Executive & Board / Financial Strategy
Gross-to-Net Revenue GTN (gross sales to net revenue bridge)
The bridge from headline gross sales down to the net revenue a company actually keeps, after every deduction taken off the top.
The fork, why two teams get different numbers
The fight is which deductions sit above the net-revenue line versus below it as an operating expense, and the choice moves reported revenue, not just margin.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: FASB ASC 606 (revenue recognition; principal vs agent · variable consideration) · SEC Regulation S-X Rule 5-03 (revenue presentation)