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Super Explorer **

Can I use classes for "department" type tracking with no income attached?

HI. I'm looking for additional insight to using classes in Enterprise We are brand new to the upgrade, and want to make sure I don't make a huge mess of our books, when I hear that the Class Tracking can be so powerful. We have several "departments" we track spending on; no income comes specifically TO those departments. An example would be travel. We have (multiple) conventions, (multiple) straining, an executive board, etc. We get a lot of requests from delegates, or family members to attend these events. We'd like to better track travel under each of these departments (or categories) so that we know if we are over our budget. Another example, is that we get a lot of event requests... aside from what we already have going on. How would you recommend tracking these better? Is class tracking recommended? Currently, which gets too messy in my opinion, we have something like (and it goes on and on...) General Travel - Airfare - Lodging... Honor Travel - Airfare - Lodging... Given all of the options that Enterprise can do, what is your recommendation? Thanks in Advance. @Rhonda_L

10 Comments
QuickBooks Team

Re: Can I use classes for "department" type tracking with no income attached?

Hello there, @RhondaL.

 

You can use the location tracking in QuickBooks Desktop Enterprise to track you transactions by department. I'm here to help guide you on how.

 

First, you may need to turn on the option under the Preferences.

 

  1. Go to the File menu.
  2. Select Preferences.
  3. Click on Item & Inventory.
  4. Go to the Company Preferences tab.
  5. Click on Advanced Inventory Settings.
  6. Put a check-mark on Multiple Inventory Sites is enabled.
  7. Click on OK.

j3 turn on 1.PNG

Once done, you can now set up a new inventory site.

 

  1. Click on the Inventory button at the top menu bar.
  2. Select Inventory Site List.
  3. Click on the drop-down arrow beside Inventory Site.
  4. Click on New to add a new site.
  5. Fill in the information, click on OK.

j3 inventory site new.PNG

After, you can then create an item under the item list.

 

  1. Go to the Lists menu.
  2. Select Item List.
  3. Click on New to add a new item.

j3 item list new.PNG

When creating a transaction, you can now select the site/department added under the Site column.

j3 transaction.PNG

You may check these articles for further details about class and location tracking:

Let me know if you have any other questions about class or location tracking, I'll always be here to help you. Have a great day ahead!

Super Explorer **

Re: Can I use classes for "department" type tracking with no income attached?

Thank you @Angelyn_T We don't necessarily have inventory... so does that create a worse book nightmare? I'm really looking for a way to track travel expenses per department
QuickBooks Team

Re: Can I use classes for "department" type tracking with no income attached?

Hello there, RhondaL. 

 

You may not use the location tracking when tracking department expenses. You can do that through the Class feature. This feature allows you to either use it for a transaction or per line item. 

 

Here's how you turn that on:

  1. Go to the Edit menu and select Preferences
  2. From the left menu, choose Accounting and click the Company Preferences tab. 
  3. Under the CLASS section, check on the Use class tracking for transactions box.
  4. To assign the class option per line item, check the Assign classes to box and then choose Items from the drop-down. 
  5. To save the changes, click OK

Once you create an expense or sales transaction, you already have these options. Please refer to the screenshots below. class.PNG

You can check out this article for more information about the class tacking feature

 

I'll be around if you need more help. Have a great day!

Super Explorer **

Re: Can I use classes for "department" type tracking with no income attached?

From what I understand, Class Tracking is amazing if you have different locations to run P&L's for. Given that information, I'm not sure that's what I am looking for... Based on a few conversations, perhaps Customer:job tracking is what I need? Still not 100% convinced, keeping in mind that we are not carrying inventory, or have different locations, but several departments
QuickBooks Team

Re: Can I use classes for "department" type tracking with no income attached?

Thanks for getting back to this thread, @RhondaL.

 

Allow me to step in and help provide some additional information about the featuring tracking in QuickBooks Desktop. 


The other option to track your travel expenses per department, if you use the tracking job costs feature. It will help you track the expenses for a job and compare it to your revenue. Also, job costing tools you can see how much money you spend and make for each job.

 

To learn more about the tracking job costs feature and the detailed steps on how to set it up, you can check this article: Tracking job costs in QuickBooks Desktop

 

Don't hesitate to leave a comment below if you have additional questions. Have a goo day ahead. 

Super Explorer **

Re: Can I use classes for "department" type tracking with no income attached?

Yes! Thanks. I was looking at that option for what I am thinking; my Finance Direct wants more details that what we had previously, and I don't want to over-complicate the COA. It would be more of a matter of better expense tracking :D. If you think of us more like a non-profit :D If you have additional ideas @JanyRoseB, please, yes...
QuickBooks Team

Re: Can I use classes for "department" type tracking with no income attached?

Hello there, RhondaL.

 

Let me join this thread and share some insights about using classes for department type tracking in QuickBooks Desktop.

 

All the possible information shared by my colleagues above are the only available feature an option specific to your concern. I'd want to take note of your tracking preference and relay this to our product developer to consider this option on our future product enhancements.

 

For now, I'd encourage you to regularly check out our New Features in QuickBooks Desktop to be updated of the latest enhancements.

 

Here's how:

  1. Go to Help.
  2. Click New Features.
  3. Choose Feature Tour or What's New.

 

 

For now, you may find these resources to learn more about QuickBooks Desktop features:

Fill me in if you have additional questions or other concerns in QuickBooks. I'd be happy to help.

Established Community Backer ***

Re: Can I use classes for "department" type tracking with no income attached?

As you have learned from the other replies - there are many possible ways to segregate expenses.  "Class" and "Location" are options - but neither of those is quite appropriate for your request.

 

Obviously adding more line to the COA is an option too - but again probably not the best one. If you do go this rout be sure to use sub-accounts so the related costs can roll up in reports.

 

Customer/Job tracking can work very well as a way of creating internal cost centers - provided you never need to mix these with an actual external customer. You simple create dummy customer/job names based on the separation you want.

 

The other choice not yet discussed is "items". Items can be sub-nested and are a great way of separating transaction details.  It really doesn't matter how long the item list is - so you don't have to worry about overloading it (as long as your organized in naming/numbering your items)

Super Explorer **

Re: Can I use classes for "department" type tracking with no income attached?

@MikeinBC Thanks for your suggestion on "items". I will definitely take a look at the possibility of using lists... do you have a suggested way to run reports so that we can see what we are looking for in regards to this breakdown?
Established Community Backer ***

Re: Can I use classes for "department" type tracking with no income attached?

My guess is you would start with the 'item profitability' report - then filter to show just the 'items' that are associated to each cost center.  Nesting sub-items under 'department name' master items will make this much easier.

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