The gross income of a trading enterprise is defined as. Gross income: what is it and how to calculate it

This article will focus on gross income: its sources, the mechanism of formation, subsequent distribution, planning, and also its connection with profit.

The goal of every commercial enterprise is to take its place in the market, gain consumer confidence and gain recognition. All this is necessary to make a profit. Profit depends on gross income. Gross income is an important financial indicator inherent in an economic entity.

Formation of gross income

Under gross income understand the amount of funds received by the entrepreneur as a result of the sale of services / goods. The amount depends on the number of goods sold/services rendered.

Let's try to imagine how gross income is formed:

1. A manufacturing company introduces its products or services to the market.
2. Products begin to be in demand among the consumer, as a result of which the company manages to gain a foothold in the market.
3. Consumers buy goods/pay for services.
4. The manufacturing company receives money.

Those funds that enter the treasury of this company as a result of all of the above operations are gross income. However, consumers' money is only a part of gross income, because its formation occurs at the expense of all possible receipts.

What factors affect the amount of gross income

Consumer confidence is one of the main determinants of income. The more a consumer trusts a company, the more more items he will buy.

But there are other very important factors affecting the final income. Among them:

1. production factor. For the consumer, the quality characteristics of the product, as well as its price, are extremely important. The production capacity of the enterprise and, as a result, the amount of goods produced also affect the gross income.
2. Sales factor. If an enterprise can ensure quick shipment of goods, prompt execution of accompanying documents, compliance with the terms of the contract, as well as organize competent sales logistics, this will positively affect the gross income.
3. Factors that the manufacturer cannot influence. These include:
Compliance or non-compliance by the buyer with the terms of the transaction;
- the possibility for the client to pay for the purchase on time;
- presence / absence of flaws in the mechanism of transport support;
- weather;
- delays in loading/unloading.

Gross profitability components

The firm makes a profit mainly through the sale of goods or the provision of services. But, as already noted, trade is not the only source of funds. Gross domestic income also includes:

money received as a result of won lawsuits;
fines, forfeits and penalties that a certain individual or legal entity is forced to pay to this company;
values that the company has accepted for storage in accordance with the concluded agreement;
part of the funds from the company's insurance reserve - returned or used not according to intended purpose;
financial assistance to the enterprise;
funds received as a result of various interactions (from dividends to interest on debt claims);
money received from the sale of securities;
bank interest, insurance income.

How is profit related to gross income

Their connection is quite close: in other words, they are interdependent. However, income is all receipts resulting from trading operations, while - this is income minus costs. Profit is net. To find out the profit of the enterprise, you need to subtract all the expenses of the company from the amount of gross income.

How to Calculate Gross Revenue

Gross income is the primary indicator that is used to determine the performance entrepreneurial activity for any period. Its value is influenced by the price of goods or services, and in addition - the number of goods sold / services rendered.

The formula for calculating gross income (GR) is as follows:

PD = Unit Price * Quantity of Goods Sold

Gross income distribution

Gross income is subject to further distribution in several directions. It is partly used for:

reimbursement of depreciation charges relating to fixed assets of the company;
payment of mandatory contributions, duties, fines, taxes and interest on loans;
basic payments wages employees;
implementation of social payments;
payment of incentive deductions in favor of valuable employees;
replenishment of the net profit fund of the enterprise.

Theoretically, gross income is the key to the self-sufficiency of the enterprise. Gross income gives the enterprise the opportunity to maintain its existence. Mandatory payments, financing of production (purchases), business development - all this is carried out at the expense of gross income.

Gross Revenue Planning Strategy

The head of any enterprise pursues certain goals and independently sets the time frame for their achievement. Goals can be short-term or long-term, the main thing is that they exist in principle. Without the definition of goals, successful activity is unthinkable.

Based on the indicators of previous periods, management at the beginning of the next period sets new gross income values, and at the end of the term compares them with actual indicators.

When calculating planned indicators, various duties and value added tax are not taken into account. They are classified as government allowances and are not part of equity. commercial organization. Periodically, they must be transferred to the state.

In addition, the planned indicator of gross income does not take into account episodic receipts, which may not be, namely:

sale of assets (intangible, not related to the operating activities of the company);
income received as a result of the withdrawal of fixed assets.

The ability of management to plan and the ability to set reasonable prices for products give the company a chance to strengthen its position in the market. When planning indicators of gross income, you need to understand that its amount should be enough to cover costs and future expenses. But most importantly, this indicator should also take into account net profit, which is the goal of any business.

The actual gross income of the company depends on the price and quantity of goods sold or services rendered. They are the main, but not the only factors that determine its value. The terms of trade, product characteristics, the capabilities of the manufacturer (seller) and the buyer have a significant impact on the amount of income. In addition, gross income is provided not only through sales, but also through ancillary receipts, which can be quite significant.

Gross income -This is the total income received by the organization as a result of its activities. Gross income is determined by proceeds from the sale of goods or services, as well as taking into account other types of income. This indicator is the main one for determining profit.

What does the term "gross income" mean?

The concept of "gross income" is used by economists and accountants to evaluate the performance of an organization. The indicator of gross income makes it possible to evaluate the effectiveness of the work of the team by calculating profit from it.

Gross income is total amount company's sales revenue:

the goods and services it produces;
real estate and other fixed assets;
intangible assets;
shares;
intellectual property rights.

Gross income includes fees received from the rental of equipment or real estate, as well as other types of non-commercial services provided by the firm. Gross income also includes other types of income (penalties, fines, non-refundable assistance, bank interest, and much more). In trade, gross income is determined by the total proceeds from the sale of goods.

For what relates to sales revenue, see the publication .

On non-operating income, see the material .

Formula for calculating gross income

Gross income is determined by the formula:

In dox \u003d C unit × K,

B doh - gross income;

C ed - the price of a unit of goods or services provided;

K is the quantity of goods sold or services rendered. The calculation of gross income allows you to plan the directions of its subsequent distribution in order to ensure the self-sufficiency of the company. This, in particular, makes it possible to adjust selling prices in order to obtain better economic results.

At the same time, if the accounting of commodity values \u200b\u200bis kept at purchase prices according to the quantity-value scheme, then the amount of gross income is determined automatically as the credit balance of account 90.1 “Proceeds from the sale of goods”. If this condition does not apply, then the amount of gross income should be calculated using one of the formulas below.

Gross income in trade

Gross income in trade is calculated using the approved by the Committee on Trade of the Russian Federation " Guidelines on accounting" dated 10.07.96 No. 1-794 / 32-5. They (clause 12) provide formulas for calculating gross income for a trading company:

by total turnover;
taking into account the range of goods sold;
according to the determined average percentage;
using the range of remaining products.

Each trade organization is free to use any of these formulas to calculate the gross income from their practices. The gross income calculated using the average percentage formula is most often used in retail. This is the simplest calculation of gross income listed above. To do this, use the formula for gross income:

In dox \u003d (ST ov × P medium) / 100,

B doh - gross income;

ST ov - the amount of turnover;

P Wednesdays - the average percentage of the allowance.

The calculation of the average percentage is made by using the values of the trade margin for:

the balance of goods at the beginning of sales Tn about (the opening balance of account 42 "Trade margin");
received goods Tn p (credit turnover on account 42 for the calculated period);
retired goods (damage, return) for the period of sales Tn in (debit turnover on account 42).

The formula for calculating the average percentage:

P Wednesday \u003d (Tn o + Tn p - Tn in) / (ST ov + O tov) × 100,

O tov - the balance of goods on the date of calculation (the credit balance of account 41 "Goods" at the end of the billing period).

Let's consider additional formulas for determining the amount of gross income from the sale of goods in more detail.

Additional formulas for calculating gross income from the sale of goods

1. Formula for calculating gross income based on total turnover:

Inspiration \u003d STov × RNats / 100,

RNat - estimated trade margin, which is calculated by the formula:

RNat = Tovn / (100 + Tovn),

Tovn - trade markup (%)

The formula for calculating gross income based on total turnover is used provided that all groups of commodity values have the same markup percentage. If its size changed in the billing period, it is more appropriate to use other formulas.

2. Formula for calculating gross income for the range of remaining commodity values:

Inspiration \u003d (Tn o + Tn p - Tn in) - Tn k,

Tn k - markup at the end of the billing period (credit balance of account 42).

3. Formula for calculating gross income for the range of goods sold:

Inspiration \u003d (STov1 × Pavg1 + STov2 × Pavg2 ... .. STovN × PavgN) / 100,

STov(1…N) - turnover for a certain group of goods;

Psred (1 ... N) - the average percentage of the allowance for each group of commodity values.

This method of determining the amount of gross income is used subject to keeping records of commodity values for groups of goods with the same percentage of markup.

Gross income of a manufacturing firm

The firm in the production of products calculates gross income at the cost received from its sale. Gross income here also characterizes the result of the company's work on a certain date. To obtain a larger gross income, an analysis of prices, market conditions and demand for similar products is necessary.

Gross income can include not only income from the sale of products, but also non-operating income, for example, from operations with securities and other investment items. This may be income received from equity participation in other organizations, as well as other income in accordance with Art. 250 of the Tax Code of the Russian Federation.

For income and expenses in production and sale, see the publication .

Results

Any commercial activity is created with the aim of making a profit. Profit is the difference between gross income and costs incurred. The value of gross income is determined by the formula. There are several formulas for calculating gross income, and each company chooses the option that suits its needs.

The most important factor in the functioning of any enterprise is its gross income. Any businessman, even a beginner, must be aware of what it is. This indicator helps to determine how efficient the institution's workflow is. Gross income is a kind of tool that gives a chance to change the strategic direction. Further, in more detail about what this indicator is, how it can be calculated, and what should be paid attention to.

What is gross income

Gross income is the money that the company received as a result of performing its main activities. In other words, we are talking on the final financial factor, reflecting the overall result of the organization's activities in certain areas:

economic;
managerial;
the field of marketing.

Here one can note important point: when studying gross income, it is necessary to consider it from the point of view of both an individual and a macroeconomic indicator. Consideration of this indicator is carried out even by the state itself.

In many countries of the world, this concept has the same meaning as the term "turnover". If we consider institutions of a non-profit nature (for example, public associations, foundations engaged in charity), then here gross income is an indicator of funding for the whole year (or the amount of contributions made on a gratuitous basis).

Gross income analysis

What is the significance of the indicator in question

The gross income of the enterprise is the key to the working process of the enterprise(if we are talking about the indicator from the sale of goods). Its essence lies in the following points:

The indicator contributes to the recovery of depreciation-type accruals (those that are considered non-current assets).
It is used to pay taxes, penalties and interest, as well as other payments to the state budget.
In addition, the indicator acts as a source of wages and incentive accruals for working personnel.
Generates real revenue and helps the organization develop its activities in the future.

How is formed

Gross income is the most important factor in the workflow of any institution. You can understand how it works if you study the mechanism of its appearance. It is worth noting that The process under consideration has certain stages:

Commodity production (the same applies to services).
Departure to the market with a niche designation.
Sale to the end user.
Calculation of earned profit.

What are the components

Now let's talk about what is attributed to the components. This indicator is wider than the standard cash from the main operation of the enterprise. These include the following elements:

Funds that appeared on the account of the enterprise by decision of the court.
Penalties paid by third parties.
Values of the material plane, which are stored under the terms of the agreement.
Funds that are an insurance reserve.
Funds that are financial support or contributions - donations.
Dividend accruals.
Proceeds from the sale of securities.
Funds that are insurance accruals.

What is included in the intangible component

It should also be said that the composition of the indicator under consideration also includes an intangible component.. In other words, we are talking about the following income:

Being investments in capital or reinvestment.
Savings on accounts for pensioners.
Income from non-cash bank-type deposits.
Support under international financial agreements.

First, the aggregate indicator is calculated. This is done as follows: cash proceeds from the main business minus the direct costs of the material plan.
Next, the total cost of goods produced for a specific time interval is determined (if necessary, the added value is also taken into account).
At the last stage, the product of the number of commodity units and the cost of their sale is found. The resulting indicator is combined with all other components of gross income. If you do everything consistently and step by step, slowly, you will not have any difficulties with the calculation of the indicator.

Calculation formula

Gross income can be calculated using several methods. Suppose, to calculate this indicator for the turnover of products, it is required to calculate the product of the total turnover and the trade margin. Next, the result is divided by 100. This method can be used if the markup for all goods is the same. If the premium for each product is its own, this method calculation of the indicator is not suitable. You will need to use a different method.

If an organization is engaged in the production of a huge number of products with various small allowances, then it is necessary to identify the product for all products separately. Further, all this is summarized. The final indicator, as in the situation we examined above, is divided by 100.

The most optimal method by which gross income is calculated, which is appropriate for almost any organization, is the calculation using the average percentage. Within the framework of this method, the indicator we are considering is multiplied by the entire turnover of goods. The result is divided by 100. This calculation method is used most often.

What factors affect gross income

Net gross income is called a key indicator that reflects the results of the functioning of the organization.

This indicator may be affected by the following circumstances:

The number of products produced, their range and components. Implementation more production leads to an increase in gross income.
The amount of the trade allowance. All its goals and objectives are inextricably linked with the indicator we are considering.
Are there secondary services that make the product more prestigious (increasing demand for it among consumers).
Is there additional profit, as well as the number of sources and their level of stability.

How is gross income planned?

Having studied the formula for calculating this indicator, you can plan its size for the future. This procedure is mandatory for the enterprise to function successfully. If we clarify the process under consideration more in simple terms, then we are talking about the potential difference between the reported and planned indicators. It is important to say the following here: the planned size of the indicator in question does not include VAT, accruals from the withdrawal of fixed assets and the sale of intangible assets with currencies.

With proper planning, the chances of a profitable functioning of the organization increase.

If we talk directly about gross income, this indicator should include not just expenses, but also real revenue, the amount of which will be much higher than in the reporting time interval. Yet, in addition to probable accruals, planning should also take into account probable losses. They can be considered:

Losses for past periods, identified only in the planned year.
Losses from discounted products, for which demand has noticeably fallen.
The risk that orders placed will be cancelled.
Possible costs of litigation, penalties.

What factors need to be considered to achieve success

When studying gross income, do not forget that this indicator plays a key role in the performance of the enterprise. For it to work successfully, observe the following principles:

Be sure to find optimal combination prices with quality - so that your company is exclusively positive reviews on the market.
Follow production facilities in the organization - they should be enough to produce such a number of goods that will satisfy the needs of all interested consumers.
Always monitor market conditions - for timely amendments to the list of products (or for its expansion).
Be sure to follow the logistics (the cost of transporting goods to the buyer should cost you the minimum amount).

If you follow all the above simple recommendations, you can make sure that your business will flourish and bring you profit. If you calculate the gross income in a timely manner and track this indicator, the company will operate for more than a dozen years, because a competent calculation of gross income is the key to the well-being of any company.

Summarizing

Grade financial indicators of any institution or the whole country without fail includes the calculation of the gross income indicator. This factor is the basis of the well-being of the organization. It enables the company to develop in the future.

Thus, from our article you learned about what gross income is, how it can be calculated and what you should pay attention to when implementing this procedure. We hope that the information provided has been useful to you!

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