What is included in net sales?

What is included in net sales?

Net sales is the result of gross revenue minus applicable sales returns, allowances, and discounts. Costs associated with net sales will affect a company’s gross profit and gross profit margin but net sales does not include cost of goods sold which is usually a primary driver of gross profit margins.

How do you calculate net sales?

Net sales is equal to gross sales minus sales returns, allowances and discounts.