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View Full Version : When calculating cost of sales percent do you use sales before discounts or after?


joe harrold
Feb 16, 2010, 03:26 PM
When calculating cost of sales on a financial statement do you use sales before discounts of after discounts?

morgaine300
Feb 19, 2010, 05:22 PM
After. You're looking at net sales, not gross sales. Any discounts and returns would have to come out first.