Timesheets and Classes in QBO

Hi there, japplebaum.

The assigned classes on the timesheet are allocated for the customer or vendor transactions. Once you create transactions for the billable hours, that's the time it'll be charged to those classes and be posted in your Profit and Loss report. 

You also have the option to assign default classes to your employees. You can follow these steps to do that: 

1. Click on the Gear icon and select Payroll Settings.
2. Go to Accounting and in the Classes section, select I use different classes for different employees.
3. Click on OK.
4. In the Preferences > Employee Classes section, assign a class for each employee. 
5. Click OK.

You can check out these references for more details:

• Create and manage classes in QuickBooks Online
• Run reports in QuickBooks Online

I'm just around if you need more help. You take care and have a great day!

We don't have classes set up for employees.  Our employees work on different projects throughout the day.  Cannot assign them to one class.

Thanks for sharing additional information, @japplebaum.

The timesheet feature in QuickBooks Online is for billable tracking only. As mentioned by my colleague above, it’ll only get charged once you create transactions for billable. This lets you get clearer insights on your sales and expenses by business segment.

If you want to reflect the charge for those classes when you run payroll in QuickBooks, you'll want to assign a class to your employees. The Class for wages is selected under your Payroll Settings, by payroll item and setting different classes for each employee.

You might want to check this reference about the use of classes in QBO. It includes related articles that tackle budgeting and running reports.

Please let us know if you have other concerns, we’ll be here to lend a hand. Keep safe. 
 

We don't actually bill our time, however.  We track which employees are working on which projects,  and use the data for budgeting, but do not bill it.  So we would not be able to do that in QBO?  

Hello japplebaum,

We can look for a third-party application that can track your employees project and use it to the budgeting.

You can go to this link: apps.intuit.com. Select a category in the CATEGORIES section.

Feel free to get back to us if you need help. Keep safe!

Hi @japplebaum,

Yep, QBO won't do that automatically. You have to do a separate journal entry. Debit your wages account in the amounts for each class, and then credit wages for the entire amount, with no class. That should move the money from unclassified to classes without messing up your wages account.

It's a pain, but it's all we can do at the moment.

I use QBO, QBO payroll and tsheets. 

I have assigned the appropriate class per employee. 

However, employees may work primarily in their assigned class and also other classes. 

So employee Joe

Assigned to class 100 Admin  

But in a pay period he works in 100 Admin 20 hours 

Also in this pay period works in 200 Development  10 hours 

and works in 300 Grant 10 hours 

How does that information get represented on the P&L? 

Good morning, @SharonH3! It's great to see you back in the Community with your question. I'm happy to explain tracked time and its relation to the Profit and Loss Report. 

The biggest factor is whether or not this time is billed. Unbilled time won't show up in the P&L since these are time activities that haven't been invoiced, etc. Think of it as that time tracked to those classes sits in a queue until grabbed and allocated to a customer through a transaction. You can run the Unbilled Time report to get that data if needed. Here are those steps:

1. Go to Reports on the left menu.
2. Type in Unbilled Time and click on that report in the dropdown.
3. Customize as needed (dates, filters, etc).

You mentioned you use Payroll, and since payroll is an expense, it can affect the P&L but it's not going to put every class in the Profit and Loss specifically. You'll see the amount but it won't break out those fields. 

As always, all of us are here to answer any other questions you have. Feel free to reply to this post if needed!

Hi there, 

This is a huge, huge issue for our non-profit too. When will this functionality be added to QBO? I can't believe this isn't something that's already been addressed (being able to expense hours to multiple classes). QB Desktop made this SO SO SO SO easy, what the heck not online? 

Hello @amiee3,

I appreciate you for reaching out to us about the feature you need. Allow me to chime in and share information about expensing hours to multiple classes in QuickBooks Online.

I know how beneficial being able to run features similar to the Desktop version. It would help most users when using the cloud-based version of QuickBooks.

Currently, the functionality you need for the expense hours is unavailable. As we assess this, I recommend sending feedback to our product engineers.

They can bring over new features and options based on user feedback. Here's how:

1. Click the Gear icon in the upper-right corner.
2. Select Feedback under Profile.
3. Share your feedback.
4. Hit Next to submit. 

Also, I've attached a link you can check out to know more about the tasks you can with the Class tracking feature in QuickBooks Online: Get started with class tracking in QuickBooks Online.

Don't hesitate to reach out to the Community anytime you have questions or concerns about the Online version. The Community and I will be happy to help you some more.

This is a significant issue for us, too. For QB moderators, the IRS requires non-profits to report all expenses as G&A, Operations, or Fundraising expenses. So when our Operations Director spends a whole day at a fundraising event, we need a way to charge those eight hours to the Fundraising class.  

Charging time to different classes/departments is a core functionality of every P/R product I have used. Surely, there has to be a way to do that with QBO, other than hiring more staff to gather error-prone data and create journal entries manually.

Thanks for sharing your thoughts on this, @Gregarious. We always value the views and opinions of our users, as this can help us develop a product that suits their business needs.

At the moment, the features required for managing expense hours are not accessible. While we look into this issue, I suggest providing feedback to our product engineers so they can address the situation.

As my colleague mentioned previously, it would be wonderful if we could forward this feedback to our Product Development Team. We highly value your suggestions and consider them while making product updates. The more requests we receive for a particular enhancement, the more likely it will be included in future updates.

You can also submit Feedback by going to the gear icon. Here's how:

1. Click the Gear icon in the upper-right corner.
2. Select Feedback under Profile.
3. Share your feedback.
4.  Click Next to submit.

Our product engineers will consider your suggestions, and you can always check the status of your request through this link: QuickBooks Online Customer Feedback.

You may find this reference on the use of classes in QBO helpful. It also includes related articles on budgeting and running reports.

You can check out these references for more details:

• Create and manage classes in QuickBooks Online
• Run reports in QuickBooks Online

The Community welcomes you anytime for any further questions about managing your classes. We're always right here to assist with your needs.

As a non profit executive director the ability to charge hours to classes is critical; I echo the comments above. I did submit feedback about this topic as requested, but seriously, I think we're going to have to revert back to QB desktop because this functionality is critical. I was told by an Intuit sales rep that we would only gain, and not lose, any functionality by switching to online, but that was clearly false. 

This is ridiculous.  I can't believe that you cannot assign a person multiple classes and have to mark it billable.  So, I'm going to create an invoice to a department within the same company?  Desktop did not have this issue.  This has created so much work in trying to get accurate P and L's to the 10 different departments we have, and I now have to run a different report to try and figure it out because it's all going into Unspecified.  This needs fixing asap.

That didn't work.  Any other suggestions?

You can add multiple classes to the same person, Heringer02.  Allow me to discuss this further for clarification.

In QuickBooks Online, you can assign multiple classes to a person to track hours for different departments. With this, you no longer need to mark them as billable and create invoices for the amounts to reflect in each class or department.

Here's how:

1. Click +New, then Weekly Timesheet under Employees.
2. Choose the employee or vendor and the week you want to record using the small arrow icons.
3. Complete the rest of the fields: Customer or project, Service, Location and Class, Description, and Time Field.
4. Repeat Step 3 for specific hours tracked using different classes.
5. Select Save or Save and close.

For more information, refer to this material: Enter a weekly timesheet in QuickBooks Online.

Additionally, note that the option to enter multiple hourly rates is only available in QuickBooks Online Payroll. Otherwise, you can enter hours with different classes one at a time.

On the other hand, ensure appropriate classes are added when tracking time so amounts will not fall under Unspecified in the Profit and Loss report.

Furthermore, you might want to memorize your report to save its current setting and prevent going through the same customization process again.

Please respond via the Reply button below if you have other questions about tracking time in QuickBooks Online. We're always around to help.

We've been using the Weekly Timesheet and classing all time for employees for months now and it does not class those items correctly.  It puts them in Unspecified if there are multiple classes they have worked.  I've done the exact process outlined in the response.  I don't understand how this is possible if you are entering in classes but QB decides to put it in Unspecified.  

I understand how you want your timesheets to be mapped to the appropriate classes, @Heringer02. Keeping this accurate allows us to easily track entries for different departments.
 

Once you assign your timesheets to the appropriate classes and use them for payroll processing, the corresponding transactions will be reflected in your profit and loss report under the designated classes, ensuring accurate financial tracking. Here’s a snapshot for your visual reference showing how it looks on my end.

When assigning classes at the weekly timesheet creation:

Reviewing classes assigned when about to run the payroll transaction:

Running the Profit and Loss Report by Class:

Now that you've completed the steps outlined by my colleague, I suggest performing browser troubleshooting steps to resolve any unusual behavior you may be experiencing with a cloud-based application like QuickBooks. To get started, let's open your company file in a private browser using these shortcuts:

• Google Chrome: press Ctrl + Shift + N
• Mozilla Firefox: press Ctrl + Shift + P
• Safari: press Command + Shift + N

Once done, go back to your regular browser and clear its cache or cookies to avoid similar issues in the future. Other than that, we can use other supported browsers for a better experience.

Additionally, you can export your reports to obtain a copy or use them outside of QuickBooks. For complete guidelines, refer to this article: Export your reports to Excel from QuickBooks Online.

I'll keep the thread open to assist you if you have additional concerns about time entries and report-related matters in QuickBooks, @Heringer02. I'm always around to lend a hand for help. Have a good one!

Hello,

This is exactly what we have been doing for months and months but are still having payroll go into unspecified. It does not take care of the issue of assigning multiple classes to employees which should be an option.  My browser is updated on a regular basis so I don't believe that is an issue.  This is an internal Intuit issue.

Thank you for sharing your concerns regarding the Weekly Timesheet and the classification issues you’re experiencing with employee time in QuickBooks Online (QBO), Heringer.

I completely understand how frustrating it can be when payroll entries are categorized as Unspecified, especially when you’ve been diligently entering classes for months.

Your feedback is incredibly important, and I encourage you to submit your experience directly through the Feedback option in QBO. This will help our Product Development team understand the challenges you're facing and consider enhancements for future updates. Your voice matters, and we want to ensure that QuickBooks meets your needs effectively.

To proceed, here's how:

1. Open your QBO account.
2. Go to the Gear icon located at the top-right corner of your screen.
3. Under the Profile section, select Feedback.
4. Type in your suggestions and then click on Next.

In the meantime, our support team is happy to offer any assistance or guidance as you navigate this feature. Please don't hesitate to reach out with any further questions – we're here to help!

Thank you for sharing your concerns regarding the Weekly Timesheet and the classification issues you’re experiencing with employee time in QuickBooks Online (QBO), Heringer.

I completely understand how frustrating it can be when payroll entries are categorized as Unspecified, especially when you’ve been diligently entering classes for months.

Your feedback is incredibly important, and I encourage you to submit your experience directly through the Feedback option in QBO. This will help our Product Development team understand the challenges you're facing and consider enhancements for future updates. Your voice matters, and we want to ensure that QuickBooks meets your needs effectively.

To proceed, here's how:

1. Open your QBO account.
2. Go to the Gear icon located at the top-right corner of your screen.
3. Under the Profile section, select Feedback.
4. Type in your suggestions and then click on Next.

Thank you for sharing your feedback and bringing this to our attention. We understand the importance of classifying multiple classes for employees, and we're actively exploring ways to make this process even better.

In the meantime, our support team is happy to offer any assistance or guidance as you navigate this feature. Please don't hesitate to reach out with any further questions – we're here to help!