Is revenue and net sales are the same?

Is revenue and net sales are the same?

What is Net Sales? Net sales is total revenue, less the cost of sales returns, allowances, and discounts. This is the primary sales figure reviewed by analysts when they examine the income statement of a business.

How do you find net sales from total revenue?

To calculate net sales, you can use a formula that reduces gross sales by the number of discounts, sales returns and allowances that exist over a period of time. The net sales formula consists of several important parts: Gross sales: This refers to the unadjusted amount of sales revenue a company earns.

Can I use net sales as revenue?

A company may also report net sales, which is the result of subtracting any returned merchandise from gross sales. Retail companies tend to report net sales as well as revenue.

What is another word for net sales?

What is another word for net sales?

What is the definition of net sales?

Definition and Examples of Net Sales Net sales is the amount of sales calculated after sales returns, discounts, and allowances are deducted from gross sales.