I am just creating a company account through Quickbooks. We are a design firm that bills by phases, progress, and fixed amounts. In our Items list I have the different phases broken down. However, I keep seeing people talking about identifying something by a class.
First, what is the difference between a class and a list item? Isn't Quickbooks capable or running a report based on either a class or a list item to see Profit and Loss?
My question is: can my list items be the same as my classes? For instance:
Transportation: Project Management
Transportation: Construction Admin
Education: Project Management (and so on)
Can all of those be both a list item and a class?
Or should they be separated by class, items, and types? How do you tell the difference between which one should be?
Thank you for posting in the Community. I can help share some details about item lists and classes in QuickBooks Desktop.
The item lists in QuickBooks are what you sell or buy and are used on all customer transactions. It provides a quick means for data entry and shows up as a line on an invoice or other sales forms. Let me route you this article for more information: https://quickbooks.intuit.com/community/Inventory-and-projects/Add-edit-and-delete-items/td-p/201687.
Classes are used to give you a means of adding a second dimension to your data classification. A common application of classes is to track multiple locations for the same business. This will be helpful when running a financial report for your entire company since you can easily filter your report to segregate the transactions by class.
You can always use the same name for your list items and classes, however, they have a different and separate function when generating your financial reports.
To know more about class tracking in QuickBooks, you can check out this helpful blog: How to Use Class Tracking in QuickBooks.
Please keep me posted if you have other questions about items and classes. I'll be here to help in any way I can.
Can you help explain when I would choose to assign class to items or if I should choose assign class to accounts. I use classes for our 5 retail locations. I want to assign each document a class such as the sales invoice, and also the sales accounts and COGS account associated with that document.
Hi there, @SandyH1.
Thanks for joining this thread. Allow me to step in and share some information about how to use the class tracking feature in QuickBooks Desktop (QBDT).
Turning on this feature in QBDT will let you assign a class to transactions such as an invoice. This lets you track account balances by department, business office or location, etc.
Technically, you can assign a class to either items or accounts. However, you also have the option to only assign a class to Accounts, Items, and Names depending on what you prefer. Here's how:
1. Go to the Edit menu at the top, then pick Preferences on the drop-down.
2. Select Accounting on the left pane, then Company Preferences tab.
3. Put a check mark to Use class tracking for transaction under CLASS section.
4. Check the box beside Assign classes to, then choose on the drop-down.
5. Click OK.
For your reference, you can also check out this article for more information: How to Use Class Tracking in QuickBooks.
That should point you in the right track. Please let me know how it goes or if you have any additional questions or concerns. I'm always here to answer them. Take care and have a good one!
Hi Fritz, thank you for helping with this subject. I have another question and I couldn't find an answer by searching for it. I want to know if we can bypass the bill pay section and just assign classes while writing checks? I think we can in QuickBooks online but we are using QuickBooks desktop 2015. It's old, I know. We may upgrade but want to know what options we have. We only have a few transactions each month and bill pay section really seems like too much, yet we do need to or use classes or job assignments. Thank you for your help.
Hi there, Cynthia2019,
Nice to see you here in the Community! Thanks for joining the thread. Allow me to answer your question about writing checks.
Once Class tracking feature is turned on, it will be visible to line items in checks. However, if the class column is not visible when creating a check, then you may have not turn on the feature.
Upon writing a check, you have the option to bypass the Pay Bill window by just clicking the Continue Writing Check button. From there, you can simply write a check and assign classes.
To have a better view about this process, you can read this article: Create, modify, and print checks.
For future reference, you may also find this great resource helpful: Create an automatic recurring payment (check) to a vendor.
You can always get back to me if you have any other questions. I'd be glad to offer additional assistance.
Thank you so much for your reply. I did not get a notification about this reply in my email or would have been overjoyed. One thing you are not mentioning is if this feature works for our older version of Desktop? The reason why I ask is that we certainly have been using the class feature already, but just don't see it when just trying to write a check.
Again thank you. I will definitely check the forum more often and not wait for the email. :)
I just read a bit of the document you linked. It does give some tips if the classes are not showing in the checking window or register. I'll try to see if this works and get back to you.
Why doesn't the option to "Assign classes to (accounts, items, names)" appear on my application? I am using the Desktop Premier 2018 version if that makes any difference.
Let me share some insights about class tracking that can help you, Keiz.
The Assign classes to option is only available in QuickBooks Enterprise. For QuickBooks Pro, we can activate the Use class tracking for transactions to assign your transactions to a class upon creating it.
Class tracking applies to these following transactions:
Once activated, the CLASS drop-down menu (beside the TEMPLATE drop-down menu) will appear when you create those transactions mentioned above.
For more information about this process, you can read this article: Set up and use class tracking.
I've added an article that will help you in managing class-related reports: Filter, sort or total reports by Class.
Please let me know in the comment section if you other concerns or questions about class tracking. I'll be right here to keep helping.