Hi,
Either I am not doing something right, or I think there is a bug in the way QBO handles Classes, specifically in the reporting of Cash Accounts on the Balance Sheet.
Once I have Classes switched on then I have to specify a Class in every transaction, which I do. Say I make a £100 expenditure from my current account and charge that to an expense account called Food, and I tag that transaction with Class General. My P&L report will correctly show an expense against category Food and will tag that transaction with Class General. But when I run the Balance Sheet, with a column for each Class, the reduction in the current account balance will not be shown in the General column, but in an Unspecified column. (The equivalent thing happens with income accounts too.)
To sort this out I have to do multiple journal entries at the end of each month in order to clear out the Unspecified column and get the correct values into the correct Class columns. A real hassle, a waste of time, and easy to get wrong.
If you think of an income or expense transaction as a balancing double-entry journal, then it appears that the income/expense account is being tagged with a Class, whereas the cash account is not. Or, if both sides are being tagged, then QBO is losing/ignoring the Cash account Class tags when building the Balance Sheet. Interestingly accruals (eg income in advance) are reported correctly in the Balance Sheet. The problem seems to relate just to Cash Accounts.
Please tell me where I am going wrong, if I am. Or fix the bug.
Thanks,
Andy
