===== Why do I have zero manufacturing and production (M&P) expenses? =====

Two sources exist for your M&P expenses: manufacturing and production personnel (i.e., payroll) and Other Expenses that are allocated to M&P. The only way for the income statement to show zero expenses is for both of these components to be zero. Let's talk about them separately:

- Manufacturing and Production Personnel. On the menu, select assumptions/costs/personnel. Then select the Employees tab. Here are some issues that could cause zero M&P personnel expense:

  - You have no M&P employees. Examine the Salary Charged To column entries on this page. Having no employees with their Salary Charged To Manufacturing and Production would explain why you have no M&P expenses.
  - You have M&P employees, but they earn zero salaries. Make sure you enter non-zero values in the Initial Base Salary column for the M&P employees listed.
  - You have an M&P category of employee, but a zero count. Make sure you enter non-zero values in the Employee Count columns for these M&P employees.
  - You have M&P employees and a base salary, but you are not planning on paying them. This is also acceptable if that is your plan. It would be reflected as a Percentage Paid of 0% in the Advanced Settings page for each of the M&P employees.
  - You have M&P employees and a base salary, but they are not working. This makes no sense. Make sure that the Percent Time Worked column on the Advanced Settings page for each of the M&P employees is not set to 0%.
  - You have M&P employees and a base salary, but their time is being charged to COGS, not M&P. This is also acceptable if that is your plan, and is extremely common! It would be reflected as an Expense Percentage of 0% in the Advanced Settings page for each of the M&P employees.

- Expenses. On the menu, select assumptions/costs/other expenses. Scan down the column labeled Calculation Rule. Make sure that some of the non-zero expenses are being allocated to either Billed to M&P or Per M&P Employee. Otherwise, this expense will not appear on the M&P line of the income statement.

{{keywords>income statement, expenses, zero, manufacturing, production, M&P}}

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