Speaker 1: QuickBooks Enterprise 2021 Class Tracking Responsibility Accounting Expenses by Department. Let's get into it with Intuit's QuickBooks Enterprise 2021. Here we are in our Class Tracking Responsibility Accounting Practice problem. We currently have the open windows open. You can open the open windows by going to the view drop down, selecting the open windows list. In the prior presentation, we processed our payroll and we allocated the payroll to the departments that we set up. Those departments then being tracked by class. Now we're going to be considering supplies. We're thinking about supplies that are purchased individually or directly applicable to a particular class. In other words, this is not something that we have to do some type of allocation method to apply to the particular different areas, but rather something that we're going to be saying we're purchasing and we know exactly where to assign them to. So I'm then going to minimize this back out. Now if we have an expense, we can record that a couple different ways. We can enter the check over here. If we paid for the expense directly, we can enter the bills up top. Let's go with the bills up top because this will give us a balance sheet item as well. Balance sheet items can also be tracked by class if using the QuickBooks Enterprise. However, the accounts payable will not be broken out by class if you're using QuickBooks Pro. For example, although the income statement side, the expense side then will still be broken out by class. As we enter the bill, we want to keep in mind what the default class tracking setup has been. To remind ourselves of that, let's go to the edit drop down. Let's go to the preferences. And then we want to go to the accounting up top on the left hand side. Company preferences on the right. And then we set up our assigned classes too. This is going to be something that's in Enterprise, not in QuickBooks Pro that allows you to have a default tracking. We set it up by name so that we can set up our employees that will be assigned to particular areas. You can also do it by account. If you were to do it by account, and then you were thinking about applying out something like supplies, then you would need a different line item, a different account for each supplies that you would have so that you can automatically assign them out so that when other people enter the transactions, it'll do it automatically for you. For example, if you were tracking it by account and you wanted the account to default and track which class it's going to go into in your default class tracking, then you would need a separate supplies account for each department so that you can then assign a separate class to each of them. So then it would add a little bit more detail. You'd have four line items in our case, and it would also add four different columns. You can also think about it by item. The items that you're going to be setting up. This would typically be like inventory items oftentimes or like you could do fixed asset items. We have it set up by name here. So name is going to be employee name that we did last time. In this case, it's going to be vendors. And in the case of sales, it would be the customers. So we're going to keep it up with the name. That means that we're going to be, I'm going to close this back out. When we enter the bills, let's imagine that we're entering at least a couple of them for the same people that we are paying that we want to assign to different classes. So if that was the case, if I go into the bills, let's say we're going to be buying from Home Depot. Now, if I just set it up as Home Depot and I have multiple different departments purchasing from the same area, then it will be more difficult for me to assign the class to populate automatically. I'll have to manually put the class down here. The class is down here and I can manually input it. But what I would like to do is be able to set up this information so this will populate automatically. So let's call it then service D1. So I'm going to add that to the Home Depot. Obviously, this isn't part of the name, but I'm going to set up a different vendor so that I can automatically assign the class. I'm going to hit tab. I want to set up. I want to do the full setup this time so that I can assign a class to it. So we're going to do the full setup. I'm just going to have the name up top. I'm not going to give a lot of details in the name because that's typically not necessary for many of the vendors unless it's something that we're buying the inventory from. Plus, we want to just kind of push forward with the practice problem. What I'm concerned with here is the additional information and that's where we have the class tracking. So we have the class tracking down here and we set this up. This was service D1. So I'm looking for the service D1 class. So I'm going to go ahead and assign that as the automatic class. I'm going to say OK. I'm going to minimize this little triangle to the right. So there we have it. Now, it didn't put it down here in the classes here. It assigned it to the class here, which will be for the entire transaction. If we needed to assign a different class to components of the transaction, then we can go down here and assign each line item to the particular class. So I'm going to say this is going to be as of... We'll keep it there. 01321. That's good. And then the amount we're going to say this is for service D1 was 100. $100. $100 that I'm going to put here on the amount or the amount of top 100. And then the account that it's going to be going to is going to be supplies. So supplies. So I'm going to set that up. I'm going to set it up. Now, when we set up a new account here for the supplies account, then we could have... You might think, well, we could have like four different accounts here for the different departments. You may still want to do that because that'll give you a double check, basically, that you'll have a supplies account for each department. But it would save a lot more space if you assign just one account of supplies, supplies expense, and then use the classes to allocate to the particular classes by column, rather than having four different accounts and the columns broken out. Even though, again, it could be kind of a double check if you have those four different accounts and the columns. But I'm going to keep it here. I'm going to say save it, close it. And then it's assigned it out to the class. So now you can see it pulled it out automatically, basically from this line item up top. What will this do when we record it? It's going to increase the accounts payable. It's going to increase the supplies expense and allocate that supplies expense to the class of D1. So service D1. So let's go ahead and save it, close it, check it out. Saving it, closing it, checking it out. We're going to go to the reports drop down, company and financial, profit and loss by the class, by class. I'm going to change the dates from a 1-01-21 to 12-31-21. And so there we have our $100 in the service D1. That looks good. Looks like it's doing what we expected it to do. So let's do it again. We're going to go to another one. So we're going to make a bill this time. And so I'm going to go once again to Home Depot. And now I got to change the name, even though it's the same vendor in essence, if I want to be able to assign an automatic class, this one being service D2. So I'm going to call this one service D2. So service D2. And then we're going to have the setup process here. I'm concerned particularly with the additional information where we can assign the class. This is going to be the service D2 class. So I'm going to say OK. That looks good. The amount that we want there is going to be for $300. $300. And that's going to go once again to the same account of supplies. So I'm not changing the account. It's just going to go to a different class given the class line here, which is populating automatically once we set up the vendor already. So I'm going to say save it, close it, and then we'll check it out. So saving it, closing it, checking it out on the profit and loss. So service D1, service D2. That looks good. Let's do the next one. I'm going to go back home. Let's add both of these, both of them at the same time this time or one right after another. This is going to be Home Depot. And then I'm going to assign a different name. This is going to be sales D1. So I'm going to say Home Depot sales D1 and add it. But I want to make it a full add. Go down to the added information and we want the class drop down sales this time D1. Sales D1 looks good. Sales D1 looks good. And once again, you can manually assign the classes here or here if you're in Pro rather than Enterprise. And that's going to be then for the sales D1 $400. And then the account will remain the same down here of just supplies. And there we have that. Let's do another one. Save it, new it, save and new. And this is going to be Home Depot and then sales D2. Sales D2, set it up. Then we're going to go to the additional information classes, drop down sales D2 and OK, OK. And then we're going to say that this is going to be for $700. $700 and this once again going to supplies. So there is that. Let's save it, close it, check it out, saving it, closing it, checking it out on the PNL profit and loss income statement. And so now we have it broken out here by our suppliers. And if we were to enter another bill, of course, if I went back to the homepage, entered another bill, I won't actually record this one. But if I was to say Home Depot on the sales D1, for example, it would populate the proper accounts down here and it would assign the class automatically. So when we do this, we just want to make sure that we have the vendors that are marked to the to the proper class if we're basically assigning the class by vendor. That way, we can basically set up our system so that if someone else was populating the bill data, inputting the bills and whatnot, they just need to know the proper vendors. And then the classes will populate automatically and they don't have to worry about the class dealing with the classes. So I'm going to close that back out. I'm going to say no here. This is this is where we stand at this point in time in terms of the profit lost by class. Let's take a look at the balance sheet to buy class. If I go to the reports dropdown and company and financial and we got the balance sheet by class, this will only be there if you have QuickBooks Enterprise. We're using the free trial version, so you can check it out. But it's not there in Pro. You may not need it for a lot of different things in QuickBooks Pro when you're using the class tracking. In other words, a lot of times you want to break out the income statement side of things, the performance side of things, and have it all roll into basically just simply net income. But in any case, this is going to be 123121. And I'm going to say OK. And so there we have that. So we have our checking account up top and then we have our accounts payable. So here's our accounts payable broken out. The checking account, of course, is broken out up top. We've only expended money for the payroll. So it broke it out by class based on the employees. And then these are broken out by class. This being what we owe, the payables that we owe, which are broken out by the items, the bills that we assigned, the supplies that we assigned to each of the departments, each of the different classes.