In the process of manufacturing goods and performing work, the business entity makes a valuation of its activities, the value of which is equivalent to the proceeds from the sale of the finished product. Cash payments from customers are the main resource used to reimburse expenses incurred by the organization in the procurement of raw materials. The proceeds received by the enterprise restore the spent finances.
Timely payment for products sold allows for a continuous circulation of funds and the uninterrupted process. In the event that the revenue arrives late, the company is unstable. The delay in receiving payments from buyers threatens to violate various agreements with suppliers, pay fines and penalties, as well as reduce the amount of profit received by the business entity.
The economic services of the enterprise make a planned calculation of revenue. This indicator can be determined for the coming quarter or year, and also calculated promptly. Revenues, the calculation formula of which contains the volume of sales, excise taxes, as well as sales and trade discounts, are determined on the basis of current tariffs and prices.
If the demand for manufactured products is guaranteed, then the determination of the receipt of funds from buyers can be made using the direct account method. The basis of this method is the assumption that the volume of production and sales are pre-linked and constitute a value equal to consumer demand. Only then can revenue be determined using the direct account method . The calculus formula in this case contains two factors. One of them is an indicator of the volume of comparable products sold. The second factor is the unit price.
Market relations do not guarantee the presence of consumer demand for the entire amount of product produced during the production process. The volume of sales depends on the price level. In order for revenue to be determined in the presence of all factors, the formula for its calculation contains an elasticity coefficient. The value of this indicator can be more or less than one, and also equal to it.
With the planned calculation of the payment for goods sold, the calculation method can be applied. Revenues, the formula for the determination of which contains the amount of the product sold adjusted for product residues in stock at the beginning and end of the period, are planned in case of unstable demand. The indicator defined in this way most reliably reflects the real situation that may arise during sales. The planned revenue, the calculation formula of which consists of three elements, is determined using this method in a slightly different way. To the balance of finished products at the beginning of the period add the planned volume of production of goods. From the sum obtained as a result of addition, the residues of products unclaimed by customers are deducted.
The economic services of the enterprise also determine gross revenue, the calculation formula of which, in addition to funds received from the sale of goods, contains income from other operations. This indicator is calculated taking into account the specifics of the business entity. For various business entities, gross revenue may include:
- the amount of cash compensation received by the commission agent, attorney, freight forwarder, etc., if the sale of goods was carried out under commission or commission agreements, as well as freight forwarding, etc .;
- Amounts for rental property;
- remuneration for completed design or construction works performed on their own;
- the amount from commercial activities received by budget organizations, etc.