What is sales 1


(Eng. sales, turnover) The turnover represents the value of the deliveries and services delivered to customers within a period of time (sales value).
The turnover is the sales volume valued with sales prices (total revenue).
Revenue is the sum of the products and services sold in a period.
The turnover is the expression for the sum of the products and services sold in a period.

There are two types of sales:
1. The value-based sales result as the product of the sales volume multiplied by the sales price.
2. The quantitative turnover is the sum of all services sold. There is a problem with determining the total volume of sales in the case of heterogeneous services.

The term turnover is used both in terms of quantity and value. Under turnover, on the one hand, the sum of the stated performance units of a company is used as a synonym for sales. On the other hand, sales are understood to be the sum of the revenues for all services sold in the period. Revenue is therefore the sum of the products of the quantity times the price of the service units sold.

The determination of the turnover takes place i. d. Usually on the (goods) sales account (account) of the bookkeeping. The term revenue or, more precisely, revenue is also common for sales. There is a precise description in Section 277 (1) of the German Commercial Code (HGB) for recording them. Thereafter, the contractually agreed consideration is included in the sales revenue, but not the 4 sales tax and sales deductions (bonuses, discounts, rebates). A distinction must be made between sales as a value measure and sales as a quantity measure for deliveries and services carried out.

Turnover is the sum of the services (goods, services) sold by a company, valued at their prices. Example: Sales of 2000 pieces at EUR 30 result in sales of EUR 60,000. Sales are not a company's profit!

Also: paragraph. I. S. v. Revenue is the monetary value received for goods and services sold, in the case of banks for the financial services of all kinds provided by them. For companies applying for credit, this is an important parameter in the creditworthiness check of banks.

(Revenue) Sales volume (sales) of an asset valued at the sales price during a period. In the consumer goods industry, a distinction is made between factory sales (sales ex works at factory prices) and end consumer sales (sales to end users at retail prices). In contrast to net sales, gross sales include the respective value added tax and do not take into account any direct or indirect sales deductions.

See also proceeds.

(= Revenue) the equivalent of company-generated services (material goods and services) achieved on the market. In mathematical terms, sales are calculated by multiplying the amount of goods or services sold by the corresponding prices.

(also revenue, sales revenue, sales volume; in €)
Revenue records the value-based sales volume of a company within a certain period of time (e.g. daily, quarterly or annual sales).
= Sales volume x sales price
· Gross sales include VAT and exclude all direct and indirect sales deductions (e.g. discounts, advertising subsidies). In contrast, net sales express the final cash inflow.
· In the consumer goods industry in particular, a distinction is made between factory sales (= sales ex works at factory prices, usually without sales tax) and end-user sales (= sales to end users at end-user prices, usually including sales tax).
· Sales represent one of the most important marketing goals and serve, among other things, as the basis for all forms of contribution margin accounting (contribution margin). This key figure can be broken down further with reference to corresponding criteria and thus gains in significance.
· Since the absolute turnover has little informative value, the development of turnover is mostly considered. This is calculated as follows:

· In addition, sales are often set in relation to other reference values ​​(e.g. customer, employee, sales area). The following applies to all sales figures in general:

To calculate sales figures, in practice, among other things, the reference values ​​order, machine hour, product, sales district, employee or sales area are used. The determined key figures can be compared with each other (e.g. sales key figures of different customers, employees, branches). Changes over time (time comparison) are also meaningful. Also can be the sales per customer
(Starting point for the ABC analysis), per order, per order, per purchase and per item.

Fig. 15. Selected sales figures and their informative value
An organic retail company generates sales of € 3.78 million in one year. It employs an average of 36 people. This results in an employee productivity of € 105,000 per employee.

· The turnover can be found in the financial accounting in the list of totals and balances.
· Other key figures such as B. Sales area, number of employees know the responsible departments of the company.
Advantages of sales are:
· Relatively inexpensive, inexpensive and precise determination of sales values
· Competitor sales are also relatively easy to determine
· Value-based character and the associated offsetting with other variables
Turnover is part of all relevant parameters (e.g. market share, return on investment)
Central function of sales plans as a specification for other areas (e.g. purchasing and production)
· Close, but not inevitable, relationship between sales and growth and earnings
Measures to influence
The entire spectrum of marketing activities (product, price, sales and communication policy) is ideal here. These include:
· Creation of a new market through an innovation
· Expansion of sales volume through penetration into new sales areas (e.g. in the course of internationalization)
· Acquisition of new target groups
· Discovering new areas of application for the products
· Increase in consumption intensity
· Stimulation of replacement needs
· Substitution of other products
· Increase in market share
Ensuring success through customer loyalty (repurchase rate, repurchase rate)
Establishing barriers to market entry (e.g. by concluding long-term supply contracts)
· Cooperation with other companies
· Without sales volume statistics, it cannot be seen to what extent a change in sales is due to the quantity or price component (price elasticity of demand).
· An exclusive analysis of sales excludes the fact that individual products have different trade margins or contribution margins.
· The analysis of sales does not take into account the fact that the individual products or parts of the range use the capacities of a company to varying degrees.
· A moderate increase in sales in a rapidly growing environment can easily hide the fact that a company only operates below average successfully.
· In saturated markets as well as with qualitative growth, sales lose importance compared to profit targets.
· The turnover can have grown due to the economic situation, the season or due to price increases without the performance of a company having changed.
· The turnover offers only a very limited insight into the causes of the (failure) success of a company. Specifically, this means: Ideally, you know that your own company has gotten better or worse, but it remains unclear in which areas or why.
· The turnover is a lagging indicator, i. H. it only indicates possible weak points with a delay.
· Sales are often in competition with other corporate goals. A typical example of such a conflict is long-term customer orientation on the one hand and short-term sales orientation on the other.
· The turnover does not provide any information about the actually generated profit. For this reason, additional key figures must urgently be included in the analysis.

Sales volume of a company based on value, i.e. valued with sales prices (marketing goals). In the consumer goods industry, a distinction is made between factory sales (sales ex works at factory prices, usually without value added tax) and end consumer sales (sales to end consumers at end user prices, usually with value added tax). In contrast to net sales, gross sales include the respective value added tax and do not take into account any direct or indirect sales deductions. In practice, one also speaks of net-net sales i. S. the final cash inflow (deduction of all discounts, remuneration, advertising subsidies, etc.). Turnover represents one of the most important marketing goals in practice. It can be broken down in many ways (revenue analysis, Parfitt-Collins model) and put into perspective (market share, return on sales, turnover rate). At the same time, it serves as the basis for all forms of contribution margin accounting. The advantages of sales as a marketing target are the ease with which it can be determined, the value-based character and the associated offsetting with other variables and the close, but not necessarily, relationship to growth and earnings. Esp.With market saturation and the pursuit of qualitative growth, sales lose importance compared to profit targets. As a legal term, sales are described in Section 277 (1) of the German Commercial Code (HGB) and are important for disclosure as item 1 of the income statement under commercial law. Small and medium-sized corporations can, however, summarize their sales with other items under the designation "gross profit" (see Section 276 of the German Commercial Code). The income from the sale and rental or leasing of products and goods typical of the company's normal business activities as well as from services typical of normal business activities after deduction of sales deductions and sales tax are to be reported as sales revenue (Section 277 (1) HGB). Basically, this mainly includes all revenues (received, non-cash performance fees) that result from the pursuit of the actual corporate purpose, from the "ordinary business activity", which is typical of the business sector. In the case of trading companies this is in particular the income from the sale of goods, in the case of production companies in particular the income from the sale of products, in the case of service companies in particular the income from the provision of services typical of ordinary business activities. Income from renting and leasing (including licensing) are equivalent to those from sales. Although the "sales" of commercial law are not as comprehensive as the "sales" of sales tax law, sales include not only the fees from the main sales that are typical for the business sector, but also the income from the ancillary and secondary sales that are typical and customary for ordinary business activities (e.g. from the customary sale of waste products, excess stocks of raw materials, consumables and supplies, by-products, the granting of licenses for operating services, from customer services and from customary plant leases as well as ancillary fees typically billed to third parties). External services from subcontractors included in the invoices are also included in the sales revenue. This does not include income from ancillary and ancillary sales that are atypical for normal business activity (e.g. income from canteens, company apartments, rest homes, occasional temporary workers), separately invoiced interest on arrears, dunning fees or contractual penalties as well as so-called transitory items. According to the point in time, it is shown as sales revenue only after the service has been carried out, i.e. in particular when the entire contractual service or a separately billable partial service has been provided and there is no significant customer risk. The sales revenues (and sales reductions) are to be recorded regardless of the time of their payment (8 252 Paragraph 1 No. 5 HGB): Payments before performance not affecting income as "advance payments", payments after performance as "receivables". According to the amount, the amounts that the contractual partners have to spend in order to receive the deliveries or services, or which the company providing the services can claim, but less sales deductions and sales tax (Section 277 (1) HGB) are to be shown as sales. . The usual (for your own account) invoiced transport and packaging costs etc. must also be included in the gross sales. On the other hand, the invoice amounts to be reimbursed through conversion or other cancellation (e.g. goodwill) of the contract may not be included in the sales revenue. It is disputed whether the excise taxes and monopoly levies contained in the sales revenue may be deducted. On the one hand, this would misleadingly inflate the sales revenues and the interim results, on the other hand - this is crucial - the definition of sales does not provide for such a deduction, there is a special item (item 19 GKV, 18 UKV) available and is also specified in § 1 para 2 sentence 3 PublG assumes that the sales include the consumption taxes. As sales deductions - regardless of their designation or legal admissibility - esp. Discounts, discounts, bonuses, premiums and other reductions, but also reimbursed fees (price reductions due to complaints, goodwill, credits for invoiced freight and packaging costs, returned goods, etc.) can be deducted. The prerequisite for a deduction is always that the amounts to be corrected are included in sales. Revenue adjustments due to sales cancellation or other corrections can also be considered. However, this does not include expenses that were reimbursed to the customer in connection with the cancellation or reduction (e.g. compensation for consequential damage). Deductibility does not require that the discounts or repayments have already been paid out; rather, additions to corresponding provisions (e.g. for returns, bonuses, conversion and price reduction components for warranty provisions) or posting of liabilities can justify a reduction in gross sales. In the absence of inclusion in gross revenues, i. d. As a rule, however, so-called discounts in kind (free quantities) and free “rework” are not part of the sales deductions. Reductions in value, exchange rate losses, waivers and defaults of receivables, del credere insurance, factoring discounts, real contractual penalties or sales costs (e.g. agency commissions, outgoing freight, etc.) do not belong to the reductions in revenue. The fact that the sales tax is to be deducted from the gross proceeds is no longer in dispute, as the net sales disclosure procedure is now prescribed by Section 277 (1) of the German Commercial Code (HGB). Despite the clear new regulation, the prevailing opinion still appears to be permissible for a gross statement with open VAT deduction in the previous column. However, the gross revenues must also be designated in this way and the VAT deduction must be made directly under item 1. In the appendix, sales revenues from other periods and sales deductions according to Section 277 (4) sentence 3 of the German Commercial Code (HGB) must be explained with regard to their amount and type, unless the amounts shown are of subordinate importance for the assessment of the earnings situation. For large corporations, in accordance with Section 285 No. 4 in conjunction with Section 286 (2) and Section 288 of the German Commercial Code (HGB), there is an obligation to break down sales according to areas of activity and regional markets. In addition, the amount of sales is also of importance for the allocation of a corporation to a certain size class (Section 267 HGB, Section 1 (2) PublG).

Literature: Federmann, R., income statements according to commercial and tax law, Berlin 1992.

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