Net Sales Calculator
Net Sales Calculator Explained:
(a) What is this? This calculator shows the sales (Net Sales) after returns.
(b) 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".
(c) 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.
(d) 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.