Gross profit: formula and meaning. What is gross profit and how is it calculated?

The goal of any company is to generate income. It can be calculated using different indicators. There are such concepts as revenue and net profit. Gross profit is a key indicator of a company's performance. It allows you to analyze the production efficiency of the structure.

What is gross profit?

Gross profit is the difference between income and cost. Taxes are not deducted from these funds. Cost means:

• costs of producing the product: costs of materials, equipment maintenance;
• expenses for the purchase of a finished product at the purchase price;
• payment for electricity;
• salary payments.

All these indicators constitute technical costs.

IMPORTANT! VP is calculated for a specific period. The time period depends on the company. The resulting figure is indicated in the balance sheet.

What influences VP?

Gross profit changes under the influence of external circumstances, such as:

• cost of transportation services,
• natural, environmental factors,
• socio-economic environment in which the enterprise operates,
• costs of production resources,
• foreign economic contacts.

VP is also influenced by internal factors:

• income from product sales,
• other sources of income: investments, provision of services,
• cost of goods,
• demand for manufactured products, sales figures,
• cost of manufactured goods.

Gross profit is also affected by negative factors possible during the operation of the enterprise:

• overestimated or underestimated cost of products sold;
• low quality of goods;
• disciplinary violations by the company’s employees leading to losses;
• fines and sanctions.

The listed factors can affect the gross profit directly and indirectly. Factors that affect sales income have an indirect influence.

Gross profit composition

The VP may include the following financial resources:

• profit from sales of enterprise products and services;
• funds received from rural and logging farms;
• income from the sale of company property: equipment and other objects;
• amounts received from transactions not included in the main list of company activities. For example, a store sells goods. This is his main activity. However, the funds are spent on investments, the income from which is classified as non-operating profit;
• amounts received from the sale of shares.

The vast majority of EP, according to statistics, consists of income received from core activities.

Formula for calculating gross profit

Gross profit is calculated using the formula:

VP = D - (S+W)

The formula includes the following indicators:

• VP - gross profit;
• D - quantity of products sold;
• C is the cost of production of goods;
• Z - costs during production processes.

VP indicators can be calculated after the product has been produced and sold.

ATTENTION! Typically, gross profit is calculated once a year.

Example

The company produces electric kettles. Production costs are 20,000 rubles, expenses are 10,000 rubles. 500 teapots were sold per day at a cost of 1000 rubles.

Calculations are carried out as follows: revenue per day is calculated. That is, the number of teapots sold is multiplied by their cost. We will receive 500,000 rubles. From this result you need to subtract all costs, which in total amount to 30,000 rubles. From 500,000, 30,000 rubles are deducted. Gross profit will be 470,000 rubles.

Calculation features

The calculation of VP differs in a number of nuances, determined by the type of activity of the enterprise:

• If a company specializes in selling products, it is required to deduct all expenses from revenue, including discounts on goods and returns. Subtracted from the amount received. The result of the calculations is the gross profit;
• If an organization specializes in providing services, calculations are usually carried out according to a simplified scheme. Their revenues are deducted from discounts and other expenses. The resulting net profit is also gross profit.

The main stages of the calculation are standard.

Why is gross cost calculation necessary?

Gross profit does not reflect the actual income of a business. This figure includes many unnecessary expenses: advertising, salaries, rent. VP is required for other purposes. This is a narrow, not a general tool. It is used to analyze the production resources of an enterprise. Correctly calculated indicators ensure the achievement of the following goals:

• analysis of the difference between the cost of a product and the income from its sale;
• determining the optimal cost for a product or service;
• competent measures for planning the company’s activities;
• identifying problems and weaknesses of the enterprise.

Based on the analysis of annual VP indicators, it is possible to track the economic growth of the enterprise and the results of optimizing activities.

Reflection of VP in financial statements

It should be clear from the financial statements on what basis gross profit is calculated. Let's consider the components of the calculation formula from an accounting point of view:

• “revenue” (line 2110);
• “cost price” (line 2120).

Recording of VP in documents takes into account the order of the Ministry of Finance defining accounting entries. Foreign exchange profit is indicated in line 2100.

How to increase gross profit?

Gross profit is a dynamic indicator. It constantly changes depending on the company's activities. The following activities help increase VP:

• use of LIFO technique in inventory analysis;
• tax reduction with the help of benefits that the enterprise is entitled to;
• regular write-off of bad debts from the balance sheet;
• optimization of production processes aimed at reducing costs;
• competent pricing policy that takes into account the demand for products and the general market situation;
• improving the quality of equipment to speed up the release of goods and improve their quality. Restoration or acquisition of equipment can be carried out at the expense of shareholder dividends;
• creation of reasonable standards to ensure control over intangible assets.

IMPORTANT! Gross profit is an indicator on the basis of which planning of an enterprise’s activities in the production sector can be carried out.

So.
Gross profit is the amount obtained after deducting costs and production costs. Determined by formula. The nuances of the calculation depend on the type of activity of the enterprise. The VP indicator is important for assessing the company's production resources. Is the basis for reasonable pricing. Gross profit is reflected in the financial statements using the appropriate entries established by the Order of the Ministry of Finance.

One of the key indicators characterizing the financial result of an economic entity is gross profit. The accuracy of the economic analysis carried out to determine promising directions for the development of the enterprise largely depends on the correctness of determining this indicator. In the article we will look at what gross profit is, how it differs from other types of profit, and we will study the calculation algorithm and how it differs from other results.

Gross profit concept

Gross profit refers to the difference between the proceeds from the sale of an organization's products, goods, works or services and the costs of their production or purchase. The main purpose of the gross profit indicator is to determine the rationality of spending labor, material and other resources of a legal entity.

As a rule, the reporting period for determining the amount of gross profit is month, quarter, half year and year. But for internal economic analysis and management accounting, depending on the company’s goals, gross profit can be calculated over a shorter period - a week, 10 days, a decade.

The difference between gross profit and other financial performance indicators

The gross profit indicator differs significantly from gross income, net, marginal and balance sheet profit.

Difference from gross income

Gross revenue (income) represents all the funds that a company received from its activities. This figure includes tax and other similar payments included in the price of assets sold. The amount of gross revenue depends not only on the price and number of sales, but also on the product range, labor productivity, demand and other indicators.

Gross profit refers to the difference between the amount of revenue from all activities and the expenses associated with them.

Gross and net profit

There is a main difference between these indicators. When determining gross profit, in contrast to net profit, the amount of taxes, fees and other similar payments is not taken into account.

First, gross profit is calculated. After this, by subtracting the amount of taxes and fees accrued by the enterprise, the amount of net profit is determined.

Difference from contribution margin The concept of marginal profit is closely related to the concept of variable costs, which are directly proportional to production output. These are materials, wages of workers engaged in production and sales.

Marginal profit is calculated as the difference between the organization's income and variable expenses.

Its main difference from gross is that with the help of this indicator it is possible to determine the optimal production output in terms of volume and range, the most cost-effective option for production development. Gross profit characterizes the success of the company as a whole.

Balance sheet and gross profit: the same thing?

Gross profit can be calculated in different ways. The easiest way to define it is as the difference between sales revenue and sales expenses. You can calculate gross profit based on the amount of turnover. This does three things:

• turnover is multiplied by the estimated gross profit premium;
• the resulting value is divided by 100;
• The cost of sales is subtracted from the calculation result.

The estimated allowance is determined as follows:

• the trade markup as a percentage is divided by 100;
• the value of the trade markup as a percentage for the reporting period is added to the result obtained.

Indicators involved in determining gross profit

The indicators taken into account when determining gross profit will differ slightly depending on the type of activity of the economic entity.

Gross profit as a financial reporting indicator

Gross profit is shown in the income statement on line 2100. The value of this line is calculated by subtracting their cost on line 2120 from sales revenue on line 2110. The gross profit indicator can have either a positive or negative value. If, as a result of the organization’s activities, a negative gross profit is obtained, we are talking about a loss, which is written without the minus sign in parentheses.

For example, Raduga LLC is engaged in sewing workwear. The organization's reporting for the previous period contains the following data:

Gross profit is calculated by subtracting its cost from sales revenue: 50,000 – 40,000 = 10,000 rubles.

Gross profit accounting: postings

Account 90 “Sales” is used to reflect gross profit in accounting. To calculate the gross profit for the reporting period, you need to compare the loan turnover with the debit turnover of this account broken down by subaccounts.

Account 90/9 is closed monthly by writing off the balance to account 99 “Profits and losses”. A debit balance on account 90/9 means that the financial result for the normal activities of the enterprise was a gross loss, while a credit balance indicates gross profit for the month. At the end of the year, subaccounts are closed on account 90.

Let's look at the example of reflecting product sales and the formation of gross profit in accounting accounts. The main activity of the enterprise is the production of light metal structures (medals, orders, badges, metal fittings). In 2016, products were sold for 1,180,000 rubles (including VAT of 180,000 rubles). The cost of production was 700,000 rubles. In accounting, the accountant reflected the sale as follows:

• Dt62 Kt90/1 = 1180000 – shipment of products;
• Dt90/2 Kt43 = 700000 – write-off of production costs;
• Dt90/3 Kt68 = 180000 – VAT on shipped products;
• Dt90/9 Kt90/2 = 700000 – account closure;
• Dt90/9 Kt90/3 = 180000 – account closure;
• Dt90/9 Kt99 = 300,000 – sales result.

Gross profit, EBIT and EBITDA - what do they have in common?

When analyzing the financial condition and economic activities of an organization, EBIT and EBITDA indicators are used in world practice. In the Russian Federation they are used mainly by the largest resource extraction companies (Lukoil, Gazprom, etc.). Among domestic small and medium-sized businesses, these indicators have not received much widespread and practical application.

Their difference from gross profit lies in the special “cleaning” of this indicator and the calculation algorithm.

EBIT and EBITDA are determined in Russia somewhat differently than under IFRS. In domestic practice, EBIT and gross profit are identical. EBIT is the difference between sales revenue and direct expenses. In the Russian Federation, when calculating it, one must take into account the amount of net interest, income tax reimbursement and the balance of extraordinary expenses and income.

• EBITDA = EBIT + depreciation.

Gross profit in economic analysis

Gross profit analysis is necessary for making important management decisions and developing an organization's strategy for the future. On the basis of this value, profitability of sales, capital turnover and a number of other important indicators characterizing the activities of an economic entity are determined. When conducting financial analysis, you can compare indicators obtained based on gross profit values ​​for the period:

• planned and actual;
• previous and present (actual).

It is relevant to compare the indicator for the enterprise with the average value for the industry, as well as actual values ​​with standard values.

Answers to pressing questions

Question No. 1. What is the difference between concepts such as gross income and gross profit?

Question No. 2. What factors affect gross profit?

The amount of gross profit depends on factors of two internal levels:

• first level – sales income, interest receivable and payable, operating and non-operating profit;
• the second level is the cost of production, the structure of goods sold, sales volume and the purchase price of goods.

Gross profit is affected by product quality, correct pricing of goods, fines and economic sanctions.

Gross profit is also influenced by external factors - geographical, political, natural. The management of an organization can easily influence internal factors. In relation to the influence of external factors, the choice of a flexible enterprise strategy that can quickly change is required. Question No. 3.

What transactions reflect the formation of gross profit in a retail trade organization?

• When selling goods at retail, the accountant makes the following entries:
• Dt50 Kt90 – cash received for the Goods sold;
• Dt90/2 Kt41/2 – write-off of the cost of goods (sales price);
• Dt90/2 Kt42 – trade margin of goods sold (the posting is reversed);
• Dt90/3 Kt68 – VAT payable;
• Dt90/3 Kt44 – write-off of distribution costs;

Dt90/9 Kt99 – financial result from sales. Question No. 4.

The trade organization has established the same percentage of trade margins for all product groups (20%). Revenue for the reporting period amounted to 1,500,000 rubles. How to correctly calculate the implemented enterprise overlay?

• When a trade organization has established a single percentage of trade markup for all groups of goods, then to calculate gross income (realized overlay) you can use the method of determining by turnover (T), that is, by the total amount of sales revenue.
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Gross income is revenue from the sale of goods and services minus their purchase price.

Gross income is generated from trade markups, receipts for services rendered and work performed (delivery of goods to your home, cutting fabrics, assembly and installation of furniture, etc.), other income from non-core activities (sale of surplus equipment, rental of premises and facilities small retail network, income from equity participation in the activities of other enterprises from securities owned by the enterprise, the balance of income and expenses from non-operating transactions, etc.).

Gross income is calculated using the following formula:

VD = N + Su + Pd,

where VD is gross income;

N - amount of trade markup;

Su - cost of services provided;

PD - other income.

Gross income is calculated by two main indicators: absolute amount (in rubles) and level (%).

The level of gross income is calculated as the ratio of the amount of gross income to the absolute amount of retail turnover multiplied by 100%.

Profit

Profit from trading activities is the difference between gross income and distribution costs. Profit is the main indicator of the economic activity of a trading enterprise.

Profit is measured by two main indicators - amount and level. If the amount of profit is less than the absolute amount of distribution costs, then the financial result of the enterprise’s economic activity will be a loss.

Accounting (gross) profit is the difference between gross income and distribution costs.

It is known that not all costs of a trading enterprise are included in distribution costs. Part of the costs incurred by the enterprise at the expense of profits is not considered distribution costs. The sum of the enterprise's costs, taken into account as part of distribution costs and attributable to profit, forms economic costs (all actual expenses of a trading enterprise).

Economic profit is the difference between gross income and economic costs.

Profit from the sale of fixed assets and other property is calculated as the difference between the sale price and the original or residual value of these assets and property, increased by the inflation index.

The composition of income (expenses) from non-operating operations includes: income received from equity participation in the activities of other enterprises, dividends on shares, interest on bonds and other securities owned by the enterprise, income from leasing property, etc. As part of non-operating expenses tax payments attributable to the financial results of the enterprise’s activities are taken into account (property tax, transport tax, etc.).

Gross (balance sheet) profit is the final result of the economic and financial activities of an enterprise and is calculated as the amount of profit (loss) from the sale of goods, fixed assets, other property and income from non-operating operations, reduced by the amount of expenses for these operations. Gross (balance sheet) profit is subject to distribution between the enterprise and the state budget.

Net profit represents that part of the gross (balance sheet) profit that remains at the disposal of the enterprise after paying income tax.

Taxable income is the portion of gross income that is subject to tax. When calculating taxable profit, amounts taxed at the established rates at the source of their payment are excluded from gross profit. These are income from rent, rental of video and audio cassettes, dividends on shares, interest on bonds and other securities owned by a trading enterprise, income from equity participation in the activities of other enterprises, profit from intermediary operations and transactions.

From the above it follows that profit in trade performs the following main functions: an evaluative indicator of the enterprise’s activity, acts as a source of material incentives for workers, remuneration for section owners, shares in the authorized capital of the enterprise, and also serves as a source of self-financing of the enterprise and replenishment of the state budget.

The purpose of functioning of business entities is to make a profit. However, this parameter does not determine the characteristics of the enterprise’s activities, since it is formed according to the general criteria of income and expenses. The financial result is identified by gross income, the value of which is taken into account in the calculation of total revenue, on the basis of which net profit is determined. The criterion is considered an important economic indicator, since it allows you to analyze the activities of a business entity and identify factors influencing it.

Gross income of the enterprise. What is this indicator?

The gross income of an enterprise determines the financial result of a business entity, which does not take into account the item of expenses related to tax deductions.

The parameter identifies the amount of excess of the organization's income over expenses, including the costs of ensuring production, including advertising and the sale of products or services. To competently determine gross profit, it is necessary to separate selling and production costs. In the process of carrying out business activities during the reporting period, the company may incur expenses that will not be included in distribution costs.

These include payment of fines, repayment of debt on loans in which the rate exceeds the standard value, as well as writing off the residual value of real estate after their sale. Such costs are covered by profit, but do not participate in the formation of gross profit.

How is it formed

Formation of gross income

1. Gross income is formed in several stages:
2. A production process during which the business manager spends funds to ensure it.
3. Conducting activities by a business entity that are not related to the main work, which is a source of replenishment of the company’s current account.
4. Introduction of labor results into the market. The event requires expenses aimed at advertising, transport and economic activities.
5. Increased consumer demand for a product or service.
6. Payment by consumers for purchases, as a result of which the business entity receives the first profit.

Accounting, in which specialists compare the costs of ensuring production with the profit received.

All funds received into the organization’s current account are considered gross income; their total value forms the value of the parameter.

The gross profit parameter depends on financial indicators:

• the amount of revenue received from the sale of the results of production activities;
• income received as a result of transactions that, in accordance with the company’s accounting policies, do not belong to the main ones;
• the cost of business results, including the amount of distribution costs, taking into account the costs of purchasing raw materials and materials, paying for electricity, rent, advertising and intermediary services, as well as paying wages to employees.

Relationship between cost, gross income and profit

Business entities have the right to add to the list of expense items that depend on the specific features of production. The amount of gross profit may be influenced by controllable factors tending to increase indicators:

• volume of products produced or sold;
• conditions of competitiveness;
• quality of performance results;
• range of products or services;
• operation of production assets;
• labor productivity.

Potential and actual gross income

There are also factors that are difficult to predict and control, but they have a direct impact on the parameter. These include:

• amendments to legislative norms;
• reforms of a political and economic nature;
• unscheduled change of counterparties providing transport and resources;
• territorial and geographical features of the location of the business entity.

Read also: What does it mean to accept?

Gross income is the difference between sales revenue and the cost of business results.

The cost parameter is determined by the costs of raw materials, shop costs and wages of hired workers. To reliably reflect the value, the calculated elements should be taken for a certain time period. The accounting department of the organization must develop and approve a regulated list of cost items related to production support and non-operating expenses. This will allow you to accurately determine the amount of costs taken into account in the cost of production.

Accounting

Types of profit

Using the cash method allows you to estimate the amount of real funds that were received by the seller for the realized results of labor.

However, when providing a counterparty with an installment plan or receiving an advance payment, the parameter may not be assessed reliably, since the profit will be taken into account in the calculations only after receiving the money. When making calculations based on the accrued amount, it is possible to calculate an objective indicator, since its calculations are relevant already at the time of signing the contract or the act of transferring the goods or services to the final consumer. Calculations are carried out without taking into account advance payments. The entire amount of mutual settlements is taken into account at the time of registration of official relations, even if the actual payment will be made later.

How to increase

Company performance indicators

• Having understood what gross income in trade is and what impact it has on the profitability of a business entity, you can adjust the parameter towards its increase. Since the indicator is dynamic, its value can be changed by ensuring competent inventory accounting and reducing costs. The head of a business entity should pay attention to ways to increase production efficiency:
• taking advantage of the opportunity to apply tax benefits;
• timely and regular write-off of items classified as bad debts from the balance sheet;
• the use of modern software for the analysis of inventory balances used to support production;
• optimization of the production process;
• ensuring a competent pricing policy that takes into account the general situation on the market, as well as the demand for products;
• modernization of equipment to increase the speed of production of improved quality products;

control of intangible assets through regulatory criteria.

Types of gross income

In calculations of income capitalization, concepts such as potential and actual gross income are used.

Potential gross income is the income received from the use of real estate, excluding expenses. The parameter depends on the rental rate applied to the property and the area of ​​the property. To calculate it, it is necessary to multiply the area of ​​the property leased by the applicable rental rate established according to regulated standards per square meter.

Actual gross income is the income of a business entity received from the transfer of real estate for rent, taking into account the possibility of obtaining additional profit as a result of the market use of the property, as well as incurred losses and expenses.

Losses may be associated with unused space, as well as with the costs inherent in ensuring the collection of rent.

The base value for the calculation is the potential gross income, which takes into account the profit from the entity’s activities not related to the rental sector, as well as incurred losses and expenses.

Types of profit

There is a distinction between gross and net business profit. The gross parameter takes into account the costs associated with ensuring the work process, and its net equivalent takes into account all production costs.

The economic activities of enterprises are based on making a profit. It becomes an indicator of the quality of work of all its employees. Gross profit characterizes the effectiveness of using all the capabilities of the organization.

There are differences in the definition of gross profit for some types of businesses. Not everyone can take advantage of this economic indicator.

The performance of different companies is compared using the VP indicator. Additionally, gross profit is calculated for other types of work within the organization in order to analyze the effectiveness of product release.

What is VP

Gross profit is the quantitative value of the acquired benefits from various types of work, reduced by associated expenses. For example, the main profit comes from the sale of goods, and its initial cost will be a waste. The difference between the two values ​​will be the gross profit for the main type of work.

Gross profit from all possible types of work is determined in a similar way. Interestingly, in trade it will be the quantitative difference between the selling price and the starting price. For production, gross profit is found using a more complex formula, since the cost includes many components that obey certain rules.

VP is the difference between the amount of purchase of a product and its sale. The differences between gross and net profit are that the first is equal to the income received before mandatory contributions and deductions. Gross profit does not include expenses for taxes and inevitable payments.

Types of gross profit

Let's consider the concept and features of gross profit for various cases:

• Gross profit of the economy- a large-scale concept that is used to determine the economic indicators of countries. It is defined as the difference between GDP and production costs, including wages, purchases of raw materials, imports, etc. As a result, the gross profit of the economy characterizes the profit or loss of residents from goods sold and their other types of income.
• VP from sales- this is a separate type, consisting only of the sale of specific goods and services. It does not include income from dividends and other passive sources.
• Gross profit of the bank. This is the entire profit of a financial institution received from transactions performed, without taking into account any costs. It consists of profits from transactions, dividends, and income from transactions.
• Net gross profit- the difference between all profits received and costs. First, they add up all the income received, then subtract the cost of the organization’s services and goods sold.

Gross margin will be the main measure of profitability or income. It is often used to analyze the efficiency of an enterprise.

Gross Profit Calculation

To correctly determine the VP, it is necessary to take into account all expenses without exception, including the cost of goods. The cost price is understood as a set of expenses in monetary terms for the manufacture of goods.

There are two types of reasons that influence the size of gross profit. The first includes internal factors that depend on the management of the enterprise:

• production growth rate;
• increase in assortment;
• sales efficiency;
• implementation of measures to increase it;
• reduction in initial cost;
• product quality;
• maximum value of production capacity utilization;
• effectiveness of advertising campaigns.

Those that cannot be influenced are considered external:

• natural and environmental factors;
• location;
• legal acts;
• external reasons affecting the supply of vehicles and resources;
• stimulation of business by the state;
• economic and political situation in the country;

Reasons that can be influenced are considered more significant. The need for goods depends on them.

Pricing

Let's consider the organization of pricing policy. In a crisis, the management of the organization must take a competent approach to pricing. We need the right approach to consumers in order to use a minimum of funds to attract them.

However, a constant reduction in price can increase turnover, but does not always ensure the financial well-being of the organization. It would be better to have a good volume at a reasonable price than to sell more for less.

When analyzing profitability, knowing the exact consumer demand, it is permissible to expand the production of in-demand products by reducing or eliminating another product category. This will help you make a profit on in-demand products and reduce costs on unclaimed ones.

Formula for calculating VP

There are several types of gross profit, and accordingly, the formulas for calculating them are different. The classic formula for calculating VP is quite simple and understandable - the difference between net profit from sales and the original price of the product (cost). Unlike net profit, it does not contain variable or operating expenses or taxes.

VP = P - S

VP- gross profit;

P- profit from the sale of products;

WITH- cost of production.

To optimize the value of the VP, they begin to work with cost items included in the initial cost and cover variables not previously included in the calculation.

By focusing on the costs of production and sales of goods, you can accurately determine the gross profit in a certain period.

Retail and wholesale trade organizations

Organizations whose accounting is based on sales prices calculate the financial result in accounting using a different method. Since accounting is based on the price paid by the consumer, the actual debit from account 90 is based on the selling price. In other words, the proceeds from the buyer are equal to the amount that is written off from the account loan. 41-2 to the debit of the account. 90 for the “Cost” subaccount. To find the financial result, they write off not the sales price, but the difference between the retail and purchased prices - reverse the trade margin on the account. 42. This difference will be the gross income or realized overlay.

After the third-party trade markup on the account. 90 forms a credit balance, which will be gross income from the sale of products.

Calculation of goods turnover

It is acceptable to use by retail organizations if all goods are sold at the same trade markup percentage.

Trade turnover is considered to be total revenue including VAT, which is stated in clause 2.2.3 of Methodological Recommendations No. 1-794/32-5.

FD for trade turnover:

VD = T*RN

T- the total size of trade turnover, for wholesale organizations they use wholesale trade turnover with warehouse and transit;

RN- estimated markup:

RN = TN/(100% + TN)

TN- established trade margin.

Let's look at an example. The store has a 30% markup on the entire range. Revenue for the period under review is 170 thousand, including VAT.

pH = 30%/(100%+30%) = 0.23

VD = 170,000*0.23 = 39,100 rub.

If the trade margin changed in the reporting period, then the method can be used, but the FD is determined and calculated separately for different periods.

Calculation by assortment of turnover

The calculation method is used when setting different trade margins for different types of goods.

Gross income is calculated:

VD = (T1*РН1+…+ Тn*РНn)/100

Trade turnover (T) and estimated markup (Margin) are taken separately by group.

Example. In the store I sell dairy products with a 25% markup, and bakery products with a 20% markup. Revenue for the period in the dairy department is 120 thousand rubles, and in the bread department - 90 thousand rubles.

Estimated margin in the dairy department РН = 25 * (100-25) = 0.2. The size of the implemented VD overlays = 120,000 * 0.2 = 24,000 rubles.

The estimated margin in the bread department is RN = 20*(100-20) = 0.17. The size of the implemented VD overlays = 90,000 * 0.17 = 15,300 rubles.

Total gross income: VD = 24,000 + 15,300 = 39,300 rubles.

When the markup changes, calculations are carried out separately by group.

Gross profit by average percentage

The most common method in retail. VD is determined by:

VD = (T*P)/100

T- trade turnover

P- average percentage of VD:

P = (Nn+Rp-Nv)/(T+Ok)*100%

Nn- markup on remaining goods at the beginning of the reporting period. This is the balance of account 42 at the beginning of the period.

Np- markup on received goods (monthly turnover on account credit 42).

Nv- markup on disposed goods (monthly debit turnover on account 42). Discarded goods are those that have documentary evidence: return to the supplier, write-off of defects, etc.

OK- balance at the end of the period (account balance 41.2)

Example. In accounting, the balances on account 41.2 are 80 thousand, on account 40 - 15,514. Goods received for the period were 120 thousand rubles, the markup on them was 27,692. Revenue for this period was 165 thousand rubles. No disposed goods were recorded. The balance of goods at the end of the reporting period is 35 thousand rubles.

P = (15,514+27,692)/(165,000 + 35,000))*100% = 21.6%

VD = 165,000 * 21.6% = 35,640 rubles.

VD according to the assortment of the remainder

The method is rarely used, since the amount of accrued, realized markup for all items is required. If it is possible to account for certain goods, then it is better to keep accounting at purchase prices.

Gross income:

VD = Nn+Np-Nv-Nk

Nn- markup at the beginning of the period on balances: account balance. 42;

Np- markup of arrived goods for the reporting period: credit turnover of the account. 42;

Nv- markup on disposed goods: debit turnover of the account. 42;

Nk- markup at the end of the period on the balance: account balance. 42.

Calculation features

• For the revenue of a production organization, you can use fixed assets, manufactured goods, intangible assets that are on the balance sheet, securities, other goods, and services.
• Sales revenue will be income from the sale of previously purchased goods, paid services provided, and the property of the enterprise.

When making calculations, you will need to use data from all expense items, if available. The difficulty of the calculation is that it is required to include all income and a number of production expenses and costs.

Timely and high-quality accounting will greatly simplify the calculation of gross profit. You can quickly find the required expense and income items in it.

Enterprise profit

Not everyone has an accurate understanding of the concept of gross profit of an enterprise. It is often confused with accounting profit.

VP- income from the sale of products, which is calculated by deducting from the total amount of revenue after the sale of goods VAT, expenses and excise taxes on production and sales included in the cost. The main part of the VP consists of sales income.

Accounting profit is the combined gross profit, a favorable financial outcome, which is calculated according to the organization’s accounting data for the required period. When determining it, all business procedures and balance sheet items are taken into account.

Accounting profit is based on two theses:

• the idea of ​​capital accumulation or stabilization of wealth;
• concept of performance, capital increase.

Enterprise income

There are several views on the concept of “income”. Some consider it an increase in financial receipts during the calculated period from funds invested by the founders, a consequence of improved well-being. This definition is based on A. Smith’s thesis: income is the amount spent without encroaching on part of the fixed capital.

The stated thesis is called the idea of ​​profit, formed on changes in the balance of the organization: liability - sources, asset - resources. The method is effective only when assets grow or liabilities decrease; costs do the opposite. Income is an increase in financial resources, and losses are a reduction.

The second concept of income is the quantitative difference between the profit received and the expenses incurred. Income becomes the result of proper distribution of revenue and costs across periods. Profit becomes an asset and costs become a liability even in future periods. This is the basis for double entry in accounting, which forms a double financial result.

Accounting profit of the enterprise

Accounting profit is considered to be the difference between internal income and external costs:

PB = VD - IV

PB- accounting profit;

VD- annual income of the organization as a result of economic activities in monetary terms (the difference between revenue and costs incurred to receive);

IV- costs of manufacturing products (cost price) - wages, material expenses, loans.

External costs will be passed on to the consumer of the product.

Calculation of economic profit

Economic profit is the income remaining with the organization after deducting obvious and implicit expenses.

P = SD - I

P- profit;

AND- total costs;

SD- total income.

Serious calculation errors occur when a person confuses the classic profit with the gross profit. A video where an economist will explain all the features of these two different concepts will help you avoid mistakes.

Calculating gross profit every month or quarter is impractical and pointless. The data will not show the real situation. As a rule, calculations are carried out once a year.

You should be careful about the distribution of VP in the organization, as this will allow you to improve, increase the capacity of the enterprise, increase the potential of employees, and increase net profit in the future. The main thing will be to build the trading process rationally and economically.