Three sources exist for your G&A expenses: G&A personnel (i.e., payroll), overhead expenses related to maintaining other employees, and Other Expenses that are allocated to G&A. The only way for the income statement to show zero expenses is for all of these components to be zero. Let's talk about them separately:
- G&A Personnel. On the menu, select assumptions/costs/personnel. Then select the Employees tab. Here are some issues that could cause zero G&A personnel expense:
- Overhead Labor Expenses. Two possibilities exist here that could cause zero expenses to propagate to the G&A line of the income statement: (i) having no employees at all in the company [On the menu, select assumptions/costs/personnel. Select the Employees tab. Verify that you have employees and they are being paid – see above], or (ii) having zero payroll taxes (which is illegal) [On the menu, select assumptions/costs/personnel. Select the Payroll tab. Verify that you have non-zero entries for the three fringe and tax rates].
- 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 G&A, Per M&S Employee, or Per Employee. Otherwise, this expense will not appear on the G&A line of the income statement.
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