I am just creating a company account through Quickbooks. We are a design firm that bills by phases, progress, and fixed amounts. In our Items list I have the different phases broken down. However, I keep seeing people talking about identifying something by a class.
First, what is the difference between a class and a list item? Isn't Quickbooks capable or running a report based on either a class or a list item to see Profit and Loss?
My question is: can my list items be the same as my classes? For instance:
Transportation: Project Management
Transportation: Construction Admin
Education: Project Management (and so on)
Can all of those be both a list item and a class?
Or should they be separated by class, items, and types? How do you tell the difference between which one should be?
Thank you for posting in the Community. I can help share some details about item lists and classes in QuickBooks Desktop.
The item lists in QuickBooks are what you sell or buy and are used on all customer transactions. It provides a quick means for data entry and shows up as a line on an invoice or other sales forms. Let me route you this article for more information: https://quickbooks.intuit.com/community/Inventory-and-projects/Add-edit-and-delete-items/td-p/201687.
Classes are used to give you a means of adding a second dimension to your data classification. A common application of classes is to track multiple locations for the same business. This will be helpful when running a financial report for your entire company since you can easily filter your report to segregate the transactions by class.
You can always use the same name for your list items and classes, however, they have a different and separate function when generating your financial reports.
To know more about class tracking in QuickBooks, you can check out this helpful blog: How to Use Class Tracking in QuickBooks.
Please keep me posted if you have other questions about items and classes. I'll be here to help in any way I can.
Can you help explain when I would choose to assign class to items or if I should choose assign class to accounts. I use classes for our 5 retail locations. I want to assign each document a class such as the sales invoice, and also the sales accounts and COGS account associated with that document.
Hi there, @SandyH1.
Thanks for joining this thread. Allow me to step in and share some information about how to use the class tracking feature in QuickBooks Desktop (QBDT).
Turning on this feature in QBDT will let you assign a class to transactions such as an invoice. This lets you track account balances by department, business office or location, etc.
Technically, you can assign a class to either items or accounts. However, you also have the option to only assign a class to Accounts, Items, and Names depending on what you prefer. Here's how:
1. Go to the Edit menu at the top, then pick Preferences on the drop-down.
2. Select Accounting on the left pane, then Company Preferences tab.
3. Put a check mark to Use class tracking for transaction under CLASS section.
4. Check the box beside Assign classes to, then choose on the drop-down.
5. Click OK.
For your reference, you can also check out this article for more information: How to Use Class Tracking in QuickBooks.
That should point you in the right track. Please let me know how it goes or if you have any additional questions or concerns. I'm always here to answer them. Take care and have a good one!