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February 12, 2020
Question

Can you explain why the expense 'canteen' is not included as an overhead in the P&L?

  • February 12, 2020
  • 1 reply
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1 reply

February 12, 2020

Hi there, @accounts235.

 

Let me discuss some details about the Overhead Costs in the Profit and Loss report and help you from there.

 

One of the reasons why "Canteen" isn't showing under the Overhead account in the Profit and Loss report is that "Canteen" isn't included as overhead expenses.

 

Overhead costs are not related to company revenue and therefore should not vary. Rent, salaries, and depreciation are examples of overhead costs that remain the same from month to month.

 

Also, the posting of expenses in the Profit and Loss report depends on the type of expense account you created from the Chart of Accounts.

 

You can read through these articles for more information:

 

Please let me know if you need further clarification about this, or if there's anything else I can do for you. I'll be standing by for your response. Have a great day.