Business, Legal & Accounting Glossary
Total value of goods or services sold by a company in a period of time, often called turnover or revenue. Sales are recognised in the accounts at the point when the company either has received payment or is very likely to do so.
Sales are defined as the total money value collected for the provision of goods and services. Accounting guidelines state that sales are recognized when transactions are realized. Effective sales management aids business enterprises to enhance sales volume and maintain a steady growth of customers.
It is total invoice sales value when customer discounts, returns or allowances are not yet deducted.
It is gross sales less returns, allowances and discounts.
It is used for measuring a company’s profitability. Return on sales is pre-tax income (of a fiscal year) divided by gross sales.
A tax imposed by a government on an item’s retail price is called sales tax. Sales tax is collected by retailers from consumers. This is an indirect tax, in particular a consumption tax. A sales tax has a high compliance rate. Vendor taxes, value-added taxes, consumer excise taxes, and retail transaction taxes are various types of sales taxes.
This term is found in a business organization’s income statement. It refers to the cost of buying raw materials and producing finished products. It is also known as the ‘cost of goods sold’. Cost of sales equals starting inventory plus the cost of goods bought during a certain period less closing inventory.
There exist a variety of sales techniques. Some of them are listed below.
Direct sales involve personal contact between buyers and sellers. Mail-order is an example of indirect sales. The process does not involve direct contact amongst buyers and sellers. Electronic sales are conducted via the web. Agency-based sales comprise a broad category. It includes issues like sales outsourcing, consultative sales, telemarketing, and complex sales. Business-to-business sales include industrial as well as professional sales.
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This glossary post was last updated: 26th April, 2020 | 5 Views.