I would be interested to better learn the "why" of your question. I think that would be particularly helpful.In my experience, the two terms are often used interchangeably and that's not necessarily wrong. Sales and revenue are usually of an historic context, so in construction I'm not sure how you would differentiate the two. I would look at it like this: revenue is the top line(s) on an income statement, and sales generally comprise a significant portion of revenue. Therefore, it stands to reason that sales generally = revenue, but not all revenue = sales. This is assuming that such sales are core to the business and are not peripheral, which would not be reported in the top section of the income statement.To visualize:Sales - jobsSales - fabricationSales - servicesRoyalties Total revenueSales are part of the composition of revenue. As far as your take, construction sales would ultimately end up as revenue no matter how you look at it. In a given period, you would recognize job sales for the portion of the contract for which work was completed and that would end up as the revenue reported.
In both construction organizations I have worked in we used the following to differentiate:
· Construction Revenue is that which is recognized on your income statement from your WIP schedule calculations and other service, fabrication or other period revenue for the organization.
· Sales represent contract awards at full contract value and are used for internal reporting within the organization as a means to measure goal attainment and as it relates to the building of backlog.
Bill Patt| email@example.com
D 651-605-2474 | c 612-723-8310 | f 651-894-6774
Corval Group | 1633 Eustis Street, St. Paul, MN 55108
www.corvalgroup.com | we build confidence
Home of the Connection Café.
100 Village Blvd., Suite 200, Princeton, NJ 08540Phone: 609-452-8000 | 888-421-9996 | Fax: 609-452-0474 | firstname.lastname@example.org