Revenue

The proceeds or the proceeds ( syn. sales) call in business administration fee equivalent that flow to an enterprise in the form of cash or receivables from the sale of goods ( products ) or services and from rental or leasing.

Revenue is worth the accounts of operational and non-operational ( neutral ) activities of an enterprise.

" Proceeds" is sometimes used interchangeably with the term " performance ".

Revenue in Accounting

In trading company revenue and performance ( operating income ) are identical, because there is no stock change of semi - finished and finished products and no overheads.

In the industrial operation comes to proceeds from the sale of finished products, added the operating income from manufactured products. The difference is caused by the stock change of semi - finished and finished products as well as the capitalization of own work:

Revenue (turnover) ± inventory change semi - finished and finished products Capitalisable own work ------------------------------------------------- = Power (operating revenues, operating income ) The proceeds calculated from the sum of the weighted with the sales prices volumes or services (revenue = quantity sold x price). The net proceeds generated by reductions of revenue (credits, discounts, rebates, etc.) from the gross proceeds. For the pricing of the net proceeds shall prevail.

In accounting, according to the German Commercial Code, the income is under " Revenues " reported that are typical of ordinary activities.

Due to the importance of income or revenue term in the external accounting strict guidelines have been adopted for revenue recognition particularly in the international (IFRS ) and U.S. generally accepted accounting (GAAP ). This is to ensure that the reported sales figures are accurate and are subject to hardly any residual risk more. Accounting scandals and fraudulent sales bulges, such as through sham transactions, should thus be avoided.

Revenues by sector (selection)

In various industries revenues come into existence in different ways (examples):

• Car dealerships / garages: car sales, spare parts sales, car hire, repairs
• EDV-/IT-Firmen: hardware, software and maintenance revenue
• Retail: Revenue from sale of goods
• Liberal professions ( doctors, lawyers, etc.): fee income
• Businesses: income from services (maintenance), revenues from installation and workshop orders, repairs
• Wholesale: Revenues for department 1, 2, etc.
• Commercial establishments: Sale of Goods ( merchandise)
• Property Management: Rental income
• Hospitality industry: lodging ( lodging) and restoration of proceeds (kitchen, basement)
• Industrial enterprises: own work capitalized, inventory changes on semi - finished and finished products, revenues for our own products ( production function ) and trade goods ( income)
• Credit institutions: discount and interest income, dividend income, commission income
• Assemblers: equipment rental, installation work, sale of merchandise
• Verkehrs-/Transportunternehmen: settlements, traffic revenues
• Insurance companies: investment income, premium income, fee and commission income

Mathematical viewing

In the monopoly pricing model is very often assumed for simplicity: Revenue () = Price () × amount ()

Refers to

• The proceeds,
• The sale price ( unit price )
• The remote over a period of time amount ( quantity per time ) and
• The length of the period considered,

Then is.

Industry sales

The sales value of all companies in an industry is referred to as industry sales. It is usually given in terms of a calendar year and required, for example in the calculation of market shares.

System sales

As system revenue is referred to in franchising companies in the total sales of all stores.