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Frequent Explorer **

In QBO how can I set up 4 lines of businesses (LOBs)? 3 of the 4 LOBs are revenue generating and forth just to book overhead (OH) exp. Plan to allocate OH to 3 LOBs.

In QBO how can I set up 4 lines of businesses (LOBs)? 3 of the 4 LOBs are revenue generating products. Forth LOB will be just to book overhead expenses. I plan to allocate overhead expense every month-end to the other 3 LOBs. I've read that setting up classes may be the best way to go? How to allocate the overhead expenses from one class to another? For e.g., I have booked factory overhead to LOB X then at month end want to allocate to LOB A,B,C based on number of products sold - how can that be achieved?


3 Comments
Anonymous
Not applicable

Re: In QBO how can I set up 4 lines of businesses (LOBs)? 3 of the 4 LOBs are revenue generating ...

Let me help, @Sajid_Rahim.

 

You're right about setting classes when it comes to tracking your transactions per line of business. However, if you have different businesses with separate taxes, you may need to have one subscription per business.

 

If you have the same taxes for one entity, then you can use classes to track income, expenses, or profitability by business segment. When it’s time to run reports, you have a clear picture of each segment’s financial health. Then, you can use this info to set a budget goal for each class. 

 

You can refer to this article for more details: Get started with class tracking in QuickBooks Online.

 

Also, in case you want to customize your reports, you can check out this article: Customize Reports and Email.

 

Keep me posted if you have questions about using classes. I'll be around to help.

Frequent Explorer **

Re: In QBO how can I set up 4 lines of businesses (LOBs)? 3 of the 4 LOBs are revenue generating ...

@Anonymous  Thanks so much for your response! Very Helpful.

Any idea how I can allocate expenses from one class to another? For example, I have a class set up for overhead (i.e., all factory overhead expenses are booked there). I would like to allocate those factory overhead expenses to other classes at month-end. E.g., a vendor is paid $6 which is booked to Class A and at month-end that $6 is re-allocated equally to Class B, C and D.    

QuickBooks Team

Re: In QBO how can I set up 4 lines of businesses (LOBs)? 3 of the 4 LOBs are revenue generating ...

Thanks for reaching back out, @Sajid_Rahim.

 

Allow me to join this conversation and provide you with some details about allocating expenses from one class to another.

 

The best way to distribute amounts from one class to another is to edit the transaction created. You also have the option to make a journal entry to remove the expense from the main class and apply it to the same accounts with the appropriate classes.

 

Here are the resources that you can check out for complete details about these processes: 

If you need further assistance in doing the process, you may reach out to our Customer Care Team. They have the ability to initiate a remote-viewing session and walk you through the steps.

 

I want to ensure that this gets taken care of for you, so please feel free to update me by posting a comment below. Cheering you to continued success in all of your endeavors.

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