There are no rules when it comes to retail sales. For the small business owner, become the expert for your product and demand the highest price. By educating and providing a quality product you can set your own rules.
In the revenue section of every income statement (profit and loss statement) is an adjustment group to sales. This group reflects the value related to the actual sale of the product or services. This adjusting group is comprised of three significant types of adjustments to sales.
Almost all retail based operations require a Point of Sale (POS) System to properly record the customer and product activity. What is a Point of Sale System? How is it set up? What information should we get from this system? How does a small business owner benefit from this system?
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 unrealized. Sales are divided into two levels, gross sales are all sales at the regular price; net sales are gross sales less discounts or adjustments associated with that particular product(s).
First rule: THERE ARE NO RULES! Second rule: WHEN IN DOUBT, REFER TO THE FIRST RULE.
