How to Turn on Class Tracking in QuickBooks 2011
QuickBooks 2011 lets you use classes to segregate or track financial data in ways that aren’t possible by using other bits of accounting information, such as the account number, the customer, the sales rep, the item, and so forth. A firm can use QuickBooks classes, for example, to segregate financial information by stores, business units, or geographical territories.
To turn on Class Tracking in QuickBooks, follow these steps:
Choose the Edit menu’s Preferences command.
QuickBooks displays the Preferences dialog box.
Click the Accounting icon, which appears in the list box along the left edge of the Preferences dialog box
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). All you do is tag transactions as they fit into a particular class.
After you turn on Class Tracking, using classes is really straightforward. You set up classes for the product lines or service lines for which you want to measure profitability. You classify transactions as fitting into a particular class either as they’re recorded (if you can) or after the fact.