In this article
The VAS chart of accounts is prescribed by regulation, while the group's chart of accounts (COA) is designed around management needs. Chart of accounts mapping is the bridge between the two: done well, consolidated figures come out automatically; done carelessly, every period requires explaining differences. This article shares the design approach the accounting team at ACCA Consulting Vietnam applies for FDI companies.
1. Why mapping is more than matching account numbers
VAS accounts are classified by accounting nature (for example 642 – general and administrative expenses), whereas a group COA is usually classified by function or management line item (salaries, office rent, IT, marketing, etc.). One VAS account may need to be split across several group accounts, and vice versa. In addition, the group needs information VAS does not provide out of the box, such as intercompany counterparty codes or cost centers.
2. Three types of chart of accounts mapping
| Type | Example | How to handle |
|---|---|---|
| Many-to-one | Cash on hand, deposits at various banks → Cash and cash equivalents | Assign each detailed account directly |
| One-to-many | 642 → Staff cost, Rent, IT, Professional fees | Open level-2 or level-3 sub-accounts in the VAS books, or use line-item codes |
| One-to-many by counterparty | 131 → External trade receivables and Intercompany receivables | Assign by counterparty code (intercompany customers carry a group partner code) |
The golden rule: each detailed account in the VAS books maps to exactly one group account. If a VAS account needs to feed several destinations, split it into sub-accounts or use an auxiliary code; do not allocate it with manual percentages every period.
Illustrative example for a hypothetical FDI service company. Administrative expenses usually require the most detail.
View as table
| Cash and cash equivalents | 9 TK |
| Receivables | 7 TK |
| Selling expenses | 12 TK |
| Administrative expenses | 18 TK |
| Revenue | 5 TK |
3. Which columns a mapping template should include
| Detailed VAS account | VAS account name | Group COA code | COA name (EN) | Required dimension code | Sign |
|---|---|---|---|---|---|
| 1121-VCB-VND | VND deposits at VCB | 100200 | Cash at bank | None | + |
| 1311 | Receivables from external customers | 120100 | Trade receivables – third party | Customer code | + |
| 1312 | Receivables from group companies | 120900 | Intercompany receivables | Group partner code | + |
| 5113 | Revenue from services | 400200 | Service revenue | None | − |
| 6421 | Administrative staff costs | 610100 | Staff cost – admin | Cost center | + |
| 6427-THUE | Office rental expense | 620300 | Office rent | Cost center | + |
The "Sign" column is critical: many consolidation systems store revenue and liabilities with a negative sign. Add an effective-date column and an approver column so you know when and why the mapping changed.
4. Errors that cause differences on consolidation
- Newly opened accounts left unmapped: balances fall into an "unclassified" bucket or are ignored.
- Two-sided balances on accounts 131 and 331 are netted off: customer prepayments are added to receivables, misstating both line items.
- Missing intercompany partner codes: intercompany transactions cannot be eliminated on consolidation. See intercompany balance reconciliation.
- Wrong sign: a revenue deduction account mapped as positive revenue.
- Changing the mapping mid-period without restating comparatives, making monthly movements look abnormal.
Rolling out the mapping for the first time in 5 steps
- Obtain the group COA with a definition of each account (account description), not just a list of codes.
- Export a detailed VAS trial balance for at least the last 12 months to see every account that has had activity.
- Do a first-pass match by nature, flagging accounts that need splitting (one-to-many) or a dimension code.
- Open sub-accounts or auxiliary codes in the accounting software, test-run a past period and compare with the group's existing figures.
- Finalize the mapping with sign-off from the chief accountant and group finance, recording the effective date.
Test-running a past period is the step many companies skip, yet it is the most useful. If the mapped figures for a past month agree with what the group has already consolidated, you can apply the mapping to the current period with confidence. If they differ, the variance usually points straight to a wrongly matched account or a missing dimension code, which you can fix before going live.
5. Controls over the mapping table
- The VAS trial balance total equals the mapped total (zero difference).
- No account remains unmapped.
- Two-sided accounts are split into debit and credit balances by counterparty.
- Every intercompany balance has a group partner code.
- Any mapping changes during the period have been approved and logged.
- Quickly reconcile mapped profit with the VAS income statement.
Once the mapping table is stable, the next step is the GAAP adjustment schedule; see preparing a reporting package for the parent company. Together, these two tools keep group reporting on schedule every month.
FAQ
Can a company open detailed accounts beyond the VAS chart of accounts?
A company may open lower-level sub-accounts for management purposes, provided it complies with the parent accounts under the applicable accounting regime. This is the common way to handle one-to-many mapping.
Should the mapping live in the accounting software or in Excel?
If the accounting software supports a group code field, set it up there so reports can be exported automatically. Excel works in the early stages but needs locked formulas and version control.
Who should approve changes to the mapping table?
Usually the chief accountant in Vietnam and group finance approve jointly. Every change should carry an effective date so comparatives are not distorted.
Standardize your mapping before the next consolidation
ACCA Consulting Vietnam reviews your current mapping table, finds missing accounts, wrong signs and missing partner codes, and proposes a standard version.
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