 QuickBooks Online 2024 bank rules. Same customer, different income accounts. Get ready and some coffee because we're going to be on top with QuickBooks Online 2024. First, a word from our sponsor. Yeah, actually, we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us. But that's okay whatever because our merchandise is better than their stupid stuff anyways. Like our trust me, I'm an accountant product line. It's paramount that you let people know that you're an accountant because apparently we're among the only ones equipped with the number crunching skills to answer society's current deep complex and nuanced questions. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Here we are in our QuickBooks Online Bank Feed Practice File. We set up in a prior presentation opening up the major financial statement reports like we do every time. The reports are on the left hand side within the favorites. We're going to be right clicking on that balance sheet to open a link in a new tab. We'll do the same with the profit and loss otherwise known as the income statement. So we can open it as well in a new tab and also right clicking on the trustee TB trial balance. If you don't have that trial balance in the favorites, you can search for it. We're going to tab to the right close up that hamburger on the balance sheet and then change the range. We're going from 010124 tab 033124 tab selecting the dropdown. I like to see it on the months so we can run it to refresh it tabbing to the right closing the hamburger. Let's change that range again 010124 tab 033124 tab months side by side run it to refresh it. Uno vase mouse one more time closing the hand buggy changing that range 010124 tab 033124 tab drop down for the months and run it to refresh it. Let's go back to the balance sheet. You will recall that we're working on the bank feeds here. So we started with a good old checking account and then we went to the PayPal account for the bank feeds and the credit card account. We're going back to the checking account this time focusing more of our attention on the creation of the rules rules that are a little bit more difficult. So we've been making rules as we go, but most of the rules are going to be easy to make. So in other words, let's recap the process that we have done thus far. Let's go to the first tab. What we had to do to set things up was create the QuickBooks file. Then we needed to set up those foundational underlying things kind of like the infrastructure which can be found in the cog often called the lists for the chart of accounts in particular as well as the products and services. Then we went into our transactions tab. I like looking at the chart of accounts from here and then going into the chart of accounts. We actually in our practice problem removed many of the accounts including much of those being the expense accounts on down below. We did that so that when we pull the information in from the bank feeds, we can add the crucial piece of information needed to pull the bank feed data in from bank feed limbo to the promised land of the financial statements. And we can create our own custom chart of accounts, you know, as we did that process. So as we've been entering information into the bank transactions over here in the checking account, let's check out. We've been creating rules as we go. The rules have been housed in the rules tab up top. The easiest items to make rules for are things like the utilities like the telephone, for example. So when we looked at this rule, we added Verizon as the telephone company. It was a simple money out rule. And we said it was a bank text. We only need one condition to be met as long as it has Verizon in there. We're going to apply the rule. Those are the areas where the rules are easiest to create where you have a transaction going to one vendor or if it was a deposit. You have one customer tied to the transaction with one location. You're only purchasing one thing such as for Verizon telephone. Now it gets more complex when you want to split things up, for example. If you want to split this up into multiple accounts for departments, for example, then that can confuse things. If you're using class tracking, that gets more complicated in terms of the rules. And when you're purchasing things that might have the same vendor, for example, but different types of things such as equipment versus supplies or that you're applying to different departments. That gets confusing. If you have income coming from the same source that you want to be breaking out to different incomes categories, even though they're from the same source, such as you have Amazon income, but some of your Amazon income is going to be affiliate marketing versus Amazon income is paying you for courses or a movie, prime video that you uploaded or a book or something like that, then although it's all money coming in from the platform of Amazon, you might have more information that you would like to break out to say this is book income, audio book income, prime income versus affiliate marketing income and so on. So let's start going to the first tab and think about some more complex rules. The first one we're going to think about is an increase such as a deposit situation kind of like the Amazon situation that we want to be breaking out and we're going to imagine there's some information in the bank memo that can help us to determine that breakout, that different location. So you can apply this concept to different scenarios. Let's create a bank scenario imagining the information that's going to come in through the bank feeds. So I'm going to say date. This is going to be amount and this is going to be description. So let's say on one, five, two, four, we're going to get a thousand, a thousand four seventy. And let's say that comes in from an online platform and then in the memo jargon it has something like but then it has like dash mm3 and let's say for whatever reason that mm3 is always repetitive. Maybe this other jargon changes but the mm3 stays the same and is an indication of it being in location one versus another location. So that piece of information might be relevant in addition to the vendor that would be up top. So let's say we had another transaction on one, one, seven, two, four and let's say that one was for two, seven, one, zero. Again, it's online platform and we'll do the same thing. And then we have another one on one, sixteen, two, four. This one's for a five hundred and seventy four online platform but this time in the bank jargon, hold on a second. It says I have to let's copy these like this. So if I go into it, this number would probably change, right? So let's say this number changes, but then it still has that mm3. And then this one, this number changes, but then now it says mm4. So that mm4 is going to remain constant versus the mm3. And for whatever reason, we're going to say that indicates the location, right? And then on 123, let's say we've got four hundred and seventy and this was online platform, platform. It says from platform, duh, duh, duh, duh, duh, duh, duh. And but then this is mm4. Let's see if I can spell this properly. Plat should be consistent or else it's going to cause a problem. Form, plat, form, plat, form. Okay. So you could have a similar situation where Amazon, Amazon might say Amazon, duh, duh, duh, jargon, jargon. And then it gives you an indication that it's from Audible or something or Amazon jargon, jargon, jargon. And it gives you an indication that it's from like the EU versus the United States or something like that, or that it's from book sales and so on that could be in the text. So let's save this. I'm going to save this. And then I think it's all like these need to be the same. Okay. I'm going to save as file save as let's save it as a CSV file. Okay. Boom. And then let's upload that over here. So now I'm in my banking checking, dropping it down, upload the file as we've seen in the past, selecting the new file that we want. Bank data 660, the 660 representing the current presentation we're on. If you're looking it up that way, if you have access to this file, checking account. And or you could just create it yourself. You don't need access. You could create it. But yes, column, one column, date, month, month, day, day, year, year, year, year, movie B to the end, be in date, date, description, description, amount, amount. That means the headers are tying out. That's good. Let's see if it works. Continue. These are all increases. I think that's right. I'm going to add all of them and then continue. And yes. All right. It has been done. Import complete. All right. So now we can go down and let's sort this one by the money in. So here is our money in. And I can sort it by the online platform. So this way so I can see the online platform transactions. Now note that this bank jargon stuff might not show up if you're not telling QuickBooks that you want to see the bank memo detail, which in default, I'm not sure it's always checked off. So if I go down here, for example, where it says show bank details, if I check that off, which I think is done by detail, it doesn't give you that added information, right? So that's why I always like to have this checked on. I don't want QuickBooks to tell me what it thinks is the important bit. That's going to help me because QuickBooks might be saying, Hey, I'm trying to help you out so that you because this is the bit that I think you might use to create a customer or vendor. But it's like I can copy my own piece that I want to create a customer or vendor with show me the entire bank detail because that might be useful. So we want to make sure you have that on if this is a applicable kind of component. Now let's imagine that this amount is going to apply to location one and this amount is applied to location number two. So I'm going to say online platform. Do I have an online platform income account yet online? I already have one. So I'm going to say online platform number two just to make it different. And then I'm going to go into my chart of accounts and I'm just going to create the income accounts to give you an idea of how you might break out this kind of thing because you could do it with class tracking and you could do it with different accounts if you have multiple locations. So for example, I might make like a parent account. Let's say we have a parent account and it's going to be an income account this time same concept for an expense account. And then I'm going to say this is another primary income. I'm going to call it an online platform. I did it again. Income number two. My fingers aren't working. Number two. And then that will be the parent account. I'm going to copy that and then I'm going to save it and then I'm going to put a subordinate account new account is an income type of account. Income other primary income. And then I'm going to say it's online platform income number two. I'm going to call it location one. So location one and I'm going to make it subordinate to the income account I put up here which is online platform income number two. So I'm going to say, okay, let's save that. So now if I scroll down to the income accounts down here, there it is. So that looks good. Let's make one more for location one new income account other income other income primary. And then we're going to say location one. I got to stop saying the dots. And then we're going to say this is going to be online online platform. It's a sub account of that same one. So that's going to be our two locations that we're going to be giving indication of. So another, this is number one. This should be a two. Okay, let's try it again. So now I've got my accounts. This is one way that we could break them out. So I can go down and say, if I have two locations, I could make a parent account and then list two locations. Another way I could break this out. We can use location tracking or class tracking, which are similar tools. So, so that is found under the cog up top account and settings. And then in the advanced, we're going advanced people buckle up because we're getting into the crazy stuff. And this is not difficult. They just call it that. So category. So we have the class tracking. We've learned it on before. Now you have location tracking. The class tracking is usually more versatile than the location tracking because with the class tracking, you can assign multiple accounts to one transaction. So, but you might layer, you might be using both of these in some cases, in which case it would be nice to use location tracking and class tracking. So we have whole other courses and sections on this. If you want to get into this in more detail, but I'm going to turn on the class tracking for our purposes here, warn me when a transaction isn't assigned a class. That is typically good to have a warning on because if you use class tracking in this format and you're trying to assign everything to a location of A or B, for example, location one or two, then you probably want to turn that on so that every transaction you enter has a class. And if it's not assigned a class, it'll be indicated in an unclassified column. But we're going to save it and then say, okay. So then if I go into my first tab and my transactions, let's check this one out. So now we have this one. Let's check it out. So now I'm going to say this is going to be online platform income. So online platform. I already have one. So I'll say boom. Now the other thing that you could do is you could create a different customer for each of the different, each of the different location type incomes. Why would you do that? Well, you might want to search in the customers by the location that you received it from. So you might call this like location one, even though it's coming from the same online platform, just so that you have that other sort field. Or you can put both income types into the same customer and then it'll be sub housed in that same customer. I'll break them out. So I'm going to say one. So I have a different customer. And then I'm going to put this into the account we just set up, which is online platform number one sub account. And then I will also assign it to a class so we can see both of these methods. Now I've only set a class up for P. This time I'm going to set a class up called L one, location one. Boom. And then tags. No, this is good. Let's also create a rule. And so I'm going to say to do online platform location one rule drop down coming from the bank account. Now notice, I could say all of the conditions or any. I need to say all because I'm going to have more than one condition on the drop down. I like to have the bank text and then I'm going to say that it contains. Now notice that when I say contains it pulled in like the truncated bit. If I take this entire thing and I put it in here. Then this isn't going to work because this part of the number will change. So I can't. So that's not going to. So that's not going to work. I need to keep this bit though to differentiate it. So you might say, well, I'll try to do this. I'll try to do this, but it might not see that because because now these two things aren't together in the memo. So that might not work. Right? So so instead, I'm going to say I just want you to see online platform like that. And then I'll add another condition where I also want you to see the bank text, but have it include just the end part. M M three. So both of these conditions need to be met. You need to see online platform. You need to see M M three, but all that other like jargon numbers, which might change, you don't need to see. Let's see if it finds it. If I apply that, yes, it applied it to two out of the three out of the four. We had four that have the same online platform thing, but only two of them had the M M three. The other two had M M four. I don't know what M M stands for. I'm just, that's just what we're using. So it's a deposit. It's going to be a category online platform going to application one and then online platform. Okay. And then that's good. And we also assigned a class and then I've got the auto rule off so I can add them manually. So I'm going to say, all right, let's save it. And then the rule has been applied. So here they are. Let's select both of these ones and say that looks good. Confirm confirm Roger that Roger that. Let's tab to the right. That's military talk in case airplane fighter talk in case you didn't know of that anyways, let's go back into here and we're going to say in the checking account that we have then deposits. Now we could filter now by the deposits. Let's do that filter just to practice our filter by transaction. We're going to say is equal to the deposit. Boom. All right. And so there we have our deposits. Here's the two deposits that went in place. They're both deposit forms looks normal. Let's go to the income statement income statement. And then we can run it. And if we had just the normal income statement now, you can see that don't day it's in the income. So here it is. So so you can see that we have the drop down. Right. And you and you can see that it puts puts this in the subcategory. So the next one that's in location two, I can have in a separate subcategory. So that's useful. However, it's it's not perfect because it would be nice if I can break it out by column so that I can have location one and one column and location two in another column. So I can do that by using the class tracking, which you would only have if you have enough a high enough version of QuickBooks to have class tracking. But if you do, you can select the drop down here and we can go down to classes by class and then run this. So now we've got we've got the L one and then the P doesn't really matter. That was the old thing that we are using. But but now we've got L one versus L two. And so now this is in location one. And so so the next one I'm going to put in location two, which will show as both a sub account and in the different class. Now you might not want to do both of these, meaning you might not need it's redundant to say that something is both in the class by it's in the class column up or yeah column up top as well as it's in the class row by account. However, that redundancy is also kind of nice because it allows you to eliminate if there's a mistake. If I mistakenly put something in the wrong class, I'll be able to catch it. I'll show you that more in a second. Let's add let's go and add the other one and that'll become more apparent. So we'll add the other one. Let's do the same thing. This one's location number two. So I'm going to go into it and say, all right, there's the category. I'm going to say this is online platform. But I'm going to say it's for L two. I'm going to make it another customer for it. Boom. And then this is going into the online platform income for location number two. Okay. And then the class I need to make another class, which is going to be L two. I'm going to say L two for location two. That's what that stands for in case you were wondering. And then we're going to say there's the memo. Let's create a rule for it. There are rules here. This is not name. There are rules. We're going to say this is going to be L two. And this is going to be money in all rules. I like to use the bank text. So again, it's truncated the bank text. I'm going to use the whole bank text, which is in the memo. Put it up top. Boom. And then again, I want to, I want to delete this bit and say you got to find that. And also bank text contains that last m m four, which we're imagining is consistent, which indicates that it's a location to test it out. Rule applies to two. Moe B to the end makes a deposit form. Category is correct. And then pay E. It's going to location two. Let's do it. Let's do it. And so there we have it. And let's add those two selecting them and confirm Roger that 10, four, 10, four. And then again, that's airplane talk in case like I'm a pilot. In case you were wondering. So that's in the checking account again. And we're going to say this is going to be boom. And like to imagine I'm a pilot because pilots are cooler than accountant will most, you know, general, generally speaking, deposits. And then we're going to say, so there's L two. L two. All right, let's go back. Exit income statement. Run it. Okay, so now you can see. You can see that we broke these two out with that rule that will apply out and we broke it out in these two ways. Now again, if you have class tracking on, you could just properly assign to the classes have one account called online platform, which is then broken out between two classes, which is nice. However, if you don't have the class tracking, because you got the cheaper stuff or something like that, you didn't level up on the, you haven't leveled up, then you're going to, then you might use something like this, selecting the dropdown and putting the two, the two locations underneath it so that you can see the subcategories or you might even have like income for, for location one versus income for location two and locate, you know, all of the income in one dropdown versus another. Again, we have different strategies in other courses or sections that you want to look at that in more detail. But you still might want to do this if you have the class tracking though, because notice that if I saw this, this one categorized in L one on this category, but then it was in L two, like it was down here, then I would see that something is wrong. There was a data input error and that could help me to give like a double check in case there was an error that was assigned to the wrong place. And I could still use this to collapse this column, this row so that when I do external reporting, I don't have to see that internal information. So that might be a nice little, you know, double check. Also note that you have this unspecified category. If you're applying things out by location, it's likely that every transaction is one where you'd want to apply a class to it. So the not specified transactions would be ones that you can then drill down on, go to the source document, and then properly assign it out to the location, location one or two. And that gives you a double check that this, if this column is gone, you assign all these out to either location one or two. That makes you more confident that you have properly assigned out each transaction to a class. Okay, so that's that's that's that kind of rule that that we could that we could use. And you could use this on the expense side, same kind of concept where you might have something in the bank memo and you might use multiple rules to pull out pieces of what's in the bank memo that might give you indications about, for example, Amazon income from Europe versus the United States or versus book income versus the, the online streaming income or something or whatever the movies or prime video or whatever. All right, and then you could do it on the expense side of things as well, which again, you might be paying. You might have electronic transfers to the same vendor, but for different locations. Okay, so let's look at the trial balance and see where we are standing at this point in time. This is where we're standing. And so we're standing on firm ground here. So if you're standing in the same location, this is basically the balance sheet on top of the income statement. If you're following along with the practice problem, although you don't really need to on this one, but if you wanted to, it would be a good practice each step to follow along. So we have all the information for you to do so. Then this is where we are at. If you're not matching up, it might be a date range or an increased date range, and then drill down on the number to the source document, possibly change the date to what you think would be proper, which is a great tool to use in the practice problem, but something you want to be careful of doing in practice.