9430 Other operating expenses

What account 9430 is for

A company also has expenses that fall under neither selling nor management: bank service fees, a fine, a loss from a shortage, an allowance for a doubtful debt. If we added them to 9410 or 9420, they would get lost among the rest. That is why there is account 9430 "Other operating expenses".

Account type

Group 9400 is of type T (transit): under para. 3 of NAS No. 21, transit accounts are used during the reporting period and have no balance at the end of the period. 9430 is the third account of the group (para. 406).

What is recorded on the debit side

Para. 410 lists the expenses charged to 9430: training and retraining of staff, information, audit and consulting services, compensation and incentive payments not included in pay, bank and depository services, losses, fines, penalties and other operating expenses. The paragraph says that they must not have the features of production, financial or extraordinary expenses. The main rows of the table in para. 412:

• payment for bank and audit services — Cr 6990 (row 12);
• loss on disposal of fixed assets and other assets — Cr 9210, 9220 (row 13);
• shortages and losses where the guilty person cannot be identified — Cr 5910 (row 14);
• accrual of an allowance for doubtful debts — Cr 4910 (row 15);
• accrual of a fine under a decision of the tax authorities — Cr 6410 (row 16);
• contributions for the upkeep of higher education institutions on the balance sheet — Cr 6110 (row 17);
• payment for employees' vouchers to rest homes and sanatoriums — Cr 5110-5530 (row 18);
• write-off of expenses on cancelled orders — Cr 2010 (row 19);
• losses from transactions of previous years — Cr receivable accounts (row 20);
• fines for breach of business contracts — Cr 6960 (row 21);
• payment for waybills for the use of local transport — Cr 5110-5530 (row 22);
• write-off of the results of a price decrease on the sale of inventories — Cr 3190 (row 23);
• depreciation of fixed assets and amortisation of intangible assets used in start-up work for a new type of product and in servicing the mastering of new technological processes — Cr 0211-0299, 0510-0590 (row 24).

This account also has other rows that appear in other tables; those above are its main rows.

What is recorded on the credit side

At the end of the reporting period the balance of 9430 is closed to 9910 (para. 411; para. 412, row 25: Dr 9910 Cr 9410-9430).

What to watch out for

• Tell fines apart by type. A fine under a decision of the tax authorities is Cr 6410 (row 16), a fine for breach of a business contract is Cr 6960 (row 21). Because the credited accounts differ, attach the supporting document to the entry (practical advice).
• Check whether the shortage has a guilty person. Row 14 of para. 412 concerns shortages and losses where it is impossible to identify the guilty person; let this circumstance be reflected in the documents (practical advice: keep the inventory count report).
• "Other" does not mean "everything". First check whether the expense fits 9410 or 9420, and only if it does not fit and matches the description in para. 410 should you post it to 9430 (practical advice).