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This chapter is from the book

This chapter is from the book


Another method for segmenting your QuickBooks financial information is by using classes. The use of classes is a preference setting and must first be enabled by logging in to the data file as the Admin or External Accountant user.

To enable classes, follow these steps:

  1. From the menu bar, select Edit, Preferences.
  2. In the Preferences dialog box, select the Accounting preference on the left.
  3. Select the Company Preferences tab.
  4. Select the Use Class Tracking for Transactions checkbox, as shown in Figure 4.6.
    Figure 4.6

    Figure 4.6. Class tracking provides another method for financial reporting for management purposes.

  5. Click OK to save your changes and close the dialog box.

Classes are typically used when a company has multiple revenue-generating business types or multiple profit centers. These class list items are then assigned to each transaction, as in Figure 4.7. Examples of classes might be a construction company that offers either new construction or remodeling services, or a restaurant with multiple locations. In both examples, using classes that are assigned to each transaction line for both revenue and costs enables you to report profit and loss by class.

When deciding to use classes, it is important you have only one primary purpose for the class structure. If you try to track more than one “type” of class, the value in the reporting is diminished. For example, suppose your company has both an east coast and west coast division. These represent a single use of the QuickBooks class feature. However, using classes to also track the source of the business—for example, Yellow Pages, email marketing, and so on—would diminish the success of class reporting because you would be tracking two unrelated groupings. Instead, you can use classes for one purpose and customer types for another.

New for QuickBooks Enterprise Solutions 13.0 is the preference allowing users to assign default classes for one of the following:

  • Accounts
  • Items
  • Names

For example if you selected to assign classes to items, when setting up an item you can identify the default class to be used on the transaction, as shown in Figure 4.8. This would save users time in data entry and improve the accuracy of assigning the desired default class.

Figure 4.8

Figure 4.8. With QuickBooks Enterprise you can choose to default classes to accounts, items, or names.

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