 QuickBooks Desktop 2023. Bank rules. Same customer, different income accounts. Let's do it! With Intuit's QuickBooks Desktop 2023. Support Accounting Instruction by clicking the link below, giving you a free month membership to all of the content on our website, broken out by category, further broken out by course. Each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. Here we are in QuickBooks Desktop Bank Feed Practice file. We started up in a prior presentation going through the set of process we do every time in the view drop down. We got the hide icon bar and the open windows list checked off and the open windows are therefore open on the left. Reports drop down. Company and financial, the profit and loss changing the range from 010122 to 123122. Customize the report. Fonts and numbers need to be increased to 14. They don't need to be, but I like it to do it that way. So then we're going to go to the reports drop down again. Company and financial, this time the balance sheet. Customize the report on it. Change the range 010122 to 123122. Fonts and the numbers also have to match. They have to be the same or it's going to drive you crazy. Trust me. So we're going to say, okay, there we have it. Now we're going to open up our banking information, the bank center banking drop down bank feeds. We want the bank feed center, which would only be there if you got the bank feed set up, which we did in a prior presentation. We now have three bank feed set up items. We've got the Wells Fargo, the credit card and a PayPal. We're going to be focusing here, however, on the checking account now thinking about the rules that we could be setting up. So if I go back to the unrecognized area and we're going to be looking at the deposit rules, many of the rules you can kind of think of them as applying on the deposit side or on the on the other side as expense side as well. The same kind of theories or ideas that will be applicable with the rules, but we'll try to go through a few of them on both sides here. You note that I've already been setting up rules as we go. And the basic idea of the rules is usually that you're going to enter a transaction and it's going to be fairly straightforward with the conditions of the rules. If that transaction is unique in nature, not similar to other transactions, and we can set up a rule as we have been doing as we do the data input. Once we do the data input for the first month, next months will be much easier given the fact that the rules are set up. Now we'll talk about more complex type of rules here that might have a little bit more detail with them. So to start, I'm going to go to the rules up top and actually remove the rules that I have thus far. So I'm going to take all the rules and notice here's where you can kind of adjust the rules and get more detail on the rules. So one way I could approach this is to say, hey, look, I have a particular rule here. I want to make it more complicated because I want to be able to break out between two accounts, even though I have the same vendor or description, for example. So you can come in here and edit the rule, but I'm going to I'm going to try to remove the rules. So I'm going to select them all and delete the rules and say the selected rules will permanently delete deleted. I'm going to say OK, and that should pull them all the transactions I have left into the unrecognized area so we can make new rules. So I'm going to look at these Amazon items here. I'm going to be focusing in on the deposits. But remember the same concepts can typically apply to the outflows as well. What we would like to think about is we have money coming in from Amazon, but therefore multiple things. Possibly, for example, with Amazon, you might have different kinds of revenue such as, you know, royalty revenue from book sales, or you might have revenue from the streaming service or something like that or sales from Amazon. So possibly in the description here, it might still say Amazon, but there could be some distinguishing factors sometimes. Sometimes it'll say Amazon dot com versus Amazon dot something else. In which case you could set up a different vendor which can differentiate between the two of them and a different account and a different rule so that it can distinguish just in the title here or in the download description between one item and the other. And that's one way to do it. The different vendor is optional. So you might say, hey, I want the same vendor with multiple, with them going to the multiple different income accounts. Or you might say, hey, look, if there's a different name on the Amazon description, maybe I'll just have a different vendor. And that way, when you go into your customer center, you'll see that you'll have different vendors for the Amazon items here. You can see we set one up, for example, Amazon dot com, INC versus California, which we set up in a prior presentation. So if you don't have that kind of differentiation, though, you might see a differentiation like in the numbers on the end or possibly in the bank feed information. Now, you got to be careful with this bank feed information over here because this stuff might be stuff that changes each time, but some of it might be something that's the same each time. So these two, you can see this one, three, three, six is like the same each time. So sometimes these numbers might indicate like a location or something like that. And so possibly you can use the memo as a further way to distinguish between items possibly they have different locations that you want to be reporting to. So I'm going to try to break these out based on these number distinctions. And then I'm going to go into the list dropdown and the chart of accounts. And notice on the income accounts here, then the question is, you know, which income accounts are we going to post this to? Because we've been posting this information directly to a deposit and an income account. We've been using the name of the person that's paying us to customer in our income account, which is not something we would normally do if we had a full service accounting system, not recording income based on the deposit from the bank feeds, but rather using invoices and sales receipts, because then we would have that sub ledger. But we're going to keep this method here. So we've got the Amazon book sales and Amazon Prime. So let's let's assume that these two are going to be sub accounts of Amazon Prime. And so I'm going to assume they're two different locations. So what I'm going to do is say I'm going to add a new item. And I'm going to say it's going to be an income type of account. And I'm going to make it a sub account. I'm going to say that this is going to be just say location one Amazon. Let's just make a number one Amazon. I'm going to make it a sub account of Amazon Prime. And so there now it's going to show up this way. Now this is one way that you might break out more detail. The other way you might do it is use the use of class tracking so that you can have the income statement broken out by different columns. And that way you could do that by going to the edit dropdown preferences up in the accounting area company preferences. And use the class tracking there. And that will give you different columns on an income statement, which can be useful. That's one method you might apply if you have different locations and you want to break out like the income side of things by location. So I'm going to close this back out. Let's make another one. I'm going to just call it location two. So I'm going to say add new account not edit the account. I want a new account. Account rise up add. We're going to say it's an income account. And say next it's going to be location location to Amazon sub account of Amazon Prime. Okay, we'll save that. So there we have that. That looks good. Closing this back out. Now let's let's try to distinguish a couple of these. So we've got this one. I'm going to use the number in part here. So we had this one. Let's let's just do this one. We're going to say, okay, it's going to be the payee. I'm just going to put Amazon and I'm just going to keep it at just Amazon this time. And I'm going to use the same vendor for the two different locations because I'm going to imagine that there's not a distinguishing factor here, but rather there's a distinguishing factor here in the memo. So I'm going to say tab quick at it. So we're going to have another vendor. And the account that it's going to go to is going to be Amazon Prime. I'm going to say location number one. And I've got two of them saying location number one. Let me fix that view drop down lists chart of accounts. And this one should one of these needs to be number two. And that's spelled wrong for crying out loud. It's just get it together. Get it together. This is going to be number two. Okay, I fixed it. Don't get upset. Don't get upset. We're back on over here. Let's do it again. This is going to be Amazon and the account is going to be Amazon, but it's going to be location number one. And then I'm going to set a rule that's going to distinguish based on the memo. So I'm going to say, let's go up top and say I need a rule. So I'm going to add more details. And I'll pull this over here and we're going to go to this looks good. Let's set a rule for it though. And I'm just going to call it Amazon L one rule for location number one. And so the description, I'm going to say in description. I don't need to really match possibly but contain because this doesn't really have the distinguishing factor. If this had the distinguishing factor, if there was a difference in the name here, I could use I could use the name as a distinguishing factor, but it doesn't. So I'm just going to say whatever if it just has Amazon in it, then apply the rule. But I'm going to have another added line, which is going to be based on the memo description, which is right there. I'm going to say this is based on the memo. And I'm going to say it begins with. No, it contains not begins with does not contain ends with. I'm going to say it contains. And I'm going to say it has this number 126 in it as the rule. So I'm going to keep that and say and imagine that that's the distinguishing factor of the location just for example. So now I have a more restrictive rule because all of these conditions need to be met before the rule will be applied as opposed to a simple rule in which case I only have one condition that would be met in order for it to apply. I'm going to say save it and say save it. So there we have that. And so if I go back to my profit and loss, just look at it because that's where I have my sub-account. Now we've got Amazon Prime. We've got location number one here without big $1 of income. Whoo. Let's do more of that. That's where we need to spend our time. So I'm going to go back on over. And so let's do another one and let's say the distinguishing factor is this 1-3-3 here. We should pick up these two. So let's say that we're going to say this one's going to go to the payee of Amazon as well, Amazon. But it's going to go to the Amazon income account number two. Then we'll set up a rule, drop down rule details. So this is going to be a crazy rule, people. This is going to be a rule. We're going to say create the rule. And this is going to be Amazon L2 rule. And it's going to have all conditions met. Once again, we need the description. It doesn't need to match but contain. It can contain that same Amazon. Now I've got two rules with the same first condition, but the second condition is going to have in the memo that it contains. And then I'm just going to put this 1-3-3. 1-3-3 is a distinguishing factor. Imagining that that indicates, for whatever reason, a distinction in the location. That's why I'm going to put it to L1, L2. So we're going to say, OK, save it. And then there it is. So that should pull over to remain focuses on the profit and loss. So we're saying now we've got this breakout. So we've got the Amazon total. And now we can break out by location, location one and location two. We also put some in the original account, and then it gives you a total down here. So this is one way that you might structure from a sub-account standpoint as well the idea that you have a location one and location two. You could do that with a sub-account kind of breakout. But you also note that that makes your income statement quite long because now I have a parent account. The two other locations accounts instead of one. And then the total down here down below as well. And this one, because I posted to the primary parent account, we have three items to get to the total actual account. The other way you can do that on the income statement side of things is to use the class tracking. So if I was to apply a class to location one and a class to location two, then I'd see two columns over here on location one and two. And that can be quite useful as well, although a bit more tedious because you have to break out all your transactions by class. Not too difficult once you've done it all set up because then you can, of course, use the bank fees to do that automation process. So let's just give an example of that. So if I go to the edit dropdown and I go to the preferences down here and I go to the company preferences and we say, okay, now I'm going to turn on the class tracking and we'll say, okay, so that looks good. And let's save it, boom. And then if I go back on over to the profit and loss, I'm sorry, the bank feed center, I've got one more item that's in here for the Amazon. So let's go, let's say I go up to my rules now. I'm going to adjust the rule and say, now I'd like to break it out by class. It's not going to apply to the ones we already posted. But if I say edit the rule, then I'm going to say, okay, now you see I have a classification field down below. So let's just, let's just make one called L one because this one, this one's going to L two. This one's going to L two. I'm going to add the class quick add and then save it. And then this one, I will add the class. I'll edit this one, add the class of L one tab, quick add and then save it there. All right. So then if I, if I close this back out, now I can add this one, I'll add this to my profit and loss just to get an idea of how that rule would be applied. If I go to the reports dropdown and I go to the company and financial. Now I want the profit and loss by class, which I could make from the normal profit loss, but I'll do it this way. This goes from 0 1 0 1 2 2 to 12 31 2 2. Let's customize it. Fonts and numbers changing the font. Bring it up to 14. Okay. Yes. And okay. So now, now you can see the class broken out. Now everything that's in unclassified here wasn't applied to a class and you could just leave everything that's not applied to a location in a non-class. But what you should do, what should be done is we would apply all of these to either location one or two or to admin location or something like that. That's why it becomes a tedious type of thing. These, this one here is in location one. Notice how I can kind of double check with my class tracking because I could say, Hey, look, that's in location one. I can see it like I can do both here, meaning now I have it in terms of a breakout by location one and location two of a sub account and I have the class tracking in terms of location two. And I don't have anything in location one yet. So if I do it that way, it gives me kind of a double check because I can say, Okay, this one's wrong. Now I'm going to go back into it, double click on that transaction. I now have a class field in here as well. And I'm going to say this is in location one, right? Isn't it a location one? I'm going to save it. And so, okay. And now I've got this breakout between location one and location two and then everything else that isn't in a location, which you might say if it's not in a location, maybe that's admin, right? Maybe that's the administrative stuff that's not applied to a location. But if that were the case, it would be better to go into these items and apply them out to an admin. Make another one for admin so that the unclassified areas would be the areas that you haven't entered a class for. So this one too, you can see it's out. You can say, okay, that one should be in location two. Well, I can just fix it in QuickBooks. I can double click on it, assign a class, location two. So I'm not going to get too into the class tracking because we have whole videos on it and it adds another dimension that really adds a lot of options. As you can see here, do I want to sort my locations with a breakout like this or the breakout up top? Or I could do both and have like a double check, which makes my income statement quite long and is a little bit redundant. But it actually gives me that kind of double check, which might make it easier for me to go in there and clean it up if there's a problem with it. Because if I only have one account and then I had something in unclassified, it might be a little bit more difficult to kind of figure out, okay, which account, which classification should it be in. But those are just some ideas to mull over here. Remember in the bank feeds that you could then change the rules by going up top and now we've got our rules that we can adjust as we saw.