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Level 6

Expenses & Suppliers

Classes are not Accounts nor are they linked to Accounts in your COA or Items in your Item List. Items are linked to Accounts in your COA. Classes are used to report on different areas of your business. A class can be a location (like a city or a warehouse), or it can be a type of project (residential or commercial) or for many other areas you may need to track separately. 

 

First, go to Edit>Preferences>Accounting>Company preferences and select use class tracking for transactions. This adds the Class column to all your forms (Invoices, Bills, Sales Receipts, and JE's, etc.

 

Are classes set up correctly? Go to Lists>Class List to enter your classes. FYI, classes can have up to 5 levels of sub-classes. Think carefully about what you want to track. 

For instance: I have a client who wants to track 4 different types of services he offers in 3 different cities. the class list looks like this:

City 1

  Service 1 (Sub-class of City 1)

  Service 2 (Sub-class)

and so on ...you get the picture.

 

When your Classes are set up the way you want, you can apply them to each line item separately, or on some forms (Invoices and Sales Receipts) a single class can be applied to the entire transaction.

 

Screenshot 1 is an Invoice using only one item and a single class. Screenshot 2 is a Sales Receipt using multiple items and multiple classes. Screenshot 3 is a Bill using a single item and multiple classes.

 

The P&L by Class displays the overall financial status of your entire business as well as the performance of each Class you have created.