Proceeds from the sale of products

Proceeds from the sale of products

Any, even the smallest production,organizes its activities in such a way as to ultimately receive income from it. Revenues from the sale of products - this is all the money that came to the account of the company after the sale of products, works or services. It is the main source of not only income, but also the means to recover all costs. Accordingly, the more revenue there is, the better it is for the enterprise. It should be noted that the company can receive revenue not only from its core business, but also from so-called non-sales operations. This can be renting a free space, obtaining income from operations with securities, etc. Other revenue from sales is another way of additional income, related, for example, to the sale of retired fixed assets and materials.

Each enterprise wants the revenue fromrealization of production was as much as possible. But this does not always happen, because its size depends on many indicators, which in the end result in a certain amount of revenue. The same depends on how fast the revenue goes to the disposal of the enterprise. This is very important, because it's part of it will go to pay off debts, purchase necessary raw materials, pay for renting a room, pay wages, deduct taxes to the budget and extra-budgetary funds, etc. In other words, revenue from sales only partially represents income. Only after all payments are made, we can talk about the net income of the enterprise. One of the most important factors affecting the amount of revenue and the speed of its receipt is the pricing process. The price of a good is determined on the basis of the supply-demand ratio. This is a kind of trade-off between the possibilities of the buyer and the wishes of the seller. Accordingly, the sooner this compromise is found, the faster you can count on receiving revenue.

Speaking of other factors affecting the size(works and services), the range of products (works, services), the quality of products (works, services), the timing of delivery (performance) of the products, , compliance with contractual obligations, as well as the deadline for document circulation.

Recently, two methods are used to determine the time when revenue from sales is received:

· On shipment and presentation of settlement documents to the buyer (so-called accrual basis).

· On payment, when the revenue is calculated only after the money has arrived at the settlement account or in the cash department (cash method).

The cash method is mainly used fortaxation of small businesses, but the method of accruals should adhere to all other enterprises, taking into account the revenue in this way only after the shipment of products, service or work has been performed. As far as shipments go, revenue is also determined in accounting.

If the proceeds from the sale of products are recognizedon the fact of shipment of products, indication of services and performance of work, then the duty to pay taxes arises immediately, regardless of when the money was received from customers. In this case, the enterprise can create a reserve for doubtful debts, for the creation of which are funds before the taxation. Doubtful debt means unsecured debt of customers, which has already expired.

Thus, the proceeds from the sale of products andother activities are those funds that provide stability to the enterprise. In the event that, for any reason, the proceeds are not available, the enterprise may suffer serious losses.



Related news

  • Solid waste management: problems and prospects
  • Sighs Bridge: where is located, legends, interesting facts
  • The series She could not do otherwise: actors
  • Deportes para niños hiperactivos que pueden ayudar su desarrollo
  • Hermann
  • Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products Proceeds from the sale of products