 QuickBooks Online 2024. Bank rules split into two accounts and classes. Get ready and some coffee because we're gonna save time with QuickBooks Online 2024. First a word from our sponsor. 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because the scientific survey participants could really use some extra cash if you would like a commercial free experience consider subscribing to our website at accounting instruction dot com or accounting instruction dot think of it dot com here we are in our quick books online bank feed practice file we set up in a prior presentation opening the major financial statement reports like we do every time the reports on the left hand side within the favorites right clicking on that balance sheet to open a link in a new tab right clicking on the profit and loss to open a link in a new tab right clicking the trustee tb to open a link in a new tab if you don't have that trial balance in the favorites you can search for it let's tab to the right close up the hamburger and change the range we're going from 010124 tab 033124 tab selecting the drop down to see it in month format run it let's tab to the right close the hamburger again change the range we're going from 010124 tab 033124 tab selecting the drop down to see it in months running it tapping to the right one more time closing the hamburger and changing that ranging 010124 tab 033124 tab run it once again to refresh it let's go to the balance sheet we're going to be thinking about our bank feed rules again this time we want to be breaking out a transactions that are going to be coming from the same vendor into multiple accounts possibly breaking them out into multiple departments for example we did a similar type of thing if i jump on over to the income statement for the income side of things we're going to do basically the same type of thing if we had an expense type of account so if we go back to our bank rules let's go to the first tab and go into the transactions and when we create our bank transactions here we've been constructing our rules as we go the rules are being compiled in this rules tab the easiest rule to make are with those accounts that are electronic transfers and are repetitive such as this phone bill rule where we just have one rule that we need to apply for the information that should be popping up in the memo section of the bank feeds if it's an electronic transfer which often contains a name that we can use for the vendor and then say i would like that to go to one particular account in this case the telephone account however if we have one vendor that we buy multiple things from then we might need to break that one vendor out in some way shape or form sometimes when we have the bank text if i go back into the bank transactions when we look at this bank information sometimes that gives an indication as to the differences in the types of transactions when we lock when we looked at the revenue side of things we mentioned that for example if if you get revenue from amazon you might be getting revenue from amazon books or amazon affiliate marketing or amazon's amazon video prime or something or you might have different locations that are giving you money even though it's still coming from amazon so some of those things might indicate then be indicated by the bank detail which could give you a way to break out the transaction between multiple accounts or classes so let's think about that on an expense side of thing i'm going to make up some data again that will come through the bank feeds so we're going to say this is going to be the date this is going to be the amount and then this is going to be the description and let's say the date is three let's say 21 to 4 and we have an amount that is that is 100 or 210 and this description i'm just going to put test expense and that's going to be like the vendor name that will say and let's say there was some bank jargon like this but then at the end of it it has something like like p12 or something and let's say that that p12 for whatever reason indicated one location or it might even say like california for example versus another location right so then if we had multiple of these if it was on 3 25 to 4 and we had another 114 test expense different jargon on the number but it still has this dash california on it and then if we had one that was on 3 26 24 for 94 let's say we had a test expense and it had the bank jargon and then it had this time an n a n a on it or so so then i'm going to say that's a different that might indicate a different location a different state right and then on 3 27 24 we have like 82 test expense and this is going to be bank jargon dot dot dot dot but then it says n a so then we can say well this is coming from this we're paying the same vendor here but we have these two items at the end which could give an indication that it's by location for example and we might be able to utilize that information in the bank text let's make these negative this time do it properly so that we don't have to reverse them because these are going out of the bank and then i'm going to save this we're going to say file save as save as we'll make it a to do csv file save it as a csv file and okay so then let's go back into our quickbooks and we're in the bank transactions we're going to select the drop down upload from a file select the file and we want this one to be the 670 is the newest one that's the one we want and we will then continue select the drop down it's going to go into the checking account and continue it's going to be yes one column dates formatted what uh m m d d why why why oh why okay i over dramaticize the wise it's a it's a date date description description amount amount that looks good we're going to continue and so these are decreases that looks good let's select all of them and we're going to say do it let's do it is it going to work can we get there boom it's done okay so then we're going to say let's let's filter this and say that this is going to be uh money out and so now we have our test transactions so now we can go into these and i would like to apply them to one location or another there's a couple different ways that we might set up our locations we might as we did before in the income side of things try to set up a different account per location that's method number one method number two is to use the class tracking so that we can that we can have a different column on the income statement noting that class tracking typically applies to income statement accounts so let's let's first take a look at our chart of accounts i'll go to the chart of accounts i'm going to make a new account and i'm going to make a parent account and just call it an expense account it's going to be an other expense account other business expense and i'm just going to call it test expense expense expense expense account all right generic account name i'm going to copy that and then i'll save it and then i'm going to make two accounts subordinate to it by location so i'm going to say new and let's do another one expense account and it's going to be an other kind of expense and then i'm going to put l one test expense account and this will be subordinate to the test expense account right and then i'll do another one which will be location two we're imagining these are our locations location one and two i know it's awfully generic but bear with me but don't worry it's just a teddy bear that's with bear with me the bear with me is a teddy bear other this is going to be other other business expense bear with me this is going to be uh location two and then we'll make this subordinate to test uh there we go all right let's go ahead and save that and so if we go down then and find that i'm looking at the account types we're in the expenses here's our test expense here's location one location two so when we populate these on the income statement it will be in the income uh the expense side and it will have a drop down and then these two can be collapsed into the little triangle drop down once they have numbers in them let's go to the bank transactions now and i can go into these transactions let's go into the california one first and we'll say this is going to be test expense and so notice that i could make a different vendor like i might want to say test expense for california and and break it out that way even though it's basically the same company because then i can possibly sort my data by you know the test expense that we're paying to one location versus another so i'll go ahead and do that this time since we did it the other way last time uh uh we'll say okay it's a vendor now i'm going to assign it to a class this one's california i'm going to say is location number one and then no tag memo we can create a rule for it and say this is going to be test expense for cal for location one let's say and then it's going to be money out all conditions must be met i like to use the bank text that it contains i don't want to have all the jargon here now note that if the california was right after the test expense then i might be able to just keep the whole thing and that would be fine because because then i wouldn't need another rule because there would be a distinguishing factor by the ca versus the na but notice that all this other stuff kind of messes it up because it's in between so for example if i just delete all this stuff and say i want i want you to find the rule if it has test expense and this california with just one line item it might work but notice it didn't and you're like well why didn't it work because all of this is in the bank text but but notice it can't see it because it had this jargon in the middle it has to be kind of like in order so it's like all right well then i'll just make two rules like if i delete this then it'll find all four of them but i only wanted to find two so i'll just make another rule for bank text and say let's say it contains and this is where i'll put the california so so now i don't have to have it all connected to each other and so i said test the rule now two out of four have been met looks like it's correct so let's do it now we're going to say that it's an expense inventory asset recommended vendor test california location one on the class and it's not going to record automatically so i'm going to say okay let's save it boom and there it is there it is right there it's rule has been applied rule has been applied let's take those and check them off rules have been applied there are rules confirm go to the balance sheet run it and this happened uh i think in the checking account over here so i'm going to say it's a decrease and we said this was a payment to the test expense there they are going back and then on the profit and loss it's not there because i messed up so let's go back to the first tab and if something like that happens i can try to troubleshoot so i can go in here and say well wait a second i i recorded it in here and i see i have my test expense the other side's going to inventory that doesn't look right right so something so i messed i didn't put the proper account so let's go back to the first tab and then it's already been recorded so if i'm looking at the bank transactions i could go to the categorized transactions now and i could say okay here's the test expense on this one and the test expense here now i could go into these and adjust them but the rule has been applied and the rule is wrong so let's say if i take these two and i go okay i messed up on this one and this one and i'm going to just say let's undo that and then so undo two transactions so and then i'll bring them back over here and so they're back over here with the test expenses the rules are applied let's fix the rule so i'm going to go into the rule now and say you messed up the rule let's edit it and i have it going for some reason to the inventory account which was the default account chosen by quickbooks which is wrong i would almost prefer quickbooks didn't you know choose an account like that it would just leave it leave it blank so it wouldn't record right until i chose an account but this is going to be can't really i'm trying to blame quickbooks on it you know but here's uh l1 test expense i think that's the one we want right am i right i'm a little i'm a little hesitant now i think that's the one though okay so now let's save the rule and now it should apply the new rule if i go back to the bank transactions so i can go into here and say all right there's the test expenses uh if i go into it it's applying it to the test to the test expense account let's try to add it again so we will add that one and this one and i'll say let's confirm okay and then if i go back to the balance sheet and run it it should be updated here let's go to the profit and loss and run it here and see if it appears properly on this side so now we have the drop down of test expense and we have the class of uh actually i changed the classes because i was researching this so if i didn't have the classes on it would look like this where we would have the test uh expense account and then the subordinate account to it broken out by location one and then the information now if you do have class tracking note that to turn on class tracking we've done it in the past but you could go to the cog up top account and settings and then it's in the advanced and then within the advanced we are on the categories and we turned on class tracking location tracking is similar class tracking is a little bit more gives you a little bit more flexibility so we have courses and sections on class tracking versus location tracking versus tags and how you might use those if you want to dive into that in more detail but this is just to give an idea of how they fit in possibly to bank feeds so if i select the drop down and search this by classes now i can see the columns broken out by class class one and two which i'm imagining our location or department one and two and then down under my expenses that we had here there was my income line item and so there it is it changed the date on me so there it is test expense uh l one location let's do the same for the second one so i'm going to go back to the first tab let's see if we could do this a little bit more cleanly this time and we'll say that this is going to be this one i'm going to say this is test expense boom this time i'm going to put for in a to have another vendor separate even though it's the same vendor but we want to have it sorted by the location i'm not going to put it into inventory but uh rather we're going to put into location to test expense the class is going to be l two this time and then the memo is good we will create a rule for it it's going to be test expense location two it will be a money out rule and once again i'm just going to keep the test expense delete the last bit and put the in a so if i do that it has two of them which is all that's left here so that should be right actually but then i'm going to say in here it's in a and it should still pick up those two that are left it's going to go into an expense the category is correct this time location two let's save it all right so then we have these have been applied boom boom let's tag those off and confirm all right so then if i go into the balance sheet we should be able to run it again we should have a decrease to the checking account for these four expenses so we have the four the test expenses these two are the new ones that we put in place let's go back and then and more importantly on the income statement we have now broken them out by that difference in the text memo and here they are so so notice if you you don't it's redundant to have two expense accounts and two classes meaning you could for example have it look like this where you just have one test expense account break it out by class this way but if you don't have classes then maybe instead of using classes you might do something like this so you can get some idea of the breakout between the locations in sub accounts and you could do both because by doing both you'll be able to catch errors meaning if something's in location one on the class but location two in the account one of those is clearly wrong and you can drill down on the source data and properly put it into the proper account so it can give you kind of a double check it can also let you see the detail this way and collapse it this way so that for external reporting you still can give it to someone with just one account meaning you can you can create a collapsed report like this and it removes that little drop down entirely so that you just have with no drop down right here okay so let's bring it back to expanding it if i go back to the first tab i just want to point out that you have to make sure that you have the memos section on in order to see the bank detail if you're going to do something like that because by default i believe in this cog drop down that quickbooks says that they're going to not show the bank details they have this unchecked by default which means that some of this numbers and stuff might not be there all the time so if i check on that see how the numbers have appeared again so i always check that off because i don't trust the ai to know exactly what i should be picking basically when you check that off quickbooks is trying to clean it up and say hey look this part of the bank memo description is what you might need to create the customer or vendor and all the other stuff we think is junk you might not need that but i'd rather defy decide for myself so i always put that on so that if i don't need it i won't copy it but if i need it then it's there and i and i'm aware of it so i think that's useful to note if i go into the hamburger over here and we look at the expenses side of things you will recall look like if i could look at the expenses this way and we have of course we'll have the type of transactions that are expense transactions populating in here if we wanted to sort our expenses that way we're also have within the vendors we've created two kinds of vendors this time so notice we have two vendors so that we can track the information kind of by location within each of those vendors and so your other option would be to have one vendor and then just still use this two different rules and all the data for the two locations would be under that one vendor so that's a difference there all right so this is where we stand on the balance sheet so if you're and so this is where we are at and here's the good old profit and loss where we're standing as of this point in time and then if you're following along the trial balances i think it the easiest thing to use to check your numbers and we can break it out by months if we want to so there it is if your numbers tie up to these numbers great if not then you might change the date range sometimes it's a date range dang and then you can drill down to the source document and make any changes to that if you need to