What are operating expenses? Operating expenses and income. Other operating expenses

Operating costs or operating expenses(English) OPEX, abbr. from operating expense, operating expenditure, operational expense, operational expenditure) - the company’s daily expenses for doing business, producing products and services.

Amount of operating expensesOPEX) and capital expenditures (eng.CAPEX) constitute company expenses that are not included in the direct cost of products or services that the company offers to the market. For example, the purchase of a copier is a capital expense, while the purchase of paper, toner, electricity, and payment for repairs and maintenance of this device are operating expenses.. In general, for a business, operating expenses include staff salaries, rental costs, utility bills, etc.

Operating costs (the company's daily expenses for organizing sales, administration, R&D, etc.) are contrasted with direct costs - the company's expenses for the direct creation of goods and services. In other words, direct costs are the amount of money a company spends to turn raw materials or components into finished products.

In the income statement, operating expenses are indicated in relation to the time period in which they were incurred - month, quarter or year.

Transaction costs- costs associated with concluding transactions and reflecting costs:
- to choose a partner;
- signing agreements and monitoring execution;
- to adapt to ongoing changes;
- to improve the qualifications of individual employees;
- to prevent fraud;
- in case of unexpected shocks.

Transaction costs(OVERHEAD) - (indirect costs; operating costs; overhead costs) production goods and services that are not direct costs, that is expenses expenses incurred in addition to the costs of raw materials and labor used in the production of these goods and services. Indirect costs are divided into fixed costs and variable costs. The first ones include: magnitude which does not change when the scale of production changes, for example, rental payments for company , depreciation charges for building and equipment. The second includes those whose magnitude depends on changes in the scale of production, for example, expenses for fuel and electricity.

oncosts The cost of a product or service in excess of direct costs.

Operating losses- the difference between income from the main activities of the company and the corresponding expenses and expenses, with the exception of income received not from the main activities of the enterprise, and calculated before deductions from income; synonyms - net operating profit (or loss), operating income (costs). (operating income (or loss)) and net operating income (costs) (net operating income (or loss)). Income deductions are a group of items that make up the final portion of a company's income statement that are required in the normal course of business and are typically deducted to calculate net income. Essentially, they are expenses that are independent of the company's day-to-day operations rather than expenses that are dependent on it. Includes payment of interest; depreciation deductions; bond expenses; income tax; losses resulting from the sale of production facilities, divisions, and main assets; adjustment of the results of the past year; reserves allocated for probable expenses; bonuses and other periodic distributions of profits among managers and employees; write-off of intangible assets; adjustments resulting from major changes in accounting practices, such as the basis for valuing inventory; expenses resulting from fire, flood and other extraordinary expenses; losses incurred on foreign exchanges; other material and one-time expenses.

In general terms, operating expenses are the costs of an enterprise that are not directly related to its core activities. The current edition of PBU 10/99 does not contain a precise definition of the terms operating income and expenses due to the change in classification according to Order No. 116n dated September 18, 2006. The legislation now proposes a simplified gradation for other expenses/income, as well as expenses/income for ordinary activities . How to determine what costs belong to what, how to calculate net operating income - we will explain in detail below.

What do operating expenses include?

All indirect expenses of the enterprise are recognized as operating expenses. Previously, there was a classification of costs into non-operating, operating and emergency. With the entry into force of Order 116n, such division was abolished, but it is possible if necessary at the request of the enterprise. A complete list of the main operating expenses is contained in paragraph 11 of Chapter III of PBU 10/99.

Operating expenses include the following costs:

Representation of assets, including property, enterprises for temporary paid use or ownership.
Submission for paid use of patent rights to intellectual property for various purposes.
Participation in the authorized capital of other companies.
Payment of cash settlements to credit institutions.
Payment of interest on borrowed obligations of various types.
Costs of disposal, sale, or other write-off of assets, property, goods, finished products of an enterprise, with the exception of Russian funds.
Creation of valuation reserves by the enterprise, including for doubtful debts, for depreciation of securities, etc.

The listed types of costs are included in operating expenses if they do not relate to the main activities of the enterprise. Otherwise, such costs are subject to inclusion in ordinary expenses.

Other operating expenses - what do they consist of?

Operating expenses classified as other include other costs not listed above. In particular, according to PBU 10/99 it is:

Penalties imposed for violations of contractual terms.
Compensation for losses due to the fault of the organization.
Accounts receivable with expired claim period, other obligations impossible to collect.
Losses when writing off depreciation of assets.
Amounts of exchange rate differences.
Other types.

What does operating income include?

Similar to expenses, operating income is classified as such if it is not related to the main work of the enterprise. Otherwise, they must be reflected in account 90 and accounted for as revenue from ordinary activities. A complete list of types of income from other operations is contained in paragraph 7 of PBU 9/99.

Operating income consists of income:

From paid representation to time-limited use of enterprise assets.
From paid representation of patent rights to various types of intellectual property.
In connection with participation in the authorized capitals of other companies, including interest and income from investments in bonds and securities.
From participation in simple partnership agreements.
From the sale of property, assets of the organization, goods or manufactured products.
Interest received on loans and borrowings.
Accrued penalties for violation of contractual terms.
From assets received free of charge.
Profit of previous periods.
Compensation for losses caused to the enterprise.
Amounts of accrued exchange rate differences.
Amounts of accounts payable that have already expired.
Amounts of recognized income from revaluation of assets.
Other types.

Net Operating Income - Formula

As can be seen from the contents of the lists, income and expenses practically coincide in their economic purpose. In this regard, the ratio of operating expenses to operating income is used when calculating profit for other facts of business activity. Separate accounting allows you to determine net operating income:

Net operating income is: The amount of VA (the actual amount of gross income) – the amount of OP (operating expenses excluding depreciation).

The indicator characterizes the amount of net profit from the use of property, contributions to the authorized capital, investments in securities, and other types of income. It is economically important to calculate the NIR for the current period. But a one-time positive result is not a guarantee of profit in future periods.

The ratio of operating expenses to the company's sales revenue will help to calculate the operating expense ratio, which characterizes the dynamics of the profitability of overall activities. The lower the value obtained, the more profit the company has for the reporting period. The higher the coefficient, the more significant the business costs to maintain its livelihoods.

KOR (OER) = OR / Total income

An enterprise can establish formulas for calculating operating income and operating expenses independently, adhering to the legislative norms of PBU 9/99 and 10/99. It is recommended to measure performance indicators on the basis of financial (accounting) reporting data. Calculations are made for a period - month/quarter or for the reporting year.

Accounting for operating expenses and income

To collect data on operating expenses and income incurred, account 91 “Other income and expenses” is intended. The amounts of expenses in the context of analytics are reflected by entries in debit 91.2, and income - in 91.1. Entries are made cumulatively during the working period with the closing of the final balance using subaccount 91.9. At the reporting moment, operating expenses are not reflected in the balance sheet, and the balance of account 91 is closed.

Example of typical transactions for account 91:

Purpose of the business operation	Account by debit	Loan account
Excess inventory items identified during the inventory procedure were capitalized
Monthly rent accrued
Accrued income from the transfer of intellectual property rights
Accrued income from the sale of fixed assets in cash
Uncollectible accounts payable are written off as income
The residual value of the sold asset is reflected
Negative exchange rate difference written off as expenses in cash foreign currency
The servicing bank's cash settlement account is taken into account
A provision for doubtful debt has been created
Loan interest written off
Income from account 91 is closed
Closed loss on account 91

Capital and operating expenses are the two main types of costs in the business cycle of an enterprise. These costs differ from each other in nature and in the method of their recognition in both accounting and tax accounting.

Capital expenditures, or CAPEX (short for capital expenditure), represent the costs of acquiring non-current assets, as well as their modification (completion, retrofitting, reconstruction) and modernization.

The main characteristic of capital costs is the duration of their use. If a company plans to use an asset investment for more than one year, it will most likely be classified as CAPEX. What counts as a capital expenditure for a company largely depends on both its scope of activity and the established rules of its industry. For example, for one company a capital investment will be the purchase of a new printer, for another it will be the purchase of a license, and for a third the capital investment will be the purchase or construction of a new office building. In practice, capital costs for a company most often include investments in fixed assets and intangible assets.

Accounting for capital expenditures under IFRS is carried out in accordance with the standards IAS 16 “Fixed Assets”, IAS 23 “Borrowing Costs”, IAS 38 “Intangible Assets”.

Operating expenses, or OPEX (short for operational expenditure), are the costs of a company that arise in the course of its ongoing activities. Examples of operating costs are the cost of production, commercial, administrative, management expenses, etc. The main task of the company's top managers is strict control, and often reduction of operating expenses in parallel with increasing the company's income. Thus, the share of operating expenses in relation to the company's revenue is always an indicator of the effectiveness of company management.

In accounting, CAPEX results in the capitalization of costs on the company's balance sheet, which in turn increases the value of assets and the company's net profit for the reporting period (since costs incurred in the current period are capitalized and then amortized over several years). However, capitalizing costs also has disadvantages. First, the company will pay a large amount of income tax. Secondly, the company is required to test its assets for impairment on a regular basis.

Recognition of OPEX in accounting results in a decrease in net profit for the current period, but at the same time the company pays less income tax.

In practice, in approximately 80% of cases, the company immediately determines what type of costs belong to them. Discussions arise over the remaining 20%. We suggest you deal with the most frequently asked questions.

Fixed assets

If a company acquires an expensive fixed asset that it plans to use for several years, then the question of capitalizing this fixed asset most often does not arise. But if a company acquires a large batch of inexpensive objects or spare parts for an existing fixed asset, or makes expenses for inseparable improvements in leased premises, then accounting for these costs causes difficulties. What to do with them? Capitalize, recognize as inventory or immediately write off as expenses of the current period?

In order to understand this, it is necessary to return to the definition of a fixed asset in accordance with IAS 16 Fixed Assets.

Fixed assets are tangible assets that:

intended for use in the production or supply of goods and services, rental or administrative purposes;
intended for use over more than one reporting period.

The standard also clarifies when we must recognize a fixed asset. A fixed asset is recognized as an asset only if:

it is probable that the entity will receive related to the item future economic benefits;
price of a given object can be reliably assessed.

Therefore, when deciding whether an item is a fixed asset for accounting purposes, a company should keep in mind the following characteristics:

purpose of the object (production, provision of services, rental, etc.);
the expected period of use of this object;
the likelihood of obtaining future economic benefits from the use of this facility;
the ability to estimate the value of an object.

In practice, it is not always possible to classify an object as a fixed asset based on the above characteristics. In these cases, the company must use professional judgment and materiality.

So, let's look at some of the nuances.

Capitalize or recognize as current period expenses low-cost
homogeneous objects purchased in large quantities?

Very often, companies purchase inexpensive homogeneous objects in large quantities. For example, tools, communication devices, furniture, office equipment, etc.

The cost of one such object may be insignificant (for example, 1 thousand rubles), but the total cost of a batch of objects can be very significant for the company. What to do in such cases? Should these objects be recognized as CAPEX or OPEX?

There is no clear answer. IAS 16 in paragraph 9 says that the standard does not define the unit of measurement that should be used when recognizing an object as a fixed asset. This means that, in some cases, a company may combine minor similar items into one fixed asset with an aggregate cost. The Company will need to exercise professional judgment in each individual case. It is only important to remember that the expected useful life of such objects should be approximately the same and exceed 12 months.

Example 1
The Monet coffee shop purchased 100 identical chairs for 5 thousand rubles. a piece. The coffee shop's managing manager plans to use these chairs in the coffee shop's new, renovated space for his customers to use for approximately three years. How to account for incurred costs - as part of CAPEX or OPEX?

The first step is to understand whether the costs incurred meet the requirements of IAS 16 to be recognized as property, plant and equipment. Let's look at Table 1.

Table 1

Characteristics fixed asset	Object: chairs (100 pieces)	Performance criteria for recognition of OS
1. Purpose of the object	Chairs are for visitors coffee shops and will be used in its current operating activities	Eat
2. Estimated period	Three years	Eat
3. Probability of receiving future economic benefits from use of this object	since the chairs will be used by visitors in current operating activities coffee shop that generates the main revenue	Eat
4. Possibility of evaluation object value	The cost of a batch of chairs is 500 thousand rubles, economically justified and documented	Eat

Based on paragraph 9 of IAS 16 and his professional judgment, the chief accountant of the Monet coffee shop decided to capitalize the entire batch of chairs as one item of fixed assets with an aggregated cost of 500 thousand rubles. and a useful life of three years. This decision is also appropriate taking into account the fact that the chairs will be used in the current activities of the enterprise, which generates the main revenue.

Capitalize or expense spare parts?

There is also no clear answer to this question. Purchasing replacement parts should be considered on a case-by-case basis and professional judgment should be used.

In most cases, spare parts, such as consumables or minor components, are classified as inventories under IAS 2 Inventories and are recognized as operating expenses as they are used.

However, there are situations when the cost of spare parts can be capitalized, that is, recognized as part of property, plant and equipment. In this case we are talking about expensive spare parts for some fixed assets. For example, a company may capitalize marine and aircraft engines, spare parts for expensive production machines, airplane seats, etc. When recording such spare parts, it is important to remember that they will most likely be capitalized separately from the main item of property, plant and equipment. For example, if the useful life of an engine is five years and the remaining useful life of an airplane is eight years, then the replacement engine in the airplane will be accounted for as a separate asset with a depreciation period of five years. The aircraft will be depreciated over the remaining eight years. In this case, the carrying amount of the replaced engine is subject to derecognition in accordance with paragraphs. 67-72 IAS 16.

Capitalize or recognize as current period expenses the costs of permanent improvements to the leased premises?

Currently, most companies rent premises for offices or industrial premises. It often happens that the rented premises are completely unsatisfactory for the tenants, so they carry out reconstruction, repairs and various improvements at their own expense.

Example 2
The management company of the Monet coffee shop chain decided to renovate the rented office and add two more offices: for a senior manager and a chief accountant. During the renovation, additional partitions were erected and glass doors were installed. These improvements are inseparable from the leased premises: as soon as the lease expires, the company will not be able to use these offices. It will also not be possible to dismantle them and use the remaining material elsewhere, since dismantling will cause significant damage to the rented premises.

So how should you account for the costs incurred - as part of CAPEX or OPEX? As we said earlier, there is no universal answer here, it all depends on the specific situation. First you need to understand whether the costs incurred satisfy the requirements of IAS 16 for recognition as property, plant and equipment. Let's look at Table 2.

table 2

Characteristics fixed asset in accordance with IAS 16	Object: Inseparable Improvements for the construction of two offices in rented premises	Performance criteria for OS recognition
1. Purpose of the object	Use of cabinets for the current operating room senior manager activities and chief accountant	Eat
2. Estimated period use of this object	For the remaining period lease, that is 9 years	Eat
3. Probability of receiving future economic benefits from using this object	The likelihood of receiving benefits is high, since the presence of offices will allow use rented premises more effective	Eat
4. Possibility of evaluation object value	Cost of expenses, amounting to 1.5 million rubles, economically justified and documented confirmed	Eat

Since these costs satisfy all the requirements of IAS 16, the company can capitalize them and recognize them in accounting as an item of property, plant and equipment.

When capitalizing permanent improvements, useful life is often an issue. In most cases, the useful life cannot exceed the rental period of the premises. However, non-standard situations are also possible.

Example 3
The company leases premises from a parent company or from a company that is controlled by the same shareholders (that is, related parties or companies under common control). The standard lease agreement is concluded for five years and then renewed automatically. The tenant company has renovated the premises. The Company estimated that the permanent leasehold improvements have a useful life of eight years. Can a company set a longer useful life (eight years) than the lease term of the premises (five years)? In this case, it is necessary to carefully analyze the lease agreement. If the company plans to lease the premises for at least eight years and the contract provides for an automatic renewal of the lease term after five years (that is, there is a high, more than 95% probability that the contract will be renewed after five years), then the company has the right to depreciate inseparable improvements over eight years.

Intangible assets

Discussions about recognizing costs as intangible assets or writing them off in profit or loss most often arise at the stages of research, development, creation and launch of intangible assets into production or in the process of providing services. Whether costs will be recognized as CAPEX or as OPEX depends on many conditions.

First you need to understand what an intangible asset is. According to IAS 38 Intangible Assets, an intangible asset is an identifiable non-monetary asset that has no physical form.

“An asset satisfies the identifiability criterion if it:

is separable, that is, can be separated or separated from the entity and sold, transferred, licensed, leased or exchanged individually or together with a related contract, asset or liability, regardless of whether the entity intends to do so;
is the result of contractual or other legal rights, regardless of whether those rights are transferable or severable from the enterprise or from other rights and obligations.”

IAS 38 defines the conditions for recognition of an intangible asset:

“An intangible asset is recognized if and only if:

it is recognized as probable that the entity will receive future economic benefits associated with the item;
the original cost of a given asset can be reliably estimated.”

Examples of intangible assets are trademarks, patents, copyrights, licenses, computer software, etc.

Let's consider the procedure for recognizing costs associated with creating your own intangible asset within the company. For accounting purposes, IAS 38 divides the process of creating an intangible asset within an entity into two main parts:

stage of research;
development stage.

Research stage

All costs that the company incurs during the research stage are recognized as expenses when incurred.

Examples of activities during the research stage are:

activities aimed at obtaining new knowledge;
search, evaluation and final selection of areas of application of research results or other knowledge;
searching for alternative materials, devices, products, processes, systems or services;
formulation, design, evaluation and final selection of possible alternatives to new or improved materials, devices, products, processes, systems or services.

All exploration stage costs are recognized as OPEX because at this stage the company cannot demonstrate with a high degree of certainty the successful creation of an intangible asset that will be capable of generating future economic benefits for the company.

Development stage

At this stage, the company can, with a high degree of probability, identify an intangible asset and prove that it is capable of bringing future economic benefits.

Examples of activities during the development stage could be:

designing, constructing and testing prototypes and models before production or use;
design of tools, templates, forms and dies that involve new technology;
designing, constructing and testing selected alternatives to new or improved materials, devices, products, processes, systems or services.

The company has the right to begin capitalizing development stage costs only if it demonstrates that everyone the following criteria:

the technical feasibility of completing the creation of the intangible asset so that it can be used or sold;
intention to complete the creation of the intangible asset and use or sell it;
the ability to use or sell an intangible asset;
how the intangible asset will generate probable future economic benefits [an entity must demonstrate that there is a market for the product of the intangible asset or the intangible asset itself, and estimate the future economic benefits of the asset using the principles of IAS 36 Impairment of Assets; if the asset is intended to be used for internal purposes, then it is necessary to prove the usefulness of such an intangible asset for the company];
availability of sufficient technical, financial and other resources to complete the development, use or sale of an intangible asset (an example could be a developed and approved business plan and/or confirmation from external creditors of readiness to finance the development and use of the created intangible asset);
the ability to reliably estimate the costs associated with an intangible asset during its development.

After the company demonstrates that all six of the above criteria are met, it has the right to attribute to the initial cost of the asset all costs directly associated with the creation, production and preparation of this asset for use, namely:

costs of materials and services used or consumed in creating the intangible asset;
employee benefit costs [as defined in IAS 19] arising in connection with the creation of an intangible asset;
payments necessary for registration of legal rights;
amortization of patents and licenses used to create the intangible asset.

IAS 23 sets out criteria for recognizing interest as an element of the cost of an entity's own generated intangible asset.

However, some types of costs can not be attributed to the initial cost of the created intangible asset and are subject to recognition in expenses as they arise. These are:

Selling, administrative and other general overhead costs other than those that can be attributed directly to preparing the asset for use;
initial operating losses, as well as losses associated with internal inefficiency in the process of creating an asset that arose before achieving the planned level of productivity of the specified asset;
costs of training personnel to work with the created intangible asset.

All costs incurred after the created intangible object is recognized in accounting and the start of its operation are recognized as expenses as incurred.

It should be remembered that, in accordance with paragraph 64 of IAS 38, the costs of trademarks, title data, publishing rights, customer lists and similar items created by the enterprise itself cannot be distinguished from the costs of developing the business as a whole. Consequently, such items are not subject to recognition as intangible assets. Also, goodwill created by the enterprise itself is not subject to recognition as an intangible asset in accordance with paragraph 48 of IAS 38.

Table 3

Stages of creation of intangible assets
inside the company

СAPEX

OPEX

One of the important parts of accounting is company income and expenses. It is the nature, conditions of implementation and direction of work of a particular organization that influence the division of funds into other income and expenses.

Relationship between operating and non-operating expenses

An organization operating in a commercial area is legally obliged to prepare report, speaking about the purposes of fulfilling certain expenses. According to all rules, any expenses must be economically proven.

In the chain, there is no question of documenting costs associated with the company’s core activities. However, what to do with other expenses?

In the generally accepted understanding, operating expenses are a kind of company expense, which are not directly related to its main activities. The current edition of the PBU does not include a precise definition of this term due to the classification adjustment (according to Order No. 116). Now, a simplified distribution scheme is used by law for other income and expenses, as well as for items for ordinary types of activities.

It turns out that all indirect costs of the company will be considered operational. Previously, there was a separate classification of expenses for non-operating, operating and emergency. After Order 116 came into force, the need for such gradation disappeared. However, the company can continue to share costs at its own discretion if it so chooses. The entire list of main operating costs is given in form 11 of Chapter 3 of PBU 10/99.

Non-operating expenses- these are expenses aimed at paying fines, interest, penalties, failures of past work that were found in the reporting period. They are related to operational ones in that, due to their similarity, they are no longer separated, but are taken into account in a single column “Other expenses”, that is, they are not related to the main work.

According to the previously introduced classification (PBU 10/99), other expenses not related to core activities included:

Other expenses include:

Payment of fines for violation of contract terms.
Payment for damage caused by the company.
Overdue accounts receivable, other impossible to collect relationships.
Loss due to write-off of an item with a markdown.
The volume of difference in exchange rates.
Other expenses.

By recording operating income and expenses separately, a company is able to identify net operating income. It will reflect that the profit column is larger than the indirect costs column. Net income is difference between these two indicators.

Also, to work with the analysis, the company can use the ratio of expenses and income of the operating plan to calculate the relevance of any operating activity, without excluding analysis over time.

Capital and operating costs – two main types expenses used in the turnover cycle of the enterprise. These expenses are completely different from each other, starting with the method of their acceptance in both accounting documentation and tax accounting.

It has already been described above that operating expenses are a type of other expenses when funds are not involved in the main activities of the organization. Capital costs are the amounts spent by the company on the purchase of non-current assets, as well as on their modification (extension, restoration, etc.) or modernization.

The main characteristic of capital expenditures is duration of their work. When a company intends to invest in assets for more than a year, the operation is likely to be classified as capital expenditure (CAPEX).

However, what exactly will be considered waste of funds depends greatly on the type of work and the rules used in the industry. For example, one organization will include the purchase of a new printer to replace a broken one as capital expenditures, another will include the purchase of a license, and a third will include the receipt of a new building or office as CAPEX. In reality, such expenses are most often attributed to investments in fixed assets And intangible assets.

Operating income is the difference between the profit from the operating activities of the enterprise and operating expenses. It is noteworthy that in practice this term is often used to refer to income before payment of all taxes and interest imposed on the company.

However, it is important to note that EBIT (earnings before all taxes and rates) takes into account, among other things, non-operating profit.

The indicator is a very significant tool in the work of the company and beyond. It allows you to form a general picture of the economic condition of the organization so that investors are able to identify and evaluate the profitability potential for investing their funds.

A company must first determine its operating revenues and operating expenses in order to ultimately calculate its operating income. Profit from work is any growth, which was received as a result of activity, but does not include, for example, interest income or dividends.

It is important to remember that operating expenses are all loss items based on operating activities, excluding extraordinary operating expenses. If we reformulate a little, then the list of sources of profit from operating work and expense items of the same plan are permanent character and practically do not change over time.

Other expenses and income in accounting

According to general standards, other expenses and income are classified as count 91. Profits are accounted for by credit, losses - by debit. For complete control, first-order subaccounts are opened:

1 – to take into account profit;
2 - to take into account expenses.

Notes on these sub-accounts are made in accounting cumulatively during the entire reporting period. Based on the results, the ratio of other expenses and profit is displayed, which is already noted in subaccount 91.9 (also, for debit - loss, and income - for credit).

Important to remember! Analytical activities should help determine the financial results for each specific operation.

To divide profits and costs into operating, emergency and non-operating, an enterprise can create your own chart of accounts, assuring it in a local document or applying industry documents.

For example, for agro-industrial organizations, the scheme of accounts was issued by Order of the Ministry of Agriculture No. 654 in 2001. It allows medium and large companies to record other profits and expenses using the following subaccounts:

1 – operating income;
2 – operating expenses;
3 – non-operating income;
4 – non-operating expenses;
9 – balance of other indicators.

The final balance of subaccount 91.9, regardless of the case at the end of each month, is closed to account 99.

Analysis of efficiency and factors for increasing it

Optimization of operating costs – one of the main goals of enterprise management. Reducing them allows you to increase the speed of development of operational business activities, and therefore increase the amount of operating income. Exists two types of factors, affecting operating costs – internal and external.

Internal factors- This:

Size of production and sales of finished goods. An increase in these parameters, although it will cause a jump in operating expenses, can also reduce the cost per unit of the product, because the volume of the constant component of this accounting item will not change. For example, in one building or room, several more coffee machines were added to the coffee machine already installed there. The costs of moving technicians servicing equipment have not changed, but the costs of required energy and consumables have increased. As a result, the total cost of one sold cup can be reduced due to the optimization of transport costs, which are now distributed among three machines, rather than one.
Production circle length. With its decrease, the turnover time of current assets decreases, which means that the costs of maintaining products, losses from natural loss, collection costs for receivables, and unit costs for managing the organization are reduced.
Marking the productive process per individual employee. The higher this indicator, the lower the amount of expenses when paying employees.
Technical safety of fixed assets necessary for work. The higher the level of wear and tear, the greater the cost of repair and maintenance.
Number of personal current assets. The indicator is higher - financial costs for servicing borrowed funds are lower, and as a result, costs are lower.

External factors(do not depend on the wishes of the company) are:

Inflation in the state. The higher its level in the country, the higher the expenditure indicator will be. This is due to the payment of wages, debt servicing, etc.
Changes in tax rates or other mandatory payments. This is due to the fact that taxes occupy a fairly large part of operating expenses. Increasing the rate leads to an increase in their overall size.

Net Operating Income Formula

Net OD = Actual gross income (the sum of potential gross income and additional profit minus losses from lost funds) – Operating expenses

Correspondence and postings

Postings by account 91 subaccount 1:

Dt 62, 76 Kt 91.1– the value of accrued lease payments receivable is reflected; dividends and interest on securities are also accrued receivable.
Dt 62 Kt 91.1– proceeds from the sale of assets, reflection of profits from previous years, write-off of expired accounts payable, inclusion of the amount of the reserve for doubtful debts as part of other expenses.
Dt 66, 67 Kt 91.1– interest receivable on issued loans and borrowings.
Dt 98 Kt 91.1– income from property received free of charge.
Dt 57, 52 Kt 91.1– positive exchange rate difference from purchasing foreign currency.
Dt 99 Kt 91.1– loss from other activities of the organization is reflected.

Subaccount 2:

Dt 91.2 Kt 01– the residual value of the fixed asset intended for sale is written off.
Dt 91.2 Kt 04– the residual value of intangible assets intended for sale is written off.
Dt 91.2 Kt 10– the cost of materials sold is written off.
Dt 91.2 Kt 66, 67– interest is accrued on loans and borrowings taken out.
Dt 91.2 Kt 20– costs of conservation of objects.
Dt 91.2 Kt 60– expired accounts receivable are included in other expenses.
Dt 91.2 Kt 99– profit from other activities is reflected.

Account 91 correspondence:

During the month, debit 91.2 and credit 91.1 accumulate other expenses and income. At the end of this period, the differences between the indicators of account 91 are determined, the final balance is calculated, reflected in the subaccount 91.9 in correspondence with account 99. The final income is noted for the subaccount 91.9, and the expense for the loan.

It turns out that at the end of the period the synthetic account is, in general, characterized by zero balance. But at each count, the balance remains and is constantly accumulating. As a result, account 91 is closed.

Defined by the accounting standard PBU 10/99. The list of operating expenses includes costs for certain types of activities that are not related to the subject of the company's activity. In particular, expenses incurred as a result of:

providing assets for rent,
participation in the authorized capital of other companies,
granting intellectual property rights,
sales, write-offs of any assets other than cash (except for currency), products, goods,
payment for services provided by credit institutions,
interest payments on loans and borrowings,
contributions to valuation reserves formed in accordance with accounting requirements, and reserves created in connection with the recognition of contingent facts of economic activity.

In addition, other expenses are considered operating expenses in accounting: the amounts of taxes and fees that are credited to financial results. Next, we will look at several types of operating expenses and the features of their accounting. For more detailed information, please contact BF Consulting specialists. Here you can also order for various types of activities.

Operating expenses for providing assets

The provision of assets for temporary possession is carried out under a lease agreement. However, the landlord must still include details of the property being provided. Exceptions are enterprise rental and leasing.

The lessor organization transferring temporarily unused property must keep separate records of it. For a general record of information about the availability and movement of fixed assets (fixed assets) that are in use, stock, conservation and trust management, account 01 is used. Accounting for the transfer of fixed assets for rent can be reflected in the subaccount “Fixed assets leased out”.

Information about the availability and movement of investments in material assets that the company transfers for temporary use for the purpose of generating income is reflected in account 03.

For both accounts, analytical accounting is carried out indicating specific types and objects of fixed assets, material assets, as well as tenants. Operating expenses in accounting should be reflected as completely as possible.

OS are included in part of the tax base for property tax. The lessor calculates and pays the tax, since fixed assets are listed on his balance sheet. This point must be taken into account when determining the rent.

Expenses associated with participation in the authorized capital of other enterprises

The calculation of these operating expenses in accounting is determined in accordance with paragraph 6 of PBU 10/99. An amount equal to the amount of payment of accounts payable (in cash or other form) is taken into account.

Operating expenses include costs arising from participation in the general meeting of shareholders or participants, if we are talking about a limited liability company. An example is the funds allocated for business trips.

During the annual inventory, operating expenses in accounting may include payment for extracts received from the register of shareholders. The business transaction will be reflected by the following posting: debit account 91, subaccount 91-2 credit account 76 with the corresponding subaccount.