Revenue in the financial statements
Revenue is an income-statement line item: a total for a period, with a credit balance in the ledger. Metrics read it as a positive number, although the ledger stores credits as negative amounts.
Revenue in Business Central
How the accounts are selected
- Category Income, Services (19) and every category below it
- Category Income, Product Sales (20) and every category below it
- Category Income, Jobs (21) and every category below it
- Category Sales Discounts (22) and every category below it
- Category Sales Returns & Allowances (23) and every category below it
- Category Job Sales Contra (25) and every category below it
- Plus 8 accounts assigned directly: 40410 Job Sales, 40420 Job Sales Applied, 40430 Sales of Service Contracts, 40440 Sales of Service Work, 40910 Discounts and Allowances, 40920 Invoice Rounding, 40930 Payment Tolerance, 40940 Sales Returns
13 posting accounts in total.
Posting accounts
- 40001 TOTAL INCOME
- 40100 Sales of Goods
- 40200 Sales of Resources
- 40400 Jobs and Services
- 40900 Revenue Reductions
Metrics using revenue
- Basic Earning Power (through another metric): EBIT ÷ average total assets
- Debt to EBIT (through another metric): Financial debt ÷ EBIT
- EBIT (through another metric): Operating Profit + Other income and expenses, net
- Equity Turnover: Revenue ÷ average equity
- Free Cash Flow to Firm (through another metric): EBIT − Income tax − change in non-current assets − change in Trade Working Capital
- Interest Coverage Ratio (through another metric): EBIT ÷ Interest expense
- Operating Profit: Revenue − Cost of sales − Operating expenses
- Return on Capital Employed (through another metric): EBIT ÷ (average total assets − average current liabilities)
- Return on Sales: Operating Profit ÷ Revenue
- Working Capital Turnover: Revenue ÷ average Net Working Capital