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drken
Level 1

Whats the difference between sales and gross receipts

Sales or Gross Receipts

Solved
Best answer October 15, 2018

Best Answers
qbteachmt
Level 15

Whats the difference between sales and gross receipts

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 4
qbteachmt
Level 15

Whats the difference between sales and gross receipts

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

drken
Level 1

Whats the difference between sales and gross receipts

Thanks!!!
magnum44
Level 1

Whats the difference between sales and gross receipts

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

Whats the difference between sales and gross receipts

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