What is the difference between non operating expenses and other business expenses?

Non-operating expenses refer to the expenses that do not belong to the production and operation expenses of the enterprise and are not directly related to the production and operation activities of the enterprise, but should be deducted from the total profits realized by the enterprise, including the inventory loss, scrapping, damage, and net loss of fixed assets, the loss of work stoppage during the non-seasonal and non-repair period, the school funds for employees' children and the funds of technical schools, extraordinary losses, donations for public welfare, compensation, liquidated damages, etc.

The "Other Business Expenses" account accounts for the expenses incurred by the enterprise in other sales or other businesses other than the cost of main business, including the costs and expenses incurred in the sale of materials and the provision of labor services, as well as relevant taxes and surcharges.

In order to reflect and monitor the other operating expenses of the enterprise in an all-round way, the enterprise should set up an "other operating expenses" account. The amount of other operating expenses incurred by the debit side of the account, the amount transferred to the "profit of the year" account at the end of the credit registration period, and the amount at the end of the period of the account has no balance at the end of the period after the carry-over.

When an enterprise incurs other business expenses, it shall debit the "other business expenses" account and credit the relevant accounts such as "raw materials", "packaging", "accumulated depreciation", "production costs", "wages payable", "welfare expenses payable", "bank deposits", "taxes payable" and "other payables". When other operating expenses are carried forward at the end of the period, the balance of this account shall be debited to the "Profit for the Year" account and credited to the "Other Operating Expenses" account.

The specific differences between the two are as follows:

1. Non-operating income refers to the income that is not directly related to the production and operation of the enterprise, such as the profit of fixed assets, the net income from the disposal of fixed assets, the net income from intangible assets, the net income from fines, etc.; Non-operating expenses are expenses that are not related to the normal production and operation of the enterprise, such as inventory loss of fixed assets, net loss of disposal of fixed assets, net loss of intangible assets, fine expenses, extraordinary losses, etc.

2. Other business income refers to the income from sales or other businesses other than the main business, such as material sales, intangible asset leasing, packaging leasing, etc. Correspondingly, other operating expenses refer to the costs and taxes incurred to obtain the above-mentioned income.

Non-operating expenses are the expenses incurred by the enterprise that are not directly related to production and operation. Includes:

1.Inventory loss of fixed assets.

2.Treat net loss of fixed assets.

3.**Loss of intangible assets.

4.Debt restructuring losses.

5.Provision for impairment of fixed assets.

6.Provision for impairment of intangible assets.

7.Provision for impairment of construction in progress.

8.Penalty disbursements.

9.Donation expenditures.

10.Very loss.

Other operating expenses are the expenses of sales or other operations other than the cost of main business. Includes:

1.Sales materials.

2.Provision of labor services.

3.Packaging rental.

Other operating expenses are accounted for through the "Other Operating Expenses" account. At the end of the period, the balance of the "Other Operating Expenses" account should be transferred to the "Profit for the Year" account, and after the carryover, there should be no balance in this account. In the primary accounting title examination, it is easy to distinguish other operating expenses from non-operating expenses in terms of accounting treatment, so let's take a look at what other operating expenses and non-operating expenses have in terms of accounting treatment.

Accounting for Other Operating Expenses:

1. This account accounts for the expenses incurred by the enterprise in other business activities other than the main business activities, including the cost of materials sold, the accumulated depreciation of leased fixed assets, the accumulated amortization of leased intangible assets, the cost or amortization of leased packaging, and the accumulated depreciation or accumulated amortization of investment real estate measured by the cost model. The relevant taxes and fees incurred by the business activities other than the main business activities of the enterprise shall be accounted for in the account of "business tax and surcharges", and shall not be accounted for in this account.

2. This account shall be accounted for in detail according to the types of other business expenditures.

3. Other business expenses incurred by the enterprise shall be debited to this account and credited to "raw materials", "packaging materials and low-value consumables", "accumulated depreciation", "accumulated amortization", "employee remuneration payable", "bank deposits" and other accounts.

If an enterprise uses raw materials for the exchange of non-monetary assets (where the exchange of non-monetary assets has commercial substance and the fair value can be reliably measured) or debt restructuring, this account shall be debited and the "raw materials" account shall be credited according to the book balance of the raw materials used for exchange or debt redemption. If a provision for inventory decline has been made, the provision for inventory decline that has been made shall also be carried forward at the same time.

4. At the end of the period, the balance of this account should be transferred to the "Profit of the Year" account, and there should be no balance in this account after the carryover.

Accounting for non-operating expenses:

Enterprises should account for the occurrence and carry-over of non-operating expenses through the "non-operating expenses" account. This account can be accounted for in detail according to non-operating expenditure items.

When the loss on disposal of non-current assets is recognized, the "Non-operating Expenses" account is debited and the "Fixed Assets Disposal", "Intangible Assets", "Raw Materials" and other accounts are credited.

When inventory losses and extraordinary losses are recognized as non-operating expenses, the "non-operating expenses" account is debited, and the "property loss and excess to be disposed of" and "cash in hand" accounts are credited.

At the end of the period, the balance of the "Non-operating expenses" account should be transferred to the "Profit this year" account, the "Profit this year" account should be debited, and the "Non-operating expenses" account should be credited. There should be no balance in this account after the carryover.

Non-operating expenses reflect the various expenses incurred by an enterprise that are not directly related to its business activities, including losses on disposal of non-current assets, losses on the exchange of non-monetary assets, losses on debt restructuring, inventory losses, public welfare donation expenses, extraordinary losses, etc., which is a very important indicator in the financial affairs of an enterprise.

The above content lists the accounting treatment of other business expenses and non-operating expenses, and finally it is necessary to remember that other business expenses are accounted for other sales or other business expenses other than the cost of main business; Non-operating expenses are the expenses incurred by the enterprise that are not directly related to production and operation.