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QuickBooks classes vs. locations for clearer reporting
Classes and locations add reporting dimensions to bookkeeping records. Decide what management needs to compare before enabling tracking or building a list that staff will struggle to use consistently.
This guide describes common bookkeeping practice, not a legal or regulatory requirement.
Last reviewed:
General information, not legal or tax advice.
Choose the question each tracking field should answer
Intuit describes classes as segments such as departments or product lines and locations as offices or regions. As a practical recommendation, define each field’s purpose in plain language and test it against actual transactions. Avoid using both fields for the same distinction without a reporting reason.
Sources: Intuit - Create and manage classes in QuickBooks Online; Intuit - Set up and use location tracking
Check plan availability and combined usage
Classes and locations are available in QuickBooks Online Plus and Advanced. Intuit lists a combined limit of 40 for Plus and unlimited classes and locations for Advanced. Count the intended list before setup and keep inactive or redundant choices from complicating entry.
Sources: Intuit - Create and manage classes in QuickBooks Online; Intuit - Set up and use location tracking; Intuit - Learn about usage limits in QuickBooks Online
Set class assignment to fit the transactions
Intuit’s class settings allow assignment to an entire transaction or each row, with an option to warn about missing classes. Choose deliberately when a purchase spans departments. Keep a short coding guide so staff know when to split a transaction and when to request clarification.
Sources: Intuit - Turn on class tracking in QuickBooks Online
Review reports before expanding the list
Intuit lists Profit and Loss by Class and class-based sales and purchase reports. Run a sample review after setup and inspect unassigned or inconsistent transactions. For job costs and income, Intuit points to Projects, so discuss that need separately from department or branch comparisons.
Sources: Intuit - Get started with class tracking in QuickBooks Online; Intuit - Run reports by class in QuickBooks
Sources: choose the question each tracking field should answer
- Intuit - Create and manage classes in QuickBooks Online
- Intuit - Set up and use location tracking
- Intuit - Learn about usage limits in QuickBooks Online
- Intuit - Turn on class tracking in QuickBooks Online
- Intuit - Get started with class tracking in QuickBooks Online
- Intuit - Run reports by class in QuickBooks
Design tracking around useful reports
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