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Level 1

Whats the difference between sales and gross receipts

Sales or Gross Receipts

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Best answer 10-15-2018

Accepted Solutions
Level 15

Sales is from charges to customers for your goods and ser...

Sales is from charges to customers for your goods and services.

Gross Receipts is a bit broader, and would include markups and other inflows, for example, if someone wants to track them separately.

For example, let's take a Not For Profit Day Care center:

Daily Drop Off Rate is Sales
Weekly Rate is Sales
Yearly Rate is Sales
Support from a fundraiser is Donation Income
Donations of goods or services is Donation in Kind
Support from a Grant is Grant income

And all of that is Gross Receipts.

Let's take a water system:

Water is sales
Late Fees are income (not operational)
A weed control grant is Grant Income
The Sales of an Asset is income

And all of that is Gross Receipts.

View solution in original post

4 Comments
Level 15

Sales is from charges to customers for your goods and ser...

Sales is from charges to customers for your goods and services.

Gross Receipts is a bit broader, and would include markups and other inflows, for example, if someone wants to track them separately.

For example, let's take a Not For Profit Day Care center:

Daily Drop Off Rate is Sales
Weekly Rate is Sales
Yearly Rate is Sales
Support from a fundraiser is Donation Income
Donations of goods or services is Donation in Kind
Support from a Grant is Grant income

And all of that is Gross Receipts.

Let's take a water system:

Water is sales
Late Fees are income (not operational)
A weed control grant is Grant Income
The Sales of an Asset is income

And all of that is Gross Receipts.

View solution in original post

Level 1

Thanks!!!

Thanks!!!
Level 1

How about "Services"? as a graphic designer, the online q...

How about "Services"? as a graphic designer, the online qb defaults income to sales, but wouldn't it be services??
Level 15

Services ARE sales of your talent. Even rent is Sales; Sa...

Services ARE sales of your talent. Even rent is Sales; Sales of Spaces.

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