Sales can be defined as the economic price paid by customers. - While gross sales are the grand total of sale transactions within a certain time period, net sales are calculated by deducting sales allowances, sales discounts and sales returns. Net sales reflect all reductions in the price paid by customers, discounts on goods and any refunds paid out to customers after the time of sale. Whereas, Profit can be defined as difference between the amounts received from customers for goods and services provided and the amounts paid for the inputs used to provide the goods or services.