Key idea
Sales value measures what was sold. Money received measures cash and transfers collected. Credit sales, part payments and old-balance collections are why the two figures often differ.
Small-business records become much easier to understand once you stop asking one number to answer two questions. Sales value tells you what customers bought. Money received tells you what actually arrived in cash or transfer during the period.
A simple example
| Activity | Sales value | Money received |
|---|---|---|
| Cash sales today | ₦90,000 | ₦90,000 |
| Part-paid sales today | ₦60,000 | ₦25,000 |
| Old customer balance collected | ₦0 | ₦40,000 |
| Total | ₦150,000 | ₦155,000 |
In this example the business received more money than it sold today because ₦40,000 came from an older sale. Neither total is wrong. They simply describe different parts of the business story.
What to keep connected
- ●The sale and its full value.
- ●The customer when a balance needs to be tracked.
- ●Payment method and amount received.
- ●Later payments that settle earlier sales.
- ●The remaining amount still unpaid.
Berlvis Books is designed around this connected view: sales, payments, expenses and customer balances remain separate enough to be accurate but connected enough to explain one another later.