Follow the principle of income-cost ratio (the income obtained by an accounting period or an accounting object should match the expenses and costs incurred to obtain income, so as to correctly calculate the net profit and loss obtained by the accounting entity in the accounting period. ), if the cost is greater than the income, there is no gross profit, and there is nothing special about accounting treatment.

If there are newly established industrial enterprises or new products have just been launched, this will happen and the tax authorities will recognize it. However, if a normal commodity sales has been in a state of loss without a reasonable explanation, the tax authorities will think that it is a false account.