What Are Net Purchases?
Net sales refer to sales income minus items deducted from current sales income, such as sales discounts, sales discounts, and sales returns. [1] Instead of turnover minus all expenses. Product or merchandise net sales income includes sales revenue that has been received for payment and sales revenue that has not been received for payment (credit sales) Note: Credit sales are generally business secrets of an enterprise and are not disclosed.
Net sales
- Net sales are sales income minus items deducted from current sales income, such as
- Product or
- Net sales =
- Sales income refers to the income from sales of products and provision of labor services in the production and operation activities of an enterprise, including product sales income and other sales income. Product sales income includes income from sales of finished products, self-made semi-finished products, and provision of industrial labor services. Other sales income includes income from sales of materials, lease of fixed assets, lease of packaging materials, sale of purchased goods, transfer of intangible assets, and provision of non-industrial labor services. The sales income in project evaluation generally refers to the monetary income from sales of finished products and self-made semi-finished products.
- The sales revenue is estimated as follows:
Net sales clear market
- According to the project's market survey and forecast analysis results, the sales volume of external sales and domestic sales are estimated respectively. For calculation convenience, it is assumed that the production volume is the sales volume, that is, the inventory changes caused by market fluctuations are not considered.
Net sales market needs
- And consider the domestic and international product price trends to determine the product sales price. Domestically sold products are estimated based on domestic market prices, and products sold or substituted for imports are estimated based on international market prices held by foreign trade departments. The sales price shall be calculated at the actual price of the enterprise.
Revenue from net sales
- It can be estimated according to the following formula: