---
title: "What is Sales?"
description: "What Sales means and the KPIs that make it up."
url: https://help.flow-insight.com/en/articles/42-what-is-sales
collection: "KPI glossary"
updated: 2026-08-06
language: en
alternates: [ja]
---

# What is Sales?

What Sales means and the KPIs that make it up.

## Definition

Many companies treat "Sales" as their most important indicator (KGI) for running a store. Here's what the term means and what it's made up of.

Sales is the amount of money a company receives from selling goods, products, or services — the money that comes in when a customer buys something. Also referred to simply as Revenue.

In other words, Sales is the result of exchanging a store's products for customers' money.

Breaking Sales down, it splits into 2 factors:

1.  How many customers exchanged money for products (= Transactions)
    
2.  How much each customer paid for what they bought (= Average Purchase)
    

Breaking Sales down this way tells you how many customers paid how much, and how that adds up to your total.

## Formula

**Formula: Sales = Transactions × Average Purchase**

## Why it matters

Sales is typically evaluated using 2 indicators: Sales Budget and Period Comparison. See the article below for how to use each one.

[

Indicators to Evaluate Sales

The "Budget Ratio" and "Period Ratio" used to evaluate sales.

](https://help.flow-insight.com/en/articles/262-indicators-to-evaluate-sales.md)

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If you have any questions or feedback, please contact support at [support@flow-solutions.com](mailto:support@flow-solutions.com).