Difference between gross sales and net sales

Save Share

This query is : Resolved

Amarjeet Singh Dahiya (Querist)
Follow

24 November 2013 Hi, can any one please tell me what is the difference between gross sales and net sale in bank loan form , kindly tell me what is adding in net sales to calculate gross sales please tell us all particulars.

Harish Bhandari

Harish Bhandari (Querist)
Follow

24 November 2013 please suggest me important chapters or portion for industrial labour and general laws .. and also for company accounts and auditing paper..

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

24 November 2013 Gross sales is defined to be the total invoice value of sales, before deducting customers' discounts, returns, or allowances.
while

Net Sales The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed. The sales number reported on a company's financial statements is a net sales number, reflecting these deductions.

The difference between gross sales and net sales can come from two sources.
1. Sales returns
2. Customer discounts or allowances

Message likes : 1 times

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

24 November 2013 Gross sales mean what you are charged as the overall total of your bill and net is all other deductions subtracted with what ever balance is left being your net.
Gross sales is defined to be the total invoice value of sales, before deducting customers' discounts, returns, or allowances.

Net Sales The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed. The sales number reported on a company's financial statements is a net sales number, reflecting these deductions..

Message likes : 1 times