Other Operating Expenses

Other Operating Expenses groups the day-to-day overheads of running the office: rent, electricity and water, phone and internet, travel, printing, repairs, professional fees, advertising, bank charges, insurance and the small sundries, along with technical ledgers such as Round Off and Write Off. It posts nothing itself; each cost is debited to the ledger beneath that best describes it, by Purchase Invoice when there is a supplier bill or by Journal Entry for cash vouchers. Separate ledgers make the Profit and Loss readable and show where overheads grow. For the IRD, each expense needs a bill with the supplier's PAN above Rs 2,000 and TDS deducted where due. The chart carries a few duplicate ledgers; pick one and stick to it.

Other Operating Expenses = Office Rent + Utilities + Communication + Travel + Printing + Repairs + Professional Fees + Advertising + Bank Charges + Insurance + sundries

1. 01Go to Accounts Setup > Chart of Accounts, expand Expenses, then Other Operating Expenses.
2. 02Post supplier bills with Buying > Purchase Invoice and cash vouchers with Invoicing > Journal Entry to a ledger beneath.
3. 03Open Financial Reports > Profit and Loss Statement and read the group total.
4. 04Compare it month on month with Financial Reports > Trial Balance or the Budget Variance Report.

Do not post here. Purchase Invoices and Journal Entries use a specific child such as Office Rent or Travel Expenses.

Other Operating Expenses for Shrawan total Rs 42,000: rent Rs 25,000, electricity Rs 4,000, internet Rs 3,000 and travel Rs 10,000.