few months ago and a special expenditure of up to 600 million last month?

After taking a look at the stack of account books that Huang Haisheng had labeled "not yet reported to the headquarters because of business needs" and the accounting entries that were made by someone unknown, Sister Meng sneered.

Right? We should make up for it by making provisions for inventory impairment and subsequent sales, right?

Oh, if we really investigate you, these new account books full of loopholes that you submitted will be irrefutable evidence!

A bunch of idiots who don’t even have the most basic financial knowledge!
Sure enough, after those old accountants who were originally doing the accounting were forced to be sent to the headquarters for training, these laymen found faults in every move.

While she was sneering, Sister Meng flipped through the documents and started examining them.

Um? ?

Looking at Party B's signature, and the irregular little hook behind "Yangxin County Pan Asia Sporting Goods Sales Company" that seemed to be left out by improper pen-holding habits, Sister Meng's pupils shrank slightly.

This is……?
I flipped through the other two contracts, and they were the same, with that irregular little check mark at the back.

Looking calmly at Huang Haisheng, who looked very proud, Sister Meng smiled as usual and said, "There is no problem with these documents, Director Huang. I will enter them into your account later."

At the same time, Mr. Zhang, who had been so arrogant in front of Director Li and Huang Haisheng, was shutting himself in his office, respectfully holding the receiver and reporting to the other party: "The work at Xiajin Xiamei Sportswear Factory has been completed. Please instruct which account the newly received 900 million (including 300 million hard work fee) should be transferred to."

A familiar voice came from the other end of the phone: "Don't worry, wait a minute, I'll ask Fatuma for her opinion. She's the one who needs the money, so she has the final say on how to transfer it to which account... Oh, I'm having a headache too. Can't we just transfer it to one account? Why make it so complicated!"

As if he had gotten used to the other party's casual tone like a little woman, Mr. Zhang just smiled at the other party's complaints, but after hearing the three words Fatuma, his expression became more respectful: "Yes!"

(End of this chapter)