How to Turn on Class Tracking in QuickBooks 2012
To use activity-based costing (ABC) in QuickBooks 2012, you need to turn on the QuickBooks Class Tracking feature. Class Tracking lets you categorize income and expense transactions as falling not just into income and expense accounts, but also as falling into particular classes.
To turn on Class Tracking in QuickBooks, follow these steps:
Choose the Edit menu’s Preferences command.
QuickBooks displays the Preferences dialog box.
Tell QuickBooks you want to work with the accounting preferences.
To tell QuickBooks that you want to change one of its accounting preferences — Class Tracking, in this case — click the Accounting icon, which appears in the list box along the left edge of the Preferences dialog box. The Company Preferences tab for the accounting preferences appears. (If the Company Preferences tab doesn’t appear on your screen, simply click the tab.)
Select the Use Class Tracking check box to turn on Class Tracking. You may as well also select the Prompt to Assign Classes box so QuickBooks reminds you to use the classes.
From this point forward, QuickBooks adds a Class drop-down list to the Windows dialog box that you use to record revenues and expenses (such as the Create Invoices window, the Write Checks window, the Enter Bills window, and so on). All you do is tag transactions as they fit into a particular class.