What Does net Mean
Net is something clear, clean or well defined . By extension, the adjective is used to name a resulting quantity . Thus we can speak of net weight , net content , equity , etc.
The net weight is the actual weight of any product or commodity. This means that it is the gross (total) weight minus the weight of the container and discounting other variables that may affect the weighing, such as humidity. For example: "Although this jar is very large, it only contains a net weight of 200 grams of green olives" , "The net weight of the apples is three kilos, although if you add the wooden crate you will have to load a little more than four kilos ” .
In the field of economics , net worth is the difference that exists between the values that belong to a person or organization and its debts or obligations. If a company has $ 100,000 in cash but is facing $ 60,000 in debt, its net worth is $ 40,000. In a similar vein, if a person has $ 2,000 in savings and owes obligations of $ 100, his net worth is $ 1,900.
The net income is the one who receives a person or company actually after applying the relevant discounts. A worker who agrees with his employer a gross salary of $ 500, knows that he will receive a net income lower than that figure, since discounts must be made to cover social work, retirement, etc.
Luís Neto is a footballer of Portuguese origin, born in 1988. He currently plays for the team Zenit St. Petersburg in the Russian league in the position of central defender. He discovered his vocation at an early age: at the age of ten he had already joined a local club and since then he has not stopped dedicating himself to his profession. In 2012 he participated in the qualifying for the 2014 FIFA World Cup, against Russia and Northern Ireland.
The net price
For certain complex sales processes , especially between companies, a series of discounts is usually applied that make the calculation of the net (or final) price of a commercial operation more complex, whose economic viability can only be determined if said value is obtained.
In short, the net price is the one that arises from subtracting all the discounts (both on invoice and outside), as well as the contributions , from the tariff price . To better understand this procedure, let's take a closer look at the four concepts just mentioned:
* tariff price : the one that is initially set for any acquisition of a service or product;
* Discounts : reduce the price by subtracting a fixed amount (such as a specific amount for each unit purchased) or a percentage. It is worth mentioning that discounts do not always have to be recorded on the invoice. There are, in turn, several types, such as rappels (they apply to a certain volume of purchase), logistics , promotional and those that are granted for prompt payment ;
* Invoice price : it is the price that is reflected in the invoice, and it is generally the result of the rate price minus all the discounts also specified in it. The invoice is a document created with the purpose of collecting the fundamental data of a commercial transaction (be it the purchase of a product or the payment for a service), such as the name and quantity of each item, data about the buyer and the seller and tax rate, among others;
* Contribution : it is the amount that the seller pays to his buyer to close a transaction, and it is negotiated outside the invoice .