I use Desktop Premier Contractor Edition. Everything I enter is put to a specific class (we have about 8). My question relates to credit card bills. Since every credit card charge is already classified, once I create the bill after reconciling it, should I leave the class blank? I don't like to leave anything unclassified, but my concern is if it will be duplicated somehow in the class reports (If that makes sense)?
By entering the credit card charges ypu are recreating the monthly statement. You do not create any additional bill normally. What you do is create a payment against the open balance. Think of it as a bank loan which is 0 interest and principal only (if you pay in full each month).
To help creating the payment you can and should reconcile the cc account after the closing date each month. Reconciling a cc accpunt will give you a popup opportunity to pay or schedule a payment
Yes I reconcile the account afterwards. I create a bill and mark it paid once I receive receipt of payment. When I create the bill, however, or any bill for that matter I put it to a class. In this case, I classify it to overhead but then I wonder if that will increase my overhead division even though all of the charges are classified to their correct classes?
Yes. The overhead cost will increase even if you classified the charges. Although overhead costs are critical to business operations, they do not lead to a generation of profits. Additionally, overhead costs tend to be fixed.
While creating a Bill for a credit card payment will list the payment due in your vendor payable list it is only practical if your bill detail is the credit card account. Since the bill for payment IS NOT any kind of or close to an expense using a Bill in this manner will not change your financials since the bill and its payment have ZERO effect on P&L. The expenses are the credit card charges, not the payment on account. So whether you apply a class to your bill for the payment or even if you only created a check and listed a class, it has no effect overall. Class is a tag only, allowing extra reporting and nothing more