This question is about gross sales vs net sales.

How do you calculate net sales?

By Zippia Team - Dec. 7, 2022

Net sales are calculated by subtracting the amount lost to sales, allowances, and returns from the gross sales. That means that you need to break down your different discounts and subtract them from gross sales. Most register systems are going to easily be able to track returns and how much money was taken off via sales or coupons.

This also allows you to determine the difference between your net sales and your gross sales. Generally, the smaller that number, the better.

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