Which line is profit from sales reflected in the balance sheet?

Composition of financial statements

The Law “On Accounting” dated December 6, 2011 No. 402-FZ provides for the following package of forms, which is included in the financial statements of a legal entity:

• balance sheet;
• income statement;
• applications.

The balance sheet is a reflection of the state of the enterprise as of the reporting date, and the financial results report shows the results of its activities for the reporting period. From this it becomes clear that in the balance sheet it will be possible to find only the accumulated profit or loss for a specific date. Moreover, this indicator will not provide an understanding of the amount of profit from sales over the entire history of the company. Line 1370 of the “Capital and Reserves” section reflects the balance of account 84. This means that the indicator is equal to the amount of accumulated losses or profits received (not only from sales, but also taking into account non-operating income and expenses) minus expenses that were incurred at the expense of profits (this could be, for example, accrued dividends, the formation of reserve capital and other expenses).

Income statement

Form 2 is one of the most famous forms; it is intended for drawing up a statement of financial results. There are some features of entering information about value added tax into it.

This form is a reporting form and contains information about income and expenses. In the law that was in force until 2013 (according to 129-FZ), this document was called the “Profit and Loss Statement”.

The form represents a table that displays information about the reporting period and date, information about the organization and unit. measurements. The table with reporting information must have columns - number, name of data, codes, size of the indicator for the reporting period and the previous one.

Revenue is reflected in line 2110. It displays income, turnover on the credit of account 90-1, reduced by turnover on accounts 90-3, 90-4. In addition to the table, the form of this form must directly contain the name of the document, the date for which period it was generated, the name of the organization, INN, type of activity, general public fund. Thus, the financial results report is created on a special form and filled out in accordance with existing rules.

How is revenue reflected on the balance sheet?

The method of accounting for revenue is strictly prescribed in the accounting policy of the enterprise. In the first paragraph, the calculation formula looks like this: TR = OGPn + GP - OGPk, where:

• OGPN – balance of finished products as of the first day of the reporting period;
• GP – finished products produced during this time and intended for sale;
• OGPk – balance of finished products as of the last date of the reporting period.

But in the current turbulent times, an increasing number of entrepreneurs and organizations prefer the cash method of accounting for revenue.

The formula for determining revenue according to point two looks like this: TR=P*Q, where:

• TR – revenue;
• P – price per piece of goods;
• Q – volume of goods sold.

As you can see, nothing complicated. Example.

What is it and where can I see it?

At the end of the reporting period, management needs comprehensive information about the return on assets and profitability of the enterprise. Accordingly, it is necessary to know the amount of revenue and expenses. For this purpose, a balance sheet is prepared.

The balance sheet is not only information for reporting to the Federal Tax Service, it is a source of data for analyzing the current activities of the enterprise and making forecasts. This is a document showing the financial position of an enterprise at the reporting date, the value of assets and the amount of capital of the organization, as well as the amount of its liabilities.

As for revenue, there is no separate line for it in the balance sheet. This, surprising at first glance, circumstance is explained by the fact that the assets and liabilities of the enterprise are reflected in the balance sheet at the moment in question. Whereas the sold product or service is no longer an asset. And the financial results, which include revenue, are reflected in the income statement.

Sometimes it is still possible to define a line item for revenue on the balance sheet. This is a case where the finished products sold were not paid for. Revenue from the sale of finished products is usually represented by the following entry: Debit of account 62 “Settlements with buyers and customers” – Credit of account 90 “Sales”, subaccount “Revenue”. Read about which accounting account revenue can be displayed in here.

Thus, customer debt equal to revenue from the sale of goods and services of the enterprise will be reflected in line 1230 “Accounts receivable”.

Attention! Balance sheet revenue in line 1230 is indicated with VAT, and in the profit and loss statement net revenue is indicated - this is the amount reduced by the VAT accrued on revenue.

Accountant's Directory

In the case when the actual production cost is lower than the standard (planned) cost, the amount of this deviation reduces the data for the specified item.

Organizations can distribute administrative and commercial expenses between finished products sold and those remaining in stock (or between sold and unsold goods in trading organizations).

In this case, part of these expenses will be included in the cost of products (goods). However, they are not reflected in lines 030 and 040.

The amount on line 020 is equal to the debit turnover on account 90.2 “Cost”.

The data in the article “Gross profit” (line 029) of the income statement is defined as the difference between the data in lines 010 and 020 (revenue - cost).

Line 030 “Commercial expenses” reflects the costs associated with the sale of products and distribution costs in the part charged to the cost price in the reporting period (in whole or in part). Commercial expenses include the following expenses for packaging, delivery, loading of products, commissions, advertising expenses, entertainment expenses; in trade organizations - expenses for wages, rent, maintenance of buildings and premises, storage of goods and others. The amount on line 030 is equal to the amount of costs written off in the reporting period from the credit of account 44 “Sales expenses” to the debit of account 90.2 “Cost”.

The article “Administrative expenses” (line 040) of the profit and loss statement reflects the general business expenses of the organization, which are collected on account 26 of the same name, in the case when these expenses are written off directly from account 26 to account 90.2 “Cost”, if provided for by the accounting policy organizations. In the case when general business expenses are distributed to manufactured finished products (to production cost accounts - 20, 23, 29), these costs are included in the amount on line 020 “Cost”, and do not fall into line 040.

General business expenses include: administrative and management expenses;

Balance line

Financial accounting statements are heterogeneous; they include several documents filled out separately by economists. Among them is the income statement, which, in turn, includes the balance sheet.

Important! In accordance with the provisions of the Federal Law of December 6, 2011 “On Accounting”, reporting means the provision of reliable data on the results of the company’s work and cash flow.

Revenue: line 2110

The line is intended to reflect information about revenue (profit received from ordinary activities). Let us remind you that, in addition to revenues from sales of products, goods and services, this includes the following income items:

• for work performed;
• license fees, commissions and royalties;
• rent;
• proceeds related to injections into the authorized capital of other companies.

Relationship with current assets

All information on current assets is reflected in the second section of the balance sheet. And an indicator of the company’s revenue can be the amounts that have been received by the company’s cash desk or into its current account. These amounts are reflected in the line “Cash and equivalents” of the second section of the balance sheet and, in fact, are the organization’s revenue.

The cash balance makes it possible to analyze the success of cash flow management at the enterprise. If large sums of money are reflected in the balance sheet, then it is possible that the company’s activities bring high profits, and managers do not have time to put them into circulation.

If the balances are low, then there may be a competent distribution of funds received from the sale of goods or services. That is, management acquires assets in a timely manner and makes financial investments, efficiently managing the finances of the enterprise.

But in this case, it is necessary to pay attention to the profitability of the enterprise, because small amounts of balances on the balance sheet may indicate a shortage of the company’s own funds.

Important! An important point is whether the proceeds go to the company’s cash desk or to a current account. Since upon receipt at the cash desk, it is possible to exceed the established limit, which is an administrative offense (Article 15.1 of the Administrative Code).

Net profit - formula for calculating the balance sheet

However, revenue and balance sheet are related, although this connection is not clearly visible. Let's trace it using the example of individual balance sheet lines. Revenue and the 1st section of the balance sheet Almost every line of the first section of the balance sheet is associated with a revenue indicator. For example, if the residual value of fixed assets or intangible assets decreased sharply during the reporting period, it is possible that some of them were sold. In this case, we can talk about the company’s possible revenue from their sale. If information appears on the balance sheet about profitable investments in material assets, you can expect to receive revenue from an activity such as renting out property.

Revenue in accounting is recognized when the conditions established by clause 12 of PBU 9/99 are met. If at least one of these conditions is not met in relation to cash and other assets received by the organization as payment, then the organization’s accounting records recognize accounts payable, not revenue (paragraph 7, clause 12 of PBU 9/99).

https://youtube.com/watch?v=CN7qKPmUYpM

Moreover, if stages of work are identified in a construction contract, revenue under such a contract is recognized at the reporting date for both completed stages and stages not completed and not accepted by the customer (Appendix to the Letter of the Ministry of Finance of Russia dated 02/06/2015 N 07-04-06/ 5027).

This means transferring a copy of such a report to one employee means disclosing the personal data of other employees. Which line shows profit from sales in the balance sheet?

In Russia, there are several methods for determining the moment of implementation:

1. Shipping or accrual method.
2. Sales by payment (cash method). Profit in this method will be determined only after the company’s account has received funds from the purchase of goods. Most often, this method is used by companies with small financial profits.

PBU 2/2008). In what cases is revenue under construction contracts determined using the “as ready” method? Revenue under a construction contract is recognized using the “as ready” method if the following conditions are simultaneously met: - the start and end dates of work under the contract (stage) fall in different reporting years (clause.

If we take into account small organizations, then the profit of such companies can be entered in accounting only after the buyer is able to pay for it. NKT USSR 04/30/1930 No. 169). But sometimes these 11 months are not so spent. Small organizations have the right not to use the shipping method. As for everyone else, they should only use it.

In Form 2, the profit and loss statement of OPIU

Profit and loss statements are one of the main forms of accounting reports that legal entities are required to prepare and submit to the appropriate authorities. The modern form is called a financial report. results. The final results in the report show what the organization's activities were for the period.

Using the report, you can analyze indicators over time, as well as at the time the report was compiled. It reflects VAT and other data. It is mandatory to submit documentation to the Federal Tax Service and Rosstat.

The report, which is prepared for intermediate dates, may be required by the economic service, financial institutions, and counterparties. The structure of the report should include information on the period for which it was compiled, as well as information about the date of preparation, TIN of the legal entity, reference table, signatures of managers. It is important to reflect VAT on the balance sheet.

We can say that the profit and loss statement, or more precisely, a document containing data on financial results, includes data on which indicators of income and expenses formed the result of the work of a legal entity.

Income Statement for Business Analysis

It is the financial results report that will make it possible to analyze the structure of the enterprise’s profit, its dynamics in comparison with previous reporting periods. Based on the data from this form, you can make important organizational decisions to manage profits, increase profitability, and sometimes simply draw conclusions about the effectiveness of the company.

If the profit from sales in the total amount of net profit is an insignificant share, and the main influence on the net profit is exerted by other activities, then you should think about whether it’s time to change the profile of the company. Or even decide to close it altogether, since often large profits from other activities can mean the sale of the company’s assets, which sometimes indicates its unstable position.

As for the balance sheet, it is no less important for the analysis, but without the ability to understand the structure of profit for the period, the analysis will not be complete.

For information on how to analyze the balance sheet, read the material “Methodology for analyzing the balance sheet of an enterprise.”

Tags: asset, balance sheet, accountant, loan, tax, order, expense, formula

Actions if the amounts in the declarations differ

From the moment the ASK VAT information system, which was introduced by the Federal Tax Service, began to function, taxpayers began to receive requests for explanations regarding discrepancies much more often. The peculiarities of this program are that it operates automatically and can, based on some of the specified criteria, identify errors in reporting.

Discrepancies can be internal or with counterparties. Internal discrepancies in the declaration may arise if deduction amounts that contain kopecks have been rounded. The limit of permissible discrepancy should be no more than 10 rubles. If these discrepancies are identified, as well as inconsistencies with counterparties, explanations may be required.

If there are differences in the data in the declaration and in the balance sheet, the fiscal authorities may also have questions for the payer. Tax officials compare declarations with accounting records. In case of discrepancies, there is a risk of claims arising during a desk inspection, as well as during an on-site inspection.

One of the mistakes may be the larger amount of accounting income than tax income. If tax revenue exceeds accounting revenue, this will not cause serious problems. However, otherwise, the tax authorities may consider that the tax base is underestimated.

If the tax authority requires explanations, they must be sent within 5 business days after the message with the request is received. Explanations must be provided in writing.

Revenue and debt

Information about the company's borrowed funds is contained in sections 4 and 5 of the balance sheet. The relationship between this information and revenue is very weak, but it exists.

Borrowing money is a dangerous and burdensome operation. Dangerous because there is a possibility of not repaying the debt and even going bankrupt. Burdensome if paying interest on borrowed funds consumes all working capital, and there is no money left for current expenses. There is nothing to buy raw materials, nothing to pay wages and taxes, nothing to pay for electricity and heat, that is, the production process is under threat. As a result, disruptions occur in the supply of finished products to customers. And where there is no sales, there is no revenue.

IMPORTANT! Now companies do not need to standardize interest on borrowed funds for the purpose of calculating income tax (Law No. 420-FZ dated December 28, 2013). This is true for all debt obligations, except those that arose as a result of controlled transactions.

Which accounting entry reflects profit from the sale of products?

To account for income and form the cost of goods sold, work or services, account 90 “Sales” is used. Depending on the type of activity and the specifics of the organization’s work, the entries to reflect the receipt of revenue and write-off of expenses may differ. But the reflection of profit or loss from sales will be the same regardless of what activity the company conducts.

To properly understand how profit from sales is formed, it is best to analyze which turnovers fall into the 90th account:

1. Revenue is reflected by posting Dt 62 Kt 90.1. But in retail trade, the wiring will look like Dt 50 Kt 90.1 or Dt 57 Kt 90.1.
2. The cost of services and work is written off with such entries as Dt 90.2 Kt 20 (23, 26, 25, etc.). In wholesale trade, the cost of goods will be written off using the operation Dt 90.2 Kt 41, and sales expenses - Dt 90.2 Kt 44. In retail, you additionally need to take into account the markup Dt 90.2 Kt 42. And in production, the cost of finished products will be written off using the entry Dt 90.2 Kt 43.
3. VAT for any type of activity will be charged by posting Dt 90.3 Kt 68.
4. Profit from sales will be reflected in the accounting record Dt 90.9 Kt 99.
5. The loss from sales will be reflected by the posting Dt 99 Kt 90.9.

IMPORTANT! In some accounting programs, subaccount numbers may differ from the Chart of Accounts approved by the Ministry of Finance. In addition, the organization can change, delete or introduce additional sub-accounts independently if required by the specifics of its activities.

The amount of the posting in correspondence with account 99 will be equal to the profit or loss received from the sale. That is, the amount of revenue minus cost, VAT and excise taxes, if any. If the calculation is correct, the collapsed (without analytics) balance of account 90 should become zero at the end of the period. The presence of a balance will mean that the formation of the entry for writing off profit (loss) was made with an error.

When reforming the balance, it is necessary to close the 90th account. This event involves writing off the balance of all subaccounts to account 90 to account 90.9. These can be operations such as (if there is turnover during the year):

• Dt 90.1 Kt 90.9 - for writing off revenue turnover during the year;
• Dt 90.9 Kt 90.2 - for writing off turnover at cost;
• Dt 90.9 Kt 90.3 (90.4) - for writing off turnover based on accrued VAT or excise taxes.

The balance on account 90.9 (as well as on account 90 as a whole) should become zero automatically after the above operations. If this does not happen, you should look for an error in the wiring.

On what account is it reflected?

In accordance with the Chart of Accounts and Instructions for its application, developed by the Ministry of Finance dated October 31, 2000, the main account for recording revenue is account 90 - “Sales”.

Postings can be reflected like this:

1. Revenue from the sale of goods, debit – “62” “Settlements with buyers and customers”, credit “90”, subaccount “Revenue”.
2. The cost of goods sold is written off, debit – “90” “Cost of sales”, credit “41” “Goods”.
3. VAT is charged on the cost of goods sold, debit – “90” subaccount “VAT”, credit – “68” “Calculations for taxes and duties”.

We offer a video lesson on the topic “Account 90 “Sales” in accounting: entries, examples”:

Profit and income of the enterprise

Setting prices at current prices.

When setting a price for its product, an enterprise is based on the prices of competitors and pays less attention to its own costs.

The amount of markup or VAT in the retail price is determined by the formula:

N = Price * (surcharge or VAT / (100 + surcharge or VAT)),

15,25 = 18/118,

Price * 15.25 = 95 * 0.1525 = 14.48 - VAT in the price (95 rubles)

Profit (net income) is the final financial result of entrepreneurial activity (net income).

Profit = Cash proceeds from product sales - cost of products sold

Gross gross revenue is determined at actual sales prices, taking into account VAT and excise taxes.

Net gross revenue is determined without VAT and excise taxes. Typically, gross revenue means net gross revenue, since it underlies the determination of profit.

Form No. 2 “Profit and Loss Statement”:

- Gross profit

— Profit (loss) from sales

— Balance sheet profit (loss)

— Profit (loss) before tax

— Net profit (loss) of the reporting period

Gross profit = Revenue from the sale of goods (works, services) – production cost of goods sold

Sales profit = Gross profit - selling expenses (distribution expenses) - administrative expenses (general expenses)

or

Profit from sales = Revenue from the sale of goods (works, services) – full cost of products sold

Balance sheet profit = Profit from sales + (-) Balance of other income and expenses

Profit (loss) before tax = Balance sheet profit reduced by the amount of income that is subject to independent taxation and the amount of benefits.

Net profit (loss) of the reporting period = Profit (loss) before tax - income tax and other similar payments

Balance sheet profit is adjusted, that is, reduced by types of income that are subject to independent taxation (from equity participation in the activities of other enterprises; dividends, interest on securities owned by the enterprise; from holding concerts and entertainment events in open areas, stadiums; from the operation of casinos , video salons, slot machines).

The amounts of profit for which tax benefits have been established are excluded from the balance sheet profit (part of the profit that goes to the maintenance of healthcare institutions, cultural and social spheres, etc., which are on the balance sheet of the enterprise, profit directed to finance capital investments for industrial purposes is exempt from tax)

Income:

1. Income from ordinary activities:

— Revenue from sales of products and goods

— Receipts related to the performance of work and provision of services

2. Operating income:

— Interest and dividends receivable

— Royalty

- Rent

— Receipts the receipt of which is associated with the provision for temporary use of one’s assets, intellectual property, etc., for a fee, when this is not the subject of the organization’s activities

— Proceeds from the sale of fixed assets

— Unrealized profit resulting from the revaluation of marketable securities

3. Non-operating income:

— Fines, penalties, penalties for violation of contract terms

— Assets received free of charge (including under a gift agreement)

— Proceeds for compensation of losses caused by organizations

— Profit of previous years recognized in the reporting year

— Amounts of accounts payable and depositors for which the statute of limitations has expired

- Exchange difference

— Amounts of revaluation of assets (except for non-current assets)

— Other non-operating income

4. Extraordinary income - income arising as a consequence of emergency circumstances, insurance compensation, the cost of material assets remaining from the write-off of assets that are not suitable for restoration and further use

Gross income (net product) = Cash revenue – material costs

or

Gross income = Salary + Profit

Formula for calculating profit from sales

Based on the lines of the income statement, the formula looks like:

Line 2200 Sales profit = Line 2110 Revenue – Line 2120 Cost of sales – Line 2210 Selling expenses – Line 2220 Administrative expenses

Or

Line 2200 Sales profit = Line 2100 Gross profit - Line 2210 Selling expenses - Line 2220 Administrative expenses

In management accounting, profit from sales can be calculated based on indicators of sales volume (in natural units of measurement), price, as well as the full cost of products sold (including administrative and selling expenses per unit of finished product or service).

If these indicators are available, profit from sales can be calculated as:

Profit from sales = Sales volume * Price – Sales volume * Full cost of products sold

Sales profit is often confused with net profit. Net profit is the final indicator of the profitability of an enterprise, cleared of all possible expenses.

Based on the lines of the income statement, the formula looks like:

Line 2400 Net profit = Line 2110 Revenue - Line 2120 Cost of sales - Line 2210 Selling expenses - Line 2220 Administrative expenses - Line 2310 Income from participation in other organizations - Line 2320 Interest receivable - Line 2330 Interest payable - Line 2340 Other income – Line 2350 Other expenses – Line 2410 Current income tax – Line 2430 Change in deferred tax liabilities – Line 2450 Change in deferred tax assets – Line 2460 Other

Profit from sales does not take into account other expenses of the organization, taxes and the cost of financing. However, it allows you to assess the degree of efficiency of the main production personnel, as well as the commercial service and managers directly involved in the production and sale of products or services. It allows you to abstract from the influence of factors such as the tax regime and interest rates on loans and borrowings, i.e., the sphere of competence of financial services and company management.

The word “profit” contains all the importance and expediency of the activities of any business entity. Very good for the company if this value is positive

It denotes success and competent management of leaders. But if a negative value is obtained in the calculation of profit, then the enterprise is unprofitable, and the administration of the enterprise made mistakes in production plans

It is very good for the enterprise if this value is positive. It denotes success and competent management of leaders. But if a negative value is obtained in the calculation of profit, then the enterprise is unprofitable, and the administration of the enterprise made mistakes in production plans.

Profit appears when the product is sold. Its indicator is characterized by the difference between the price of a product sold and the costs required to manufacture it. How to correctly determine profit in order to take into account all costs in product cost calculations? This is what today's conversation will be about.

General characteristics and significance of gross profit for production development

Competent management of the production and commercial activities of any enterprise is impossible without regular monitoring of financial indicators.

To monitor the turnover of funds, financial statements are generated. Gross profit is one of the significant indicators of a company's economic potential.

The indicator expresses the financial result of all aspects of the company's activities. The value is reflected in the balance sheet.

The total value expresses the influence of external and internal parameters on the success of the enterprise. For convenience, they are divided into 2 groups.

The first shows the dependence of VP on the organization within production.

Its value is influenced by such parameters as:

1. Cost of production.
2. Commodity coefficient.
3. Volume of production.
4. Product quality.
5. Degree of utilization of production capacity.

In addition to these intra-production reasons, the increase or decrease in gross profit is influenced by environmental parameters.

Among them are:

1. Location of the company.
2. Regulatory framework.
3. Political and economic situation in the country.
4. The natural environment.

Analysis of the parameters that affect the amount of gross profit is necessary to make a decision on the feasibility of a particular type of activity in a particular region. With the help of this tool, profitable or unprofitable areas of business are identified, and guidelines for new ways to solve financial problems are obtained.

What is gross profit and how does it differ from net profit?

Gross profit is considered one of the main indicators characterizing the efficiency of an enterprise. It is calculated as the difference between:

• net revenue from the main activity,
• the cost of goods or services.

Based on the obtained value, one can indirectly judge the profitability of the enterprise. Indirectly - since the indicators taken into account do not reflect complete information.

Thus, the term “net” in relation to revenue means that it is necessary to subtract from it:

• VAT,
• excise taxes,
• other obligatory payments (for example, export duties).

The cost indicator is formed by:

• costs of production and provision of services;
• the purchase price of the goods sold.

Commercial and administrative expenses are not included in the cost price; they are reflected in the financial performance statement separately and participate in the formation of the net profit indicator (clause 23 of PBU 4/99).

Actually, this is the difference between gross profit and net profit. The first serves, rather, to assess production costs, pricing efficiency, and return on production, since it is formed from indicators that are directly related to production.

While net profit is the final financial result of the enterprise’s activities for the reporting period, calculated as the difference between all recognized income and expenses (including taxes and mandatory payments).

Measures to increase gross profit

Calculation of VP, analysis of all its elements, identification of accompanying and impeding factors are aimed at increasing the profitability of the enterprise. Economic theory and practice have in their arsenal tools for increasing gross profit.

Here they are:

1. LIFO technique.
2. Tax benefits.
3. Writing off bad debts.
4. Reducing costs.
5. Flexibility in pricing.
6. Use of high technologies.
7. Improving the quality of products and services.
8. Increased control over intangible assets.

Help: LIFO method

(
LIFO
) - a method of accounting for inventory in value terms at the price of the last batch manufactured or received. In accordance with this method, inventory items that were registered last are removed from the register first.

Intensification of production processes, the use of high-tech equipment, high-quality raw materials, reasonable organization of labor, and the use of modern technologies are factors that ensure the liquidity of products and, as a result, increase VP.

Gross profit is the amount of money remaining in a company's account after subtracting production expenses. The numerical value is determined by the formula. Calculation details vary depending on the type of business. The indicator is necessary for assessing technological production resources. VP helps to rationally formulate the commodity value of products. The value is reflected in the financial statements through entries approved by order of the Ministry of Finance.

Why are calculations needed?

Accounting records serve as a reliable basis for calculating the indicator and assessing the performance of the company for the period. Both the managers of the company itself and its investors, current and potential, are interested in obtaining data characterizing balance sheet profit.

Consideration of the indicator in dynamics helps to determine how much the efficiency of the business entity has increased or decreased. By analyzing the components of profit, one can see promising directions for its receipt, factors that prevent an increase in volume, which contributes to making effective economic decisions.

For example, a decrease in profit from sales of core products may indicate:

• about the ineffective work of sales managers;
• about the fall in market prices for products;
• about a drop in demand for certain goods, works, and services.

Note! Based on accounting profit, another important indicator is calculated - net profit, the commercial efficiency of an economic entity. Net profit = book profit – income tax payable

Reflection of gross profit in the balance sheet

Line 2100 of the income statement is devoted to gross profit indicators. The calculation uses information from line 2110, showing sales revenue and information about the cost of production from line 2120. The difference between these indicators gives the gross profit values. A negative value indicates that the business is unprofitable. The value is written in parentheses without the minus.

The concept of the VP coefficient

Gross profit as a percentage is called the VP ratio. The value shows the ratio of total profit to revenue. A high ratio indicates the profitability of the business and confirms the appropriate level of cost control. A low percentage indicates poor return on costs for the manufacture, production and sale of products.

The VP coefficient is an important indicator for monitoring the company’s activities in the local segment of the economy. Determines its place among its competitors and gives an idea of ​​the rate of economic growth.

The importance of gross profit for long-term business development

The indicator reflects the financial result against the background of total production costs; the coefficient takes into account not only the cost of production, but also the costs of management, sales, and foreign economic relations.

Reference: TCtechn — technological cost. Reflects shop costs, cost of raw materials, and employee wages.

This includes costs for finding partners, marketing products, concluding contracts, and signing agreements. In total, these costs relate to the technological cost of the product.

The general terms of the VP coefficient are divided into subaccounts or expenses of the second row.

General view of the VP formula

Gross profit is withdrawn after receipt of revenue. From the amount received from the sale of goods (TR), the product cost indicator (TCtechn) is subtracted and the gross profit (GP) is obtained.

Attention: the classic formula looks like this: GP = TR - TStechn.

What to do if the wiring is incorrect?

If such a problem occurs, we advise you to sort out the settings of your 1C. To change accounts receivable, follow the "Settlements" link at the top of the document. You can change accounts in the table itself; they are indicated for each product or service.

Attention! It is better to set up accounts correctly once than to correct them every time in a finished document.

For individual entrepreneurs

The document includes only three columns:

1. in the first, the individual entrepreneur enters the date of the operation;
2. in the second, he enters the proceeds from the sale of goods or services;
3. in the third, indicates the document on the basis of which the volume of goods was reduced/their value was changed/returned – if any.

Data is entered every month , and the results are summarized below in the “Total” line.

For LLC

• No.;
• date and number of the primary document;
• Contents of operation;
• income taken into account when calculating the single tax;
• expenses that are also taken into account when calculating the tax.

Now you know how to correctly reflect revenue from the sale of goods or the sale of services in an accounting report. All features of financial statements are reflected in Russian legislation. Once again, we note that the main thing is the correct wiring setup. If the document does not turn out as expected, simply double-check all the accounts in the 1C program.

Sources

• https://nalog-nalog.ru/buhgalterskaya_otchetnost/godovaya_buhgalterskaya_otchetnost/po_kakoj_stroke_otrazhaetsya_pribyl_ot_realizacii_v_balanse/
• https://expert-nds.ru/vyruchka-v-balanse/
• https://101million.com/buhuchet/prochie-raschety/vyruchka/v-buhgalterskom-balanse.html
• https://101million.com/buhuchet/prochie-raschety/vyruchka/ot-realizatsii/kak-otrazhaetsya.html
• https://nalog-nalog.ru/buhgalterskaya_otchetnost/sostavlenie_buhgalterskoj_otchetnosti/kak_otrazhaetsya_vyruchka_v_buhgalterskom_balanse/
• https://raydget.ru/2261-balansovaya-pribyl/
• https://kakrabotat.ru/ya-predpinimatel/chto-takoe-valovaya-pribil.html
• https://nalog-nalog.ru/buhgalterskij_uchet/po_kakoj_stroke_otrazhaetsya_valovaya_pribyl_v_balanse/