Product/Service List and COGS Assignment

Hello there, Sthompson085.

Let me share some insights about running the Profit and Loss report.

You have the option to assign classes to each of your product or service items. However, QuickBooks generates financial reports based on the transactions you created. Thus, the classes shown on the report will be based on the class you assigned to the transactions. 

To start using the feature, you can follow these steps: 

1. Go to the Gear icon of your QuickBooks Online account.
2. Select Account and settings.
3. Click the Advanced menu and select Categories.
4. Toggle the Track classes to turn on and then select how you'll want to assign classes.
5. Click Save and then Done.

For more details about our Class and Location tracking feature, you can click here.

After you set up your classes, you can start organizing your customer and vendor transactions by class. Then, customize the report by class. 

You can always reach out to me if you need anything else about assigning classes to your transaction. I'm just here for you. Have a good one.

If I wanted to do this retrospectively, then would it be best to name classes based upon the 'Product/Service' names within QBO, classify the expenses based upon the class, run a separate P&L based upon 'Class' and a separate P&L based upon 'Product/Service,' and then combine them externally? To address this company issue moving forward, I would need to assign a class (based upon 'Product/Service titles') to each transaction in order to run a P&L based upon the services offered and classify COGS appropriately for review purposes?    

Thanks for keeping me posted, Sthompson085.

Any changes made to your settings will take effect moving forward. As mentioned, the reports are transaction-based. Editing items and assigning classes to them might not display on the report.

 You'll want to edit each existing transaction and add the class per line item or depending on how you set in assigning your classes since QuickBooks doesn't retroact. Yes, you're right when you said that you'll assign classes to your transactions moving forward so you can generate a Profit and Loss report by class. 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.