Why do my discounts and/or refunds show on my gross total for he day?

[Eagles3448]

Question 1:

Why is the "Drawer Report" detailed one time (includes what starting cash was, bring in for expected cash in drawer) and another time (has the starting cash and a blank line for the bartender to write in their drawer total)?

Question2:

How do I get the refunds to not show up on my gross total? The item technically was not sold if it is returned and if it is on my gross total, I would then need to pay taxes on it.

Question 3:

Why are my discounts (Happy Hour/Birthday $10 discount) showing on my gross totals? I get that I need to pay taxes on what item(s) is/are included within what was sold but I only have to pay taxes on how much I sold it for. 

[TheRealChipA]

Hi @Eagles3448 

Question 1: An example or two would help, if you can post those.  That one has me stumped, for sure.

Question 2: I don’t know specifically which report you are referring to, but If you process a return or refund, it does not show up in your gross sales.  In fact, all it does is make your net sales lower for that day of the return/refund.  Gross sales are only items that were sold that day — not returned or refunded sales from previous days.

Question 3: Gross sales are required to be the pre-discount price of all items/services sold that day.  You’ll not below that the discounts & comps line.  That is a deduction for the discounts you gave your customers that day.  The Net Sales line includes the reduction caused by those discounts.  Usually we only pay taxes on net sales amounts (after discounts, comps, returns, etc).

You accountant or tax preparer can (and should) be consulted to help you better understand what deductions, etc, are used to determine taxable income.  But, for sure, gross sales is never taxable income.  It is just the starting point to get to taxable income.