To complete this exercise, you must be in the Sample company. From your QBOA account, click on the Gear icon on the top right corner of the screen, then select Sample company.

Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm. 

Now let's get started with the exercise.

First, you’ll first need to turn on class tracking.

Click the gear icon, then select "Account and settings".

Click anywhere in the Categories section, then click the toggle next to "Track classes" (this will turn green, indicating it has been turned on).

Ensure the dropdown says "One to each row in transaction" before saving (this should already be selected).

Next, you’ll need to set up the classes.

Click the gear icon, then select "All lists".

Now, set up three classes: Residential, Commercial, and To Be Allocated.

In the Name field, type "Residential", then click "Save".

*Note: do not check the box next to Is sub-class.*

In the Name field, type "Commercial", then click "Save".

*Note: do not check the box next to Is sub-class.*

In the Name field, type "To Be Allocated", then click "Save".

*Note: do not check the box next to Is sub-class.*

Fastandeasyqbo

QuickBooks

QuickBooks is a widely-used accounting software developed by Intuit, designed to simplify financial management for businesses of all sizes. It provides a user-friendly platform for tasks like invoicing, expense tracking, payroll processing, and generating financial reports. QuickBooks automates many financial processes, making it easier for businesses to monitor their financial health, prepare taxes, and manage cash flow. With its various versions and integrations, QuickBooks caters to the needs of freelancers, small businesses, and larger enterprises, offering a flexible and comprehensive solution for efficient accounting and financial management.

app.qbo.intuit.com

fastandeasyqbo.com

Scenario: Craig wants to use Classes to track Residential vs. Commercial jobs. When he first buys soil, he doesn’t know which it’s going to be for, so he will just use a class called “To Be Allocated.” At the end of each month, once he knows where it has gone, he will go back and make the adjustment. This month, he bought $300 of soil for various landscaping jobs. He now sees that about two-thirds of that was Commercial, and about one-third was Residential. How would you reallocate this for him?

A.4.2b Reallocating Expenses Using Classes