QuickBooks class tracking: what it is and how to use it for locations

What is class tracking?

It is a label you add to transactions in QuickBooks Online. Intuit describes classes as representing important parts of your company, like store departments or product lines. Once transactions carry a class, you can run reports for each one. A multi-location business can use classes for locations, programs or service lines.

Which QuickBooks Online plans have classes?

Intuit counts only active classes and locations toward the limit. On Plus, every class and every location uses up one of the 40.

How do you turn on class tracking?

1. Go to Settings, then Account and settings.
2. Select Advanced, then Categories.
3. Turn on Track classes.
4. From the Assigned classes dropdown, choose One to entire transaction or One to each row in transaction.
5. Select Save.

You can also turn on a warning when a transaction isn't assigned a class. Turn it on. Untagged transactions are what make class reports stop adding up.

Should you assign classes per transaction or per row?

• One to entire transaction fits when a sale belongs wholly to one class, such as one location.
• One to each row fits when one invoice can mix classes, such as several programs or service lines on one bill.

What is location tracking, and how is it different?

Location tracking is a separate feature on the same plans. Intuit says it is used "to categorize data from different locations, offices, regions, outlets, or departments of the same company." It also lets you see all the payments for one location and deposit them as a group. A common setup is locations for the site and classes for the program or service line. Remember that on Plus both count toward the same 40.

How does Xero compare?

Xero uses tracking categories. Xero allows a maximum of four tracking categories in total, with only two active at any time. It recommends no more than 100 options in each category so reports load quickly.

When are classes the wrong tool?

When the locations are separate legal entities. Classes split one company's books for reporting. They don't give an entity its own bank reconciliation, tax return or balance sheet. Each entity needs its own books, and money between them is handled through multi-entity accounting.

How do you keep class reports clean?

• Set the class where the transaction is created, including invoices from billing tools.
• Add a "Shared" class for costs that serve every location, then allocate them on a fixed method.
• Run a monthly report of transactions with no class and clear it.
• Make a class inactive instead of renaming it mid-year.

General information, not accounting advice. Plans and limits change, so check Intuit's current pages before you set up.