No that is correct, later on in the expense part of the 990 the actual amount that your group net income will come in after the statement of functional expenses is completed, most of this info goes back on the main page and is deducted from your gross sales to equal your net. Good Luck! Think of your income tax and how you put both net and gross on it...
Hello
Last nights PTO meeting the treasurer gave a report on 990 form she is filing with IRS.
I am not a accountant and have never paid attention to these reports in the past.
ANyway, I am questioning how a PTO calculates gross earnings.
It seems that she calculated the gross income from thee total $$ amount of what the PTO collected from the gift wrap sale. For example, we had $10,000 in sales but only made $5,000 since we get 50%. She used the $10,000 amount since the form says gross sales not net sales.
Is this correct?? It seems wrong to me. Can someone explain this to me???
-d