Revenue · Sales deductions

Start with gross.
Reconcile to net.

Separate returns, discounts, and allowances from gross billings to see net sales and gross profit clearly.

Gross-to-net reconciliation

Gross sales→Returns + discounts + allowances→Net sales

Gross sales$Sales returns$Sales discounts$Sales allowances$Sales tax collected$Units soldunitsCost of goods sold$

Net sales

$227,500.00

Total Deductions$22,500.00

Return Rate6.0%

Discount Rate2.0%

Allowance Rate1.0%

Net Sales Rate91.0%

Average Net Revenue Per Unit$45.50

Gross Profit$107,500.00

Gross Margin47.3%

Cash Collected Before Fees$245,500.00

Planning estimate only. Verify actual tax rules, prices, cash-flow timing, exchange quotes, fees, and accounting treatment for your business.

Calculation method

Gross sales minus returns, discounts, and allowances.

Sales tax collected is kept outside net sales and added only to the cash-collected planning output. Gross profit subtracts entered COGS from net sales. This is a simplified management estimate, not a journal-entry engine; it excludes timing differences, refunds payable, chargebacks, bad debt, marketplace fee withholding, multi-rate taxes, revenue-recognition rules, and account-specific classifications.

Start with gross.Reconcile to net.

Gross sales minus returns, discounts, and allowances.

Start with gross.
Reconcile to net.