The economic activity of enterprises is 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.

For some types of enterprises, there are differences in the definition of gross profit. Not everyone can benefit from this economic indicator.

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

What is VP

Gross profit is the amount of value gained from various types of work minus the associated costs. For example, the main profit comes from the sale of a product, 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.

Similarly determine the gross profit from all possible types of work. It is interesting that in trading it will be a quantitative difference between the sale and the initial price. For production, gross profit is found using a more complex formula, since the cost price includes many components that are subject to certain rules.

Trade is understood as making profit through mediation between the end consumer and the producer. The organization must buy products from the manufacturer at a price close to the cost, and then send it to the outlet for sale to customers with its own margin.

VP - the difference between the amount of purchase of goods and its implementation. The difference between gross and net profit is that the first is equal to the income received before mandatory deductions, deductions. Gross profit does not include spending on taxes and unavoidable payments.

Types of gross profit

Consider the concept, features of gross profit for various cases:

• Gross profit of the economy- a large-scale concept that is used to determine the economic performance of countries. It is defined as the difference between GDP and production costs, including wages, the purchase 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 implementation- this is a separate type, consisting only of the sale of specific goods, services. It does not include receipts from dividends and other passive sources.
• Gross profit of the bank. This is the entire profit of a financial institution in full, received from the operations performed, not taking into account any costs. It consists of profit from transactions, dividends, income from transactions.
• net gross profit- the difference between total profits and costs. First, they add up all the income received, then subtract the cost of services sold, goods of the organization.

Gross profit will be the main measure of profitability or revenue. It is often used to analyze the performance 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. Under the cost understand the set of expenses in monetary terms for the manufacture of goods.

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

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

External consider those that cannot be influenced:

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

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

Pricing

Consider the organization of pricing policy. In a crisis, the management of the organization must competently approach pricing. We need the right approach to consumers in order to use a minimum of funds to attract them.

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

When analyzing profitability, knowing the exact consumer demand, it is permissible to expand the output of demanded products by reducing or removing another category of products. This will help you make a profit from in-demand goods and reduce the cost of unclaimed ones.

VP calculation formula

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 the net profit from sales and the initial price of the goods (cost price). Unlike net income, it does not contain variable or operating expenses, taxes.

VP \u003d P - S

VP- gross profit;

P- profit from the sale of products;

With- the cost of production.

In order to optimize the value of VP, they begin to work with cost items entered in the initial cost, and cover variables that were not previously included in the calculation.

Focusing on the costs of production, the sale of goods, you can accurately determine the gross profit in a certain period.

Retail and wholesale organizations

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

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

Calculation by turnover

It is permissible to use by retail organizations if all goods sell at one trade margin as a percentage.

The turnover is considered to be the total revenue with VAT, which is prescribed in paragraph 2.2.3 of the Methodological recommendations No. 1-794 / 32-5.

PD for turnover:

VD \u003d T * PH

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

RN- estimated markup:

PH \u003d TH / (100% + TH)

TN- established trade markup.

Consider an example. In the store for the entire range of trade margin 30%. Revenue for the period under review is 170 thousand, including VAT.

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

VD \u003d 170,000 * 0.23 \u003d 39,100 rubles.

If the trade margin has changed in the reporting period, then the use of the method is possible, but the PD is determined and calculated separately for different periods.

Calculation according to the range of goods turnover

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

Gross income is calculated:

VD = (Т1*РН1+…+ Тn*РНn)/100

The turnover (T) and the estimated margin (PH) are taken separately by groups.

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

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

Estimated markup in the bread department РН = 20*(100-20) = 0.17. The size of the implemented overlays of VD = 90,000 * 0.17 = 15,300 rubles.

The total amount of gross income: IA \u003d 24,000 + 15,300 \u003d 39,300 rubles.

When changing the margin, the calculation is carried out separately for groups.

Gross profit by average percentage

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

VD \u003d (T * P) / 100

T- turnover

P- average percentage of VD:

P \u003d (Nn + Rp-Nv) / (T + Ok) * 100%

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

Np- margin on the goods received (monthly turnover on the credit of account 42).

Hb- margin on retired goods (monthly debit turnover on account 42). Retired goods are those that have documentary evidence: return to the supplier, cancellation of defects, etc.

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

Example. In accounting, the balances on account 41.2 are 80 thousand, on account 40 - 15,514. Goods received for the period are 120 thousand rubles, the margin on them is 27,692. Revenue for this period is 165 thousand rubles. There were no out-of-stock items. The balance of goods at the end of the reporting period is 35 thousand rubles.

P \u003d (15,514 + 27,692) / (165,000 + 35,000)) * 100% \u003d 21.6%

VD \u003d 165,000 * 21.6% \u003d 35,640 rubles.

PD by stock assortment

The method is rarely used, since the amount of the accrued, realized margin 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 \u003d Nn + Np-Nv-Nk

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

Np- mark-up of goods arrived for the reporting period: credit turnover c. 42;

Hb-mark-up on retired goods: debit turnover account. 42;

Hk- markup at the end of the period for the balance: balance account. 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, services.
• The proceeds from sales will be income from the sale of previously purchased goods, services rendered for a fee, property of the enterprise.

When calculating, you will need to use the data of all expenditure items, if available. The complexity of the calculation is that it is required to include all income and a number of production costs, the cost price.

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

Enterprise profit

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

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

Accounting profit - the combined gross profit, a favorable financial outcome, which is calculated from the accounting records of the organization 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 wealth stabilization;
• the concept of performance, capital increase.

Enterprise income

There are several views on the concept of "income". Some consider it to be an increase in financial receipts during the calculated period from the funds invested by the founders, a consequence of the improvement in well-being. This definition was based on the thesis of A. Smith: income is the amount spent without attempts on a part of the fixed capital.

The stated thesis was called the idea of ​​profit formed on changes in the balance of the organization: liabilities - sources, assets - resources. The method is effective only with an increase in assets or a reduction in liabilities, costs - on the contrary. 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 a competent distribution of revenue and costs over periods. Profit becomes an asset and costs a liability even in future periods. This is the basis of the double entry in accounting, which forms a double financial result.

The accounting profit of the enterprise

Accounting profit is the difference between IA and external costs:

PB = VD - IV

PB- accounting profit;

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

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

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

Calculation of economic profit

Economic profit - the income remaining for the organization after withholding the obvious and implicit costs.

P \u003d SD - I

P- profit;

And- total costs;

SD- total income.

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

Calculating gross profit every month or quarter is impractical and meaningless. The data does 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 improve, increase the capacity of the enterprise, increase the potential of employees, and increase net profit in the future. The main thing will be the construction of the trading process rationally and cost-effectively.

General formulas for calculating profit.

Gross profit = revenue - the cost of goods sold or services sold

Profit / loss from sales (sales) = gross profit - costs
*costs in this case - selling and management costs

Profit / loss before tax= sales profit ± operating income and expenses ± non-operating income and expenses.

Net income (loss = revenue - cost of goods - expenses (administrative and commercial) - other expenses - taxes

Forex. Profit/cost calculator.

On Forex and other trading exchanges, profit/loss will be considered the number of points earned/lost, costs - spread and swap.

number of points - the number of points won
number of transactions - the total number of concluded transactions

This calculator uses 4-digit quotes and a fixed lot

For a quick count of points and the number of transactions, we use account monitoring.
For example: a trader made 100 transactions, currency GBPJPY, spread 7 points, working fixed lot - 1, swap about -50$ amount (for all transactions),
there were profitable and unprofitable transactions, as a result, the trader earned 100 points.
we get: income $ 8050, net income $ 950, costs $ 7050, profit to cost ratio 11.88% / 88.13%, that is, the trader gives almost all the profit to the broker!

The trader must draw the appropriate conclusions.
The calculator is designed for a superficial evaluation of transactions. The calculator does not take into account the difference in the price of one point for different currency pairs (in this example, for the GBPJPY currency pair, the price of one point with a volume of 1 lot is $12.61, and in the example $10). Also, the calculator does not provide the ability to calculate when trading with different volumes and when trading several currency pairs with different spreads. In such cases, you can enter average values, but the calculation error will increase.

Accountants. Four ways to calculate profit.

Nuances of calculation in practice (+ examples):

The same percentage for the entire range

The method of calculating gross income for total turnover is used in the case when a single percentage of the trade markup is applied to all goods. With this option, first set the gross income, and then the markup.

The accountant must apply the formula that is given in the document:

VD \u003d T x PH / 100,

where T is the total turnover; РН - estimated trade markup.

The trade markup is calculated according to a different formula:

PH \u003d TH / (100 + TH).

In this case: TN - trade markup in percent. Turnover is understood as the total amount of revenue.
example :
In LLC Biryusa, the balance of goods at the sale value (balance on account 41) as of July 1 amounted to 12,500 rubles. The trade margin on the balance of goods as of July 1 (balance on account 42) is 3,100 rubles. In July, products were received at the purchase price, excluding VAT, in the amount of 37,000 rubles. According to the order of the head of the organization, the accountant must charge a trade margin of 35 percent for all goods. Its size for goods received in July amounted to 12,950 rubles. (37,000 rubles x 35%). The company received 51,000 rubles from sales in July (including VAT - 7,780 rubles). Selling expenses - 5000 rubles.

Calculate the realized trade margin using the formula РН = ТН / (100 + ТН):

35% / (100 + 35%) = 25,926%.

Gross income will be:

HP = T x PH / 100

51 000 rub. x 25.926% / 100% = 13,222 rubles.

In accounting, you need to make the following entries:

Debit 50 Credit 90-1

- 51,000 rubles. - reflected the proceeds from the sale of goods;

Debit 90-3 Credit 68

- 13,222 rubles - the amount of the trade margin on goods sold was written off;

Debit 90-2 Credit 41

- 51,000 rubles - the sale price of goods sold was written off;

Debit 90-2 Credit 44

- 5000 rubles - written off sales expenses;

Debit 90-9 Credit 99

- 442 rubles. (51,000 rubles - 7,780 rubles - (-13,222 rubles) - 51,000 rubles - 5,000 rubles) - profit from the sale.

Each product has its own percentage

This option is needed for those who have different markups for different groups of goods. The difficulty here is as follows, each of the groups includes products with the same margin, so it is necessary to keep a mandatory record of turnover. Gross income (VD) in this case is determined by the following formula:
HP = (T1 x RH + T2 x RH + ... + Tn x RH) / 100,
where T is the turnover and PH is the estimated trade markup for groups of goods.
example:
The accountant of Biryusa LLC has the following data:
Small shops and stalls usually determine the trade margin by calculation - "manually", since not every one of them can afford expensive software. Back in 1996, Roskomtorg, with its letter dated July 10, 1996 No. 1-794 / 32-5, approved the “Methodological recommendations for accounting and processing operations for receiving, storing and dispensing goods in trade organizations”. In them, the committee proposed several options for calculating the realized trade margin: by total turnover; according to the range of goods turnover; by average percentage; according to the assortment of the rest of the goods. The experts of the Moscow Accountant magazine examined these methods in more detail. The method of calculating gross income for total turnover is used in the case when a single percentage of the trade markup is applied to all goods. With this option, the gross income is first set, and then the margin. The accountant must apply the formula that is given in the document: VD \u003d T x PH / 100, where T is the total turnover; РН - estimated trade markup. The trade markup is calculated according to a different formula: РН = ТН / (100 + ТН). In this case: TN - trade markup in percent. Turnover is understood as the total amount of revenue. Example 1 In Biryusa LLC, the balance of goods at the sale value (balance on account 41) as of July 1 amounted to 12,500 rubles. The trade margin on the balance of goods as of July 1 (balance on account 42) is 3,100 rubles. In July, products were received at the purchase price, excluding VAT, in the amount of 37,000 rubles. According to the order of the head of the organization, the accountant must charge a trade margin of 35 percent for all goods. Its size for goods received in July amounted to 12,950 rubles. (37,000 rubles x 35%). The company received 51,000 rubles from sales in July (including VAT - 7,780 rubles). Selling expenses - 5000 rubles. Calculate the realized trade margin using the formula РН = ТН / (100 + ТН): 35% / (100 + 35%) = 25.926%. Gross income will be equal to: VD \u003d T x PH / 100 51 000 rubles. x 25.926% / 100% = 13,222 rubles. In accounting, the following entries must be made: Debit 50 Credit 90-1 - 51,000 rubles. - reflected the proceeds from the sale of goods; Debit 90-3 Credit 68 - 7780 rubles. - reflected the amount of VAT; Debit 90-2 Credit 42 (reversal) - 13,222 rubles - the amount of the trade margin on goods sold was written off; Debit 90-2 Credit 41 - 51,000 rubles - written off the sale price of goods sold; Debit 90-2 Credit 44 - 5000 rubles - written off sales expenses; Debit 90-9 Credit 99 - 442 rubles. (51,000 rubles - 7,780 rubles - (-13,222 rubles) - 51,000 rubles. - 5000 rubles) - profit from the sale. This option is needed for those who have different markups for different groups of goods. The difficulty here is as follows, each of the groups includes products with the same margin, so it is necessary to keep a mandatory record of turnover. Gross income (VD) in this case is determined by the following formula: VD \u003d (T1 x PH + T2 x PH + ... + Tn x PH) / 100, where T is the turnover and PH is the estimated trade markup for groups of goods. Example 2 The accountant of Biryusa LLC has the following data: The balance of goods on July 1, rub. Goods received at purchase price, rub. Trade margin,% Markup amount, rub. Revenue from the sale of goods, rub. Selling expenses, rub.
Goods of group 1 4600 12 100 39 4719 16 800 3000
Group 2 goods 7900 24 900 26 6474 33 200
Total: 12,500 37,000 11,193 50,000

It is necessary to determine the estimated trade markup for each group of goods:
For group 1, the estimated trade markup will be:
PH \u003d TH / (100 + TH);
39% / (100 + 39) = 28,057%.
For group 2 goods:
PH \u003d TH / (100 + TH);
26% / (100 + 26) = 20,635%.
Gross income (the amount of realized trade margin) will be equal to:
(16,800 rubles x 28.057% + 33,200 rubles x 20.635%) / 100 = 11,564 rubles.
In the accounting of the company, it is necessary to draw up the postings:
Debit 50 Credit 90-1
- 50,000 rubles. - reflected the proceeds from the sale of goods;
Debit 90-3 Credit 68
- 7627 rubles. - reflected the amount of VAT;
Debit 90-2 Credit 42 (reversal)
- 11564 rubles. - the amount of the trade margin related to the goods sold has been written off;
Debit 90-2 Credit 41
- 50,000 rubles. - written off the selling price of goods sold;
Debit 90-2 Credit 44
- 3000 rubles. - written off selling expenses;
Debit 90-9 Credit 99
- 937 rubles. (50,000 rubles - 7,627 rubles - (-11,564 rubles) - 50,000 rubles - 3,000 rubles) - profit from the sale.

The simplest margin

The markup on the average percentage can be applied by any firm that takes into account the goods at selling prices. Gross income by average interest is calculated by the formulas:
IA \u003d (T x P) / 100, where P is the average percentage of gross income, T is the turnover.
The average percentage of gross income will be equal to:
P \u003d (TNn + TNp - TNv) / (T + OK) x 100.
The indicators given in the formula mean the following:
ТНн - trade markup on the balance of products at the beginning of the reporting period (account balance 42);
TNp - markup on goods received during this time;
TNv - for retired (debit turnover of account 42 "Trade margin" for the reporting period). In this case, disposal is understood as the return of goods to suppliers, write-off of damage, etc.;
OK - balance at the end of the reporting period (account balance 41).
example:
The accountant of Biryusa LLC revealed the balance of goods on July 1 (account balance 41). At a sale price, it amounted to 12,500 rubles. The amount of the trade margin on this balance is 3100 rubles. During the month received at the purchase price of goods for 37,000 rubles (excluding VAT). The mark-up charged on products received in July is 12,950 rubles. For the month, income from the sale was received in the amount of 51,000 rubles (including VAT - 7,780 rubles). The balance of goods at the end of the month amounted to 11,450 rubles (12,500 rubles + 37,000 + 12,950 - 51,000). Sales expenses - 5000 rubles.
Calculate the realized trade margin as follows. First, find out the average percentage gross income:
P \u003d (TNn + TNp - TNv) / (T + OK) x 100;
(3100 rubles + 12,950 - 0) / (51,000 + 11,450) x 100% \u003d 25.7%.
The amount of gross income (realized trade margin) will be:
(51,000 rubles x 25.7%) / 100% = 13,107 rubles.
In accounting, you need to make postings:
Debit 50 Credit 90-1
- 51,000 rubles. - reflected the proceeds from the sale of goods;
Debit 90-3 Credit 68
- 7780 rubles. - reflected the amount of VAT;
Debit 90-2 Credit 42 (reversal)
- 13,107 rubles. - the amount of the trade margin on the goods sold has been written off;
Debit 90-2 Credit 41
- 51,000 rubles. - written off the sale price;
Debit 90-2 Credit 44
Debit 90-9 Credit 99
- 327 rubles. (51,000 rubles - 7,780 rubles - (-13,107 rubles) - 51,000 rubles - 5,000 rubles) - profit from the sale (financial result).

Let's count what's left

When calculating gross income, according to the assortment of the balance, the accountant needs data on the amount of the trade margin. To obtain this information, it is necessary to keep records of the accrued and realized surcharge for each item of goods. At the end of each month, an inventory is carried out, determining these amounts.
The calculation of gross income for the assortment of the balance of goods is carried out according to the formula:
VD \u003d (TNn + TNp - TNv) - TNk.
The indicators mean the following:
ТНн - trade markup on the balance of goods at the beginning of the reporting period (balance of account 42 "Trade margin");
TNp - trade markup for products received during the reporting period (credit turnover of account 42 "Trade margin" for the reporting period);
TNv - trade markup for retired goods (debit turnover of account 42 "Trade margin");
TNK - markup on the balance at the end of the reporting period.
example:
The amount of the trade margin relating to the balance of goods on July 1 (balance on account 42) is 3,100 rubles. The accrued allowance for products received in July is 12,950 rubles. For a month, the company gained 51,000 rubles from the sale. The markup on the balance of goods at the end of the month according to the inventory data (balance on account 42) is 2050 rubles. Sales expenses - 5000 rubles. Calculate the realized trade margin:
VD \u003d (TNn + TNp - TNv) - TNk;
(3100 rubles + 12,950 - 0) - 2050 \u003d 14,000 rubles.
In accounting, it is necessary to draw up postings:
Debit 50 Credit 90-1
- 51,000 rubles - reflected the proceeds from the sale of goods;
Debit 90-3 Credit 68
- 7780 rubles. - reflected the amount of VAT;
Debit 90-2 Credit 42 (reversal)
- 14,000 rubles. - the amount of the trade margin on the goods sold has been written off;
Debit 90-2 Credit 41
- 51,000 rubles. - written off the sale price of the sold;
Debit 90-2 Credit 44
- 5000 rubles. - written off selling expenses;
Debit 90-9 Credit 99
- 1220 rubles. (51,000 rubles - 7,780 rubles - (-14,000 rubles) - 51,000 rubles - 5,000 rubles) - profit from the sale.

Let's sum up.

To calculate income tax, you need to know the purchase price of goods. It can be determined based on the value of the realized trade margin using any of these methods (with the exception of the average percentage method). However, do not forget about possible deviations of the purchase price in accounting and tax accounting. For example, in accounting, interest on a loan is included in the cost of goods. For tax accounting, such interest is included in non-operating expenses.
With the method of determining the margin on the average percentage, the purchase price of the goods sold in accounting may not coincide with the same indicator in tax accounting. This is due to the fact that each group has its own allowance. When calculating the realized margin in accounting, all data are averaged, and in tax accounting, sales revenue is reduced by the cost of purchased goods (Article 268 of the Tax Code). The latter is determined in accordance with the accounting policy.

Hello! In this article, we will talk about the gross profit of the enterprise.

Today you will learn:

1. What is gross profit.
2. How is it different from other types of income?
3. What do her scores say?
4. How is the analysis of gross profit indicators.

What is gross profit

In the course of its activities, any organization is faced with the need to form economic indicators. They are needed to evaluate the results of her work and identify. One of the main indicators of the company's work is gross profit.

This concept combines the profit from all areas of work, except for production costs. The indicator value should be displayed in . It is compiled on the basis of many indicators. All of them are divided into 2 groups. The first includes elements that depend on the management segment:

• Reducing the value of the cost of production.
• Product sales performance ratio.
• An indicator of growth in production volumes.
• Implementation of measures aimed at improving the quality of products.
• Application of production capacities at maximum speed.

• Location of the enterprise.
• The regulatory framework within which production or commercial activities are carried out.
• General political and economic state of the state.
• Ecological and natural parameters.

Based on all of the above factors, with the help of gross profit, the results of the work of a business entity are revealed. Unprofitable and profitable business activities are determined for subsequent analysis and formation of profitable development paths.

How is gross profit different from other types

difference with gross income.

The concept of gross revenue (income) includes all the assets that the company received from work. These include tax and other related payments included in the cost of assets sold. This indicator is formed not only on the basis of sales volume and cost of goods, but also taking into account demand, assortment, productivity and many secondary components.

The difference with net income.

There is also a significant difference here. When calculating gross profit, the amount of tax deductions and other similar payments is not taken into account, as when determining income in a net form. Gross profit is calculated before tax, after which the amount of net profit is formed.

The difference with marginal profit.

Marginal income is directly related to the amount of variable costs, which are directly proportional to the production process. This includes the cost of materials, staff salaries, etc. The contribution margin is equal to the difference between the company's income and irregular expenses.

The key difference between margins is that they can help you develop the right order to release products based on sales volume and assortment, as well as the most cost-effective way to break up a business. Gross profit reflects the profitability of the enterprise as a whole.

The difference with the balance sheet profit.

Gross and balance sheet profit are quite similar indicators, however, there is a difference between them. The first coefficient is displayed on account 90, as the difference between costs and profits. The second is defined as the balance of account 99 - the total profit to.

How gross profit is recorded in the balance sheet

Gross profit, as one of the indicators of the results of the company's work, is recorded in line 2100 of the income statement. The value of this line is calculated using the deduction from revenue for item 2110 of the cost price from item 2120. The coefficient can be positive or negative. If a negative indicator is obtained in the course of work, then this is a loss, which is displayed in parentheses, without using a minus sign.

What is Gross Profit?

Further planning and organization of commercial activities directly depends on its size. A negative indicator indicates that the organization is not working properly. With its help, you can identify problem areas when expenses exceeded the planned budget.

Reducing the cost of production or the cost of its release is one of the methods to increase the gross profit from the sale. It is she who provides an opportunity for the subsequent development of the organization's activities, the use of new technologies, investment in more efficient equipment, the correct consumption of material, labor resources, etc.

What does the gross profit ratio show?

The gross profit ratio also deserves increased attention. This is its ratio with the amount of revenue, which is fixed as a percentage. A high ratio indicates a large profit, plus there is complete control over all costs. If it is expressed in low percentages, then this indicates a lack of proper control over the cost of goods and services.

The coefficient is often used in the process of general monitoring of the state of the enterprise, comparing past segments of activity and predicting future work. In addition, it can be used to obtain detailed information about the company's performance compared to competitors. This is a multifunctional indicator that is used in many areas of business.

Gross margin analysis

In economics, this indicator reflects the financial result in the context of production costs. Its peculiarity is that it includes commercial and administrative costs. For example, salaries, expenses in the context of signing agreements and contracts, as well as other institutional costs. The coefficient is derived as the difference between the revenue and the technological cost, which reflects the workshop costs, the purchase of materials and wages.

Each type of indicators is divided into narrower ones. The amount of profit of managers who are directly related to the production process is reflected in the technological cost.

What does the calculation formula look like

In standard form, the formula for calculating gross profit looks like this:

GP = TR - TStech, where

• GP - gross profit;
• TR - revenue;
• TStehn - technological cost.

How Gross Profit is Analyzed

After calculating the indicator, an analysis is carried out, including a study of the sources of gross profit formation and its subsequent application.

The process starts with an analysis of the dynamics of the total amount through the use of constituent components (horizontal approach). Further, complex changes are formed, included in gross profit (vertical approach).

A more voluminous version of the analysis contains a detailed examination of each component of profit and the factors that affect it. All of them are divided into two groups: external and internal.

The external ones include transport, economic and natural conditions, the cost of the materials used and the coefficient of development of foreign economic activity. Internal are divided among themselves into categories 1 and 2 according to the magnitude of subordination.

The first category includes income from commercial activities, interest payable (receipt), operating income (costs) and non-operating income (costs). The second category includes the amount of gross output sold, its structure, cost and retail price. In addition to them, this section includes episodes of non-compliance with economic discipline: incorrect formation of value, non-compliance with working conditions, a decrease in the quality of manufactured and sold goods, etc.

In the process of planning for increasing income, other components of accounting policies are taken into account:

• Proper debt relief.
• The introduction of the LIFO method in the analysis of stocks - the product that was registered last is sold first.
• Compilation of indicators of reduction of intangible assets.
• Reducing taxation through the introduction of a preferential system.
• Reducing production costs.
• Use of dividends for the development of the company.
• A smart approach to pricing.

Such an analysis is necessary for the proper management of net income. In the course of its analysis, the structure of the application of gross profit in dynamics, the impact of each individual direction on a comprehensive indicator of income, and the percentage of profitability are revealed.

Where to find the company's gross profit figures

The indicators are displayed in the financial statements, in account 90 "Sales". To identify them for the selected period, the volumes of the loan are compared with the debit indicators of this account in the direction of sub-accounts. For example:

In this example, account 90/9 is closed each month by debiting the balance to account 99 Profit and Loss. The debit indicator for this account means that the total for the standard activities of the company is the gross loss, the credit indicator shows the gross profit during the reporting period. At the end of the year, sub-accounts are written off on account 90.

Gross profit shows how much profit a company has earned from production activities or the provision of services. In the article, we will consider what gross profit is, how it is calculated, and give examples.

What is gross profit in simple words

Gross profit is an important factor in assessing the success of a company. It shows how much profit the organization has earned on the basis of production activities (or activities to provide services). Further, the company can distribute this profit to cover management and commercial services, pay interest on loans and borrowings, taxes and fines. Thus, if the production activity of the enterprise is unprofitable, then there can be no talk of covering the remaining costs.

The indicator is most often used for managerial analysis of the activities of divisions, the Central Federal District of those organizations that have an extensive network of retail or production outlets.

Gross profit formula

Calculation of gross profit according to the financial statements is reflected in the income statement. Gross profit is the difference between revenue and .

Gross profit = Revenue (line 2110) - Cost (line 2120).

When analyzing, it is important to understand how the company records revenue and cost, that is, the main positions that make up gross profit.

Features of accrual of revenue and cost for calculating gross profit

Gross profit is calculated using operating revenue. The remaining income is classified as other (operating or non-operating) and forms profit before tax.

The cost in the calculation is reflected in the ordinary activities. Expenses that are part of the cost price are accounted for on an accrual or cash basis.

The cost of ordinary activities includes all production costs (or expenses for the provision of services): material, depreciation of fixed assets, wages and payments to social insurance funds, other production expenses.

Gross Profit Management

Gross profit is managed through the impact on revenue and cost. It is possible to increase sales volumes, manage the product range, look for new marketing channels, find ways to reduce the cost of production due to more profitable raw materials, change technological processes, increase the productivity of production line employees; reduce general business costs, electricity, gas or water costs.

How to Simplify Gross Profit Analysis with Excel

When analyzing a company's gross profit, it is important to find out which cost or income items had a significant impact on it. The universal model in Excel will help answer this question.

Gross Profit Example

Consider, using the example of several companies, the calculation of gross profit and analyze it. The Voskhod enterprise produces a wide range of bakery products, the plant is located in the Moscow region, and sales are carried out mainly in Moscow. The Zarya company is engaged in the same type of activity, but with a different assortment, and is located in Samara.

Table 1. Calculation of the gross profit of the Voskhod company for 6 months of 2016

Name / Month
Revenue, thousand rubles
Cost of sales , thousand roubles.
Gross profit, thousand rubles
Profitability gross profit, %

From the table you can see that from month to month there is an increase in gross profit from 2 million rubles. up to 3.3 million rubles Growth factors in each month: revenue and cost. In just six months, the company's revenue amounted to 23.4 million rubles, cost of sales - 7.6 million rubles, gross profit - 15.8 million rubles.

Thus, the average gross profit per month for the company amounted to 15.8 / 6 = 2.6 million rubles. This is the profit that can cover the remaining expenses of the enterprise: , selling expenses, interest on loans.

If you track only the absolute values ​​of gross profit, you can analyze trends over the course of six months, but it is difficult to say how good the result of the company's activities is. Therefore, we calculate the relative indicator - the profitability of gross profit. This is the ratio of gross profit to the company's revenue. For the entire six months it is 67.4%, from month to month this value is approximately maintained. However, there is a decrease in March and April, and an increase in May compared to the half-year average. The factors influencing these values ​​are revenue and cost. The analysis, which is not presented in this article, revealed that in March, pilot sales of a new type of product were launched. This led to an increase in revenue in March and, in particular, in subsequent months. The cost of sales for this type of product was quite high from March to May, as the organization did not pass in terms of purchases according to the supply agreement for the preferential cost of raw materials and materials. This situation has changed since June.

findings

The gross profit of an enterprise is the most important indicator for analyzing the activities of an enterprise, and, first of all, production activities. If the main activity of the company is inefficient, then all other processes will be unprofitable. When comparing the activities of one company within different reporting periods, it should be taken into account whether there has been a change in the accounting policy of the enterprise: in the methodology for recording revenue and cost. The same is true when comparing multiple companies. In addition to absolute gross profit indicators, it is useful to use relative ones as well.

Each domestic enterprise carrying out economic activities, from time to time, needs to make calculations of indicators characterizing the efficiency of doing business. One of these values ​​is gross profit, the calculation formula for which is given below.

Gross profit

The main purpose of the creation and functioning of Russian enterprises is to make a profit.

At the same time, each organization is obliged to carry out accounting of operations taking place in the economic activity of the corresponding entity.

The Ministry of Finance of the Russian Federation, by Order N 43n dated 07/06/1999, approved RAS 4/99, according to which the reporting of organizations consists of the following documents:

• balance according to the form developed at the legislative level;
• Profits and Losses Report;
• applications and explanatory note;
• the auditor's report, but only in the cases listed in the legislation.

The official forms of the balance sheet and the income statement were put into circulation by Order of the Ministry of Finance of the Russian Federation dated 02.07.2010 N 66n.

In the same act of lawmaking, the Ministry provided for an indication of the value of gross profit, the calculation formula for which is given below.

The importance of calculating the described attribute cannot be overestimated due to the participation of the named value in the calculation of other indicators of the enterprise.

Appendix No. 4 to the Order of the Ministry of Finance of the Russian Federation dated July 2, 2010 N 66n to reflect the value of gross profit in the financial statements, line 2100 is intended.

How Gross Profit is Calculated

It is important to remember that the value of gross profit is not identical to the income reflected in line 2400 in the financial statements.

In general terms, the calculation of the described requisite is the difference between the indicator of the proceeds received by the organization from the sale and the sums of the cost of the goods or services sold.

Accordingly, in order to answer the question of how to find gross profit, you must have the following data:

• revenue on line 2110;
• cost reflected in section 2120.

Thus, to find the described value, you need to apply the formula: p. 2100 = p. 2110 - p. 2120.

When starting to calculate gross profit, it is necessary to take into account the indicators that make up both revenue and the cost of goods.

If the company is a trading company, then the cost of production will consist of:

• expenses for the purchase of goods;
• shipping costs;
• wages paid and related taxes and contributions;
• the cost of renting retail space;
• advertising costs;
• other expenses.

A slightly different composition of costs in the manufacture of goods:

• expenses for materials, raw materials, means of production;
• wage fund, taxes, contributions;
• costs associated with the organization of work;
• depreciation of fixed assets;
• storage costs;
• other costs.

In a similar manner, the formation of the revenue of a trading and manufacturing enterprise differs.

It is important to remember that the list of items involved in the calculation of revenues or costs and, as a result, in determining gross profit is not exhaustive. Each enterprise represents a unique system that requires an individual approach in determining balance indicators.

In conclusion, it should be noted that the value of the gross profit of the enterprise is reflected in Russian rubles. Other currencies are not allowed.