Just to clarify to clear any confusion. I stated:
I am not going to bother with counter points on all the quotes, because it will basically be repeating my self, and maybe it is my fault for not explaining my reasoning well. The two issues I had with the original quoted post was the following:
Why it would it matter how many units were returned?
Because if there was a high amount of returns, this impacts the sales number.
I completely understand that certain data such as returns would not be easy to obtain and/or estimate, but I still disagree with your post that I originally quoted, and nothing you posted since explained why including returns would be a bad or unnecessary thing, other than not being able to estimate these numbers.
In the article, Home Pod sales are estimated, and maybe it could have estimated returns too, especially with the threads about so many Home Pod being returned.
The other issue was this post, which is off topic from the article, but not correct which is why I took issue with it:
Manufacturers do not determine how many XYZ did we sell and how many XYZ were returned.
Companies like Apple do determine this for financial accounting. The number of returns is estimated. The actual number of returns is taken in account as an adjustment later on.
Aside from being required by law for financial accounting, this information can be used internally for making decisions on individual products. So, even if it was not required, I am sure that companies would still do this for decision making purposes.
You mentioned it’s by law, which I would counter and say let’s also not necessarily true. (I won’t name the companies I have worked for), but as I mentioned before, I work for loss prevention for years determining logistics in sales and returns, and many manufactures do not claim/tally returns.
Are you saying the company you worked for had returns but didn't account for them? Was that company publicly traded like Apple? Probably not, because they could get in big trouble for not having returns reflected in their net sales.
(Slightly off topic again: Just guessing by your post, but I don’t think you have a lot of experience in the sales industry.)
I won't make any comments about your knowledge or experience, but I will leave you with a few links about sales returns and refunds:
Apple's own SEC Filing:
The Company also records reductions to revenue for expected future product returns based on the Company’s historical experience.
bizfluent.com on recording a sales return:
When a business issues a refund for a product, it must account for this refund on its financial statements.
smallbusiness.chron.com on GAAP Refund:
When a business sells products that a customer can return for a refund, it must make two accounting decisions. First, the business must determine when to recognize revenue from the sale of a returnable good. When the proceeds of the sale are recognized, the business includes them in the business’s revenue for the period.
Next, the business must record a contingency for future returns.
Thanks for the discussion.
No problem
