Tracking Revenue and Expenses by Partner without Classes

We don't need to add a customized field in the Make Deposit window, globetreader569.

We can change the Preferences setup so you can use Class as "partner" when creating the deposits. Here's how to do it:

1. Click Edit at the top menu and select Preferences.
2. In the Preferences window, click Accounting on the left menu.
3. Select the Company Preferences tab and go to the CLASS section.
4. Mark the following boxes:
   • Use class tracking for transactions
   • Prompt to assign classes
   • Assign classes to Accounts
5. Click OK.

When you create the bank deposit, the CLASS column will appear and you should be able to setup the partners.

Let me know if you need more assistance with this.

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@globetreader569 wrote:

A client of mine uses Quickbooks Desktop 2018. They want to track all revenue and expense items by partner so that they can essentially run a p&l by partner out of their QuickBooks.

They do not use invoicing, they simply make deposits, enter bills, and pay bills. They already use class tracking to classify revenue and expense items by case.

What is the best solution for this (I imagine adding a new custom field to deposits, if available)?

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you can not add a custom field to the make deposits screen, it is not customizable

I'm not sure why they would want to see a P&L by partner, it has no bearing on filing taxes.  since they are not using QB to its fullest (no invoicing, no jobs, etc) reporting functions that would normally be used are not available.

Since you use classes for jobs, instead of the built in job function, there is really no way to add partner tracking.

I agree with Rustler; they are doing this Backwards.

"They do not use invoicing, they simply make deposits, enter bills, and pay bills. They already use class tracking to classify revenue and expense items by case."

By Case = Client is Customer and Case or matter is Job. Then, they are supposed to track everything using Customer and Job. If this is a Law Firm, they also are supposed to be tracking Advanced Costs by Name. They would be tracking Trust Funds by name.

What they are doing now has bypassed all of the Customer Center and Name-related functions. They are "doing some generic and vague banking" and using about 5% of the Functions that would give everything they need. The Job Tracking or Customer Name functions being overlooked like this is the problem. Using Class is supposed to then provide the Divisional Reporting they wanted.

They have this Backwards in Concept. Whoever set this up, clearly doesn't understand the most basic part of the relational database for using it with Names. It's not too late to Fix it, of course.

I have a client in the solar sales business. They want the ability to see a report that shows them (in P & L form) how much any given partner has earned at any given moment. They receive incremental deposits from the "customer" in stages as they sell more for them on other jobs.

They also have stated that they want to be able to see how much a given partner has made to date, but not necessarily for the purpose of paying it out to that partner at that time. Having a P & L that breaks down how much any given partner has made on all projects he/she has managed for the year is helpful with their allocation of profit-sharing structure even though it does not affect the tax return necessarily.

I’m glad to see you here, @Rlandon.

Since your client wants to see the report that shows them in a Profit & Loss form, you may consider running the Profit & Loss by Class report in QuickBooks Desktop (QBDT). This way, they'll be able to know how much a given partner has made and earned.

Just make sure the Class feature is turned on, and they’ve set up class codes as a partner so they can assign it to each specific transaction. Then you can follow the outlined steps below to generate the report.

1. Go to Reports and choose Company and Financial.
2. From the list, select the Profit and Loss by Class option.
3. Click the Customize Report button.
4. Filter the necessary information, then press OK.

The class feature gives more detailed insights into the profitability of your business. It allows you to see the income and expenses in each business class, so you’ll get an excellent understanding of where your sales and costs are segregated.

You can use this information on how to filter, sort, or total reports by Class in QBDT. Also, here’s a reference that provides more information about the class: How to use class tracking in QuickBooks.

Please let us know if you need further assistance with reports. We’ll be here to help you. Keep safe and have a great day!

Thank you for your reply! 

So I assume If a partner is assigned multiple sales projects to manage, and we are utilizing classes for the partner to track his/her income, expenses, transactions, etc. on those projects, then each project he manages would need to be set up as sub-classes under the Partners Class? 

Thanks for joining this conversation, @WAGNERTAX.

When you create classes for tracking your partner's income or expense transactions on a project, you can add them as a sub-class so data will fall under Partners Class. To do so, you can follow these steps:

1. Go to the Lists menu and choose Class List.
2. Highlight the Partners Class and select the Class drop-down arrow at the bottom left of the screen.
3. Click New.
4. Enter the Class Name and check the Subclass of box.
5. Browse and select Partners Class.
6. Once done, click OK. 

For your reference, you can open this article: Set up and use class tracking in QuickBooks Desktop.

Also, to further guide you in tracking your projects in QuickBooks Desktop (QBDT), check out this link: Tracking job costs in QuickBooks Desktop.

Then, to review all the transactions assigned to the class, you can pull up the Profit & Loss by Class report. Let me guide you how:

1. Go to the Reports tab.
2. Hover your cursor to the Company & Financial section.
3. Click Profit & Loss by Class.

Keep in touch if there's anything else I can do to help you track your partners' classes. I've got your back and am always happy to lend a hand. Have a good one.