December 12th, 2008
When to Record Accounting Sales
Accounting sales can be recorded at different times. Whichever time is chosen, certain guideline should be followed.
First, let’s make sure we are talking about the same kind of accounting sales. There are gross sales and net sales. Gross sales are calculated by adding the total amount received by the purchaser. Net sales subtract the cost to make the product from the gross sales figure. Other subtractions are made as well, like product returns and discounts not settled at the time of sale. There is, obviously, a big difference between the two.