If you want to produce Income & Expenses by category that extend across multiple accounts or multiple customers, jobs, and vendors, then you have to use Class in QuickBooks. For example:

  • you have 5 retail locations and you want to see how each location performs;
  • you and your partner decide to see how each person contributes to the partnership profit;
  • your company has different departments and you track each income & expenses, etc.

Here is how to create a Class:

  1. Turn on the Class-tracking feature by ticking off “Use Class Tracking” checkbox in Edit > Preferences > Accounting > Company Preferences. By enabling classes, QuickBooks adds a Class field to transaction forms, such as invoices, bills, items, etc. You have an option to check off “Prompt to assign classes” checkbox which prompt you to assign a Class when you enter transactions.
  2. From the Menu bar, click Lists > Class List to open Class List window.
  3. Click Class > New from the drop-down menu (or press Ctrl+N) and the New Class window opens like below:

 



4.  Type in the name of the class in the Class Name box.

If you want to create a Subclass within a Class, turn on the “Subclass of” checkbox. In this case, the Class Name is the subclass name and the class name is in the drop-down menu. Example of subclasses is units within departments in a company.

5.  Click OK to close the Class List window or click Next to open another new Class.