Operating expenses in the financial statements
Operating expenses is an income-statement line item: a total for a period, with a debit balance in the ledger.
Operating expenses in Business Central
How the accounts are selected
- Category Expense (31) and every category below it
- Plus 3 accounts assigned directly: 60410 Utilities Expense - Power Plant, 66200 Depreciation, Equipment, 67400 Miscellaneous
- Except category Interest Expense, account 91000 Currency Losses
102 posting accounts in total.
Posting accounts
- 60001 TOTAL EXPENSES
- 60002 Facility Expenses
- 60100 Rental Facilities
- 60200 Property Expenses
- 60410 Utilities Expense - Power Plant
- 61000 Fixed Asset Leases
- 62000 Logistics Expenses
- 62100 Vehicle Expenses
- 62200 Freight Costs
- 62300 Travel Expenses
- 63000 Marketing and Sales
- 63100 Advertising
- 63200 Other Marketing Expenses
- 63400 Sales Expenses
- 64000 Office Expenses
- 65000 Insurances and Risks
- 66000 Management and Admin
- 67000 Banking and Interest
- 68000 External Services/Expenses
- 68100 External Services
- 68200 Other External Expenses
- 70000 Personnel
- 71000 Wages and Salaries
- 72000 Benefits/Pension
- 73000 Insurances, Personnel
- 74000 Personnel Taxes
- 74100 Federal Personnel Taxes
- 74400 State Personnel Taxes
- 80000 Depreciation
- 60002 Facility Expenses
Metrics using operating expenses
- Basic Earning Power (through another metric): EBIT ÷ average total assets
- Debt to EBIT (through another metric): Financial debt ÷ EBIT
- EBIT (through another metric): Operating Profit + Other income and expenses, net
- Free Cash Flow to Firm (through another metric): EBIT − Income tax − change in non-current assets − change in Trade Working Capital
- Interest Coverage Ratio (through another metric): EBIT ÷ Interest expense
- Operating Profit: Revenue − Cost of sales − Operating expenses
- Return on Capital Employed (through another metric): EBIT ÷ (average total assets − average current liabilities)
- Return on Sales (through another metric): Operating Profit ÷ Revenue