Saturday 20 October 2018

7 Difference Between Gross Sales and Net sales

1. Gross sales are the total amount of sales without any deductions while Net sales are the total amount of sales after deductions from the gross sales. 2. Net sales/revenue is the total after the refunds, fees and similar have been taken out.  3. Amount: Gross sales are always higher than the net sales due to the fact that net income is derived from deductions made from the gross sales. 4. Interdependency: Gross Sales: Not dependent on net sales. Net Sales: Dependent on gross sales. 5. Net sales gives a much more accurate picture of the sales generated by a company, and what they should expect to receive. Net sales is great for measuring a company’s top line.

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