 Zero Accounting Software 2023. Bank Rules. Same customer, different income accounts and tracking categories. Get ready to become an accountant hero with Zero 2023. Here we are in our Custom Zero homepage. Going into the company file we set up in a prior presentation, the bank feed file. Let's duplicate some tabs to put reports in like we do every time. Right-click in the tab up top so we can duplicate it. Right-click in the tab up top again and duplicating again. Back to the tab to the middle. Accounting drop-down. Opening up the balance sheet. Tabbing to the right. Accounting drop-down. This time the income statement. Changing the range on the income statement. Dropping it down 2022. The beginning to the end of 2022 and running it. Alright, let's go to the first tab now. We've been setting up our bank feeds. Accounting drop-down. We've got the bank feed information in our bank accounts and we're going back to the checking account now. Back to the checking account and we're focused specifically now on creating rules. So we've been talking about, I'm going to go back to the reconcile tab. Trying to automate our system to the degree that we can. Constructing our financial statements directly from the information that's coming through the bank with the bank feeds to the extent that we can. Now there's some areas where we might need some more sophisticated rules. Sometimes the rules are quite easy. Usually when we're just paying the utility bail, we could just say that's coming from Edison or whatever, the utility company. And we can make a rule for that quite easily. But sometimes the rules are going to be a little bit more complicated, especially if we have, for example, two different locations or something like that. Or we have one customer that we would like to assign the income to two different accounts or two different locations. Or we have one vendor where we want to assign to two different locations. Or we have vendors that we buy both supplies and possibly equipment from. So for that we might have some more complex rules we're going to talk about now. So here we've got on the revenue side of things, we just imagine that the bank data information is test customer one five three. And then we've got test company customer two four zero. So we are imagining that in essence these are the same customer, which we're just going to call test customer here. But there's a differentiation in the number in some of the bank text, which might be in the number, it might be in the memo, which we're imagining is differentiating by location. And in that way, we might be able to use some of that more detailed information to try to break out whether we want this in one account versus another account and make more nuanced bank rules to do that. We can also possibly set up the the tracking categories here. And so we're going to assign these to do two different accounts and possibly two different tracking categories to get an idea of how how that might work. So let's go to the accounts first. So I'm going to go to the accounting drop down and let's go into our chart of accounts and basically set up the accounts first. So I'm going to call them just test customer income. But I'm going to imagine they're coming from two different locations. So what I would like to have on my income statement are two income accounts and then I'm going to group them together so that I have, you know, the income account and then two income accounts below it that are grouped by location. And then I would like to be able to break them out by category as well so I can have another column breaking them out. Let's see if we can do that. We're going to go to the first tab. We're going to go to adding an account. And let me just get the numbers here. What's a good number? Let's go to the revenue revenue up top. And we need a good number here. Let's say let's say it's just 4 4 3 0. Let's say so add an account. And I'm going to say 4 4 3 0. It's going to be a revenue type of account revenue. And I'm just going to call it test customer income income from location one. Now normally you wouldn't call it by the customer, but I'm just doing that for an example purpose here. So I'm going to say that's it. And then I'll make another one 4 4 4 0. Let's call it. So add an account. We're going to say it's 4 4 4 0. This is going to be a revenue type of account. And we're going to call it test customer income location 2. And all right. And so I'll say save that. And so now I have those two here. And when I put them into my income statement, I will be able to group them together in a sub a sub account kind of structure as well, which we will see hopefully when we add those accounts. Let's go back to the first tab. And I also would like to think about possibly using the tracking categories. Now we can turn those on by going to the accounting dropdown and then going to advanced. And within the advanced, we can go to the tracking categories. And so here's our tracking category so we can add a tracking category. And so the way these kind of work is you have like a parent tracking category. And then you put, you know, the tracking categories that belong to that underneath it. And so they call them the tracking category name. And then you can have multiple tracking categories under that name. So you can imagine we're looking at location. So you can have the tracking category location and multiple items below it. You can use tracking categories possibly for other things as well, like if you wanted to track both your personal and your business information in one zero file. It's not really recommended oftentimes, but if you're just doing it for schedule C purposes, you might be able to generate an income statement for both your business and personal by breaking them out, breaking your transactions out by category options. So in any case, we're going to say this is going to be a location, location. And I'm just going to call it locate. I'll just say abbreviate look one and look to on the locations. Now, if you might have something that that is no location or applied to both locations, I'll just put in a for that one because oftentimes when you're using these tracking categories, you might want to try to assign a tracking category to every transaction. And then you can when you're filtering your options, you can kind of see if there wasn't a category assigned, then then you can see that there was an error possibly and that you can assign a category to every transaction. But I won't go into that in detail now. We'll just say we're really focused on the bank rules. So let's set those up. Now you can rename them if you need to. You can add more options if you needed to and so on. Notice that you are limited to how many tracking categories you can have. If I added another category, I would have another tab up top. But within the tracking category, you have a significant amount of category options to choose within it. So all right. So that given given that now if I create like an invoice, for example, any kind of form transaction, normal form transaction, I have this category now of location hitting the drop down. Here's our location. So every time I enter a transaction, I want to add the location now so that I have more filtering options in the reports is the general idea. All right. So then that said, let's go back into our bank accounts. Now that we have this stuff set up, let's go back into the checking account and see how this might apply to our bank rules. Let's go into the reconcile. You better reconcile reconciliation. All right. So we'll say let's say let's let's put this to location one based on that number and I'll differentiate location two based on this number. So I'm going to say let's go ahead and make a bank rule if we can create a bank rule. Now this happens to be on the revenue side, but the same concept would apply to the money outside money in money out. So any condition down below on the description, I'm going to say that this is any text field and I want to have it contain. So same kind of parameters. But the big item here is that I want to make sure that I don't just put test customer. I put the differentiating factor, which is the 153 at the end of it. That's the thing that I can use to distinguish between this and the other one, which is also coming from the test customer, but has a different number to it. Now sometimes it might be a little bit more nuanced than that because it might not be like in the name description. You might have a memo field that has a different number or something that might be indicating a different location. So in that case, you might add an added description that could be any field or possibly just a description field that has just that added number that the differentiating factor. That's the key that you're going to end the bank memo text stuff, which from the bank transfers, if you're using electronic transfers, they usually have more than just the customer or vendor in it. They've got all that other junk and some of that other stuff might help you to differentiate on what you're actually using it for. Alright, and then you can make more nuanced to bank rules on it. Now when you set up the customer, I could just set up test customer, even though I'm creating two different rules for the same customer. Or I might want to have a different customer, even though in reality they're actually the same company, the same customer, so that I might have a different tracking be able to track by customer and see these two transactions in there by different customer. But this time I think I did that last time, so this time I'm just going to have the same customer, but will apply a different rule to the customer. So I'm going to copy this on the allocation. We're going to say the allocation is going to be everything going to test customer. That's the tax rate. What are you doing? Test customer one location and then in the location field, this is new because I added this as a tracking field. I wanted to go into location one. So now I'm really breaking it out in two ways. I'm breaking it out by the account indicating it's in location one and by the location field, which I might be able to sort by breaking out my income statement into two columns. And then I'm going to go that this is going to be reference and checking account. I'll just say all accounts test customer. I got to make sure that I name it something different so that I know which rule is which. I'm going to have two rules here. So let's update it. And if I go into that and say, let's add it in. Boom. Let's just test this one out and see what happens. K POS O up top. We're going to say that the checking account should go up. So that's the more interesting side is on the income statement. Let's update the income statement and there's our income in the new account. The other thing we added are the tracking categories. Now, because we have the report open before we added the tracking categories, you might not see it up here even after you update. So I think you might actually want to open the report again just to make sure everything refreshes properly. You can also hit this button up top, but I'm just going to go ahead and open another income statement just to make sure everything populates the way it should. I'm going to adjust the date again back to 2022 January to December of 2022 and then update it. So then you should have this none up top and the filters now. So now if I go into this, you've got your location dropdown and I'm just going to select all of them. So these are the two locations and then we had an in a for an item. If there wasn't a location applicable as we do the data input and then the unassigned category. And so I'm going to go ahead and apply that and update it here. And so now notice it only shows me location one and then unassigned because these are all the category of all the stuff that didn't have a location to it, which is everything except that one transaction we entered and then the total, which is totaling these two columns up. So this is a great way to look at your income statement for many different. You can use this in many different ways. Notice that in practice oftentimes you're really always going to want to have assigned a location to everything. So in this case, I would assign a location one location to and then if there is no location or this is an expense for both locations, I would put it into the in a category or something like that so that everything that's unassigned I can then go through and say, okay, that's the stuff I might have to go back into drill down to the source document and properly assign it for my reporting purposes, right? It might have been an error. I didn't assign it to something and I should have assigned it to something. That's the general idea. Also realize that you have your page, your edit layout tab over here, which can also give you more options. You can see how it's being broken out here on how you might be able to break out your columns, which is really a versatile tool. All right, let's cancel that. Let's go back on over now on the balance sheet, by the way, just to note that on the balance sheet, you can see the same thing accounting drop down balance sheet update the report. And so now I've got my filtering options here and you have the capacity to filter in the same way on the balance sheet. But the balance sheet sometimes is a little bit more tricky when you apply these filtering concepts to it. Usually it's kind of like an income statement account type of thing that we we primarily use it for. So just be aware of that, although you have some filtering options on the balance sheet as well. So the default on the balance sheet right now is basically to sort it if I want to sort by that one transaction, then it's filtering down here, although you may be able to adjust that by going to the page layout and possibly adding columns up top. But I'm not going to get into that now. That's a whole another discussion. We're focused on the income statement. Let me go to the first tab again. All right, so so now we're going to go. Let's let's add this one because our rule has been applied. Then I'll add another rule, which will have the same customer but differentiate by that 240. And I'll put this to location to both by having a separate account as well as having a separate tracking category. So dropping it down, I'm going to create a rule for it. And we're going to say this is going to be description. I'll say any text field. I want it to contain. And then I just got to make sure that I have the differentiating text, which is the 240. I'm going to choose the same customer, even though I'm going to assign it to a different account and category. And then down below, I'm going to put this to the test customer number two and this time location number two. All right, and so that's our new field. And then I got to hit this and make sure the rule is different. So this is test customer 240 rule where you might call it location to rule. I'm going to apply it to all the accounts and save it. Okay, so let's add those in. So there's that one. Let's just add these. Add that one. Add that one. So we put a bunch of these in there for some reason. All right, so we've added them all. If I go to the balance sheet and update it, then now we could use our filtering option here like this. We could say here's everything that's in one, all those transactions. Here's everything that's in two, right? And again, we might be able to do some side by side stuff if we do edit the layout. But if I go to the income statement, it's designed to now be able to track by the locations with the side by side layout. So I've got everything checked off here and update in the report. So now we've got these two, which are broken out by two different accounts and two different locations. So you really only need one or the other here. You could break it out by using your different category trackings for the two locations or you can break it out by the account. The different categories up top are quite nice if you want an entire income statement that's allocated to like a specific department or location. Having both is actually sometimes kind of nice as well because it can help you to verify if you made a mistake. Because if you put it in location one, but you put it in the category two, then something's wrong, right? And then you can go back into it and fix it if there's a problem. So this gives you a little bit of a double check, although it's a little bit redundant at the same time. And then if something, on this side, these should be zero because this is unassigned. If anything is unassigned, then usually you can go into the unassigned stuff and assign it because usually that would be an error. Now the other thing you can do is I can group these two together. So I might use this technique as an internal control, but only want to report them as one line item. So I can go in here and say edit the tag tab and use zero super cool editing thing. I'm holding down control and selecting these two. I'm going to make a group out of it and simply call the group test customer, customer income. So then I'm going to say, alright, so now it's going to pull them into that group. And if I update that, now I've got them in that subcategory location. And you might say, hey, look, you made it worse. Now it's longer because now I've got the test customer here, here, and then the subcategory adding the two together. But I might say, well, for external reporting, I want to just combine these together from location one and two. So I could go and edit these and just collapse this field so that they're on one line and then update the report. And so now for external reporting, I should have them on just one line, boom, boom, broken out this way. And for internal reporting, I've got that kind of double check that I can verify, you know, two ways by the account and by the location up top. So pretty neat, pretty neat stuff. So we got the rules lined up with the location tracking and different accounts. If we can somehow differentiate, say, one customer with two different locations based on what's in the bank text, same thing can apply to the money outside of things.