Total Product Revenue
Total Product Revenue, or TPR, is the total revenue generated from sales of goods and services to external customers plus the value of intra-company shipments. This revenue can be net of all discounts, coupons, allowances, and rebates that are applied to transactions. In addition to total product revenues, any revenue generated through services provided as part of a bundled sale or as part of an installed product should also be included in this calculation.
Lastly, recognized leases that are initiated during the same period in which goods are shipped out to customers should also be included in TPR calculations.
The overall goal of calculating TPR is to gain an accurate understanding of how successful a company’s operations are when it comes to its logistics activities. By doing so, companies can identify areas where they can improve processes and thus increase their overall efficiency.