Revenue is calculated using the formula. Sales revenue, formula: basic concepts, essence, types of revenue, formula for calculating revenue. General formula for sales revenue
DEFINITION
Sales revenue includes the amount of monetary resources that goes to the accounts of the organization for the sold products (work, service).
The revenue indicator is the most important source that participates in the formation of own financial resources any enterprises.
Revenue and profit are not equivalent concepts, since profit is revenue minus costs (expenses). Also, revenue and income are not equivalent, since income is revenue (turnover) minus cost.
Revenue Formula
Revenue includes cash that the company receives (recovers) from the sale of goods and services. The revenue formula looks like this:
B=S(Zzak)+DS
Here B is revenue,
With the cost of production,
Zak - purchase price,
DS - value added.
Another revenue formula is determined by multiplying the selling price of a good (service) by the quantity of goods sold:
V = St-t * Q
Sales revenue formula
The formula for revenue from the sale of goods for the relevant period is calculated by taking into account sales volumes and prices. The sales revenue formula is as follows:
Here B is the proceeds from the sale of products,
Q is the quantity of goods sold,
P is the price of the goods sold.
Revenue from the sale of goods(services) consists of Money or other property in monetary terms, which are received or are to be received when selling goods (products, services, works) at prices, tariffs in accordance with the concluded agreement.
The activity of the enterprise is characterized in several directions:
The main activity, from the implementation of which the proceeds come from the sale of products (performance of work, provision of services);
Total revenue can be determined by summing the revenue from these three areas. But, nevertheless, however, the main value in it is the proceeds from the main activity, which determines the whole meaning of the existence of enterprises.
The value of revenue from product sales
The revenue of the enterprise plays a large role in the functioning of the enterprise. The value of revenue is determined as follows:
Timely receipt of revenue determines financial stability company, its condition working capital, the amount of profit and the timeliness of settlement of obligations (payment wages employees, settlements with banks for loans, with suppliers for work and services, etc.),
With revenue, the enterprise covers its costs for the production and sale of products, forming a profit.
Examples of problem solving
EXAMPLE 1
EXAMPLE 2
For each commercial organization revenue from the sale of products is an indicator that allows you to determine the sustainability of its financial position and the status of working capital. Timely receipt of revenue is an important condition for a continuous production process. What is this indicator? How to calculate the proceeds from the sale of products and correctly display it in accounting? The answers to these and other questions are in our material.
What is product sales revenue?
Revenue from product sales is money income received by the organization from customers for the products sold. The indicator expresses monetary relations between producers and consumers of goods. Revenue from sales of products is determined based on the number of products sold and its cost. For tax purposes, it is recognized as income from sales.
Revenue is not profit, in the "Statement of financial results" it is allocated separate line. The head of the organization must ensure the uninterrupted flow of revenue, since without this the business simply cannot function.
The following factors influence the amount of revenue from sales of products:
internal (production volume, assortment of manufactured goods, their quality and competitiveness, the level of applied prices, cost, compliance with contractual conditions, etc.);
external (violation of the terms of the contract, interruptions in the work of transport, etc.).
Calculation of revenue according to the formula
Consider how to find the proceeds from the sale of products using the formula. When making calculations, it is necessary to take into account the volume of sales at the current time and prices. The general formula for revenue from product sales is as follows:
Q is the number of goods sold;
P is the selling price.
The formula can be used to evaluate the performance of an organization and build long-term plans.
In practice, accounting for revenue from the sale of products, works and services is carried out in two ways:
cash method (if the fact of receipt of money to the seller's settlement account is recognized as the moment of sale);
accrual method (if the fact of shipment of goods is recognized as the moment of income recognition).
Revenue Calculation Examples
Examples of calculating revenue from product sales different ways are listed below.
Example 1
LLC "Electrod" is engaged in the production of lamps. Behind reporting year The following products have been sold:
lamp "Ella" - 700 pieces at a price of 250 rubles;
lamp "Teresa" - 600 pieces at a price of 340 rubles;
lamp "Miranda" - 400 pieces at a price of 600 rubles.
IP Petrov A.A. uses the cash method of accounting for income and expenses. On January 25, 2018, the entrepreneur delivered the goods to the buyer for total amount 180 thousand rubles On March 5, 2018, the IP agreed with the buyer on offsetting in the amount of 106.2 thousand rubles. (including VAT - 16.2 thousand rubles). What revenue should the entrepreneur report?
As of the date of the mutual settlement agreement with the buyer (March 5, 2018), the IP is obliged to take into account income in the amount of the repaid debt (excluding VAT): 106,200 - 16,200 = 90,000 rubles.
Example 3
On February 12, 2018, LLC Teplomash shipped goods to LLC Ryabina in the amount of 600 thousand rubles. LLC "Ryabina" settled with LLC "Teplomash" on April 3, 2018, transferring money to its current account. LLC "Teplomash" uses the accrual method for accounting for income, so all revenue will be displayed in accounting and tax accounting in February.
Reflection in accounting
To account for the proceeds from the sale of products, account 90 “Sales” is intended. The account consists of several sub-accounts. Postings on proceeds from the sale of products are made in order to determine the financial result from the sale. Mandatory conditions under which revenue is recognized in accounting are given in PBU 9/99.
Example 1
LLC "Rubezh" sold spare parts for the amount of 354 thousand rubles. (including VAT - 54 thousand rubles). Revenue is taken into account at the time of shipment. The cost of goods is 210 thousand rubles, the cost of sales is 35 thousand rubles. The buyer transferred money to the seller.
Dt 62 Kt 90 - revenue from the sale of finished products is reflected on the day of shipment - 354 thousand rubles.
Dt 90 Kt 68 - the amount of VAT is reflected - 54 thousand rubles.
Dt 90 Kt 43 - the actual cost of spare parts is displayed - 210 thousand rubles.
Dt 90 Kt 44 - sales expenses written off - 35 thousand rubles.
Dt 51 Kt 62 - money was received from buyers for the products received 354 thousand rubles.
Calculation of the financial result: 354,000 - 54,000 - 210,000 - 35,000 = 55,000 (rubles).
After the postings reflect the proceeds from the sale of finished products, we will take into account the financial result:
Dt 90 Kt 99 - a profit of 55 thousand rubles was received.
Example 2
The organization sold spare parts in the amount of 354 thousand rubles. (including VAT - 54 thousand rubles). Revenue is recognized at the time of payment, and selling expenses are fully charged to cost of goods sold. The cost of spare parts is 210 thousand rubles, the cost of sales is 35 thousand rubles. The buyer transferred 300 thousand rubles.
The lines will be like this:
Dt 45 Kt 43 - amount written off actual cost shipped goods - 210 thousand rubles.
Dt 51 Kt 62 - buyers transferred money to pay for goods - 300 thousand rubles.
Dt 62 Kt 90 - the accounting records reflect the proceeds from the sale of finished products for posting - 300 thousand rubles.
Dt 90 Kt 68 - the amount of VAT is reflected. The calculation is as follows: (300,000: 118 × 18) = 45,762 rubles.
Dt 90 Kt 45 - reflects the amount of the actual cost of production, the proceeds from the sale of which are recognized in accounting. The calculation is as follows: (210,000 × 300,000: 354,000) = 177,966 rubles.
Dt 90 Kt 44 - the amount of expenses for the sale of 35 thousand rubles was written off.
Dt 90 Kt 99 - profit from the sale of 41,272 rubles is reflected.
Revenue planning
The head of the organization or special services can plan the proceeds from the sale of products, works, services. In an unstable economic situation quarterly planning will be more effective than annual planning.
To plan revenue from sales of products, the following methods are used:
direct counting method. It is applied in case of guaranteed demand. Products are produced in the volume provided for by pre-orders. Revenue is calculated by multiplying the volume of products sold by its price.
Calculation method. It is used in conditions of uncertainty in demand for manufactured goods. The prospects for their implementation are taken into account.
Revenue Analysis
Analysis of revenue from sales of products allows you to solve the following tasks:
determine the validity of the indicator of the business plan for the sale of goods;
determine the degree of implementation of the plan in terms of the volume and range of products sold;
establish the influence of individual factors on the deviation of the actual volume of sales from the planned one;
identify reserves for a further increase in sales.
One of effective methodseconomic analysis is a factor analysis of revenue from product sales. It helps to determine the impact of specific factors on the change in revenue. In the process of analysis, much attention is paid to such factors: the volume of sales of goods, selling prices, cost, the structure of products sold.
Revenue is called money and other material values from the sales or services of the enterprise.
It is calculated over a period of time. In the course of the sale of products, the concept of revenue helps to determine the result of the company's activities. In the accountant's report, revenue is shown net of taxes.
Revenue accounting is done in the form of a monetary amount and based on the conditions:
under the terms of the contract, the company has the right to receive these funds;
if this amount is predetermined
as a result of a transaction or monetary transaction the enterprise will increase economic benefits;
the right to dispose of the goods has passed to the consumer
This figure is also predetermined for periods: year, quarter. When drawn up for shorter periods, the plan is called operational.
Gross revenue: how to calculate sales revenue
Revenues from sales- the amount that came to the organization as a result of the sale of products or services from their consumers. It is a cost recovery tool.
A company can generate income from revenue. An entity may also generate revenue from its non-core activities or products, securities transactions and leases.
Gross revenue is the sum of the company's income from sales of products, property and also accounts receivable(sales on credit) without value added tax.
Revenue depends on the quantity of products, quality, variety of assortment, convenience of settlements with the buyer and on prices. The proceeds from the sale are calculated after the issuance of a settlement receipt to the consumer, that is, after the sale.
How to calculate sales revenue: formula
The calculation of sales proceeds takes into account the volume of sales at the current time and the prices of the same period.
The calculation formula may include the volume of products, discounts. Sometimes there is a guarantee of demand for products. Then the amounts from buyers are taken into account by a direct account, implying a specific amount of consumer demand. That is, the process of production and sale are connected by a certain amount.
Revenue can only be precalculated in this case. The formula is the volume of goods or services sold multiplied by the price of each good (or service).
Consumer demand is not guaranteed in market relations. There is a dependence on the price level, which is now associated with sales volumes. Then an elasticity coefficient equal to one, greater or less than it is added to the formula.
The direct account is replaced by the settlement method, which takes into account the balance of products in stock at the beginning and end of the period. The volume of sales is specified by this value. Then the formula contains three components, and the resulting figure reflects the reality with instability.
The balances of production at the beginning of the period are summed up with the plan in terms of production volume. Then unsold goods are subtracted from this value.
How to calculate salary from revenue
In shops and points of sale, salaries are usually calculated from the proceeds. It depends on the method of payment. As a rule, the worker has minimum wage, salary. To this amount is added a percentage of the company's revenue.
It is considered by law that employees cannot receive less than the minimum wage, having worked the required amount of time. Therefore, the calculation of salaries directly from the percentage of revenue is practiced only if the organization has sufficient profit.
How to Calculate Gross Sales Revenue
The gross revenue of an enterprise is the entire amount received in the organization's budget from activities without expenses.
Namely:
a) the amount from the main activity; b) from investments and transactions of the enterprise; c) from other financial activities
Summing up the entire amount of money received as a result of the activity and not taking into account the costs, we get the gross proceeds. The main activity of the company is sales.
How to calculate average monthly income
To calculate the average monthly revenue, the organization's revenue for the reporting period is taken and divided by the number of months in this period.
formula for return on sales. Concepts, calculations
Profitability- This is a reflection of the degree of efficiency of the company's activities in the use of its resources.
In this case, the profitability of sales is a profitability ratio showing how much profit is contained in each earned by the enterprise on sales. monetary unit(ruble).
Calculation of the formula for profitability of sales
Return on sales is usually calculated by dividing operating income by sales volume. Operating profit is profit that is expressed as a pre-tax amount. This type of profitability ratio shows whether the price policy enterprises.
After all, it is necessary to have control over costs and expenses. Often this ratio is used when evaluating the operating efficiency of a firm, but it is not always applicable for comparing two competitive organizations.
How to find the ROI formula?
The formula is derived by balance and by net profit. To calculate by the formula, it is necessary to calculate the share of profit in income, that is, the company's revenue.
Most often, the share of net profit is calculated. But you can find a share of the balance or gross profit and any other type of profit.
The formula for return on sales by balance sheet
When calculating the profitability of sales according to the balance sheet, the net profit is divided by the balance sheet. Then in the formula, the profitability of sales will be equal to the profit from them (or the loss figure) divided by the sales revenue taken from the balance sheet.
This indicator will reflect the part of the profit received from sales in the proceeds of the enterprise.
Return on sales formula
The profitability ratio characterizes the efficiency of activities, indicating the amount of net profit. This is the balance of the company's funds after reimbursement for the cost of the product, credit payments to date and taxes.
Also, the ratio provides information about the share of the cost of goods when it is sold.
To calculate the ratio, you need to divide net profit by revenue. Instead of net profit, sometimes gross or other profit may be used in the formula. But according to the rules of accounting of the Russian Federation, it is net profit that should be registered in the numerator.
Revenue from sales of products and services
- This sum of money proceeds from the transfer of goods to customers.
If the goods are sold or services are provided in the form of a loan, that is, deferred payment, then the proceeds are subject to accounting in the amount of receivables. If the receipts are not money, but other valuables or goods, then the proceeds are taken into account in the form of the cost of similar valuables.
At the same time, it appears preliminary agreement under which these obligations are met.
Sales revenue includes discounts and markups that have been granted to the business.
The amount does not change if unverified and doubtful debts appear. If we multiply the quantity of goods sold by the cost of each unit, we get the proceeds from the sale.
Revenue is money that can serve as a source of reimbursement for the company's costs. If payment for goods and services of the enterprise arrives on time, then the process will be continuous, as well as money turnover. Otherwise, the work of the organization does not have stability, contracts are under threat.
For example, you have to pay fines to suppliers for a penalty. The company's profits are declining. Therefore, the organization must plan revenue through on-staff financial workers.
The calculation of revenue is necessary for each enterprise so that the amount of debt does not unexpectedly lead to the bankruptcy of the company.
Correct calculation, analysis and accounting of revenue is important for any business. The article contains revenue formulas and examples of calculation and analysis of the indicator.
Definition of revenue
In a broad sense, revenue is the increase in economic benefits in the course of ordinary activities. In other words, it is the valuation of all sales of goods and services recognized by the organization for a certain period of time. The valuation, possibility and period of revenue recognition are the most important and integral components of determining the income of an enterprise. The result of the calculation of revenue is significantly determined by how much and in what period can be recognized as revenue of the enterprise.
It is necessary to distinguish between the concepts of revenue and income in general. Revenue is generated as a result of the ordinary activities of the organization and depending on the industry in which it operates.
Income is a broader concept that includes all types of increase in economic benefits, including the result of other transactions that do not bring an increase in sales of the main product, but are auxiliary to the main activity. .
Q- the number of units sold or the number of customers;
S- revenue.
Types of revenue
It is advisable to distinguish between net revenue and gross revenue. Net revenue, unlike gross revenue, is tax-deductible. Both indicators are important for making managerial decisions. On the one hand, net revenue shows the real potential of the enterprise after mandatory and inevitable payments, on the other hand, gross revenue takes into account the time factor during which the mandatory tax payments. As part of the forecast of cash gaps, receipts from the buyer, including taxes, should be taken into account.
Excel model for revenue analysis
Download the finished model in Excel, it will calculate how revenue has changed in reporting period compared with previous period or plan. The model will help to assess how the sales volume, price and sales structure affected the revenue.
Calculation methods
There are two main methods for calculating revenue. In the cash method, it is defined as the cash received by the seller of goods from their sale. Advances received are included in revenue, however, shipment delays are not recognized until payment is received.
According to the accrual method, the results business transactions are recognized upon their commission, regardless of the actual time of receipt and payment of funds associated with them. In other words, sales revenue is recognized when it meets the recognition criteria, regardless of fees.
Sales revenue calculation
A more correct formula for calculating sales revenue is the following expression:
where P iy is the price of products y in shipment i, without VAT;
Q iy- number of products y in shipment i;
i - number of shipment of products that meet the recognition criteria;
n - the number of shipments of products for the accounting period.
Example
Let's take an example. Enterprise "A" in the 1st quarter of 2019 shipped three batches of products of types "M" and "N" (see table 1).
Table 1. Shipments of enterprise "A"
Shipment dates
Product type
Price per one. without VAT
Volume pcs.
Price per one. without VAT
Volume pcs.
Price per one. without VAT
Volume pcs.
Let us determine the volume of sales to be recognized in the 1st quarter.
The general approach to correctly recognizing revenue is to account for the transfer of goods and services to a customer for the amount expected to be paid by the customer in exchange for goods shipped or services rendered. However, depending on financial reporting standards income recognition criteria may differ. In other words, the same transaction can be reflected in financial reporting prepared under different standards, in radically different amounts.
The general criteria for revenue recognition are:
high probability of receipt of economic benefits associated with the transaction to the company;
the ability to reliably estimate remuneration;
the ability to reliably estimate the costs incurred and/or expected to complete the transaction.
Example
Let's look at the previous example, adding that as part of the shipment in March, company "A" assumed warranty service obligations, including mandatory inspection and repair services for malfunctions that occur during operation. Warranty period: Q2 2019 market price similar additional services is 10 c.u. Let's try to determine the revenue for the 1st quarter.
IN this case, repair obligations will be interpreted as separate service and will be included in revenue for the 2nd quarter of 2019.
Thus, the implementation for the 1st quarter will be:
As part of financial analysis activities of the enterprise, third-party and internal analysts calculate different kinds revenue. The goals of such analysis and classification may differ depending on the activities of the enterprise or the preferences of the management of the enterprise. One example of an analytical calculation is the calculation of the average monthly revenue.
where S ave is the average monthly sales,
S n - revenue for the n-th number of months,
n is the number of months.
Example
Consider the calculation on the previous conditions.
Company A's average monthly sales in the first quarter of 2019 were:
Revenue = 435 / 3 = $145
Average annual revenue
The average annual revenue is determined in a similar way. A period of 2 or more years is taken as the calculation base, depending on the goals of financial analysis. As a rule, a period of 2-4 years is considered the most representative for making managerial decisions.
Calculation example
Let's look at an example.
Enterprise “B” reflected the sales in the following amounts for the period 2016–2018 (table 2).
The gross revenue of an enterprise is the entire amount received in the organization's budget from activities without expenses.
