{"id":4574,"date":"2013-10-02T08:26:28","date_gmt":"2013-10-02T06:26:28","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4574"},"modified":"2013-10-04T08:05:14","modified_gmt":"2013-10-04T06:05:14","slug":"service-s-and-goods-are-sold-within-one-package-with-one-price-how-should-i-treat-my-revenue-from-the-sale","status":"publish","type":"post","link":"https:\/\/www.officetodo.com\/public\/service-s-and-goods-are-sold-within-one-package-with-one-price-how-should-i-treat-my-revenue-from-the-sale\/","title":{"rendered":"Services and goods are sold within one package, with one price \u2013 how should I treat my revenue from the sale?"},"content":{"rendered":"<p>Usually, when selling both goods and services, you are bound to sell them together within one package at some point. Normally, provided you sell both separately, you would have a price for each of them and recognizing them in revenue isn\u2019t at least an issue when it comes to determining the sum to be recognized. \u00a0<!--more--><\/p>\n<p>However, say that you normally sell the goods and not related services; you wouldn\u2019t have a determined price for the service itself. I think it\u2019s easier to explain this through an example \u2013 say you\u2019re selling a machine with 2 years of maintenance service being provided in addition. The selling price is 10,000 altogether. Now for you, it\u2019s two types of revenue \u2013 for the machine and for the maintenance service. Let\u2019s pretend that the expected cost for the maintenance is around 500 and that the average industry gross margin for such services is 20%, the gross worth would be 625 (500 \/ 80 * 100). This gross worth is now spread into revenues over this 2 years period.<\/p>\n<p>In a nutshell, even though you\u2019re selling them together with one determined price (be it even the price of the item itself and it may seem like the service is provided for free), you still ought to show revenue from the sale of the service just as well.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Usually, when selling both goods and services, you are bound to sell them together within one package at some point. Normally, provided you sell both separately, you would have a price for each of them and recognizing them in revenue isn\u2019t at least an issue when it comes to determining the sum to be recognized. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,39],"tags":[],"class_list":["post-4574","post","type-post","status-publish","format-standard","hentry","category-1-basic-accounting","category-1-11-revenue"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4574"}],"version-history":[{"count":2,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4574\/revisions"}],"predecessor-version":[{"id":4583,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4574\/revisions\/4583"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}