This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
Calculation: Gross Sales at list price less discounts, sales returns and allowances, but before subtracting the Cost of Sales and Operating Expenses.
Sales is the revenues from the sale of goods and services which are part of the company’s regular operations. (Non-operating revenues, e.g. the sale of surplus equipment, would show up as an Adjustment rather than Sales Revenue.)
The term ‘Sales’ generally refers to Net Sales. The term ‘Total Sales’ could refer to Gross Sales or Net Sales.
Net Sales is the number used if the line item just says ’Sales.’ in Financial Statements
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.