What is the difference between revenue and bookings?
11.November, 2009
In the financial world, I see people talk about revenue vs. bookings. What is the difference?
Booking would be the ‘future’ sales for a company. A company could take expected orders from customers for future dated sales. As these customers place actual sales orders, the booking for each customer would be reduced. Revenue would be recognized once a ‘booking’ is turned into an actual sales order.
Typically businesses that sell big-ticket, long lead time items (i.e. aircraft, solar cell furnaces) deal with an order book to help predict future revenue.
11.November, 2009 um 9:51 am
Bookings would be like sales for ex number of units booked (sold, rented, reserved) gross revenue would be the number of bookings times the price charged (plus whatever sources of other sources of income the business has) Net revenue would be gross revenue less expenses. Net revenue could also be called profit.
References :
11.November, 2009 um 10:02 am
Booking would be the ‘future’ sales for a company. A company could take expected orders from customers for future dated sales. As these customers place actual sales orders, the booking for each customer would be reduced. Revenue would be recognized once a ‘booking’ is turned into an actual sales order.
Typically businesses that sell big-ticket, long lead time items (i.e. aircraft, solar cell furnaces) deal with an order book to help predict future revenue.
References :