Glossary entry (derived from question below)
English term or phrase:
revenue spend
English answer:
expenditure/revenue commitment
Added to glossary by
Yvonne Gallagher
Feb 27, 2015 19:53
9 yrs ago
10 viewers *
English term
Poland
revenue spend
English
Bus/Financial
Business/Commerce (general)
I’m not sure what ‘’revenue spend’’ means in this slide from a corporate presentation: http://s3.postimg.org/bw2pe0a83/revenue_spend.jpg
Does the phrase mean that the distributor has to commit themselves to reaching a specified target for annual SALES TO END CUSTOMERS or a target for annual PURCHASES FROM THE MANUFACTURER?
Any help would be greatly appreciated.
Does the phrase mean that the distributor has to commit themselves to reaching a specified target for annual SALES TO END CUSTOMERS or a target for annual PURCHASES FROM THE MANUFACTURER?
Any help would be greatly appreciated.
Change log
Mar 4, 2015 20:55: Yvonne Gallagher Created KOG entry
Mar 4, 2015 20:57: Yvonne Gallagher changed "Edited KOG entry" from "<a href="/profile/1300525">Yvonne Gallagher's</a> old entry - " revenue/expenditure commitment"" to ""commit to purchases from manufacturer""
Responses
+3
12 mins
Yvonne Gallagher
Ireland
Ireland
Native in English
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English
Specializes in field
Ireland
right word, right place. everytime
Native in: English (Variants: Irish, UK, US, Canadian) 
Works in: French to English, Spanish to English, English, and 1 more.
Related KudoZ points
:
79
Selected
commit to purchases from manufacturer
but not sure. It might become clearer to you later in text...
It could be read the other way as well but I think it makes more sense, given the other commitments the distributor must make (holding stock and growth plan)
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Note added at 14 mins (2015-02-27 20:07:14 GMT)
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I presume the handshake symbol is the agreement between the distributor and manufacturer...
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Note added at 17 hrs (2015-02-28 13:08:20 GMT)
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what is "revenue"?
http://www.investopedia.com/terms/r/revenue.asp
The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income.
Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold.
From the ref suplied by Piyush it would seem that "revenue spend"="revenue commitment". However, it still doesn't define exactly where this is to be spent.
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Note added at 17 hrs (2015-02-28 13:10:26 GMT)
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http://www.accountingtools.com/revenue-expenditure-definitio...
Definition: A revenue expenditure is a cost that is charged to expense as soon as the cost is incurred. By doing so, a business is using the matching principle to link the expense incurred to revenues generated in the same accounting period. There are two types of revenue expenditure:
Maintaining a revenue generating asset. This includes repair and maintenance expenses, because they are incurred to support current operations, and do not extend the life of an asset or improve it.
Generating revenue. This is all day-to-day expenses needed to operate a business, such as sales salaries, rent, office supplies, and utilities.
Other types of costs are not considered to be revenue expenditures, because they relate to the generation of future revenues. For example, the purchase of a fixed asset is categorized as an asset and charged to expense over multiple periods, to match the cost of the asset against multiple future periods of revenue generation. These expenditures are known as capital expenditures.
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Note added at 20 hrs (2015-02-28 15:53:10 GMT)
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Glad to help. I had no doubt at all about it being revenue commitment but that wasn't really your question...Do you need to specify WHERE this is being spent (i.e. end client or manufacturer or can you just get away with the two words??
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Note added at 1 day15 hrs (2015-03-01 10:58:39 GMT)
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yes, "spend"=spending/expenditure/purchases so you could also rephrase as "revenue expenditure commitment" or "commit to revenue expenditure"
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Note added at 5 days (2015-03-04 20:52:10 GMT) Post-grading
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Glad to have helped
It could be read the other way as well but I think it makes more sense, given the other commitments the distributor must make (holding stock and growth plan)
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Note added at 14 mins (2015-02-27 20:07:14 GMT)
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I presume the handshake symbol is the agreement between the distributor and manufacturer...
--------------------------------------------------
Note added at 17 hrs (2015-02-28 13:08:20 GMT)
--------------------------------------------------
what is "revenue"?
http://www.investopedia.com/terms/r/revenue.asp
The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income.
Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold.
From the ref suplied by Piyush it would seem that "revenue spend"="revenue commitment". However, it still doesn't define exactly where this is to be spent.
--------------------------------------------------
Note added at 17 hrs (2015-02-28 13:10:26 GMT)
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http://www.accountingtools.com/revenue-expenditure-definitio...
Definition: A revenue expenditure is a cost that is charged to expense as soon as the cost is incurred. By doing so, a business is using the matching principle to link the expense incurred to revenues generated in the same accounting period. There are two types of revenue expenditure:
Maintaining a revenue generating asset. This includes repair and maintenance expenses, because they are incurred to support current operations, and do not extend the life of an asset or improve it.
Generating revenue. This is all day-to-day expenses needed to operate a business, such as sales salaries, rent, office supplies, and utilities.
Other types of costs are not considered to be revenue expenditures, because they relate to the generation of future revenues. For example, the purchase of a fixed asset is categorized as an asset and charged to expense over multiple periods, to match the cost of the asset against multiple future periods of revenue generation. These expenditures are known as capital expenditures.
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Note added at 20 hrs (2015-02-28 15:53:10 GMT)
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Glad to help. I had no doubt at all about it being revenue commitment but that wasn't really your question...Do you need to specify WHERE this is being spent (i.e. end client or manufacturer or can you just get away with the two words??
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Note added at 1 day15 hrs (2015-03-01 10:58:39 GMT)
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yes, "spend"=spending/expenditure/purchases so you could also rephrase as "revenue expenditure commitment" or "commit to revenue expenditure"
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Note added at 5 days (2015-03-04 20:52:10 GMT) Post-grading
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Glad to have helped
Note from asker:
| Gallagy, thank you for your input. You said '' It might become clearer to you later in text...'' and you were right. It may well be that "revenue spend"="revenue commitment" |
| I can get away with the two words. It was the word ''spend'' that I found confusing. Gallagy, thanks again. |
Peer comment(s):
| agree |
Charlesp
1 day 11 hrs
|
|
Many thanks:-)
|
|
| agree |
Piyush Ojha
1 day 17 hrs
|
|
many thanks Piyush (and for your ref)
|
|
| agree |
Phong Le
4 days
|
|
Many thanks:-)
|
4 KudoZ points awarded for this answer.
Comment: "Thank you very much Gallagy!"
8 hrs
Tushar Deep
India
India
Native in English
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English
Specializes in field
India
Dependable and Quick
Native in: English 
, Hindi
Works in: English to Hindi, Hindi to English, English, and 17 more.
Spending on the day-to-day running of business
Revenue spend/spending is a business/financial term. It means spending on the day-to-day running of business - mainly wages, running expenses of buildings and equipment, and debt charges.
http://www.financeglossary.net/definition/3036-Revenue_Spend...
Example: Assuming there is a distributor of Coca-Cola in Atlanta by name Samuelson & Co.
Now Coca-Cola will ensure the right product mix (assuming Samuelson & Co. sells only Fanta and Minute Maid juices, and not Coke, etc.) at the right time, and receives payment as per the payment rules.
Now, Samuelson & Co. will have to spend money on picking up goods from the Coca-Cola warehouse, their storage (some type of rent), manpower/staff, electricity, distribution (loading of product, transportation costs to retailers, sundry expenses), stock-keeping, security, financial expenses (maintaining a bank account, cash deposits, other charges, etc.) Say the total of all these expenses in running the business is $ X annually (for Samuelson & Co.)
So, $ X is the annual revenue spend of Samuelson and Co. and it has to keep aside this amount (or prove the source of funds to Coca-Cola Co., maybe annually) in order to ensure the smooth running of business.
So, in your example, committing the annual revenue spend for running of the business (applicable for distributor of product Excel) is represented by one hand (in the hand shake). The other hand represents the Excel Company which provides the right product mix at the right time at the right location, of agreeable quality, and helps the distributor of product Excel reach its financial and business objectives, and ultimately its business goals.
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Note added at 8 hrs (2015-02-28 04:10:42 GMT)
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Distributor = Distribution partner
http://www.financeglossary.net/definition/3036-Revenue_Spend...
Example: Assuming there is a distributor of Coca-Cola in Atlanta by name Samuelson & Co.
Now Coca-Cola will ensure the right product mix (assuming Samuelson & Co. sells only Fanta and Minute Maid juices, and not Coke, etc.) at the right time, and receives payment as per the payment rules.
Now, Samuelson & Co. will have to spend money on picking up goods from the Coca-Cola warehouse, their storage (some type of rent), manpower/staff, electricity, distribution (loading of product, transportation costs to retailers, sundry expenses), stock-keeping, security, financial expenses (maintaining a bank account, cash deposits, other charges, etc.) Say the total of all these expenses in running the business is $ X annually (for Samuelson & Co.)
So, $ X is the annual revenue spend of Samuelson and Co. and it has to keep aside this amount (or prove the source of funds to Coca-Cola Co., maybe annually) in order to ensure the smooth running of business.
So, in your example, committing the annual revenue spend for running of the business (applicable for distributor of product Excel) is represented by one hand (in the hand shake). The other hand represents the Excel Company which provides the right product mix at the right time at the right location, of agreeable quality, and helps the distributor of product Excel reach its financial and business objectives, and ultimately its business goals.
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Note added at 8 hrs (2015-02-28 04:10:42 GMT)
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Distributor = Distribution partner
Peer comment(s):
| neutral |
B D Finch
: See my note in my answer about your misunderstanding of your reference.
6 hrs
|
14 hrs
spending sourced from income, not from capital
https://books.google.co.uk/books?isbn=021552893X
Great Britain. Parliament. House of Commons. Work and Pensions Committee - 2009 - Labor market
... them into Multi Area Agreements and getting much, much more, by definition, ... stage both on revenue spend and capital spend where those funding models ...
Tushar has misunderstood his/her own reference, where the first part of the answer given relates to what it is spent on, not where it comes from. Where it comes from is covered in the second part of the answer in that reference, but as the writer assumes the reader already understands the basic term "revenue spend", they list specific sources of the particular local authority revenue spend they are referring to and explaining.
http://www.financeglossary.net/definition/3036-Revenue_Spend...
"Revenue Spending Financial Glossary
What is it? Spending on the day-to-day running of services - mainly wages, running expenses of buildings and equipment, and debt charges. These costs are met from the Council Tax, government grants, fees and charges. "
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Note added at 14 hrs (2015-02-28 10:31:44 GMT)
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On second thoughts, looking at the above reference again, they don't even say who they are on their website and it looks as though their glossary is a hotch-potch of input from various contributors, cribbed from a variety of sources. In this case, they have cribbed their definition from a local government publication, without understanding how specific the text they have lifted is and that it doesn't actually define "revenue spending" as a general term.
Great Britain. Parliament. House of Commons. Work and Pensions Committee - 2009 - Labor market
... them into Multi Area Agreements and getting much, much more, by definition, ... stage both on revenue spend and capital spend where those funding models ...
Tushar has misunderstood his/her own reference, where the first part of the answer given relates to what it is spent on, not where it comes from. Where it comes from is covered in the second part of the answer in that reference, but as the writer assumes the reader already understands the basic term "revenue spend", they list specific sources of the particular local authority revenue spend they are referring to and explaining.
http://www.financeglossary.net/definition/3036-Revenue_Spend...
"Revenue Spending Financial Glossary
What is it? Spending on the day-to-day running of services - mainly wages, running expenses of buildings and equipment, and debt charges. These costs are met from the Council Tax, government grants, fees and charges. "
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Note added at 14 hrs (2015-02-28 10:31:44 GMT)
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On second thoughts, looking at the above reference again, they don't even say who they are on their website and it looks as though their glossary is a hotch-potch of input from various contributors, cribbed from a variety of sources. In this case, they have cribbed their definition from a local government publication, without understanding how specific the text they have lifted is and that it doesn't actually define "revenue spending" as a general term.
Discussion
Now, the other revenue commitment could be capital in nature, say, expansion of existing facilities, adding a canteen for staff, etc.
Revenue spend is a business/financial term; we may digress from the meaning trying to understand it as pure English.
Cheers!
I should have mentioned this slide before. As you suggest, ''revenue spend'' might in fact mean ''revenue commitment''.
http://www.excel-networking.com/_assets/downloads/Exc_Partne...
Partner requirements are listed on page 5. The 'Annual revenue commitment (measured January to December)' of distribution partners is determined 'on application'. To my mind it would be odd to call the revenue a distribution partner is required to generate 'revenue spend', but who knows!