Operating result determination refers to the process of calculating a company's operating result. This result is achieved by adjusting revenues for cost of sales (e.g., material and manufacturing costs) and operating expenses (e.g., personnel costs, rental expenses). The operating result is an important indicator of a company's operational performance and indicates whether the company is conducting its operational activities profitably.
Typical features of software in the area of operating result determination include:
- Revenue Analysis: Analysis of revenues by various products, services, customers, or distribution channels.
- Cost Analysis: Analysis of cost structures by various cost types such as material costs, personnel costs, or fixed costs.
- Operating Expense Analysis: Analysis of operating expenses such as rental expenses, insurance, and administrative expenses.
- Income Statement: Automated creation of the income statement considering all relevant revenues and expenses.
- Reporting: Generation of reports and dashboards to present the operating result and its components clearly.
- Comparison and Benchmarking: Comparison of the current operating result with previous periods or with industry benchmarks for performance assessment.
- Forecasting and Planning: Calculation of forecasts and planning scenarios for future operating results based on historical data and assumptions.