How to Turn on Class Tracking in QuickBooks Online Plus and Advanced?

It is imperative to set up classes in QuickBooks Online for bookkeeping and accounting. Classes comprise a freeform list that you can access in order to tag your particular transactions in QuickBooks Online. Learn How to Turn on Class Tracking in QuickBooks Online Plus and Advanced.

Once you set up the Chart of Accounts and the Products and Services you must analyze whether possessing the capability to monitor sales transactions independently will be helpful to you or not.

When classes are set up in QuickBooks, it enables the user to run a profit and loss report easily. There are several uses for the classes and the sub-classes. Some company owners use classes to separate income and expenses by place, category, job type, source, etc.

A user can select to assign classes one time in a complete transaction or he can assign line-by-line, like for every sales item line. In case a user wants to use classes, it must be made sure that not a single transaction should be left unclassified.

What are Classes and Location Tracking? Why one Should use it?

Class and location tracking are actually classification mechanisms that allow reporting by an extra layer of categorization. The basic way to categorize transactions in an accounting system is to allocate them to particular accounts like computer equipment, sales, purchases, meals, travel, office expenditure, etc. This is known as the Chart of Accounts.

There exists an extra layer to classify your transaction in QuickBooks Online that is useful on the top of the chart of accounts enabling every transaction to be grouped in a wider category. This is especially helpful for businesses that have individual locations where they may wish to view their results grouped together for advanced analysis and a complete understanding of the business performance.

What is the Primary Distinction Between Class and Location Tracking?

Although both the features are the same, there is crucial difference between the two:

• Class tracking is only used to monitor profit-loss accounts whereas location tracking is used for both balance sheet and profit-loss accounts
• The location-tracking feature is related to full transactions while classes are applicable to every line item on the particular transactions or they can be applied to a complete transaction. It means you will have poor flexibility when allocating locations.

Now when you know in detail about class tracking in QuickBooks, let us learn how to turn it on. Read on to learn how to turn it on in QuickBooks.

How to Turn on Class Tracking in Your Particular QuickBooks Online Plus and QuickBooks Advanced

Here is how you can turn on class tracking in QuickBooks, so you can begin organizing your transaction by class. If you want to allocate classes to your particular employees, here is how you do it:

Method 1: Turn on Class Tracking

Step 1: Navigate to Settings and then choose Account and Settings.

Step 2: Choose Advanced and then choose the Categories section to change.

Step 3: Choose Track Classes.

Step 4: Select Warn me when a transaction is not allocated to a class. This is optional, however, it is wise to turn it on so that when the reports are viewed, everything is classified.

Step 4: In the Assign Classes, choose One for entire transaction or One for every row in the transaction.

Step 5: Choose Save and then click Done.

Method 2: Fix Your Class List

It is possible to set up the class list. Prepare classes that show several parts of your particular business. When classes are simple, they are easy to comprehend.

How to Add Classes in QuickBooks?

Here are the steps to add Classes in QuickBooks:

Step 1: Press the icon.

Step 2: In the Lists section, press All Lists and choose Classes.

Step 3: Name the Class and press Save.

Step 4: Make a second Class and press Save.

Step 6: Add a date for the first of the following month.

Step 7: Choose the right payment account along with the Payment method, Class, and Expense details.

Step 8: Press the Save option and click the new drop-down and choose Save and Close.

How to Assign Classes to a Particular Expense Transaction

Here are the steps to assign classes to a particular Expense Transaction:

Step 1: Press the sign.

Step 2: Choose Expense.

Step 3: Add the date as the first for the following month.

Step 4: Choose the right payment account along with the Expense Detail, Payment Method, and Class.

Step 5: Press the Save option and click New drop-down and choose Save and Close.

How to Assign Classes to a Particular Sales Receipt Transaction

Here are the steps to assign classes to a particular Sales Receipt Transaction:

Step 1: Press the sign.

Step 2: Since the customer paid during the sale, you are not needed to make an invoice. Rather make a Sales Receipt.

Step 3: Add the date as the first for the following month.

Step 4: Choose the right payment account along with the Expense Detail, Payment Method, and Class.

Step 5: Press the Save and Close.

How to Assign Classes to a Particular Check Transaction

Here are the steps to assign classes to a particular Check Transaction:

Step 1: Press the sign.

Step 2: Choose Check and add the date as the first for the following month.

Step 3: Add the payment and payee account.

Step 4: Choose the account details including class assigning.

Step 5: Choose Save and Close.

How to Run a Report that is Based on Classes

Step 1: Press the Reports tab.

Step 2: Look for Profit and Loss by Class.

Step 3: Press the icon.

Step 4: Edit the Date Range to show Next Month.

How to Turn Class Tracking on in QuickBooks Online Payroll?

If you wish to set up classes in order to track payroll, then it is crucial you turn on class tracking for the payroll transaction. Then you can locate a single class to all the employees or allocate different classes to various other employees.

Step 1: Navigate to Settings⚙ and choose Payroll Settings.

Step 2: In the particular Accounting section, choose Edit.

Step 3: In the particular Class Tracking segment, choose Edit and then turn it on. Then determine how you wish to monitor classes.

Step 4: Choose Continue and then press Done.

Step 5: Add class to every employee.

Step 6: In order to save the choices, choose Continue and Done.

We hope that this article is clear to you. We have mentioned every single point concerning turning on class tracking in QuickBooks. You need to make sure that you follow them in the given order.

Still, if you are stuck anywhere or need professional guidance on this issue, you can connect with our Dancing Numbers team of experts via LIVE CHAT.

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