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appletreeconstru
Level 2

Job Cost Accounting

I am a residential contractor, using QBO to track costs by project and customer.  However, I would really like to add another dimension to this data organization, tracking costs by types of work within each job: "Framing" or "Trim" or "Painting", etc. 

Ideally, I would be able to use these categories across Estimates, T-sheets, Expense Tracking, and Invoicing.

Honestly, this doesn't seem like rocket science, but I cannot seem to find any articles on how I might be able to do this.

Would it make sense to use the "class" feature within QBO, or perhaps the products/services feature? 

I can't even seem to find any basic articles on this website on how to use these features... they may be there, but they do not show up for me when I search!

Any input appreciated!

6 Comments
ReymondO
QuickBooks Team

Job Cost Accounting

Let me share with you some insights about the differences between class tracking and product/service features. 

 

In QuickBooks, you can create classes that you assign to transactions. This lets you track account balances by the department, separate properties you own, business office or location, or any other meaningful breakdown of your business. This way, you'll get a clearer insight on your sales, expenses, or profitability by business segment.

 

On the other hand, using the Product/Service feature helps you track how much you make and spend on each product or service. You can enter these as items so you can quickly add them to sales forms. Using this will give you more detailed financial reports and helps you complete transactions faster.

 

If you aren't sure what features are you going to use, I'd recommend reaching out to your accountant. They are the ones who can provide strategic insights to your businesses.

 

You can also check out our class tracking overview to learn if it’s the right tool for you and how to get started.

 

I've also included these articles that you can use as an additional reference in managing your transactions in QuickBooks Online:

 

 

Let me know if you need further assistance with this. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.

Fiat Lux - ASIA
Level 15

Job Cost Accounting

@appletreeconstru 

As another option, consider having a construction management app to let you get a better insight of your operation. It will integrate with QBO and TSheets/QB Time.

appletreeconstru
Level 2

Job Cost Accounting

One of the things about this that I find confusing is that Products/Services are assigned to "item categories"- whereas I need to assign items that are in categories to Products/Services.  Does QBO use the term "category" to refer to two separate types of data structures- 1) Categories and 2) Item Categories, or are these the same?

 

For example, I have Categories such as "Cost of Goods Sold" or "Software Expenses", etc., basic stuff.

But, what I need to do here is assign some items within "Cost of Goods Sold: Job Materials" to Product/Service "Framing", some to "Trim", etc. 

AileneA
QuickBooks Team

Job Cost Accounting

Hello, appletreeconstru.  

 

Thank you for reaching back to us. Let me share some insight about what categories is in products and services. In QuickBooks Online, categories are used to classify products and services (usually represented by items) your company sells to customers. It allows you to create and edit categories that sync with your QuickBooks Online account. 

 

For more information on using Item Categories within QuickBooks Online, please refer to their help center article Introduction to Categories in Products and Services.   

 

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to help.

appletreeconstru
Level 2

Job Cost Accounting


@AileneA wrote:

Hello, appletreeconstru.  

 

Thank you for reaching back to us. Let me share some insight about what categories is in products and services. In QuickBooks Online, categories are used to classify products and services (usually represented by items) your company sells to customers. It allows you to create and edit categories that sync with your QuickBooks Online account. 

 

I understand.  It's just odd to me that QBO uses the term categories to refer to different things in different places.  For example, if I create an Expense, the Table "category details" and the ensuing column "categories" is referring to an entirely different list than the one used to organize Products/Services. 

I'm leaning towards using classes to do the type of Job Costing I need to do, but not sure how to make the class of an expense appear on an invoice so a customer could see it.  Surely this is possible? 

Also, is there an easy way to bundle items on an invoice by either class or payee?

SarahannC
Moderator

Job Cost Accounting

Hello there, appletreeconstru.

 

You can turn on the Billable expense feature in the settings within your QuickBooks Online account. This way, you can add the class from an expense and carry it over to an invoice. To start, bill a customer an expense, including class. Here's how:

 

  1. Go to the +New button.
  2. Select Expense under Vendor.
  3. Select the payee.
  4. In the Category column, select the expense account for the transaction.
  5. Enter the description and amount of the expense, then select the Billable checkbox.
  6. In the Customer column, select the customer you want to bill for this expense.
  7. Once done, hit Save and close.

 

Let's then proceed with adding the billable expense to an invoice:

 

  1. Still, in the +New button, select Invoice.
  2. In the Customer ▼ drop-down menu, select the customer you created a billable expense for. This opens the Add to invoice window.
  3. Select Add on the billable expense.
  4. Then, click Save and close.

 

Also, the option to bundle the items by class or payee on an invoice is unavailable. Instead, you can add the items individually to the transaction since this is already recorded in your QuickBooks account. You can easily add it without re-entering the items. I can see how beneficial and time-saving it is. You may want to visit our blog website. This way you'll be updated with the latest news and product improvements. 

 

You may want to check these links to gather additional details about handling items and classes:

 

 

Please visit again if you have other concerns with QuickBooks. The Community is always here to help. Stay safe and be well.

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