The difference between the company's revenue from the sale of products. Revenue is a key concept in the activities of the enterprise. Calculation of planned revenue from product sales

One of the basic concepts used in economics and business is revenue. It is with this concept that the activities of most enterprises are associated. Depending on the proceeds received, an entrepreneur can assess the demand for a particular product or service, resolve issues related to the production and purchase of goods in his favor. It is believed that it is the size of the profit that determines the success of the enterprise.

Basic definition

It would seem that revenue is the amount received in the course of the sale of goods. But this is far from being the case, since it depends on a number of nuances and characteristics. Previously, revenue was attributed to one of, but now there are disputes around this issue. Today it is considered income from the main activities of the company, but at the same time, other areas can be profitable.

The basic definition says: revenue is the total volume Money received for a certain period of activity from the sale or provision of services. It can take both a positive value and be equal to zero, but it will never take a negative value.

Receipt of revenue is the final stage in the work of any commercial organization. It is the main overall indicator of the performance of a company or firm. This indicator is planned in the first place, and on its basis the price of the product and its circulation are set. On the basis of revenue, all subsequent types of profit and income are calculated, conclusions are drawn about the demand for a particular product.

In the absence of profit, the company inevitably suffers losses, which ultimately leads to its ruin and closure.

Calculation methods

There are two main methods for calculating revenue. At the same time, a different concept of revenue is invested in each of them:

• AT cash basis this concept means the money received by the seller of the goods from their sale. In fact, this is the amount of payment that the seller received in cash or through a non-cash payment. If the goods are released with a delay, the proceeds are not fixed until the money arrives at the seller's or seller's settlement account. In this case, all advances received are equated to revenue.
• Revenue determination method by charge or shipment . In it, even those funds that were received in cash, and will also be paid through credit or deferred payment, are considered revenue. This method often used in large companies.

Types of revenue

Revenue from the sale of products and services - funds received for the products or services shipped to customers. This type of income is divided into two types:

1. , which takes into account all the money received for a product or service. In the case of barter payment, the full value of the exchange agreement. This amount includes not only taxes, but also various fees and duties, which are then paid to the state. The second name of this type of revenue that can be found is net revenue.
2. Pure is the difference between gross revenue, taxes and excises. It is recorded in the profit and loss statements of the enterprise. Net revenue is also called gross revenue. It is she who forms the main income of the enterprise.

The difference between basic concepts and definitions in trade

In actions related to the sale of certain things and products, employees have to operate with such concepts as revenue, income and profit. But you should understand the difference between each of these terms.

Often, net revenue is correlated with the concept of income. But income is a broader concept. Thus, income is considered to be an increase in economic benefits from the receipt of various funds and, as a result, an increase in the capital of the organization. But income can have several sources, not only revenue, but also payment of fines, sanctions, interest from the bank. All this generates profit.

Money for the purchase of goods, taxes, payment of rent for premises, for sellers - expenses. If you subtract this amount from the income received from the sale of goods and services, you can make a profit.

Naturally, revenue significantly affects the income and profit of the enterprise and is one of its main components, but it is fundamentally wrong to equate revenue with these two concepts.

Revenue components

Revenue consists of two main components:

• purchase price , that is, the cost at which the goods were purchased for sale or the material for its manufacture;
• added value , that is, the amount that the seller adds to the purchase price in order to make a profit. Often this amount is a percentage of the purchase price of the product.

Thus, if the cost of goods is subtracted from the revenue, then you can get the amount of income received by the company in the course of its activities.

main sources

To date, revenue can be received from:

• core business – sale of products, performance of works or provision of services. So, for a store it will be the sale of goods, for a law firm it will be the provision of legal services;
• investment activity , which includes work with company shares, securities and even company assets that are not involved in the turnover. For example, a large corporation may sell part of its shares in order to obtain investment;
• financial activities enterprises . For example, the owner of an enterprise invests money in a particular project in order to make a profit, puts money on a deposit in a bank, and others.

If you add up the funds received in these three areas, then in the end you can get the total profit of the enterprise.

For example, profit from core activities is 920,789 rubles per month, investment activities - 34,000 rubles, financial activities - 265,000, therefore, the total profit for the month will be: 920,789 + 34,000 + 265,000 \u003d 1,219,789 rubles.

In accounting, under this concept, funds received from the main activities of the company are accepted, while the rest of the funds are usually called “other income” or “interest income”.

Main functions

The main function that revenue performs is the reimbursement of the funds spent by the firm on the purchase or production of goods. Its timely receipt on the company's accounts ensures not only the stability of its work, but also the continuity of trade and the company's activities.

With the help of the received proceeds, the invoices of suppliers, both goods and materials, wages, taxes are paid. In addition, the proceeds received can be used to purchase a new product or material, expand the company's activities.

If the revenue arrives late, the company's activities incur losses, as its profit decreases, penalties may be imposed or contractual obligations associated with the production of goods, payment of certain bills may be violated.

Revenue calculation

For calculations, fairly simple formulas are used. It is enough to know the volume of products sold for a certain period of time and the unit cost, then multiply them. Further, the obtained values ​​for each group of goods are summarized. It should be noted that the funds received during the operation of the enterprise are not included in the revenue.

The formula looks like this

TR = P * Q, where

TR – revenue, rub.;

P – price, rub.;

Q - sales volume, unit/pc.

For example, let's calculate the revenue of the Vesna store from the following products:

• Tea - sold 23 packages, the cost of each - 105 rubles.
• Sugar - 3 kg, 40 rubles each.
• Lemon - 1 kg, cost - 200 rubles.
• The revenue for tea was - 23*105 = 2415;
• Revenue for sugar - 3 * 40 \u003d 120;
• Revenue per lemon - 1*200=200.

The total revenue of the store for this group of goods amounted to 2415 + 120 + 200 = 2735 rubles.

If the product was first sold at the same price, and then its value increased, then the revenue is calculated for each product depending on its value, and then added up.

For example, in early January, 120 packs of tea were brought to the Solnyshko store for 105 rubles each, and in February another 76, but with a cost of 110 rubles. At the same time, the store still has 20 packs of tea at the old cost.

During the month, the remaining 20 packs and 34 packs from the new batch were sold. Thus, the proceeds from the sale of tea in February will be: (20 * 105) + (34 * 110) \u003d 2,100 + 3,740 \u003d 5,840 rubles.

The data obtained in the course of calculations are considered information for internal use and are not included in the financial statements.

However, once a quarter or a year, these indicators are calculated by an accountant and recorded in the Profit and Loss Statement. In this case, the amount of revenue is indicated without indirect taxes and VAT (see also). Besides , in some cases, the amount received during the sale may not be wholly owned by the company. For example, when selling commission items, the seller receives revenue from the buyer, the bulk of which belongs to the owner of the goods.

For example, the following items were accepted for sale at the Solnyshko thrift store with the proviso that the people who provided them or the consignors would receive the following amounts:

• Children's chair - 450 rubles.
• Arena - 890 rubles.
• Kangaroo - 500 rubles.

The sellers of the store also made a markup on the goods in the amount of 20%, that is, the total cost things amounted to: 540, 1068 and 600 rubles, respectively. After the sale of these things, the profit of the store "Solnyshko" amounted to:

(540 + 1068 + 600) - (450 + 890 + 500) \u003d 2 208 - 1840 \u003d 368 rubles. The remaining amount, according to the previously drawn up agreement, will be received by the committents.

The reports prepared by the accountant are submitted to the management of the company. On their basis, conclusions are drawn about which goods are in great demand, and which are less. Therefore, it helps to form the volume of purchases of a particular product.

Video: Revenue and profit

From the video lesson you will learn what revenue is and how to calculate its main types: total, average and marginal. In addition, the lesson talks about profit, the main factors of its formation and its impact on the development of the company.

Learning is the funds received in the course of the sale of goods or services. Thanks to the revenue, you can draw a conclusion about the work of the enterprise, adjust its activities. A delay in the receipt of revenue leads to losses for the enterprise, and its absence leads to its closure.

Financial relations permeate the life of society, and become successful person today is impossible without understanding the essence of the most important economic categories. The concepts of "revenue" and "income" are often confused even by novice businessmen, since in the mass consciousness they are synonymous. In fact, it is very important to understand the difference between them, which will allow you to analyze any economic information more deeply.

Revenue- the amount of money received in the sale of goods or services. It can also be called "dirty" money, since costs are not taken into account when calculating the value. Revenue is always either positive or at zero, but never negative. It is determined either on a cash basis (with actual receipt of funds), or on an accrual basis (at the time of shipment of goods or provision of services, including with deferred payment).

Income- funds received by the subject of economic legal relations for a certain period of time. They are formed at the expense of the main activity of the legal or individual, as well as with the help of attracted investments. The concept of "income" largely intersects with the concept of "profit" and is defined by "pure money": revenue minus expenses. This is a purely economic category that reflects the current financial condition of a legal entity or individual.

Comparison

So, revenue is a positive value, which can be equal to zero only in rare cases. Receipts are added together, forming a certain amount. Income can be negative when the revenue received does not cover the cost of obtaining it. Revenue is generated from the main activity of the enterprise: the production (sale) of products or the provision of services. Income can be received at the expense of the company's assets (renting out space, deposit, attraction of investments), as well as at the expense of the main activity (sale of goods and services).

At the same time, revenue is an attribute of the subject leading active work in the economic sector. A person who, for one reason or another, is not engaged in socially useful activities (student, disabled person, pensioner, unemployed) can have income. These funds are generally not subject to income tax. In rare cases, revenue may equal profit. This happens in cases where, upon receipt of it, there is no expenditure part (provision of a certain list of services). However, most often it is revenue that exceeds income in terms of volume.

Findings site

1. Formation. The organization's revenue appears as a result of the sale of goods and services, and income also comes from the sale of shares, attracting investments, receiving interest on funds placed on a deposit account.
2. Way of origin. Revenue can only be held by an individual or legal entity leading economic activity. Income can be from the unemployed and the student in the form of scholarships, financial assistance, benefits.
3. Calculus. Revenue is cash received from the sale of goods and services. Expenses are subtracted from revenue to calculate income.
4. Meaning. Revenue is either zero or positive. Income can be negative if the cost of obtaining revenue exceeds the profit received.
5. Ratio. Revenue is always greater than income, and only in rare cases can they be equal.

Hello! In this article, we will talk about related, but not identical concepts: revenue, income and profit.

Today you will learn:

1. What is included in the revenue of the enterprise;
2. What is the income and profit of the company formed from;
3. What are the main differences between these concepts.

What is revenue

Revenue - earnings from the direct activities of the company (from the sale of products or services). The concept of revenue is found exclusively in business and entrepreneurship.

Revenue characterizes the overall performance of the enterprise. It is revenue, not income, that is reflected in accounting.

There are several ways to account for revenue in an enterprise.

1. The cash method defines revenue as real money received by the seller for the provision of services or the sale of goods. That is, when providing installments, the entrepreneur will receive proceeds only after the actual payment.
2. Another way of accounting is accrual. Revenue from it is recognized at the time the contract is signed or the buyer receives the goods, even if the actual payment occurs later. However, advance payments are not included in such revenue.

Types of revenue

Revenue in an organization is:

1. Gross- the total payment received for the work (or product).
2. Pure- applied in . From gross revenue, indirect taxes (), duties, and so on are deducted.

The company's total revenue is made up of:

• Proceeds from core activities;
• Investment proceeds (sales of securities);
• Financial earnings.

What is income

The definition of the word "income" is not at all identical to the term "revenue", as some entrepreneurs mistakenly believe.

Income - the sum of all the money earned by the enterprise through its activities. This is an increase in the economic benefit of the enterprise by increasing the capital of the company by the inflow of assets.

A detailed interpretation of the ways of generating income and their classification are contained in the Accounting Regulation "Income of organizations".

If cash proceeds are funds received by the company's budget in the course of its core activities, then income also includes other sources of funds (sale of shares, receiving interest on a deposit, and so on).

In practice, enterprises often carry out diverse activities and, accordingly, have various channels for generating income.

Income - the overall benefit of the company, the result of its work. This is the amount that increases the capital of the organization.

Sometimes the income is equal in size to the net revenue of the organization, but most often companies have several types of income, and there can be only one revenue.

Income is found not only in entrepreneurship, but also in the daily life of a private person who is not engaged in business. For example: scholarship, pension, salary.

Receiving funds outside the scope entrepreneurial activity will be called income.

The main differences between revenue and income are given in the table:

Revenue	Income
The result of the main activity	The result of both main and auxiliary activities (sale of shares, interest on a bank deposit)
Occurs only as a result of conducting commercial activities	Allowed even for unemployed citizens (allowances, scholarships)
Calculated from the funds received as a result of the work of the company	Equal to revenue minus expenses
Cannot be less than zero	Let's go negative

What is profit

Profit is the difference between total income and total expenses (including taxes). That is, this is the same amount that in everyday life could be safely put in a piggy bank.

In an unfavorable situation, and even with a large income, the profit can be zero, or even go negative.

The main profit of the company is formed from the profit and loss received from all areas of work.

Science economics identifies several main sources of profit:

• Innovative work of the company;
• Entrepreneur's skills to orient in the economic situation;
• Application and capital in production;
• The company's monopoly in the market.

Types of profit

Profit is divided into categories:

1. Accounting. Used in bookkeeping. On its basis, accounting reports are formed, taxes are calculated. Explicit, reasonable costs are subtracted from total revenue to determine accounting profit.
2. Economic (surplus profit). A more objective indicator of profit, since when calculating it, all economic costs incurred in the work process are taken into account.
3. Arithmetic. Gross income minus miscellaneous costs.
4. Normal. Necessary income in the work of the company. Its value depends on the lost profit.
5. Household. Equal to the sum of normal and economic profits. Based on it, decisions are made on the use of the profit received by the enterprise. Similar to accounting, but calculated differently.

Gross and net profit

There is also a division of profit into gross and net. In the first case, only the costs associated with the workflow are taken into account, in the second, all possible costs are taken into account.

For example, the formula by which gross profit in trade is calculated is the selling price of a product minus its cost.

Gross profit is most often determined separately for each type of activity, if the enterprise operates in several directions.

Gross profit is used when analyzing the areas of work (the share of profit from which activity is greater), when determining the company's creditworthiness by the bank.

Gross profit, from which all costs have been deducted (credit interest, and so on), forms net profit. From it are accrued to shareholders and owners of the enterprise. And it is the net profit that is reflected in and is the main indicator of the business.

EBIT and EBITDA

Sometimes, instead of the understandable word "profit", entrepreneurs meet such mysterious reductions as EBIT or EBITDA. They are used to evaluate business performance when the compared objects operate in different countries or are subject to different taxes. Otherwise, these indicators are also called cleared profit.

EBIT represents profit in the form in which it was before taxes and various interest. It was decided to single out such an indicator in a separate category, since it is located somewhere between gross and net profit.

EBITDA is nothing more than profit before taxes, interest and depreciation. It is used exclusively to evaluate the business, its characteristics. It is not used in domestic accounting. for commercial equipment.

Thus, income is the funds received by the entrepreneur, which he can later spend at his own discretion. Profit - the balance of funds minus all expenses.

Both income and profit can be predicted if you take into account revenue for past periods of work, fixed and variable costs.

The differences between profit and revenue are as follows:

The line between concepts may be unclear for an ordinary employee, it does not matter to him how revenue differs from profit, but for an accountant there is still a difference.

Every entrepreneur should know what is the income and profit of the enterprise, as well as how they differ from revenue.

Profit and income are the main financial indicators economic activity various organizations, regardless of the form of ownership. They can give an idea of ​​the overall profitability of the enterprise.

The costs of social and industrial development of the firm must be financed from profits. The source of financing of the state budget is the corporate income tax.

What is revenue (turnover)

Proceeds - funds received (proceeded) by an enterprise, firm, entrepreneur from the sale of goods and services, sales proceeds. That is, this is the entire amount of money that turned out after the sale of the goods.

Example of revenue (turnover), Petya sold 100 phones for 10,000 rubles. The revenue will be 100 * 10,000 = 1,000,000 rubles.

Revenue from the sale of certain products is divided into two main types - net and gross:

• Under Net Revenue means the amount of money after all kinds of deductions, taxes, discounts and the cost of the returned goods.
• Gross revenue- is the total amount of cash receipts after the sale of certain products or services.

Income \u003d is revenue (turnover) - the cost price (or purchase price) of goods or services. Taxes are also deducted from this amount. Material costs are the funds that have been spent on the purchase of products or necessary equipment. These costs include a variety of deductions. social character. extradition wages has nothing to do with this category.

Income Example, let's say the cost of Petya's phones is 5000 rubles. Only 100 pieces, which he sold for 10,000 rubles each. Then income \u003d 100 * (10,000 - 5,000) \u003d 500,000 rubles.

Labor costs and profits are the main components of the income of a particular enterprise. Market value goods and general market conditions have a direct impact on the level of income of the organization. Possible income from individuals and legal entities do not belong to the income side of the company.

If the income is subject to tax payments, then after their deduction there remains an amount that includes the following elements:

• insurance and investment income. These are the amounts received in the course of investment activities and the cost of insurance premiums.
• Consumer funds whose activities require spending on the social sphere.

Income can be marginal, total and average.

• marginal revenue is the difference by which the total income of the organization changes after the sale of a certain unit of goods. Demonstrates the overall payback of the company.
• Total income- this is the final result of the economic activity of the company, the difference between the cost of goods and production costs.
• Average income received after the sale of one unit of goods. It is equal to the price of a particular sold product.

Experts also distinguish the concept of other income. These include a variety of penalties, interest for placing a deposit.

What is profit

Profit is the difference between costs and revenues, where the latter are an indicator of financial activity.

Profit example, Petya's income from the sale of phones amounted to 500,000 rubles. But you still need to pay taxes, pay the salary of the manager, pay the rent, etc.

Maximizing profits has always been one of the main goals successful businessman. It is considered the most important estimated generalizing indicator of the activity of a particular company.

This concept includes the following main components:

• Profit from the sale of property and the sale of material assets.
• Funds that were received from additional (non-core) activities of the organization. This refers to securities, dividends, funds from the rental of real estate.
• The difference between the funds that were received from the sale of a certain product and its present value.

If it was found that the profit of the enterprise is zero, the costs can be considered the result of such economic activity. The limiting indicator of this concept can be obtained by selling an additional copy of the product.

There are several main functions of the profit of the enterprise:

• Provides funds for the development of the company.
• Forms taxes on the profits of commercial enterprises.
• Shows the final economic result activities of a conventional enterprise.

For productive profit management, experts recommend taking into account its marginal indicator, which you need to focus on. Some heads of firms actively practice lowering the price policy. But this should not be exacerbated. At in great demand on goods, the profitability of the enterprise as a whole can drop catastrophically.

Experts advise offering their customers inexpensive analogues of goods and services that are considered the most in demand. Such measures will help maintain the attractiveness of products and the normal price category.

This financial indicator has several classifications. As a result of economic activity:

• Minimum allowable and maximum possible, which happens when minimal cost and maximum profit.
• Regulatory- This is the standard minimum indicator provided by the enterprise.
• under-received- a loss that was formed due to the fact that one of the participants in the transaction violated its obligations.

Profits may or may not be taxed. It is differentiated into economic and accounting, depending on the costs. The first is the difference between accounting profit and additional, forced expenses.

As for the second option, it is positioned as the difference between the costs incurred and the income of the enterprise.

Gross profit is the difference between the total income of a particular organization and the amount of costs. Net income can be calculated by subtracting all related expenses from gross income.

About EBIT and EBITDA earnings

These are two more types of profit, which should be separately emphasized.

Profit EBIT is positioned as an intermediate value between gross and net indicators. Some believe that this is operating profit and are mistaken. This concept can also include non-operating profit. The amount of EBIT profit can be calculated based on the sum of profit and loss before taxes. This indicator must be positive.

The value of profit directly depends on the depreciation rate and how it is calculated.

EBITDA is earnings before interest, depreciation and taxes, showing only cash inflows. This analytical indicator is calculated on the basis of the financial statements of an organization and is the main indicator of how profitable the company's activities are as a whole, regardless of various debts and depreciation methods.

Having determined EBITDA, it is possible to calculate the organization's debt burden. To do this, the debt indicators are divided by the nominal profit.

The indicated values ​​of EBIT and EBITDA are reduced to one - "reduction to a common denominator" economic indicators organizations from different countries. The tax systems of different states are not similar to each other. This means that income tax rates will also not be equivalent. The introduction of EBIT and EBITDA profits into accounting practice makes it possible to correct this situation.

First of all, let's understand the meaning of such economic categories as revenue, profit and income.

At first glance, it seems to be the same. But that's not the case at all. For a successful start own business every entrepreneur must clearly understand the difference between these terms.

The mistake is that many novice entrepreneurs understand this word as everything received at the cash desk. In retail, when the buyer pays for the goods upon receipt, this happens. But in mutual settlements between counterparty enterprises, the difference between paying for the product and delivering it to the buyer is revealed.

Revenue - a set of funds for the sold goods sold, which must be received by a business entity.

Income

This is an indicator indicating the difference between the revenue received from the sale of services, and.

Profit

It is the difference between income and the cost to generate it. Determines performance. Can be negative when costs exceed revenues.

Kinds

If we subtract the deductions associated with them from the sum of all incomes, we get as a result. There is also a net one - what remains if all payments of the enterprise are removed from the income:

1. Credits.
2. Penalties.
3. Taxes.
4. Office rent.

How revenue, income and expenses are determined

Two methods:

1st - accruals "on shipment". The indicators are calculated at the time of the provision of services, performance of work or transfer of goods. It does not depend on payment. The most common way.

2nd - cash, "on payment." Determine the indicator when the calculation is made. Suitable for small organizations working for cash - stores retail. The disadvantage is the inability to control accounts payable and receivable. This happens because the receipt of funds is taken into account, but there is no accounting for the work performed by the enterprise, services rendered or goods sold.

We examined the most significant performance indicators of any entrepreneur.