In economics, revenue (also revenue or turnover ) is the equivalent value that accrues to a company in the form of means of payment or receivables from the sale of products , products or services as well as from renting or leasing.
No costs ( material , personnel costs , etc.) are deducted from the proceeds (gross proceeds, sales) ; from the net proceeds, only the reductions in revenue ( discounts , etc.) associated with the sale . Revenues are the value recording of the operational and non-operational (neutral) activities of an individual company, a group of companies, as well as in the overall economic calculation of an industry.
Income in accounting
"Revenue" is sometimes used for the term service : In a trading company , revenue and service (operating income ) are identical, because there are no changes to the inventory of semi- finished and finished products and no internal work . The same applies to pure service providers . This is not the case in other industries.
In the manufacturing company , the revenue from finished products sold ( sales ) is supplemented by the operating income from manufactured products . The difference arises from the changes in stocks of semi-finished and finished products (production in stock) as well as from the activation of internal work:
Erlös (Umsatz) ± Bestandsveränderung Halb- und Fertigfabrikate + aktivierungsfähige Eigenleistungen ---------------------------------------------- = Gesamtleistung (Leistung, Betriebsleistung)
Gross, net and sales revenue
The proceeds calculated from the sum of the weighted with the sales prices paragraph quantities or services:
Sales are the sales that are typical for normal business activity (that is, operating performance ). For example, a bad financial year would be offset by the sale of a property (income from fixed assets ), which is why sales are the actual productivity criterion on the balance sheet.
Due to the great importance of the term revenue or revenue in external accounting , strict guidelines for revenue recognition have been issued , especially in international ( IFRS ) and US accounting ( US-GAAP ). This is to ensure that the sales figures shown are correct and are hardly subject to any residual risk . Accounting scandals and fraudulent inflation of sales, for example through sham deals , should be avoided in this way.
Sales by industry (selection)
In different industries , revenue is generated in different ways (examples):
- Car dealerships / workshops : car sales, spare parts sales, vehicle rental, repairs;
- EDP / IT companies : hardware, software and maintenance revenues ;
- Retail : proceeds from the sale of goods;
- Liberal professions (doctors, lawyers, etc.) : fee income;
- Commercial enterprises : service income (maintenance), income from installation and workshop orders, repairs;
- Wholesale : sales for product group 1, 2, etc.
- Commercial operations : sale of goods ( merchandise );
- House management : rental income;
- Hotel business : accommodation (lodging) and restaurant revenues (kitchen, cellar);
- Industrial companies : own work capitalized, changes in inventory of semi-finished and finished products, sales for own products (production income) and merchandise (goods income);
- Credit institutions : interest income , commission income , dividend nerträge, Commission serträge. However, more important economic indicators are the total assets or the business volume .
- Assembly companies : equipment rental, assembly work, sale of merchandise;
- Traffic / transport company : compensation, traffic income;
- Insurance companies : investmentincome, premium income, commission income.
Company groups: group, system sales
To consider the economic performance of a group, monetary shifts within the group have to be factored out. These intra-group transactions are also a method of tax obfuscation.
National accounts: industry turnover
In the monopoly price model it is very often assumed for the sake of simplicity:
- the proceeds ,
- the selling price ( unit price ),
- the amount sold in a period of time ( amount per time ) and
- the length of the period under review .
A constant price is a prerequisite.
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