Online manual for GM40:
http://www.intermatic.com/products/grasslin/electromechanical%20time%20switches/multi-voltage%20time%20switches.aspxhttp://www.intermatic.com/~/media/files/intermatic/products/instructions/grasslin/gm40%20-%20english.ashxYou own a high-quality time piece.
I have defrost versions of same timer and have tested aspects of the timer, and own few FM1 series clock mechanisms for various projects.
Complete run down for setting GM40:
1) For 240Volt the dip switches are set: Please set dip switches before applying power to timer.
4-OFF
2-ON
3-OFF
1-ON
2) Line wires are the Hot wires from breaker box.
Line wires connect to terminals L1 and L2N
3) Load wire are wires that go from the timer to water heater.
4) Jumper wires are short lengths of same gauge wire.
5) There are many ways to wire GM40 timer
Open manual and look at wiring diagram titled: Controlling one 240VAC (Dual Phase) Load
6) A jumper wire is added from terminal L1 to COM
Another jumper wire is added from terminal L2N to COM2
7) Load wires going to water heater are connected to NO and NO2
8) Following image shows typical FM1 timer dial:
http://waterheatertimer.org/images/FM1-timer-002-350.jpgAs timer dial rotates the pins move small red switch that turns Load on-off.
Move pins in-or-out to control Load.
9) If you are uncertain about your pins, then set 20 consecutive pins one direction and then manually rotate dial and watch green indicator light turn on-off.
Put tester across NO and NO2 terminals and check when 240V turns on.
10) If you have defective timer, contact Intermatic:
http://www.intermatic.com/customer%20service.aspx11) Add a comment for more free help.
Also take advantage of fixya expert assistance live.
For a price, expert works with you while you work on timer or any do-it-yourself project.
Fixya is always less expensive than a service call.