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sales and turnover

hardik dave (student) (508 Points)

02 June 2011

hello friends.

what is the difference between sales and turnover?

please elaborate with example.

kindly reply soon

thanks in advance

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2 Replies

C.A.M.S.ROY (C. A.) (478 Points)
Replied 02 June 2011

"turnover" is typically used by european and asian companies instead of "sales" or "revenue" but they mean the exact same thing. Turnover can also be used to describe certain types of financial metrics for balance sheet line items (inventory turnover, AR turnover, etc).

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N K TIWARI (Accounts) (47 Points)
Replied 02 June 2011

Sales is related with the commodity/item which come either under CST and VAT and return is being filed in periodic basis. But, when we talk about turnover, it consist of sales as well as services, amc and other related income petaining to main business of firm/company. Rest are included in other income or misc. income.