Transferring Balances Between Classes

Hi there, bbcukiah,

Thank you for sharing complete details about transferring balances between classes. In QuickBooks Desktop (QBDT), you can assign a class to track your transactions.

You'll want to open each transaction from the report you've pulled up, then select a different class from there. This way, the balance will be transferred to another class. The screenshot below will show how to select another class if you record the funds using a bank deposit. Just click the Class drop-down, and choose a different one.

For more details, check out the How to use class tracking in QuickBooks to know the latest updates in the system.

Keep me posted if there's anything else you need. I'm always around to help you out.

Thank you for the reply!

I'm still a little confused. It appears what you showed was if I had one deposit that I needed to go back in time and change classes on, I could use that method, which I get. But my situation is that I had multiple deposits over time and multiple expenses that came out of that fund and now the class still has money assigned to it as a "balance" and the project is over. I would like to move the balance of the funds assigned to that class and put it in the balance assigned to another class. 

As an example, I had ten deposits and ten expenses over time tagged with the "HVAC" class. That class currently shows a "balance" of $200 when I run reports by class. The balance happened as a result of the net difference between the ten deposits and ten expenses. But that HVAC project is now over and I want that $200 to show as part of the balance of another class and then inactivate the HVAC class. That is the transaction I'm looking to accomplish.

I hope I am making sense... thank you for your help!

I appreciate the detailed response, bbcukiah,

Aside from the solution provided by MaryLandT, there is another way to move the balances in bulk from class to another. You can create a journal entry to move the balances. I'd recommend asking other accountants insights about this. 

Otherwise, we'll need to go through each deposit and update the assigned classes.

Feel free to keep us posted if you have other concerns that require our assistance.

Hello:

You have the exact same problem as I have, a small balance left in 1 class that needs transfering to another class.  Did you ever get a reply or work out a solution.

Thank you

Ian

Hi, 

I am having the same problem moving funds between classes.  Did anyone find a solution?

Thank you for taking the time to reach out to us here on the Community page, @UDAdc.

As mentioned by my colleague above, you can create a journal entry to move your funds between classes. Before doing so, I'd suggest reaching out to your accountant on the best way to categorize the accounts.

I'll guide you how:

1. Click Company.
2. Go to Make General Journal Entries.
3. Fill in the necessary fields.
4. Click Save & Close. 

For detailed check out this article to know when you can create a journal entry. 

You might also want to check this great article in case you'll need to reconcile your accounts in QBDT: Reconcile an account in QuickBooks Desktop.

If you need anything else, please drop me a line below. I'm always here to help. 

I took the General Journal approach and now have unbalanced classes at the bottom of my balance sheet by class. Is there another way to do that where I don't have this other than going back in time and reallocating the deposits?

I took the general journal approach and now have unbalanced classes on my balance sheet by class. Are there other options than going back to the deposit and reallocating funds there?

Hello there, @laceygarner.

I appreciated you for performing the given information from my colleague. 

The only way to transfer balances between classes are the ones that were mentioned by my colleagues, you’ll need to go back to your deposits and update the assigned classes to reallocate the funds. 

I recommend contacting your accountant so you'll be guided with the process.

I'm adding an article here for additional information when transferring funds in Quickbooks Desktop: Transfer of funds.

Please know that you can always post here in the Community if you have any other questions. Have a nice day!

I figured this out on my own as Quickbooks has not solved the non-profit classes/funds issue. I also use Quickbooks for a church and use classes to track funds. I need to move amounts at the end of each month from the General Fund to the Mission's Fund. Everyone always says to use the General Journal but it always unbalances the classes. This is really frustrating and should be way easier.  So here's what you do. (It's putsy and doesn't make sense but has worked for me for years and years.)

-Create a Wash Account for the 4 transactions that you will need to do every time you move amounts from one class to another. All 4 transactions will have the same date and amount.

1. In the register of the Wash Account, enter a transaction with the amount in the Payment box, enter an Income Account, and enter the Class you want the money to go into.
2. Next, enter a transaction with the amount in the Deposit box, enter the same Income Account that you used in Step 1, and enter the same Class as Step 1.
3. Again, enter a transaction with the amount in the Deposit box, enter the same Income Account that you used in Step 1, and enter the same Class as Step 1.
4. NOW, enter a transaction with the amount in the Payment box, enter an Expense Account, and enter the Class you want the money to come out of.

The Wash Account should zero out. Go back to your Balance Sheet by Class and see if it looks right (be sure the date is on or after the date of your 4 transactions).

I hope this helps. I now love Quickbooks because I was able to figure this out. If I hadn't, I probably would have moved on to a more non-profit friendly software.

Hello Tranette,

Happy New 2021.  Tranette, are you using the QuickBooks desktop version or the Online version?  Thanks.

I use Quickbooks Desktop 2020.

Hello!

Thank you for responding to this post. I am following you in theory, however, I am lost as to where you are entering the transactions in the wash account. When I open the Check Register for the wash account to start the four steps, there is no way to assign a class when recording transactions there as far as I can see. After doing some searching, all the documentation suggests that there isn't a way to assign classes on the check register; that you must do it when writing a check, or on the deposit screen, etc. 

I agree this should be MUCH easier... the whole reason of having these classes is to be able to track these funds, but there are definitely times where you need them to move from one class to another depending on need. 

Any additional light you can shed on this would me MUCH appreciated.

Thank you!

Thanks for getting back here, @bbcukiah.

Let's make sure that the class tracking feature is turned on, so you can assign a class to the transactions. For the detailed guide, please see these articles: Turn on class tracking in QuickBooks Online (QBO) and Set up and use class tracking (QBDT). Once done, here's how you can assign a class to the transactions.

For QBO:

1. Open the Wash account by going to the Accounting menu and choose Chart of accounts.
2. Under the Date column, click the drop-down arrow and choose Check or Deposit.
3. You'll see a column there named Class.
4. If you don't see it, hit the Gear icon and check the box for Class.

For QBDT:

1. Go to the Accountant tab and choose Chart of Accounts.
2. Look for the Wash account.
3. Right-click and select Write checks or Make deposits.
4. Once the class tracking is turned on, you'll see a column for adding classes. 

For your reference, please see these links: 

• Get started with class tracking. 

• Set up a clearing account. 

Feel free to get back here if you have further concerns about this. I'll be around to help you in any way I can. Have a good one. 

Thank you -- this seems to be working. 

Another peculiarity has emerged that is somewhat related. When I write a check, certain expense accounts will not debit the class, even if I assign a class to the transaction. Therefore, it leads to the balance of my classes not balancing with the balance in my checking account, which it should. I didn't notice this for a long time and it has caused me major grief. Any reason that certain expense accounts won't pull off the class balances? These happen to be expense accounts that I added -- perhaps there is a setting I'm unaware of? 

Thanks!

I'll share with you some information on how class tracking affects accounts, bbcukiah.

Class may only be allocated to your expense account. If you're looking for the same bank account to see if this will debit the same account it wouldn't show up from there. You'll want to run the Profit and Loss by Class report so it will pull up from there.

Here's how:

1. Go to Reports, then select the Company and Financial tab.
2. From the drop-down list, select the Profit and Loss By Class option
   
   

If you forget to assign a class to a transaction, QuickBooks will remind you by listing the income or expense in an unclassified column. Double click on the entry to recall the unclassified item.

For your reference, you'll also want to customize reports in QuickBooks Desktop.

Feel free to let us know if you need help with recording transactions and reports to pull. Remember, I'll be here to help.

Thank you. I’m well aware of how class accounts work. The problem I’m having is why are certain expense account not changing my class balance when I assign a class when writing a check? Example: I wrote a check for $500 and assigned a class of general funds that I have. However, that $500 did not come off the balance of the class when I run a funds balance report. There are only a handful of expense accounts that create this behavior (like 2 or 3). All of the others reduce the balance on that report as they should. The 2 or 3 that won’t are expense accounts I added to the chart of accounts so I’m wondering if there is a part of setup I missed or something. 

Thank you. I’m well aware of how class accounts work. The problem I’m having is why are certain expense account not changing my class balance when I assign a class when writing a check? Example: I wrote a check for $500 and assigned a class of general funds that I have. However, that $500 did not come off the balance of the class when I run a funds balance report. There are only a handful of expense accounts that create this behavior (like 2 or 3). All of the others reduce the balance on that report as they should. The 2 or 3 that won’t are expense accounts I added to the chart of accounts so I’m wondering if there is a part of setup I missed or something. Thanks for any help. 

Thank you. I’m well aware of how class accounts work. The problem I’m having is why are certain expense account not changing my class balance when I assign a class when writing a check? Example: I wrote a check for $500 and assigned a class of general funds that I have. However, that $500 did not come off the balance of the class when I run a funds balance report. There are only a handful of expense accounts that create this behavior (like 2 or 3). All of the others reduce the balance on that report as they should. The 2 or 3 that won’t are expense accounts I added to the chart of accounts so I’m wondering if there is a part of setup I missed or something. Thanks!

Thank you for the additional details, bbcukiah.

I would also check the account type and make sure we are using an expense for this case. Since you've already done this, our next step is to check for damaged data issues.

You'll want to run the Verify and Rebuild data utilities. We use these tools when data is not in sync or when there are discrepancies in reports.

If you need references for QuickBooks Desktop in the future, simply click on Help and choose QuickBooks Desktop Help. Then, search for the topics that you need help with.

Please feel free to share an update about this, so we can continue to help if still unresolved. Take care!

Great insights.

Got an issue with my quickbooks. When booking a bill am able to do select a class but when making the payment for that same bill there is nowhere to select class hence in my bank in the Balance sheet i have those bills under unclassified. What could i be missing out?

Good morning, @Albertmwa. 

Thanks for following the thread. I hope you're enjoying the day so far. I'm happy to provide insight into adding class to bills. 

When assigning class to bills, you'll need to ensure you do so when creating the bill. The option to add class from the bill payment screen is currently unavailable. 

Since the option to assign class isn't available in the bill payment screen, this is why the class isn't reflecting on your reports. However, if you add class to the bill, it will carry over to the report. 

On the other hand, I can see how assigning class to a bill payment would be beneficial for you and your business. I've submitted a feedback request to our product development team, so this can be considered in a future update. 

You can follow all of our latest happenings and updates by using our Blog Site. 

In the meantime, feel free to take a look at Set up and use class tracking in QuickBooks Desktop for more details about class. 

Please let me know if you have additional questions or concerns. You can reach out to the Community at any time. We're always around to lend a hand. Take care!

The Journal entry method does not seem to work in Quickbooks Online. A report by class shows no change after the entry is created.

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

Let's open the journal entry and make sure that you've assigned a specific class to it. Also, make sure you fill out all the fields or the information needed.

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. Under Your Company, choose Account and Settings.
3. From the Advanced tab, scroll down to the Categories section.
4. In the Assign classes drop-down arrow, choose One to each row in transaction.
5. Click Save, and 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.