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Here we are in our bank feeds practice file we started up in a prior presentation using the 30-day free trial we also have open the free QuickBooks Online sample company if you want the two open at the same time we suggest using incognito or another browser to open the sample company you could open incognito if using google chrome by selected three dots in the browser incognito window typing into the search engine QuickBooks Online test drive we're using the sample company to compare the accounting view the one the bank feeds practice file is in and the business view the one the sample company is in you can toggle between the two views by going to the cog up top and switch the view down below let's open up some tabs to put reports in like we do every time right clicking the tab up top to duplicate it and then we're going to do it again do it again yes duplicate it again tab into the middle opening up the reports on the left to get one of those favorite reports that we all know the balance sheet report you know that one everybody loves it by the way if you're on the the business view the reports are in the business overview and then the reports on the left hand side so you know where that stuff is on that one tabbing to the right we're going to the reports on the left opening up the income statement just as famous as the balance sheet just as well known closing the hand boogie let's change the range from 0 1 0 1 2 2 tap 12 3 1 2 2 tab running refreshing tabbing middle tabbing closing the buggering and then ranging the changing 0 1 0 1 2 2 tab 12 3 1 2 2 tab running to refreshing and then tabbing to the left so we can open up the bank feeds which is currently of course our focus at this time banking tab on the left and then banking tab up top if you're in the business view by the way where the bank feeds well they're under the bookkeeping of course and the bookkeeping shifts around a bit they kind of been moving it up and down over here on the left hand screen quick books does that kind of stuff they just do that so you just got to get used to it by the so it's on the transactions in the bank transactions so there it is you can't fool me quick books I can still find it wherever you put the banking so now we're in our our checking account and we're going to be looking at some more complex bank rules so now we're going to imagine a situation where we're where we have like the same vendor but we want to be breaking out the the expense item in this case to two different accounts so this could happen like charitable organizations might have to do this from time to time because they might need to be breaking out the categorizations for different reasons donations and whatnot and other businesses might do it because you might need to break out some of your expenses possibly by department or by location so those are some ways that that might happen now when you when you break out an expense to you could break it out to two separate accounts that are in two different departments possibly under a parent account using a sub account situation or you can use the class tracking we took a look at the class tracking last time let's look at both of those options to do so let's right click on the tab up top and duplicate it again I'm going to pull that to the left and you can turn on your class tracking by going to the cog up top and then accounting and then you go down to the advanced area this is advanced stuff people don't worry it's not too complicated we go into categories and then we turned on the class tracking class tracking location tracking similar except class tracking usually gives you a little bit more flexibility because you can have multiple different classes assigned to the same transaction location tracking usually assigns each transaction to one location so in this case we kind of need the class tracking because we're going to have possibly different classes as we break out one expense account to multiple locations or multiple departments for example I'm going to I'm going to say okay let's save that and done so the class tracking has been set and is in place now let's go to the chart of the accounts go to the accounting on down below and this is our chart of accounts up top if you're in the business you by the way where's the chart of accounts it's under the bookkeeping again and then we're under the chart of the accounts chart of accounts there's no the there's no the I don't see a the there's just chart of accounts chart of the accounts I don't know close up the hand boogie so now I'm going to pretend that there's an expense account so let's just call it like a test a test expense account just to make it distinguishing it so I'm going to say new I'm going to make a parent account so I'm going to make it an expense account and then I'm going to say it's like a normal expense and then I don't really care about the sub account here so maybe I'll just make it like insurance or other business let's do that I'm just going to make it a test expense account for generic generic and unpredictable yeah purposes sake and for goodness sake for generic purposes sake and goodness is sake let's save it and then I'm going to go do it again ultra vase new expense boom and this time I'm going to make it a sub account of that test expense account and I'm going to give it the same name but then I'm going to say location one so you could just call it location one because it will be a sub account but I like to repeat the name is what I that's what I like to do that's how it's going to show up down in the g to the l to the to the chart of the accounts and the financial to the statements let's do it again we're going to do it again new expense and this time we want a sub account again location to this time location numero dose location two so there we have it that's what it's going to look like so if I scroll down scrolling on down rolling rolling rolling rolling two expenses raw hide so there they are all right so now let's add these into our I'm just going to go to this one and I'm going to I'm going to break it out and pretend that we need to break it out by the two locations this one expense being broken out to the due to departments or two locations which we will do two different ways by account and by class so we're going to say this is daily market I just made this up and misspelled it but I'll keep that we're pulling that just like we would normally I'm pop from the and then I'm going to categorize this but see what I want to do here is I'm going to say now I've got these two accounts so I could go here and then say but I need to split I need to split it between the two so right because this is a $75 one if I pull out the trusty calculator for some trusty calculation let's say it was a 6040 split that we have to break out between the two locations location so we could say then we could do the class location one no customer amount is going to be 75 total times 0.6 that would be a 45 breakout here and then the second one is going to be location two and then location two in the class these two you might not always break it out by account and class you can do either or these are two different options of using the split format and you could use both of them as like a double check which we'll see in a second and the other side was 40 so I could take the 75 times 40 boom wait a sec hold on 75 times 0.4 there or I could of course take the 75 minus the 45 and that leaves me with the 30 that is going to this one so 30 there's the split so this would be decrease in the checking 75 and then go into location one of that expense account location two of that expense account to even things out so let's go ahead and apply that uh so now I recorded it out I wanted to make a rule with it though so let's do it let's do another one I'm going to go into here same kind of thing so that's the split when you're in when you're in the actual transaction what I'm going to do now is basically make a rule based on that split so I'm going to say create a rule and I'm going to say it's going to be market money out rule all conditions are met description I'm going to say bank text and then I'm going to pull the bank test text from the memo information which is basically the vendor that I'm going to pull out test the rule five are applied that looks good expense and then the key is here's the split here's that split so I'm going to say let's split this thing let's split it up and so then I'm going to go we've got the percent so let's do a we could do a percent split or a dollar amount split now oftentimes you would think you would want the percent split because if you're doing this kind of method and applying it out you'd probably do be doing like a sixty forty split for all of them to allocate the expense between departments instead of a dollar amount split but sometimes you might think well maybe you're always going to allocate like a set dollar amount a thousand dollars to one and everything above that goes to the other one because the thousand dollars is the cap of what you need in one department and the other department maybe fluctuates for whatever reason but I would think that most of the time you do a percent split and let's do a sixty percent which is going to go to the category the account location one test account and I'll do the class again you might not always do both the category and the class but we want to practice both of them so I'm going to put this to class number one if you don't have a class you can add the class and just type in location number one adding the class on the fly meaning as we're going on the fly's back you're doing it right on the fly's back on the fly which is difficult because you have to have really good eyes to be working at that minute level on the fly so I'm going to say this one and this is going to be a location two same thing location two so we're splitting at sixty forty if you want to split into another location you can obviously add another location and split it another way so you can have a three-way split but I'm not doing that so I have to trash it if you have anything that doesn't have anything in it down here then it won't let you record it so I'm going to trash it good and there we go so let's save it and the rule has been applied let's sort by the rule recognize is eleven eleven have been recognized you better recognize that's what I'm talking about so let's go into this one I'm going to hold down shift and go down to here and let's add it hopefully and see if everything has been done the way it should be done that's my way that's the right way my way that's how it needs to be done okay okay calm down so the check the checking account the checking account goes down we know that let's go to the other side that the income statement so and here expenses we've got our test account down below that we were working with here it is and I messed it up didn't I because I put them both into the location two let me look at the classes I'm going to right click over here and duplicate I'm going to run the same report by class now an income statement by class and let's go to the reports report on the left hand side I'm going to type in profit and loss by class profit and loss by class and let's change the range 010122 tap 123122 tab running to refreshing closing the hambugging and then in if notice that if I hit the drop down this is just an income statement broken out by class this class tracking only being there if you have class tracking turned on in other words you could convert your other income statement to an income statement by class by selecting this drop down and breaking it out not by date not by month not by day not by quarter not by year but by class but we want another report so we can see the two so now we've got location one location two the not specified not specified are the ones that we have not applied to a class I would recommend that you don't really want a not specified as a designated area for external reporting although you could do that you would want to have everything assigned to a class I would think if class tracking is turned on so that if anything is not assigned to a class you can drill down on the items not specified not classified and then every item should now have a class field allowing you to assign it to a class so that'll allow you to fix the problem which is quite nice because then you can kind of clean everything up if there's anything unclassified now down here we put it into these items so if I so let's take a look at it something looks really strange so let's go into it and see where I messed up where was my purposeful mistake that I made this time that I can show how to go in and fix it so if I go in here I made I'm going to make this one a lot larger so I can see the two locations notice that this one I put into a test customer income account because I've made these two test accounts and I've misallocated the account so this one shouldn't be income account this should be an ex and an expense account the test expense account that's what you get for these generic names why can't you get more creative test expense account so I'm going to say test expense account this one should be location number one test expense account location one so I'm going to save it and close it and let's do that for all of these and just once again just to show you that if you mess up test expense account location one it's not the end of the world because then you're going to check your numbers after you record it so that you can you can go back into it and make any adjustments that need to be made so that's going to go into the test expense account this one has gone into the test expense account I'm going to say test expense account location one saving it and closing it and then this one should go into the test expense accounts I'm going to go in there and test expense account this should be test expense account location one and so on and so forth so just you know I did that purposeful little mistake just to just to show you that when people that aren't quite as infallible as I am with the data input do the data input inevitably some people make mistakes mistakes and so I want to just even though I don't make mistakes I just wanted to show like if you know that that kind of happens you can fix it no worries so in any case if I if I make this I collapse it now then of course I can see the two accounts here now we've done this kind of redundantly the way we did it because you might not do both two accounts and two locations by class you could do either one there's pros and cons to either one if you do the two accounts then you got the two accounts that you can go by go for you don't have to deal with the add classes but of course you end up with a quite long income statement and you don't get this nice breakout of like a net income calculation for both locations if you do the locations then it's a little bit more tricky because you have to make sure that you add the classes every time and it's a little bit more work because you need to add the classes but it's not too bad because you can always if you don't add a class go in and adjust it as we saw and if you do both you could do both because then it gives you kind of a double check meaning if something's in like location one here but it's down here in location two on the account you can say okay something got messed up there and and then you can figure out what the problem is so that kind of gives you a double check it's a kind of an overkill but it gives you like a double check so those are just some options that you can use with the class tracking now if the if the if the rule was wrong i'm which it is i can go back to the tab over here check out my rules and say dude what were you thinking with your rules man why and so you need to go and you need to fix that because that's gonna mess everything up going forward so then here i'm gonna say this shouldn't be test customer this should be test expense and then you could fix the rules going forward that will not fix it retroactively because you already applied the rules to the ones that already that have already been done these are gonna fix the rules going forward so just a note on that so that is the splits rule