# Revenues. Formula for calculation

Business entity in the manufacturing processgoods and performance of works, a valuation of its activities is made, 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 recover the costs incurred by the organization when purchasing raw materials. Revenues received by the company are recovered spent finances.

Timely payment for products soldallows to carry out a continuous circuit of means and a continuity of technological process. In the event that the proceeds arrive untimely, the enterprise is unstable. Delay in receipt of payment from customers threatens to violate various contracts with suppliers, payment of fines and penalties, as well as a decrease in the amount of profit received by the business entity.

The economic services of the enterprise are producedplanned revenue calculation. This indicator can be determined for the coming quarter or year, and also calculated promptly. Revenue, the formula for calculating which contains the volume of sales, the amount of excises, as well as sales and trade discounts, is determined on the basis of current tariffs and prices.

If the demand for manufactured products isguaranteed, the determination of the receipt of funds from customers 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 equal to the consumer demand. Only then the method of direct invoice can determine revenue. The formula of the calculus in this case contains two factors. One of them is an indicator of the volume of sold comparable products. The second factor is the unit price.

Market relations do not guarantee the availability ofconsumer demand for the entire quantity produced during the production process. The volume of sales directly depends on the level of prices. In order to determine the revenue in the presence of all factors, the formula for its calculation contains the elasticity coefficient. The value of this indicator can be more or less than one, and also is equal to it.

With the planned calculation of the receipt of payment forrealized goods can be applied calculation method. Revenue, the formula for determining which contains the quantity of the product sold adjusted for the remainder of products, are in stock at the beginning and end of the period, is planned with the instability of demand. The indicator, determined in this way, most reliably reflects the real situation that can arise during sales. The planned revenue, the calculation formula of which consists of three elements, is determined in this method in a slightly different way. To the leftovers of finished goods at the beginning of the period, the planned volume of production of goods is added. From the sum received as a result of the addition, the remainders of goods unclaimed by buyers are deducted.

The economic services of an enterprise are determined byalso gross revenue, the formula for calculating which, in addition to funds received from the sale of goods, contains revenues from other transactions. This indicator is calculated taking into account the specifics of the work of the business entity. For various business entities, gross revenue may include:

- amounts of monetary compensation that werereceived by the commission agent, attorney, freight forwarder, etc., if the sale of goods was carried out under contracts of commission or commission, as well as transport expedition, etc .;

- amount for the rental of property;

- remuneration for the executed design or construction work, made by own strength;

- the amount from the conduct of commercial activities, received by budget organizations, etc.

Liked:
0
Revenue is the main indicator
The threshold of profitability is the basis of work
Gross profit: formula and value
Coefficient of solvency. Formula
How to calculate the economic
What is revenue and how does it differ from