Net Sales Calculator
Net Sales Calculator Explained:
What is this?
This calculator shows the sales (Net Sales) after returns.
What does this tell me?
Net sales are defined as operating revenues earned by a business when it sells its products and services. Most income statements use "Net Sales".
Why should I use it?
Financial ratios tend to use income statement sales values. "Sales" refers to net sales, not gross sales. From an accounting standpoint , sales do not occur until the product is delivered. While most products in retail are "delivered" immediately, there can be a percentage of returns (or rebates, which occur after the sale has been processed) which needs to be accounted for.
Caution
Make sure that the exissting "Sales" do not already have returns and allowances included. Some POS systems do this automatically. Note GST/VAT is excluded from sales numbers. You use this calculator at your risk.