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This section summarizes the operating expenses for the month which includes invoices-payable, general journal entries and hand-checks written this month with expense codes starting with the number 6, 7, 8 or 9


The current month is calculated as starting the day AFTER the previous sales period was reset. To verify which day the previous sales period was reset, choose Month-End Closing from the System Maintenance Menu.


The Jewelry Shopkeeper does not currently have subtotal accounts so there will be one line showing for each account with activity. E.g. if you have six payroll expense accounts with activity, there is no option for creating a payroll subtotal account so that only a one-line summary for those accounts will appear.


The expense appears in the operating expense section of the income statement in the month the invoice was received which could be earlier than the month the check was cut. This is referred to as accrual-basis which is often legally required for businesses with inventory.


If you record checks for operating expenses where you did not previously enter a invoice into the accounts payable system, they are referred to as “hand-checks” or “non-invoice checks”. Since there was no invoice to be counted as an expense, these hand-checks are expensed in the month they were written. Any general journal entries with an expense code starting with 6, 7, 8 or 9 are also added in to this section in the month they were posted.


Note: If you write a check for an invoice before you enter the invoice into the Jewelry Shopkeeper, this is seen as a hand-check so it is included in the operating expenses. If you subsequently post the invoice, that invoice amount is also added to the cost of goods purchased or operating expenses which would result in a double-counted expense. If you post an operating expense check without posting an invoice, then don’t subsequently post the invoice.


To see a detailed listing of the expenses summarized in the Operating Expense section of the income statement, run a check book report selecting All Bank Accounts plus General Journal Entries. Choose the current month’s date range and sort the report by Expense Code. When asked if you want to match the income statement, choose Yes.