Why do some journal entries default to Not specified category?

Thank you for posting, hoosierno1.

I can share some information about journal entries assigned to an unspecified category.

When there's a Line item without class or a journal entry with blank lines and 0.00 figure they will automatically be included on the Not Specified category.

Also, Debit and Credit should be blank if there's no account associated to it. This unspecified category will only show when you run a report by Class or Location.

To correct this or delete the journal entry that causes this not specified category, here's how to reverse or delete a journal entry article for more information. 

That's it. If you have any other questions or would like me to clarify anything else about your journal entries, let me know. I am always glad to help in any way I can.​ Have a good day. 

The not specified column is still there when I put the name of suppliers and choose the correct account. please advise me to get rid of this not specified thing. 

thank you

I appreciate the screenshot you've provided, @orangzeb.

Let's open the journal entry and make sure that you've assigned a specific class on it. 

Once you assigned a class on each line item on the Journal Entry, save it and re-run the report.

If you're unable to assign a class on each line item, you can review your class tracking settings. Here's how:

1. Go to the Gear icon.
2. Choose Account and Settings.
3. From the Advanced tab, scroll down to the Categories section.
4. In the Assign classes drop-down, choose One to each row in transaction.
5. Hit Save, then Done to record the changes.

You can browse these articles to learn more about customizing your reports:

• Run reports by class
• Filter, sort or total reports by Class

Get back to us if you have other questions about managing your sales report. I'm always here to help.

I Don't have a class on it, because it's QBO plus version.  

please advise to solve it. thanks 

Hi there, @orangzeb.

You need to turn on class tracking in QuickBooks Online Plus and Advanced to organize the transactions by class. If you're using QuickBooks Simple Start and Essentials, I suggest upgrading your subscription. I'll show you how:

1. Go to the Settings ⚙ and choose Account and Settings.
2. Select the Billing & Subscription menu.
3. In the QuickBooks Online section, select Upgrade. 
4. Choose either QuickBooks Plus or Advanced, and select Upgrade.
5. Confirm your payment information, and click Save.

Once done, you can now assign classes to transactions by turning on the class tracking feature.

Here's how:

1. Select Settings ⚙ and choose Account and Settings.
2. Choose Advanced, then click on  Edit ✎ in the Categories section.
3. Select Track classes.
4. Click the Assign classes ▼ dropdown, then select One to entire transaction or One to each row in transaction.
5. Select Save, then Done.

You can visit this article to guide you on how to add, delete, or restore a class in QuickBooks Online: Create and manage classes in QuickBooks Online.

Click the Reply button if you have additional queries about assigning classes to transactions. I'll be here to help. 

What kind of class should use for manual payrolling and other general expenses? 

Hello there, @orangzeb.

In QuickBooks Online, you have the option to assign any class you want as this will remove to not specified area. It will depend on what kind of class you can enter or add.

Classes could be the different services you provide and the products that you sell. Let me share the steps on how to assign a class for each employee.

Here’s how:

1. Click on the Gear icon.
2. Select Payroll Settings.
3. Choose Accounting.
4. In the Classes section, select I use different classes for different employees.
5. Click on OK.
6. In the Preferences - Employee Classes section, assign a class for each employee. 
7. Click on OK.

For more information about class tracking in QuickBooks Online, you may check this article:

•  How to set up and use class and location tracking.
• Get started with class tracking in QuickBooks Online.

If you have any other questions about this. I'll be keeping an eye out for your response. Keep safe always.

Hello,

I've created journal entries to change the classes for specific transactions. When I've run the report, it didn't show any change. The accounts are income so my journal entries are:

Debit Income account w/ class "Auteur" to offset the transactions currently recorded in this class

Credit Income account w/ new class "Boutique" 

I'm here to explain how it works, Gracedc1992.

Journal entries are used as the last resort for entering transactions. You also use this when you transfer money between income and expense accounts. Or, transfer money from asset, liability, or equity to any income and expense accounts. 

You're unable to change the class by creating entries. You'll have to open the transaction and change the class manually.

Then, when you pull up the Sales by Customer report, it will show the transaction's correct class. You can also customize the report to help you focus on the details that you want.

Feel free to get back to us if you have additional questions. We're just around to help you.