Gross revenue / gross sales
The first price reductions, which also affect your sales tax, have to be deducted from the total price.
Depending on the industry, there are various sales reductions . The most well-known are:
A bonus is a subsequent price reduction based on sales.
- Customer accounts
A customer can receive a discount if he pays the invoice in cash or if a price deduction is granted on the invoice for a transfer within a certain period of time.
There are different types of discounts. Volume discounts when buying large quantities or graduated quantities are typical . In addition, however, there are also functional – or free goods .
Credits are often due to returns.
Vouchers such as vouchers, goods, goods, discount vouchers can also reduce sales revenue.
These are granted for defective goods or, for example, if the delivery is too late.
How are sales calculated?
We have already addressed the calculation several times in the article. The basic formula for this is:
Sales revenue = sales volume x price
The resulting value should be entered in your GUV as the first item.
Examples of how to calculate sales
You offer modern e-bikes in your company at a retail price of 1,000 euros . In the 2018 financial year you sold 700 copies.
So your calculation must be:
700 (e-bikes) x 1,000 euros (retail) = 700,000 euros (sales)
Account: sales for own products
To post your revenues, you have to use the account “revenues for own products”. All sales of your products that you have manufactured in your company are recorded here. This account is an income account that is concluded via the GUV.
Everything to do with booking sales
How are sales revenues posted?
The booking is best explained using an example . As usual, you show the value of the goods and the amount of sales tax separately in your outgoing invoice. There may be additional freight costs that you can bill the customer as agreed.
You can offset your invoice amount (“trade accounts receivable”) on the accounts “sales revenue for own products” (goods + freight) and “sales tax” (19% sales tax).
The moment you create an outgoing invoice, the following basic booking record is created:
Receivables from goods and services
in sales for own products
of sales tax
Instead of “accounts receivable from deliveries and services”, the personal account (debtor or customer account) can also be used.
Posting rate for credits
If the customer sends back the goods or part of them, you must also post this business transaction via the sales revenue for own products account.
In this case, your booking rate for the credit is:
Sales for own products
value added tax
to demands for goods and services
We know that posting records can be very confusing, but they are unreliable for your accounting. If you don’t feel like dealing with booking records, we recommend using an accounting program such as sevDesk.
Where are sales revenues posted?
Apart from the fact that the proceeds first end up in the “Sales for own products” account, you have to post this income account in the income statement when you close.
Attention: You have to post third-party goods, i.e. purchased products that complement your range, to the “Sales revenue for goods” account. There they represent a profit.
Posting in the GUV account
Your earnings cannot be negative. They are posted from the sales revenue account to the GUV account as income. In the GUV account, expenses such as cost of goods, taxes or operating costs are on the left in the TARGET . The sales, extraordinary income or interest income, on the other hand, in HAVE .
Revenue on the balance sheet?
For the annual balance sheet, you have to post the sales to an asset or liability account. To do this, you must first complete the GUV account.
This is done at the end of the financial year by transferring the profit (balance in the debit of the GUV account) or loss (balance in the credit of the GUV account) to the liability account ” Equity ” . In the event of a win, you book access there in credit and in the event of a loss in debit.
When are sales revenues posted?
The proceeds are booked immediately by issuing the outgoing invoice. They are directly in the credit, just like a cash sale. Only the demands on your customers increase, they are on target. A payment (cash or bank transfer) increases your cash register or bank account and decreases the customer’s debts. The proceeds are therefore no longer affected by the payment and booking.
Revenue plays a very important role for you and your company. The bottom line is that they are even more meaningful than the company’s profit . Because sales also influence your cash flow, which in turn is important for your cash flow statement.
Your proceeds can also be invested in new machines or other purchases. You can upgrade or expand your company by cleverly investing your sales. The mere determination of a profit or loss has no meaningfulness as far as the company value is concerned. Therefore, in addition to your profit, you should always keep an eye on your costs and sales.
In addition, the turnover as an evaluation criterion weighs more heavily than the profit, since it is the more stable variable. This is because a profit can differ significantly from the usual profit in one year, for example due to an unscheduled sale of a system. However, your sales are defined by the price and regular purchases by your regular customers. Therefore, your success shows much better on the sales revenue.