Showing results for 
Search instead for 
Did you mean: 
Level 1

How to set up departments in qb?

9 Comments 9
Level 7

How to set up departments in qb?

Hey sree4,


I'm happy to see you're looking to more effectively categorize your books. QuickBooks Online has a few features available to help you separate your income and expenses by department, allowing you to easily run and compare reports. Most notably, ClassesLocation, and Projects can be used for this purpose. I'll be happy to go over the various benefits of these powerful features, and assist you in setting these up.


These advanced features are currently included in QuickBooks Online Plus. Here's a brief overview of each: 

  • Classes allow you to easily categorize your transactions beyond the standard account selection. You can easily run reports individually to drill down into a specific department.
  • Using Locations, you can track your transactions based on location. This helps provide insight into the profitability of each one.
  • Projects are similar to sub-customers, allowing you to easily categorize income and expenses into a specific job.

Based on your description, I think the Classes function suits your needs best. You can easily activate it in a few simple steps:

  1. Click on the Gear icon and select Account and Settings
  2. Select the Advanced tab and enable Track classes in the Categories section.
  3. Choose an option in the Assign classes drop-down based on how much details you need.
  4. Click Save then Done

Depending on your selection under the Assign classes option, you're now all set to select classes on all your transactions! You can view and manage your class list from the following section: 

  1. Head to your Gear icon and click on All lists.
  2. Select Classes

Here's a handful of awesome articles to help you out:

Don't hesitate to ask me any other questions.

Level 1

How to set up departments in qb?

I wanted to  have a different type of solution that is how to create a  department called sales department , procurement  department in quick book .Also need to know how to enter the same while entering a transaction for example , if i enter a transaction say electricity charges that has to be assigned for  sales department how do i enter the transaction of electricity charges in sales department .

Kindly give me the solution as soon as possible .

The way quick book online has given the sample is not working for me as it fails in my way case.I want the transaction to be like this assign electricity charges to sales department . Thanks in advance 


Level 2

How to set up departments in qb?

Class is the answer, Sales department is a class and the marketing materials expense is associated with that class, etc...

LJ Fielding
Level 1

How to set up departments in qb?

what if i am using class for location already, how can I use class for location and create a department or division also?


QuickBooks Team

How to set up departments in qb?

Hi LJ Fielding,


Thanks for joining us here.  Class tracking in QuickBooks Online is designed to represent departments or product lines.  This helps you organize your transactions to get a clear overview of business segments.  Here's a helpful guide to assist you with managing classes in QuickBooks Online.


Please don't hesitate to contact us, if you require additional assistance.  We'd be happy to work with you directly and ensure you're able to accomplish your QuickBooks goals without further delay!


Schedule a Callback or start a Chat: click (?) Help in the upper right in QuickBooks Online > enter "Contact support" > hit Contact Us > provide a brief summary of your situation > hit Let's Talk > choose Get a callback or Start a Chat.
Social Media: Facebook, Twitter, and Instagram.
Support hours are from Monday to Friday between 9 a.m. and 8 p.m. ET.


Feel free to reach back out if you have any other questions.  We'd be glad to assist!


Level 1

How to set up departments in qb?

Once I go to Settings, Advanced, and turn on class tracking, how and where do I go to actually set up the desired departments? Can I default balance sheet accounts to a "Corp" department?

QuickBooks Team

How to set up departments in qb?

Hey there AndyFPSolutions, 


Thanks for chiming in on this thread. I encourage you to review this helpful guide on how to set up and use location tracking. Location tracking can be used to categorize data from different locations/departments of the same company. 


If you require further assistance, I recommend reaching out to the support team outside of the Community. They'll be able to verify your account details in a secure setting, as well as view your screen to better assist you. You can reach them by following one of these methods:


Schedule a Callback or start a Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.
Social Media: Facebook and Twitter


If you have any other questions, feel free to reach out here.

Level 1

How to set up departments in qb?

I've set up my Departments. My problem is how do I allocate a bill/expense across multiple departments? For example when entering the electric bill I only have the option to select a single Department. It appears I could use Class in the Category Details area to accomplish this but that seems to defeat the whole idea of using Departments (i.e. Locations).

Alex M
QuickBooks Team

How to set up departments in qb?

Hi there STucker1,


It's important that all your transactions be entered correctly for your books to be well balanced. QuickBooks Online is a great tool able to help you keep track of your sales and expenses so you can see the profit of your company. I can provide some information about classes and locations.


When it comes to expenses and bills, there can only be one location associated with the entire transaction, but a class can be added for each line of the transaction. I can see that this would be a feature that you'd like to see the ability to associate multiple locations to the same transaction as a feature in QuickBooks Online. I recommend leaving feedback in the system by clicking on the Gear icon, then Feedback. The comments made in that section are taken into consideration by our developers when designing new features for the software. 


If you have any other questions, feel free to reach out here.

Need to get in touch?

Contact us