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, receiving income from operations with securities, etc. Other revenue from sales is another way of additional revenue , for example, related to the sale of retired fixed assets and materials.

Each enterprise wants the proceeds from the sale of products to be as large as possible. But this is not always the case, because its size depends on many indicators, which in the end result in a certain amount of revenue. From the same indicators, it depends on how quickly the revenue goes to the disposal of the enterprise. This is very important, because it is part of it that 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, sales revenue only partially represents income. Only after all the 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 compromise between the possibilities of the buyer and the wishes of the seller. Accordingly, the faster this compromise is found , the faster you can count on receiving revenue.

Speaking about other factors that affect the amount of proceeds from the sale of products, performance of work and the provision of services, we should note the following: the volume and speed of products (works performed and services rendered), the range of products (works, services), the quality of products (works, Services), terms of delivery (performance), compliance with contractual obligations, as well as the deadline for document circulation.

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

· 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 for the taxation of small enterprises, but all other enterprises must adhere to the accrual method, taking into account the revenue in this way only after the shipment of the products has occurred, the service has been rendered, or the work has been performed. As far as shipments go, revenue is also determined in accounting.

If the proceeds from the sale of products are recognized on 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. A doubtful debt is an unsecured debt of customers, which has already expired.

Thus, the proceeds from the sale of products and other 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.