CLASS TRACKING
🎯 OBJECTIVE
Use classes to track and analyze:
Each production batch
Each customer order
Each product type
And ultimately: profitability per class
🛠 STEP-BY-STEP: MASTERING CLASS TRACKING IN YOUR COMPANY
✅ STEP 1: Turn on Class Tracking
Do this only once:
1. Open QuickBooks.
2. Click Edit → Preferences.
3. In the left pane, click Accounting.
4. Click the Company Preferences tab.
5. ✅ Check “Use class tracking for transactions”
6. ✅ Also check “Prompt to assign classes” (optional but helpful)
7. Click OK.
🟢 Why? This activates class tracking throughout all transaction screens.
✅ STEP 2: Create Your Class List
Let’s define meaningful classes for your company:
Open the Class List:
Go to Lists → Class List
Click Class → New
Now, create these classes one by one:
Class Name Purpose
Batch P-001 Track production batch on May 28
Batch P-002 Next batch
Customer – St. Mary’s School Track income/cost for this client
Product – A4 Book Profit tracking by product type
May Production Grouping all activity for May
✅ You can create subclasses later (e.g., Batch P-001 under May Production)
Repeat this process to build out a useful class structure.
✅ STEP 3: Apply Classes to Inventory Adjustments (Production)
When you log a batch (e.g., Batch P-001), you’ll adjust inventory like this:
A. Reduce Raw Materials
1. Go to Vendors → Inventory Activities → Adjust Quantity/Value on Hand
2. Adjustment type: Quantity and Value
3. Account: Production Offset (or create if needed)
4. Add each material used (e.g., A4 Paper, Ink Bottles)
5. On the Class column, select Batch P-001
6. Memo: “Materials used for Batch P-001”
B. Add Finished Goods
1. Open a new inventory adjustment
2. Item: Exercise Book A4 – 96 pages
3. Qty: +10 (for example)
4. Value: Total production cost
5. Class: Batch P-001
6. Memo: “Produced 10 A4 books for Batch P-001”
🟢 Now your batch is tracked as a full production event with class tagging.
✅ STEP 4: Apply Classes to Invoices (Sales)
When you sell books:
1. Go to Customers → Create Invoices
2. Customer: St. Mary’s School
3. Item: Exercise Book A4 – 96pg
4. In the Class column, choose:
o Either Batch P-001 (if selling from a batch)
o Or Customer – St. Mary’s School (if tracking by customer)
🟢 This connects the income to the same class as the production cost.
✅ STEP 5: Apply Classes to Other Transactions
Transaction Type Where to Enter Class
Labor Costs (e.g., wages) On the check or bill screen — Class column
Overhead (e.g., rent, On bills or journal entries — Class column
electricity)
Sales Receipts Class column near item lines
Credit Memos Class column
Journal Entries Class column for each debit/credit line
Use Batch P-001 consistently across all related transactions.
📈 STEP 6: Analyze Results with Class Reports
🧾 A. Profit & Loss by Class
Go to Reports → Company & Financial → Profit & Loss by Class
Set a date range (e.g., May 2025)
You’ll see something like:
Account Batch P-001 Batch P-002
Sales 40,000 UGX 55,000 UGX
Income
COGS 25,000 UGX 30,000 UGX
Labor 5,000 UGX 6,000 UGX
Overhead 3,000 UGX 4,000 UGX
Net Profit 7,000 UGX 15,000 UGX
🟢 You now see profitability per batch!
🧾 B. Transaction Detail by Class
Go to Reports → Custom Reports → Transaction Detail
Click Customize Report
Filter by:
o Class = Batch P-001 (or any other)
o Type = Adjustments, Invoices, Bills
🟢 This gives a detailed breakdown of everything tagged to that batch.
🧠 ADVANCED CLASS TIPS
Feature How It Helps
Subclasses Organize batches by month or product type
Memorize Reports Save filtered class reports to reuse
Use Classes in Budgets Set goals per batch, customer, or product
Reconcile with Manual Log Match class-based entries to physical production logs
✅ DAILY WORKFLOW EXAMPLE USING CLASSES
Action Class
Log batch production Batch P-002
Adjust raw material inventory Batch P-002
Record labor wages Batch P-002
Sell finished books Customer – St. Mary’s School
Run report P&L by Class
This builds a full financial view per batch, product, or client.