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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