Sales Budget

A sales budget is representation of the expectation of a company regarding its sales both in terms of units and cash for that particular budgeting period. If a company covers a large geographical area and it has gigantic sales in each of these geographical region the company divides the region into a number of smaller region to estimate sales and sales budget of the individual regions. Sales budget is usually presented in a monthly or a quarter time span in order to make the sales budget more actionable. There are different channels for collection of information for the sales budget. The major sources of the information are the sales personals that deal with the sales of the products. The sales manager is also a source of information along with having an authority of changing strategy, amount and timings of the sales. The basic information that a sales budget includes is the calculation of the goods that are estimated to be sold in the current budgeting period. The units of products are divided in rows where the sales of one row determine the sales price of the next row of the units. The third row of the sales budget shows the expected revenue that is going to be generated due to the sales of these units. Any kind of discount and return of the products is also listed in the sales budget. An example of sales budget can be shown as under:- XYZ Company Sales Budget Year ending December 2013 First Quarter Second Quarter Third Quarter Unit Forecasted for sales 5,500 6,000 7,000 Sales price per unit $10 $10 $11 Total Sales Sale price per unit x number of units 55,000 60,000 70,000 Minus discounts and returns $1,100 $1,200 1,540 Total $53,900 $58,800 $75,460

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