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2943
Level 1

Assigning Classes to General Ledger Accounts

Thanks in advance for any help you can give me.  I recently took on the job of setting up the accounting system for a not-for-profit organization in our small town.  This organization wants to keep track of each of their projects/divisions so as to show the income, expenses an budget info for each project.  I believe the best was to do this is using Class designations by   General Ledger account.  I have set up the classes by project, but I can't set up the project's accounts by Class.  On the screen where you set up the gl account the line where you assign the class is not there.  Can you tell me how to get this line activated?  Thanks.

11 Comments 11
IamjuViel
QuickBooks Team

Assigning Classes to General Ledger Accounts

Hello, @24529173.

 

Let's review your QuickBooks preferences so you'll be able to assign classes to general ledger accounts. Just a heads-up, the ability to assign classes to accounts is only available to QuickBooks Enterprise.

 

Here's how:

  1. Go to the Edit menu.
  2. Choose Preferences.
  3. Select Accounting
  4. From the Company Preferences tab, go to the Class section.
  5. Mark the Use class tracking for transactions option.
  6. Put a checkmark on the Assign classes to tick box.
  7. Pick Accounts from the drop-down menu.
  8. Click Ok.

You can read through this blog for more detailed information: How to use class tracking in QuickBooks.

 

Meanwhile, if you're using QuickBooks Desktop Pro and Premier, you can assign classes to the following transactions:

  • Invoice
  • Sales receipt
  • Estimate
  • Sales order
  • Statement Charges
  • Refunds and credits
  • Check
  • Credit card charges
  • Bill
  • Purchase order
  • Paycheck

From here, you can run and customize the Transaction Detail by Account report. This will allow you to view lists individual transactions, subtotaled by each account on your chart of accounts. You can also compare the balances across multiple classes, departments, or locations. You can check this article for more detailed information: Filter, sort or total reports by Class.

 

Leave a post below if you have other questions. I'm always here to help.

afwright
Level 1

Assigning Classes to General Ledger Accounts

There is a setting in Company Preferences / Accounting that allows Classes to be assigned to accounts. Creating new accounts, however, I can't see the option to assign a class when creating a new account in the ledger.  

MariaSoledadG
QuickBooks Team

Assigning Classes to General Ledger Accounts

Hi afwright.

 

It seems that this a duplicate post already answered by my colleague Mark_R. You can check out this link for the answer https://quickbooks.intuit.com/learn-support/en-us/do-more-with-quickbooks/how-to-assign-class-to-led....

 

If there's anything else you need to help us with, please let us know so we can assist you.

InterlakenGolf
Level 1

Assigning Classes to General Ledger Accounts

what is quickbooks enterprise?

MirriamM
Moderator

Assigning Classes to General Ledger Accounts

Hi there, @InterlakenGolf. Thanks for joining the thread.

 

QuickBooks Desktop Enterprise is the most powerful type of plan in QuickBooks Desktop that is designed to help you manage your accounting and business needs efficiently and with ease. If you'd want to have employees in specialized roles and functions, have inventory as a core part of your business, or have multiple locations that need to be tracked and managed, QuickBooks Desktop Enterprise is great for you. 

 

Also, in all types of plan, only QuickBooks Desktop Enterprise has the option to assign classes to accounts, as mentioned by my colleague IamjuViel.

 

To know more about this version, check out these links:

If you have any follow up questions about this, let me know by commenting below. I'm more than happy to answer it for you. Have a nice day.

cpa_chang
Level 1

Assigning Classes to General Ledger Accounts

What's the point of assigning classes to Accounts?

 

In QBES 2022, I have classes assigned to Accounts in my Chart of Accounts. But when a transaction posts to a classes income/expense account, any report I try to filter by class won't show that transaction being classed. 

 

I can't seem to find a how to use class reporting for Ledger Accounts assigned with a Class.

 

 

Mich_S
QuickBooks Team

Assigning Classes to General Ledger Accounts

I've got some information to share with you about assigning classes to accounts in QuickBooks, @cpa_chang.

 

You can track account balances by department, office or location, separate properties, or any other significant division of your organization using class tracking. This allows you to keep track of the segments you wish to keep an eye on.

 

You can customize General Ledger Report to show the classes you assigned by selecting Class under Search Columns. Here's how:

 

  1. Open the Reports menu. Then select Accountant & Taxes.
  2. Click on General Ledger.
  3. Select the Customize Report button.
  4. Under Search Columns, check Class.
  5. Once done, click on OK.

 

 

For more information on how to handle classes, check this out: Set up and use class tracking in QuickBooks Desktop.

 

Keep us updated by leaving a comment below. We're here to help if you have additional concerns with this or QuickBooks. Have a nice day!

cpa_chang
Level 1

Assigning Classes to General Ledger Accounts

Sorry, I don't think you understood my question. Let me put it in another way....

 

What does assigning classes to a Ledger Account do? Because in my client's QB Enterprise Non-profit edition, it does not seem to do anything. If I assign a class to a Income account, for instance, and then post a invoice item related to that classed GL account (but leave the Class field empty on this line item), then run your recommended General Ledger report with customizing to add a column for Class, then that transaction will not have a class. It won't have a Class until I add a Class to the line with the item, in the Invoice. 

 

It seems like the only thing that would class a transaction would be to assign the class at the transaction level. Am I right?

 

Let me show you an example, hopefully I can post multiple screen shots.

1. Income account is assigned a Class in the Chart of Accounts

2. Created an income Item (in Item List) to reference the classed Income account created in #1

3. Created an invoice using the Item created in #2 but no class for the invoice (above field) and no class for the Item line (class field beside the Item field in the lines of the invoice)

4. A PnL by Class report show this transaction as Unclassified

 

hmmm, can't add multiple screen shots. just going to show you the Invoice I created with no Classes. That Item in the invoice is linked to an account that is classed "Operational". After I save and close the invoice, the run the PnL report, the transaction shows up only in the class column "Unclassified".

 

Shouldn't all transactions going to the classed Income account be assigned a class, regardless if I used a class at the item level?

 

If that is not the case, then what purpose does assigning a class at the Ledger Account level serve? I can't seem to find a guide or solution on how to use this feature.

 

Put another way, why would you have this feature when the user has to class at the transaction level anyways (a thing they would have to do regardless of using this "Assign Class to the Account" toggle in Preferences/Accounting menu)? 

 

I've gone through all your Guides/Community resources. I think I understand quite well how classes work in QB desktop in QBO. However, there seems to be no materials on this Assign Class to Accounts feature works.

 

katherinejoyceO
QuickBooks Team

Assigning Classes to General Ledger Accounts

Thanks for coming back with more detailed information on your concern, @cpa_chang

 

Yes, you're right. You can assign a class at the transaction level. See the following transactions below:

 

  • Invoice
  • Sales receipt
  • Estimate
  • Sales order
  • Statement Charges
  • Refunds and credits
  • Check
  • Credit card charges
  • Bill
  • Purchase order
  • Paycheck

 

Since class tracking can be used in most transactions, you can generate reports to compare the balances across multiple classes, departments, or locations by filtering, sorting, or totaling reports by class in QBDT.

 

You also want to check this link to learn more about setting up and using class tracking in QuickBooks Desktop. 

 

Feel free to message again if you need more QuickBooks help. Take care!

 

 

 

cpa_chang
Level 1

Assigning Classes to General Ledger Accounts

But that doesn't answer my main question, what's the main purpose of Assigning Class to (Ledger) Accounts? And how do you use it? 

MaryLandT
Moderator

Assigning Classes to General Ledger Accounts

Allow me to step in and share some insights about the purpose of assigning a class to your accounts, cpa_chang

 

Classes represent meaningful parts of your company, like store departments or product lines.

 

You can use them to get deeper insights into your sales, expenses, or profitability for each part of your business. Hence, the target of classes is transactions, not accounts.

 

And, 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 find more information about classes through this link: Set up and use class tracking in QuickBooks Desktop.

 

Stay in touch with me if you have follow-up questions by commenting below. I'll be around to provide the information that you need about the class tracking feature.

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