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Thread: Figuring out Gross sales with only net sales and percentage of discounts

  1. #1

    Figuring out Gross sales with only net sales and percentage of discounts

    1st post in a forum ever....my apologies if I make a noob error...

    I'm trying to forecast business sales for the coming weeks. I'm restricted to forecasting NET sales, but my allowed labor is based off of GROSS sales.
    Only knowing my NET sales values and my avg Discount percentage, how do I find my GROSS sales?

    I've been using the following basic formulas but Im missing something.

    Gross Sales - Discounts = Net Sales
    Gross = Net + Disc
    and
    Disc/Gross = Percentage
    so
    D/G = P
    D=PG
    D=P(N+D)
    D=PN+PD

    I feel like I just keep moving variables around with no solution.
    Is there a way to solve this?
    If I do $15,000 in net sales and I have a 12% discount rate, what are my GROSS sales? 15000 x 1.12 is not correct

  2. #2
    Elite Member
    Join Date
    Feb 2004
    Location
    Ottawa, Ontario
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    17,044
    Quote Originally Posted by jmorrell317 View Post
    If I do $15,000 in net sales and I have a 12% discount rate, what are my GROSS sales? 15000 x 1.12 is not correct
    15000 / (1 - .12) = 15000 / .88
    I'm just an imagination of your figment !

  3. #3
    Junior Member
    Join Date
    Jan 2018
    Location
    Boston
    Posts
    101
    Quote Originally Posted by jmorrell317 View Post
    Gross Sales - Discounts = Net Sales
    Disc/Gross = Percentage
    If I do $15,000 in net sales and I have a 12% discount rate, what are my GROSS sales?
    Based on the above:

    N = G - D = G - G*P = G * (1-P)

    G = N/(1-P)

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