Payroll Checks Going Under Not Specified On Expenses Vendor Summary Report

Hey there, 

Allow me to share some information about the Not Specified transactions in QuickBooks Online (QBO).

The Expenses by Vendor Summary report will show you the non-specified transactions if you created a check or expenses without a payee. To rectify these, you simply need to open them and enter a vendor or payee. Let me show you how:

1. Go to Reports.
2. Enter Expenses by Vendor Summary the search field.
3. Set the date and click on Run report.
4. Click on the dollar amount in the Not Specified section.
5. Then, open each transaction and enter a payee.
6. Once you're done, click on Save and close.

After following these steps, the Not Specified section won't show up in the report.

Let me know if you have any other concerns. I'm always glad to help. Have a good one.

Hey!

So each check does have a payee, it's our employees. 

Do I need to change them to a vendor? 

Hi Doghouse!

Thanks for following up on this. Let me shed light on getting the Not Specified column on your report.

This happens when you didn't assign classes to some transactions including payroll. They will be grouped in the Not Specified column when you pull up class reports. It's just classes, not categories or accounts. Therefore, you don't need to change the payee, just assign a class to your payroll transactions. I'll walk you through the steps.

For payroll transactions:

1. Go to the Gear icon and choose Payroll Settings.
2. Scroll down and click the Pencil icon for Accounting.
3. Click the Pencil icon for Class tracking.
4. Choose how you want to track classes for your payroll and click Continue.
5. Click the Pencil icon for Want to update existing transactions.
6. Start date and click Update. Be sure it covers the dates of the paychecks that you want to retroactively add classes for.
7. Click Continue and then Done.

You can check your report again after assigning classes to your payroll transactions. If you'll miss the older transactions, go back to the setup and change the Start date again.

For non-payroll transactions, you will need to assign classes to each of them. However, you invite an accountant user that uses QBO Accountant, so they can add classes to your non-payroll transactions faster. Here's an article for your reference: Invite an accountant.

You can always go back to this thread if you need further assistance. I'll be happy to help you again!

Thank you so much for your response!

How do I assign checks to classes?

Hey there, Doghouse.

Thanks for following up on this thread. I can show you how to assign your checks to a class in QuickBooks Online.

Since the checks have already been created, you can assign them to a class from the register. You'll first need to make sure class tracking has been turned on. Here's how:

1. Click the Gear icon in the top right corner.

2. Select Account and Settings.

3. Choose the Advanced tab on the left.

4. Click the pencil icon in the Categories section and toggle on Track classes.

5. Select Done when you're finished.

Once you have classes turned on, there will be a class column in your bank register, You can then go into the register and assign a class for each transaction and check.

The following linked article provides even more info about using classes in QuickBooks Online.

Please don't hesitate to reach back out if you have any other questions. Myself and the rest of the Community are here to help.

I have the same problems here. 

I never assign classes to payroll, however, I assign employee's hrs to different customers. 

When i run Profit and loss for customers, I do see some of my payrolls go to NOT SPECIFIED category, not all of the them. 

Please suggest what to do in this case.

Thanks in advance.

Hey there, Dennis Home.

As mentioned by my colleagues above, the Not Specified column in the report indicates when a transaction does not have a payee or customer assigned.

To correct this, we can open each transaction and ensure that it has a customer assigned to it. Here's how:
 

1. From your Profit and Loss report screen, click on the dollar amount in the Not Specified section.
2. Then, open each transaction and make sure they're associated with a customer.
3. Once you're done, hit on Save and close.

However, if you're still seeing the Not Specified section in the report, let's assign a class to your employees. See the steps below:

1. Click the Gear icon at the upper right corner and choose Payroll Settings.
   
2. Go to the Preferences section.
   
3. From the Accounting Preferences, scroll down to the Classes section.
4. Choose I use different classes for different employees option.
5. Tap OK.
   
6. Assign a Class for each employee by clicking the drop-down arrow.
7. Select a Class from the List.
8. Hit OK.
   

This should get you on the right track. I'll be leaving you the links below. These will provide us with more information on how class tracking works as well as tips on how to manage your payroll preferences in QuickBooks Online:

Set up Payroll account preferences.

Get started with class tracking in QuickBooks Online.

Kindly update me on how things go by adding another comment below. I want to make sure you're all set, and I'm here if you need further guidance. Have a great day! All the best.