Step 7.6. We enter the amounts of commercial and administrative expenses into the Constructor (if you decide not to include them in the cost of products or services) (only for maxi and midi versions)

Hello, Vasily Zhdanov is here, in this article we will look at business expenses. If it is customary for a company’s accounting department to keep account 44 “Sales expenses,” commercial expenses must be reflected (line 2210 of the Income Statement). Doubts, as a rule, are raised by the list of possible expenses that could be classified as commercial, since the costs of trading and manufacturing enterprises differ in composition. In addition, it is not always clear how to write off business expenses, what entries to make in the balance sheet, and how to maintain financial statements. All this will be discussed in the article.

What costs can be included in business expenses (line 2210)

Depending on whether the enterprise is a trade (wholesale, retail) or manufacturing enterprise, the list of business expenses may vary:

Administrative and commercial costs

Management expenses include: wages of administrative and managerial personnel with contributions for social needs, wages of other employees, payment of utility costs, telephone costs, insurance, office expenses. goods, etc.

Commercial expenses include: wages of sales employees with contributions for social needs, advertising costs, transportation costs for delivering products to consumers, warehouse costs, and other expenses associated with the sale of products.

When forming a plan for administrative and commercial expenses, fixed costs and variable ones are distinguished. The total amount of variable expenses is calculated based on the rate of variable expenses per unit of products sold.

Payment of administrative and commercial expenses is made in the same period in which they arise.

Table 15 - Administrative and commercial expenses

3.7. Organizational plan

The purpose of developing this section is to describe the organizational structure of project management, characteristics of the management team and project performers, their qualifications, experience and skills.

The list of specialists involved in the implementation of the project may include the names of positions, qualifications, professions, specialties, length of service and work experience, existing results, and functional responsibilities.

Depending on the scale and complexity of the project under consideration, the organizational management structure can take different forms. The organizational structure should be developed for a specific project, taking into account goals, objectives, specifics, etc.

This section may also reflect the personnel policy for the implementation of the project, which characterizes the personnel requirement for personnel, sources of attracting personnel, conditions of recruitment, selection and training of personnel, systems and forms of payment and incentives used.

The development of this section may end with the formation of a calendar plan for the implementation of the project. The work schedule (research) must show the timing and sequence of implementation of specific activities related to the implementation of the project. When developing it, the time spent on performing certain types of work is taken into account (state registration, registration of licenses and permits, development of a detailed design, conclusion of rental agreements for premises, acquisition and installation of necessary equipment, preparation of production, etc.).

In addition, this section may reflect the necessary measures to implement legal protection of the results of scientific activity with a view to their subsequent commercialization.

When describing the work (events) aimed at bringing the results of the diploma project to practical implementation, it is necessary to establish the persons responsible for the work (for example, the head of the enterprise, the project manager, the sales or marketing department, etc.), the expected start and end dates work, as well as assessing the need for resources required to carry out work and activities.

The assessment of the need for resources is established in natural and cost terms. For example, if organizing the industrial development of a new product requires work aimed at technical re-equipment of the enterprise’s production base, then the need for resources determines the cost of additional equipment, taking into account its purchase, delivery, installation and commissioning.

3.8. Financial plan

The financial plan is the key section of the business plan, which brings together the information from the previous sections. In the financial plan, costs and planned income are compared in value form and it is determined whether the project implementation activities will be profitable with the chosen strategy.

The financial plan reflects the financial results of the project, cash flows, and also calculates performance indicators. The financial plan, as its main components, should include the development of the following financial documents that create the basis for financial analysis, planning, monitoring and control.

1. Profit and loss plan, which calculates income, expenses and financial results for the planning period.

2. Cash flow plan, which shows cash flows in various areas of activity and determines the excess or shortage of cash at each planning interval.

3. Forecast balance sheet, which characterizes the financial position of the organization (composition and structure of assets and liabilities as of a certain date). It should be noted that a forecast balance may not be drawn up if we are not talking about forecasting the activities of an individual organization, but about the implementation of individual projects, carrying out research work, developing scientific and technical products and commercializing the results of scientific activities.

The financial plan must also describe all significant assumptions and assumptions on the basis of which financial calculations and forecasts will be made.

The assumptions and assumptions used may relate to the following key aspects of developing a financial plan:

— determination of the planning horizon (calculation period), which covers the period of time from the start of the project to its completion. The final point in time may be the duration of creation and operation of the product under development; achieving the specified characteristics of the project (revenue, profit, payback), etc.;

— determination of the planning interval (calculation step), which usually corresponds to some calendar period (month, quarter, year). The initial period of project implementation (0.5-1 year), as a rule, is considered on a monthly basis, and then the intervals can be enlarged;

— determination of the project’s monetary unit and its measurement (usually the Russian ruble). When implementing international projects, a different currency unit may be used;

— the need to take inflation into account. For long-term projects, it may be necessary to take into account inflation, for which they use price growth indices for the components of income and expenses (product prices, prices for raw materials and other types of resources, wages, etc.) over planning intervals;

— determination of methods of accounting and recognition of income and expenses, tax base, tax rates, frequency of tax payment, objects of taxation. Methods for calculating depreciation of non-current assets, methods for accounting for the cost of materials and pricing methods may also be specified;

— determination of the conditions for financial settlements: justification of the discount rate, interest rates on loans, sensitivity analysis parameters.

Profit and loss plan

A profit and loss plan is a financial document that reflects income, expenses and financial results for the period of project implementation.

The main task of creating this document is to calculate the amount and structure of product costs, the ratio of costs and operating results for a certain period, by which it will be possible to judge the profitability of the project and its payback.

When forming a profit and loss plan, data from the previous sections of the business plan are used: for income - data from the sales plan; for expenses - production plan data.

The approximate structure of the profit and loss plan is shown in Table 16.

Table 16 - Profit and loss plan

Cash flow plan

A cash flow plan is a financial document that reflects cash flows from operating (current), investing and financing activities for the planned period.

The purpose of developing this section is to determine the volume of financial needs, as well as to ensure a balance between the receipt and expenditure of funds in the planning period.

To achieve this goal, the amount of cash received during each planning interval and the amount of cash paid out during the same interval are forecast. If the net cash balance (the difference between inflows and outflows) turns out to be negative at some interval, then in the cash flow plan it will be necessary to provide for sources of additional financing (credit, loan, etc.).

The formation of cash flows is influenced by three types of activities: operating, investing and financial. For each type of activity, cash inflows and outflows and net cash flow for each type are calculated as the difference between inflows and outflows.

Cash flows from operating activities

associated with the implementation of current economic activities. Inflows are cash receipts from sales of products, advances received and other receipts. Outflows are associated with the repayment of accounts payable to suppliers of raw materials, payment of wages to personnel, payment of taxes and fees.

Net cash flow from operating activities should be positive over planning intervals, since it is through operating activities that profit is generated and the development of the organization is carried out.

Cash flows from investing activities

associated with the acquisition or disposal of non-current assets. Inflows are cash receipts from the sale of non-current assets, outflows are cash payments upon the acquisition of such assets. Cash flows from investment activities are not directly related to current economic activities, and net investment cash flow is usually negative, since it characterizes the use of funds for investment purposes.

Cash flows from financing activities

are associated with changes in the value of equity capital (issue or repurchase of shares, share premium, revaluation of non-current assets), as well as with the attraction and repayment of borrowed capital in the form of loans and borrowings. Inflows are an increase in the value of equity capital and attraction of loans, outflows are a decrease in the value of equity capital and repayment of loans.

The net cash flow of financing activities can be either positive in the case of raising capital, or negative in the case of repaying borrowed obligations.

In addition, due to the cash flows of financial activities, as a rule, the total cash balance for all three types of activities is regulated in case of its negative value. This means the need to attract additional financing (usually in the form of debt financing).

The cash flow plan format can be of two types:

1) items are arranged by type of activity (operating, investing, financial), and for each type of activity inflows, outflows and net cash flow are determined.

2) items are arranged by type - first all receipts are reflected, and then all payments. Net cash flow is defined as the difference between total inflows and outflows.

An approximate format for a cash flow plan is presented in the table.

After the formation of a forecast cash flow plan, the calculation of the main indicators characterizing the economic efficiency of the project under consideration for the production and sale of scientific and technical products, or for the commercialization of the results of scientific activity is carried out.

To assess the effectiveness of the project developed in the master's thesis, it is recommended to use the following indicators:

— return on investment;

— net present value of the project;

— internal rate of return of the project;

— discounted payback period of investments.

ROI

(ROI – Return On Investments) is defined as the ratio of average annual profit to the total investment costs of the project:

where Рt is the net profit from the project in year t

;

T – number of years in the investment period;

I – the amount of investment costs associated with the implementation of the project.

Table 17 — Cash flow plan

Return on investment can be used to compare the effectiveness of a project with alternative capital investment options. For example, if the return on investment, expressed as a percentage, exceeds the average rate of return on deposits in commercial banks, then with a comparable level of investment risk, it can be argued that investing in a project is more attractive than keeping these funds in deposit accounts.

Net present value of the project

NPV (Net Present Value) is calculated as the difference between discounted cash flows of receipts and payments made during the implementation of the project for the entire investment period:

,

where is the receipt of funds associated with the implementation of the project in the interval (cash inflows);

–

payments of funds associated with the implementation of the project in interval
t
(cash outflows);

R – discount rate adopted to evaluate the analyzed project;

T – project implementation time, defined as the number of intervals of the investment period, i.e. the number of interest periods at the end of which interest is calculated. If a year is taken as the percentage period, then T determines the number of years during which the project is implemented (project life cycle).

In particular, if the investment in a project is made at a time, NPV can be calculated as follows:

,

where I0 – one-time expenses incurred in the investment (zero) interval;

- Net cash flow.

A positive NPV value indicates the feasibility of making a decision on financing and implementing a project, and when comparing alternative investment options, the option with the largest net discounted flow is considered economically profitable.

If NPV has a negative value, then the analyzed project is unprofitable and does not deserve further consideration.

An NPV value of zero indicates a special discount rate value called the internal rate of return.

Project internal rate of return indicator

(
IRR
- Internal Rate of Return) determines the discount rate at which the discounted value of cash receipts for the project is equal to the discounted cost of payments:

,

where IRR is the desired rate of internal profitability of the project.

A project is considered economically profitable if the internal profitability exceeds the minimum level of profitability established for this project. In addition, this indicator determines the maximum permissible loan interest rate (cost of borrowed capital), at which the project is financed break-even, i.e., without using part of the profit received on its own invested capital to pay for the loan.

Discounted payback period

( ) (return period) determines the period of time from the moment of initial investment of capital in the project until the moment when the cumulative total of the total net present value becomes equal to zero. To determine the return period, you can use cash flow forecast data and set an investment interval, after which the indicator, defined as the cumulative total of net discounted cash flow, becomes a positive value. This interval determines the payback period of the investment. Obviously, the shorter the return on investment period, the more economically attractive the project is.

3.9. Investment plan and financing strategy

An investment plan is drawn up to determine the need for investment at planning intervals. Data on investment costs are used later in the formation of a cash flow plan.

Calculation of the need for initial investments includes an assessment of capital investments associated with the implementation of the project in the following investment objects:

— non-current assets, including the costs of acquiring ownership of intangible assets and fixed assets necessary for organizing the production of new products;

— current assets that determine the enterprise’s needs for additional working capital in connection with the start of production of a new product.

Capital investments in scientific and technical products are determined by direct calculation based on the planned (actual) costs of their creation. If such documentation is created during the final work, then the amount of these costs is assumed to be equal to the cost of development.

Intangible assets include the costs of acquiring patents, licenses, software and other intangible assets associated with the development and production of new products.

Forming a financing strategy consists of considering various options for financing the project, determining the most rational capital structure based on the individual characteristics of the project.

There are three main types of financing:

1) financing from own funds (founders’ contributions, shares, profit);

2) financing through borrowed funds (long-term and short-term loans and borrowings, investment, project financing);

3) mixed financing.

When using borrowed capital in the form of loans and borrowings, a credit plan can be formed, which is drawn up on the basis of a capital (initial) investment plan and calculation of investment costs.

To develop a credit plan, it is necessary to determine the amount of the loan attracted, the loan term, the interest rate, the conditions for repayment of the principal and interest.

Interest payments can be calculated using simple or compound interest. Simple interest is used in short-term lending (for tranche terms from 1 month to 1 year), compound interest - for long-term lending.

The credit plan details information on the volume and timing of additional financing determined when creating a cash flow plan.

Risk analysis and assessment

The purpose of developing this section is to identify possible types of risks associated with the implementation of the project, their assessment and the development of measures to prevent or reduce possible losses.

In economics, risk is usually understood as the possibility (probability) of losses occurring or failure to obtain the expected results of activity. A quantitative measure of risk is the probability of the occurrence of a particular risk event.

When preparing this section, it is recommended to answer a number of questions that can help in identifying and identifying the main risk factors:

— what can cause financial losses?

— what are the main types of risk associated with the type of activity or implementation of a specific project?

— what is the degree of impact of each type of risk?

— how great can the losses be (replaceable, irreplaceable, catastrophic)?

— what are the ways and means of preventing and minimizing losses?

As a result of the analysis and answers to the questions posed, it will be possible to conduct a risk assessment and develop measures to prevent, minimize, insure risks, etc.

The main types of risks that undergraduates may encounter when completing their final work or conducting scientific research are the following.

1) Production risk associated with difficulties in organizing and launching the production of scientific and technical products, with actual costs exceeding design costs, violations of the production preparation schedule, etc.

2) Commercial risk, manifested in an unfavorable change in product sales forecasts depending on the measured market conditions, an increase in prices for the resources used, an increase in sales costs, and violation of payment discipline by product buyers.

3) Market risk associated with a drop in demand for products, price fluctuations in the market, uncertainty in the behavior of competitors, etc.

4) Financial (credit) risk, manifested in changes in interest rates on loans and violation of obligations to repay borrowed funds.

5) Scientific and technical risk, which is associated with uncertainty in achieving a given result when mastering new technologies and types of products. In addition, this type of risk manifests itself in difficulties in obtaining the necessary licenses, patents, certificates, as well as in the possibility of product obsolescence even at the stage of development and preparation for production.

Risk analysis can be carried out using quantitative and qualitative methods.

Quantitative risk analysis comes down to identifying the main risk factors and determining the likelihood of their occurrence, as well as calculating indicators that will characterize the measure of each factor.

The category of quantitative methods includes: statistical, analytical, mathematical modeling.

In practice, the following methods are used to assess project risk:

1) Sensitivity analysis of project performance indicators.

2) Scenario analysis.

Sensitivity Analysis

is a determination of the degree of influence of individual variable factors on the project’s performance indicators.

Variable factors:

- volume of sales;

— product price;

— inflation;

— production and sales costs (or their individual components);

- investment size;

— interest on credit (loan);

- delayed payments, etc.

Indicators studied: NPV, PI, IRR, DPBP.

The procedure for analyzing the sensitivity of project performance indicators can be presented as a sequence of stages.

1. The basic version of the project is calculated with the initial values ​​of the variable factors.

2. One of the factors is selected, starting with the most significant.

3. The value of the selected factor varies by 1% in a direction that worsens the project’s performance.

4. Project performance indicators are calculated.

5. The percentage change in project performance indicators compared to the baseline values ​​is calculated.

6. A conclusion is made about the sensitivity of the indicators to changes in the factor under study.

Scenario analysis

associated with the adjustment of cash flows and the subsequent calculation of NPV for various options (scenarios).

1. For each project, three possible development options are constructed: pessimistic, most likely and optimistic.

The initial assumptions on the basis of which financial and economic calculations are carried out are established based on an analysis of the most significant factors influencing the implementation of the project. At the same time, taking into account the predictive nature of the calculations being carried out, it is recommended that all assumptions and the corresponding calculations be grouped into three options:

— a pessimistic version of the forecast, based on the least favorable conditions for the project;

— an optimistic version of the forecast, based on the most favorable conditions for the project;

— a realistic forecast option based on the most likely conditions for the project.

2. For each option, the corresponding NPV indicators are calculated: NPVpet, NPVver, NPVopt.

3. For each project, the range of NPV variation is calculated:

R(NPV) = NPVopt - NPVpes

4. Of the two projects, the riskier one is the one with the larger range of variations.

At the same time, a project is considered sustainable if, under all scenarios, it turns out to be effective and financially feasible. That is, in all considered scenarios, the following conditions are met:

1) net present value NPV is positive;

2) the necessary reserve for the financial feasibility of the project is provided (a non-negative value of the total net cash flow from all types of activities at each planning interval).

If at least one of the conditions is not met, then it is recommended to conduct a more detailed analysis of the limits of possible fluctuations of the relevant factors.

Conclusion

Studying and mastering the theory, methodology and techniques of business planning is relevant for modern engineering and technical specialists for a number of reasons.

The development, implementation and commercialization of the results of scientific and technical activities requires an assessment of the possibilities and prospects for the implementation of various projects from an economic point of view.

The implementation of investment and innovation projects should be based on careful planning of activities, modeling of various options for action and the influence of the external environment, and assessment of the consequences of decisions made.

Obtaining funding for business projects and participating in grant competitions requires the ability to justify the effectiveness of a business idea in accordance with generally accepted domestic and international requirements.

The purpose of these guidelines is to systematically present the variety of issues and tasks that need to be solved in the process of business planning for the commercialization of research results, to show the methods, procedures and technology of business planning used.

The guidelines discuss the standard structure of a business plan, as well as the content of key sections and the methodology for their development.

Bibliography

1. Feasibility study of diploma projects: Proc. A manual for colleges/Ed. V.K. Bekleshova. – M.: Higher School, 1991.

2. Vasiliev A.V. Business planning of investment projects: Textbook. allowance. St. Petersburg: Publishing house of St. Petersburg Electrotechnical University “LETI”, 2000.

3. Strekalova N.D. Business planning: Textbook. - St. Petersburg: Peter, 2012.

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How are business expenses written off?

Enterprises are allowed to independently decide on the procedure for writing off business expenses (the rules are not approved by legislative and regulatory acts). At the same time, companies are required to consolidate the write-off method they have chosen in their accounting policies.

Important! For manufacturing companies, there are recommendations for writing off business expenses, which are given in the text of the Instructions for using the Chart of Accounts.

Product manufacturers are recommended to write off sales costs as a debit to their account. 90 “Sales” s/ac. 2 “Cost of sales”. The costs of a manufacturing company for transportation and packaging should be distributed among the varieties of shipped goods based on considerations of an independently selected indicator (cost of ready-to-sell products, volume, weight, quantity).

To calculate the amount of business expenses to be written off, you must first calculate the value of the special coefficient using the formula below:

Knowing the value of this coefficient, you can proceed to calculating the volume of business expenses of the enterprise to be written off:

Terms and definitions of variable and fixed costs

Variable costs are costs that vary in direct proportion to the amount of output produced. For example, doubling production leads to a doubling of total variable costs, while unit costs. products remain constant.

For example, if the sum of variable costs per unit. production is 35 rubles, then to produce two units of product you need 70 rubles. and so on.

Variable expenses include:

• raw materials and materials;
• piecework payment for workers;
• electricity consumed by industrial equipment, etc.

Fixed costs are those costs that remain constant over a given period over a fairly wide range of production volumes. For example, fixed costs include:

• depreciation of buildings and structures;
• salary of management personnel;
• administrative expenses;
• marketing expenses;
• rental of offices and industrial buildings, etc.

Total fixed costs do not change until a certain point, until the level of production becomes too high, while fixed costs per unit. products vary in proportion to the volume of products produced.

For example, in the case when fixed costs are 10,500 rubles, and output is 1,000 units, then fixed costs are equal to 10.5 rubles. per unit products. But if the output is 500 units, then fixed costs increase to 21 rubles. per unit products.

Commercial expenses are written off to (line 2210) in accounting

The following regulations and legislative acts will help you understand how to write off business expenses:

Expenses accumulated on the account. 44, are subject to debit to the account every month. 90. But at the end of the month, this account may have a balance related to unsold finished goods (for manufacturing companies) or remaining unsold goods (for trading enterprises). The mentioned balance appears due to the distribution of transport and procurement costs, including costs for:

• procurement of agricultural raw materials, poultry and livestock (from companies engaged in agricultural production and processing);
• transportation (from trading enterprises and intermediary firms);
• packaging and transportation (from product manufacturers).

Distribution is carried out according to instructions approved by regulations listed in the table above.

How are selling expenses (line 2210) reflected in the income statement

Selling expenses of trading and manufacturing companies, which were reflected on account 90, are subject to accounting in the total cost of sales. Such costs should be reflected in line 2210 “Business expenses” in the income statement.

It also happens that an enterprise does not use account 44. This is only possible if the costs collected on the account do not have a component that is subject to mandatory distribution. If the company does not use an account. 44, business expenses are usually reflected in account 26, which is closed in 2 ways:

1. By writing off the total amount of expenses accumulated by the company on account 26, directly to the debit of account 90 (then commercial expenses fall into line 2220 “Administrative expenses”).
2. By including in the cost of finished goods the method of distributing the expenses collected by the company on account 26 (then the expenses are included in the amount of line 2120 “Cost of sales” in the process of writing off the cost of goods sold).

The legislative framework

The law does not define the concept of “business expenses”. This concept refers to the company's distribution costs. This transcript is reliable and has confirmation in legislative acts. For example, the Tax Code of the Russian Federation states that distribution costs include the costs of sales of companies operating in retail, wholesale and small wholesale trade. This concept can also be found in accounting. Selling expenses in the company's profit and loss statement are reflected on line 2210 (

Example of filling out line 2210 “Business expenses”

Let's look at an example of how line 2210 of the Income Statement is filled in:

Selling expenses for the reporting period amounted to 735,555 rubles.

Management budget

When forming a forecast for income and expenses for different areas of spending, it is recommended to calculate standard values ​​or set limits for reporting periods.

The budget can be prepared using one of three methods:

1. Traditional, using the linking of the administrative expense limit to the general wage fund (the method is considered obsolete).
2. Indexation method - data from the reporting year is taken as a basis and increased by a certain percentage.
3. Focus on results - the amount of funds allocated for management needs directly depends on the expected and achieved results of the enterprise.

An example of reflecting business expenses in accounting

The following information is known about the enterprise, the main activity of which is retail trade in food and household goods:

The enterprise accountant will reflect the listed expenses with the following entries:

If the accountant writes off such expenses in the reporting period to account 90 “Sales” for accounting for revenue, the expenses should be reflected on line 2210 “Business expenses”. Next, in line 1210 “Inventories” (subsection “Work in Progress”) you need to indicate the amount of costs that have not been written off.

Characteristic

The commercial expenses budget is used to accurately calculate all available costs for the organization to promote product sales.

The process of planning costs of an ongoing nature, which are directly related to the sale of goods and marketing activities, is considered a key management function in the formation of the overall budget.

Depending on the organization of the budgeting process and the detail of the planning system, implementation costs can be predicted not only in physical and price terms, but also as a percentage of the number of shipments.

In the process of forming a budget for commercial expenses, expenses are calculated that can ensure immediate and full shipment of goods and their promotion on the market in the planned period.

Depending on the exact costs of the number of sales, they can be divided into semi-fixed and semi-variable commercial costs.

So, variable commercial expenses are calculated exclusively after the creation of a sales budget that determines the range and volume of goods that are established by counterparties, the cost and terms of payment.

In most cases, forecasting customer demand and creating a cost plan for implementation is carried out by a commercial service, which has the right to correlate costs with the number of sales, and classifies costs according to criteria such as:

• obtaining transport services and freight forwarding;
• leasing warehouse space and vehicles;
• advertising and marketing events, which are primarily aimed at increasing sales volumes and conquering consumer markets;
• costs directly related to packaging, warehousing and further storage of goods;
• costs of direct structural units whose activities are considered commercial;
• costs of servicing the company's transport;
• registration of property insurance;
• customs procedures and export commissions.

High-quality forecasting, analysis and justification of expenses in order to obtain the maximum amount of profit is carried out exclusively by authorized performers who are more interested in increasing the number of sales, optimizing financial expenses for organizing sales and meeting budget targets.

Greater priority in the management of commercial costs and the motivation of authorized employees are fixed by the immediate management of the company on the basis of the marketing policy adopted by the company and the provisions of relative monetary bonuses.

In Russian business practice, several approaches to forecasting business costs are used, namely:

• in the form of a specific percentage of sales;
• according to the principle of “forecasting from what has already been achieved”;
• based on the principle of direct competitive parity.

Which approach is optimal is decided by the immediate management of the company.

Answers to frequently asked questions about business expenses (line 2210)

Question: For what purpose should manufacturing companies distribute transportation and packaging costs between types of shipped products while partially writing off these costs?

Answer: Indeed, manufacturers need to do exactly this, since not all products that were shipped to customers will eventually be sold. It depends on what exactly is said in the contract between the seller and the buyer:

• if this is a supply agreement, the products are not considered sold until the buyer fully fulfills the terms of the agreement;
• if this is a goods exchange agreement, the products are not considered sold until the buyer makes a counter shipment of the goods.