Net Incoming Orders
| Name | Net Incoming Orders |
| Description | Net Incoming Orders is the monetary amount of incoming sales and service orders during a specific period, considering discounts and returned merchandise. It can be used for revenue estimates and forecasting purposes. |
| Interpretation | Net Incoming Orders is one of key indicators to monitor the sales activities occurring within organization. As discounts and returned are included in net incoming orders, it is more precise than gross incoming order in monitoring sales amount and comparing with net revenue invoiced later. By analyzing the trend of net incoming orders, sales organization can optimize the sales management resource, sales strategy, promotion campaign to achieve superior performance. Stable growth of net incoming orders indicates that company has good sales perspective. It shows that the product is gaining market share. If the net incoming order is steady over a period of time, this generally means that the product has reached its maturity stage and demand is level. |
| Calculation Formula | Net Incoming Orders = (Gross Incoming Orders) - (Sales Deductions) + (Merchandise Returned from Credit) + (Allowances for Damaged or Missing Goods) + (Freight Out) + (Cash Discounts) |
| Unit of Measure | Currency |
| Direction of Improvement | maximize |
| Industry Relevance | Generic |
| Country Relevance | Generic |