What’s the Difference Between Gross Sales vs. Net Sales?

Manuel Oliveira

In order to create accurate sales forecasts to paint a picture of where your business is going and set realistic quotas for your sales team, you need to understand your total sales and revenue. There are two main ways of keeping tabs on sales and each is important to grasp:

 

• Gross sales, which is the sum of all sales made with no deductions
• Net sales, which is gross sales with deductions (discounts, returns and allowances) included

 

In this post, you’ll learn about how gross and net sales are calculated, how gross sales vs. net sales are used in business and how salespeople can use them to identify potential issues or opportunities within their sales process.