What are gross sales?
Hruby sales is the total value of the sales invoice. This number does not include any revenue or discounts that the company can offer to its customers. Sales numbers include cash sale and cases where the item was sold on credit.
retailers may be particularly interested in the amount of dollar products they sell. They want to monitor how many units of a particular item is sold and at what price. Maintaining stocks moves from the shop to the customer's hands is more convenient than a large amount of stock sitting on the floor or in a warehouse.
When the Company sends an invoice to the customer for payment, the conditions will appear somewhere in the document. Customer incentives will be listed, such as a cash discount for paying within the specified number of days from the date of the invoice. If the customer decides to pay the invoice before the due date and get the price value of cash, the amount of the discount is not recorded in the sales figure until the payment is received. Full amount invoiced is reflected in the values of grossCH sales of the company.
Turnover tax collected by the merchant is not included in gross sales data. The company does not sell tax, but is obliged to collect it on behalf of the government. This money is to be monitored separately from the sale of the company and maintained on a separate account until they are moved to the government.
The company's gross data may indicate how well it is, but this number is not the whole story. The sale of the company before billing any deductions may seem impressive. After returning, discounts and transport costs are proven, the net amount is significantly lower.
Business can show gross sales of $ 25,000 (USD) in a month. If customers return the goods sold worth $ 10,000, then the net sales will drop this period to $ 15,000. The net sales part is what would normally be stated in the profit and loss statement for the company, not the PR numbero Hrubý Sales.
net sales in profit and loss statement can also be called overall income. For the calculation of profit or loss of the company for a specified period, production, marketing and administrative costs of the company are deducted from net sales. Taxes must also be deducted before the company's net income can be calculated.