Turnover - Term Overview

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The turnover also called turnover or net amount of turnover. This is a term commonly used in accounting. When it comes to the turnover of a company, it refers to the income obtained by that business, in the development of its activity. Whether this is the sale of products or the provision of a service.

How to calculate the turnover?

The turnover of a company is calculated according to periods of one year. For periods less than one year, the part proportional to the selected period must be considered.

In addition, the amounts reflected in the calculation of the turnover must be originated by what is considered the main activity of the company. Not being able to include amounts corresponding to specific activities.

In order to calculate the turnover, the positive amounts that increase the turnover and the negative amounts that reduce it will be taken into account. Turnover is therefore the sum of various values, positive and negative.

Positive values ​​of turnover

These are the values ​​that increase the turnover.

  • Sales or provision of services according to the main activity of the company.
  • Merchandise and inventory, as well as products available for sale.

Negative values ​​of the turnover

These are the values ​​that reduce the turnover:

  • Sales returns
  • Rappels or commercial discounts
  • Accountable taxes

Values ​​that aren't included in the turnover

There are also a series of values ​​that don't vary the turnover and therefore will not be taken into account when making their calculation.

  • Extraordinary results
  • Subsidies and other types of aid
  • Expenditure on consumables or work carried out on fixed assets by company personnel
  • The financial income

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