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Turnover and sales difference

Others 1235 views 1 replies

What is the difference between turnover and sales?

Thanks,

 

Anil.

 

Replies (1)

It depends on context you are talking:-

 

Ist

Sales = Turnover - Discounts (if any) - Taxes related to
production.

In a more understandable way, turnover is the gross sales,
which includes Discounts and Taxes related to that
particular product/service.

*Discounts include Trade Discounts
*Taxes include Turnover taxes etc.,


IInd

A sale is the pinnacle activity involved in selling products in return for money

The word "Turnover" has many meanings.

For a trader/manufacturer it means total sales (cash+credit).

While for a service provider the gross receipts form the services provided is its turnover


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