Class tracking in QuickBooks is a feature that allows you to categorize and track financial transactions by specific classes or categories, such as departments, locations, or types of income or expenses. This feature can be useful for businesses with multiple locations or departments, or for tracking income and expenses for specific projects or clients. Classes can be assigned to transactions when they are entered, and can then be used to generate reports that show the financial activity for each class.
First, you must ensure that QuickBooks is set up to use classes. To do that:
- In QuickBooks, go to Edit> Preferences > Accounting > Company Preferences.
- Enable Use Class Tracking.
Next, you must configure and define the classes. To do that:
- Go to the Lists menu and select Chart of Accounts.
- Click on the New Account button and select New Class.
- Enter a name for the class and select a parent class if applicable. The parent class is the class that will serve as the parent for the newly created class.
- Set the class individually on a product from the product’s Toolbox > QuickBooks and enter the Class Name field.
- Bulk-update the column QBClass to set this for multiple products.