YOGYAKARTA - Are you curious about how to calculate the service company's HPP? This time we will discuss the cost of goods sold (HPP) or what people often call the cost of revenue. Here's the full explanation.
The service company is a business entity that sells services as a substitute for products in manufacturing and trade companies.
The typical services offered by service companies include services such as accounting professions, consultants, package delivery, and many more.
Well, could it be that you have a question, do service companies also have a cost of goods sold (HPP)? Unfortunately, the term HPP or COGS is not known in the financial reporting of service companies. In service companies, the basic price is called cost of revenue (COR).
Why Are Service Companies No Cost Of Sales?
The reason is because service companies do not sell products so they do not have stock or inventory of goods. Observe how accounting applications for service companies support your business.
In this post, you will understand further what distinguishes the calculation of the Cost of Sales (HPP) of service companies from other companies such as trade or manufacturing?
What Is The Basic Price Of Services (Cost Of Revenue)?
What is interpreted as the cost of service or better known as the cost of revenue (COR) is the total budget that arises from the service process for services provided to consumers.
This information will arise in the financial statements of service companies, especially the loss profit reports.
These posts are prepared as a representation of the direct budget that is adrift of the products or services provided by the company.
Components of the Component HPP (Cost of Revenue) of the Jasa Company
Components included in the HPP or cost of revenue of service companies, namely as follows:
Service companies generally do not recognize this component. But it's different if you run a product-based company.
The cost of direct labor must be included in the components of the service company's HPP.
An example of this budget is when you hire freelancers in a special project.
The wages paid for these types of workers are included in the direct labor budget.
As an example, if you run a Public Accounting Office (KAP) business and there is a need to send several important documents to clients. The budget for sending the document goes to the cost of revenue component.
Or the transportation budget such as gasoline can also be included in this cost component.
All costs related to business service marketing are included in the sales commission component or marketing budget. One concrete example is the advertising budget.
Or the percentage of the distribution of wages to marketing employees in charge of promoting your service business to the general public is also included in this type of budget.
When you have determined or categorized the costs listed in the basic cost component of service, then you can calculate the company's HPP as well as the budget per unit.
As an example, you run a wood processing business.
Details of your business principal price are:
For the construction of a special project managed by your company, 6 employees who work on your project are needed.
You pay IDR 100,000 per hour per employee.
You have fixed assets in the form of trucks to lift the client's order wood.
Incidentally in this special project, it takes 2 trucks and a distance from the company's site Kalian to the client's place (going back) as far as 250 kilometers.
Because 2 trucks are needed, the total distance is 250 kilometers x 2 = 500 kilometers.
You charge a budget of IDR 1,000,000, for the distance of 500 kilometers.
For example, you spend pay to pay your marketing employees a total of 20% of the total value of your special project.
The method of calculating HPP for service companies and a summary of the cost of revenue calculation per unit is:
The total project value (12 hours of work in 1 day) = 5,000,000/12 = IDR 416,666 per hour.
BTKL = (Rp 100,000 x 6 employees) / 12 hours = R p50,000 per hour.
Transportation payments = IDR 1,000,000 / 12 hours = IDR 83,333 per hour.
Marketing fee = 20% x IDR 5,000,000 = IDR 1,000,000 / 12 hours = IDR 83,333 per hour.
Total COR payments per unit = IDR 50,000 + IDR 83,333 + IDR 83,333 = IDR 216,666 per hour.
Total gross profit = IDR 416,666 IDR 216,666 = IDR 200,000 per hour
In addition, you also have to read 'How to Calculate the Right Discount' so you don't get fooled easily when buying something.
So after knowing how to calculate the service company's HPP, see other interesting news on VOI.ID, it's time to revolutionize news!
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