the net operating income refers to the income obtained from the main business activities of an enterprise in the current period minus discounts and allowances. Its calculation formula is: net operating income = operating income-sales discount or discount.

what do you mean by net operating income?

the net operating income refers to the income obtained from the main business activities of an enterprise in the current period minus discounts and allowances. The calculation formula is:

net operating income = operating income-sales discount or discount

operating income = main business income+other business income

What is operating income?

operating income refers to the monetary income obtained by commercial enterprises from selling goods or providing services in a certain period of time. Divided into main business income and other business income.

main business income refers to the income generated by the regular and main business of an enterprise, such as the sales of products, semi-finished products and the provision of industrial labor services in the manufacturing industry; Income from sales of commodities by commodity circulation enterprises; Ticket income, customer income, catering income of tourism service industry, etc. The "Accounting System for Business Enterprises" clearly stipulates that the net income from the main business of an enterprise should be the amount of the main business income after deducting sales discounts and sales discounts, which is called the net income from the main business.

other business income refers to other business income except the above-mentioned main business income, which accounts for a small proportion of enterprise income. Including sales of materials, sales of purchased goods, sales of waste materials, sales of leftovers, income from providing labor services, income from real estate development, consulting income, guarantee income and other business income.

is the operating income the same as the sales income?

operating income is different from sales income. Operating income refers to the total inflow of economic benefits formed by enterprises in their daily activities such as selling goods, providing services and transferring the right to use assets; Sales revenue is the main business income, which refers to the sales revenue of products sold by enterprises and the total business obtained from the main business such as providing labor services.

where is the net income from main business reflected in the income statement?

the net income from main business is reflected in the first line of the income statement.

according to the accounting system, the net income from main business is the amount of main business income after deducting sales returns, discounts and discounts. The amount of main business income is directly filled in the first line of the income statement, and the relevant discount amount is not reflected separately, because the net income of main business has been deducted from the corresponding sales discount when the enterprise prepares the financial statements.

the net income from main business is accounted by the subject of "main business income". Normal income is recorded in the account credit, while sales returns, discounts and discounts are generally recorded in the account credit in red, so the credit amount of the account is the net income of the main business.