What is the difference between turnover and sales?
Thanks,
Anil.
1 Replies
Milan Somani
(CA)
(1456 Points)
Replied 26 April 2009
It depends on context you are talking:-
Ist
Sales = Turnover - Discounts (if any) - Taxes related to
production.
In a more understandable way, turnover is the gross sales,
which includes Discounts and Taxes related to that
particular product/service.
*Discounts include Trade Discounts
*Taxes include Turnover taxes etc.,
IInd
A sale is the pinnacle activity involved in selling products in return for money
The word "Turnover" has many meanings.
For a trader/manufacturer it means total sales (cash+credit).
While for a service provider the gross receipts form the services provided is its turnover
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