No, you only include prior year (2020) expenses that were paid with PPP funds forgiven this year (2021) if the expenses are being reported on the current year (2021) tax return.
So, in your case listed above, I'm assuming the $11,800 (2020) PPP loan was forgiven in 2021. If page 1, line 21 of your 1120-S includes payroll expenses related to 2020, but not reported on your 2020 1120-S, then the $11,800 goes on 3(a) and 5(d). If the $11,800 was forgiven in 2020, then you do not enter this loan anywhere on your 2021 return.
The receipt of the 2021 loan is correctly reported 3(d) but needs to be added to the forgiven amount on 5(d).
Enter this information via forms mode, as you did the "override" you entered on your screenshot.
@turtle11
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