Sales turnover – What is sales turnover?
Definition: Sales turnover is the company's total revenue, both the invoice, cash payments and other revenues.
Gross ProfitTurnover minus direct costs is called gross profit. The gross profit then needs to cover all operating expenses, before any net profit may arise.
Sales doesn't always equal money receivedThe figure for sales turnover in the profit & loss account does not necessarily mean that the firm has received all of that amount. This is because although they may have sold that quantity and value of the product they may still be owed some of the money by their debtors.
Therefore, the figure for sales turnover in the P&L account represents the total amount of their product or service sold, not the actual amount of money they have received.
Sales turnover in e-conomicIn the e-conomic Online Accounting system, you can run a report that shows your company's turnover statistics for products, customers and employees (e.g., sales representatives).
You can learn how to run turnover statistics reports in e-conomic, or find out more about the e-conomic Accounting System.