Revenue Account and Expenses Account

Revenue is the total cost we charge to our customer. Expenses is the total cost incurred in selling an item. A profit is made when revenue is greater than expenses. In order to calculate profit or loss, entries must be make to the necessary revenue or expenses accounts. Many revenue and expenses accounts can be opened to record different type of revenues and expenses. There is no fixed rules on how to name the revenue and expenses accounts. It's all depends on the company's preference. However, company will usually use name that can easily identify the purpose of the account.

Revenue entries are credited into the revenue accounts. The credit Expenses entries are debited to the expenses account. The credit balance in the revenue accounts and the debit balance at the expenses account will later be transferred to the Profit & Loss Account.

UBS Accounting
In UBS Accounting, user can use Sales Account, Sales Adjustment and Other Income account to create the revenue accounts. When creating the account, user need to select Type = H/I/L to tag the account as respective revenue accounts. I am not sure whether COGS can be considered as Revenue account or not.


The expenses account are represented with 9xxx/xxx account number range. User need to tag the account as M to indicate this is the Expenses account.