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A term commonly substituted for revenue. However, sales are sub element of revenue. Gross sales are total customer purchases and net sales include adjustments to those purchases. Adjustments include returns, allowances and discounts.

Bookkeeping – Tracking Invoices (Lesson 36)


Now that I’m done with the employee payroll series, Lessons 30-35, it is time to explain sales.   There are five lessons for this section of daily operations. They are as follows: Tracking Invoices  – Lesson  36  (this lesson) [...]

Gathering Data from Sales


In business the best source of new business is the existing customer.  Discovering the customer’s habits and characteristics allows the sales department to expand into new geographical territories with similar customer characteristics and/or [...]

Marginal Revenue in Business


The scholarly definition and reality are two different perspectives.  The student is taught that marginal revenue equals the additional dollars generated for an additional single unit of sales.  It is literally taken right down to the micro [...]

Cost of Sales – Various Formats


Many business owners misunderstand the use of term ‘Cost of Sales’ by restricting it to just simply ‘Cost of Goods Sold’.  Basically, most business entrepreneurs and even accountants don’t realize that it has several different names and [...]

Point of Sale System – Introduction


Almost all retail based operations require a Point of Sale (POS) System to properly record the customer and product activity.  So what is a Point of Sale System?  How is it set up?  What information should we get from this system?  How does a [...]

Revenue and Sales – What is the Difference?


Sales are a component of revenue.  Revenue encompasses several sources of income including sales.  Other sources of revenue include interest, trust monies, royalties, and fees.  In effect, revenue includes all sources of income, realized and [...]