The income tax summary report shows amounts for “gross receipts or sales” and “returns and allowances.” If you subtract the amount for “returns and allowances” from the amount for “gross receipts and sales,” you'll get an accurate total to report for net sales on your income tax form. Because of the way that QuickBooks tracks returns and discounts, however, the amounts for “gross receipts or sales” and “returns and allowances” may not be accurate. Follow this procedure if you need accurate amounts for “gross receipts or sales” and “returns and allowances” in addition to net sales.
If the date range is incorrect, choose the correct date range from the list.
What the amounts represent: The amount given for “Gross receipts or sales” is the net sum of all of your sales for the taxable year, including returns you entered as credit memos or refund checks. The amount given for “Returns and allowances” is the total of all the discounts you gave, either as line items on a sales form or as discounts for early payment. Even though the report says “Returns and allowances,” the total shown does not reflect all of your returns and allowances if you issued any credit memos or refund checks during the year.