Bruttosalg

Bruttosalg is a financial metric used in Danish accounting to describe the total value of goods and services a company sells during a specific period. It represents the invoiced sales at the prices charged to customers, before deducting returns, allowances, or discounts. In most accounting practice, bruttosalg is reported excluding value-added tax (VAT) or other sales taxes, which are collected on behalf of the government rather than as revenue for the seller.

Calculation and scope: Bruttosalg is typically the sum of all invoiced sales within the period. It does not subtract sales returns, rebates, or discounts granted to customers. Net sales, in contrast, equals bruttosalg minus these deductions. Some organizations may also distinguish between bruttosalg excluding VAT and revenue figures that are presented net of VAT, depending on the reporting framework.

Context and usage: The term is commonly used in retail and wholesale reporting in Denmark and other Nordic regions, though terminology and definitions can vary by jurisdiction. Bruttosalg provides a top-line indicator of sales activity and is often used in budgeting, performance analysis, and comparisons over time, alongside related metrics such as gross profit and net revenue.

Limitations: As a measure of sales volume, bruttosalg does not account for discounts actually granted, returns processed, or the costs of selling. Therefore it should be interpreted together with net sales and profitability metrics to assess overall performance.