 QuickBooks Online 2023. Bank rules. Same customer. Different income accounts. Get ready to start moving on up with QuickBooks Online 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 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 the incognito window or another browser to open the sample company. You can open the incognito window if using Google Chrome by selecting the three dots up top and the incognito window typing into the browser 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 by going to the cog up top and switch the view down below. We're going to duplicate some tabs to put reports in like we do every time right click on the tab up top to do so to duplicate and then we'll do it again with the right clip to duplicate and then we'll go back to the tab to the middle we're going to go down to the reports on the left like we do every time and open up one of the favorites it's everyone's favorites it's the balance sheet report it needs no introduction and the by the way if you're in the sample company the reports are located in the business overview reports on the left hand side back on over tab into the right and then scrolling to the left reports on opening up open up the P to the L closing the burger and changing the ranging from 010122 tab 123122 tab running to refreshing and tabbing to the middling closing the handbooking and changing the ranging from 010122 tab 1231 that's not a 12 that's not a 1231 what are you doing fingers do what I tell you to do type of 12 all right any case we're going to tab to the left now and also open up the bank feeds because that's where we're working these days banking it's in the banking tab on the left if you're in the business view by the way where are the bank feeds well I will tell you they're under the bookkeeping on the left hand side where's the bookkeeping right there with the little calculator and then transactions up top and the bank transactions that's the setup process that we do every time and now we're thinking about entering transactions that have a little bit more complex rules related to them so we're going to say let's see if I can look at some of my bank detail and some of those kind of transactions that might be a little bit more difficult so I'm going to sort my bank data this way and I'm looking for this is the wrong I'm with the checking account am I on the checking account yeah I am so this is the ones I'm looking for so now we want to look at the bank data and sometimes you might have the same customer or same vendor but want to apply the transactions to multiple different uh income or expense type of accounts because you're purchasing different things so we're going to be looking at the customer side of things the deposit side of things this time but you might have a similar thing or the similar concept can apply then to if you're on the other side on the expenses side of things so in this case we have a customer that that maybe we're getting paid by the same customer name but we have two different accounts that they're going to possibly we have two different locations or something like that now if I look at the bank jargon stuff like all the stuff in the bank jargon then I might not be able to I might be able to say well it's the same customer that we're getting the money from but there could be some differentiation say in the number or something like that that might be an indication of like the location and that's something that I can differentiate on and to do that you want to make sure that you're looking at not just the bank memo kind of information or the shorthand description that QuickBooks has given you but you're looking at the full bank detail so if I look at the cog over here we want to make sure that we're looking at the bank the full bank detail information show bank detail because if you don't show the bank detail then notice it truncates what's happening QuickBooks is trying to give you the minimum data I want all the data if I'm going to look for something to distinguish between like one vendor or one customer that I can break out between like two different locations now let's imagine then that the these two numbers represent two different locations and I would like to break out this customer revenue out into those those two different locations now there's a couple ways in terms of the accounts I can do to do that I could set up a rule which can be differentiated by the stuff in the memo or bank text but then how do I want to line this up on my income statement in terms of the income accounts there's a couple ways I might say that I have two different income accounts I might have a parent income account that's the and then the two income accounts below it that are going to be sub accounts or I could use class tracking or location tracking to do this so let's just explore a couple of those options and how the bank feeds fit into them so I'm going to go to the first tab I'm going to right click on it duplicate it I'm going to drag that to the to the left I'm going to first look at the the tool of the class tracking and location tracking I'm going to hit the drop down up top to do so and we're going to go on over to the account and settings on the left advanced tab on down below and then I'm going to go into the categories here so notice you've got classes and you've got locations now there's a little bit of a difference between the classes and locations although they're quite similar the classes give you a little bit more versatility meaning I can I can record like one one transaction with multiple different classes like one expense form and assign two different classes to two different line items in the expense form whereas the locations I believe are going to be applied to one transaction at a time so if you start getting into a layered type of situation where you're going to use both of these you want to think about the hierarchy of when you're going to use locations and classes but if you're just using one or the other I I would tend to use the class tracking because it's more versatile and then it says here warn me when a transaction isn't assigned a class so once we assign classes we have the option of assigning every transaction a class which is usually a good thing to do because because now you're going to run an income statement by class and you want everything to be assigned or you could say that anything that is not assigned has its own class but we'll talk more about that in a second assign classes um assign classes one to each row in a transaction one two one so enter one enter transaction so I want one in each row that's giving me that more versatility that I was talking about here you got the location you don't have that second kind of option so I'm going to turn this one off and then I'm going to say save it let's say done and say do you want to save I'm going to say save it and just to see what happens now if I go to the plus button up top and I go to say and expense form then I should have another column in here for uh the classes that we'll be putting into play you know I didn't save it last here it is there's the classes so classes are now on and we have this other option that we can put into play all right now given that and what's that going to do on the income statement it allows us to have two columns of the income statement so if I have two different locations I might want to assign all the income statement items to a particular class and then run an income statement by class that's one way you can kind of break out your data which is pretty cool pretty neat pretty interesting let's go to the tab to the left then and now I'm going to go to my chart of accounts which is in the accounting on the left hand side and then chart of accounts if you're in the business view by the way you're looking in the bookkeeping area for the chart of accounts and then the chart of the accounts so let's add just two like an income line item so I'm going to say it's going to be I'm just going to say test customer income just for another income line item for the general group and then I'm going to put the two income line items underneath it for the two classes so I'm going to break it out in subcategory by location and by class just so you can see both of the methods that we could use it's an overkill to do both methods because you could use one or the other but I just want to compare and contrast the two and see how you could assign them on the bank feed so let's I'll show you what I mean I'm going to say new I'm going to say it's an income account and I'm just going to categorize it as test customer income now normally I wouldn't make an income account for customer but we've talked about that in the past and this is a practice problem situation so I'm going to do that so actually up here this is going to be an income line item and then the tax line I'm just going to say other primary income and there's the name and no description so that looks good so that's going to be my parent account so that's going to be down here in the income area so assets liabilities and then income and we've got our test customer income which there's a lot of stuff going here where did it go don't day there it is there it is okay don't get upset it's there don't worry all right it's okay I'm going to do another one we're going to say this is going to be under the test customer income now a subsidiary account to that and then I'm going to say test customer income location one this is my first location so it's it's a subsidiary you don't really need to say test customer because it'll be a sub account but I like to say it anyway so I'm descriptive about it so so it doesn't so I don't have an account it's just called location one you know but you could do that if you want I'm going to say save it and then I'm going to make another one for location two new it's going to be income another income that's subordinate to the test customer income and now it's going to be location numero dose two that is there it is all right so now I can break my two locations out with the subsidiary accounts thusly and I can break it out by and I can break it out by class so let's do it over here I'm going to go over here I'm going to say okay make sure to refresh the screen after you turn on the class tracking you can do that with a little icon up top so that the class tracking will be populated in your bank feed information so then if I scroll down I'm going to say all right let's pick up one of these items let's pick up for example this item here and we're going to say that I'm going to send make a customer now I could make the customer just test customer and then still break out between the two classes and categories using the memo or you might want to make a different customer even though it's basically the same customer so that you can sort by customer have each customer assigned to like a particular uh income account in class so I'm going to do that I'm going to make two different customers even though it's the same customer so I'm going to say customer I've already got this one set up so I'm going to set that one up and then this one is going to go into the income category let's say this one goes into income category location number one so this is assigning it by location by subcategory note now we have this class field so I can then go into the class field and I already set up my classes if you don't have them set up you could just add a class on the fly as you go I'm just going to call it location number one this will be the column on the income statement that will break out the different locations of the classes now if you if you needed to split the items you could split down here and that will give you the capacity to to assign one deposit to multiple accounts in multiple classes so I'm going to close this back out and then say all right let's make a rule for it I'm going to say it's going to be a rule I'm just going to call it customer customer let's keep it that was to the whole thing customer that rule it's a money in rule I'm going to say all conditions are met and then I could do this a couple different ways like I could say I want the bank text and then say that it contains and then make sure that it contains the whole thing including that number but sometimes that number might be like a random number like in the middle of a whole junk jargon of stuff so sometimes and sometimes it doesn't pick it up if it's like like they're out of order this number some somewhere in the middle of a long jargon of numbers and text and whatnot so you could say I want bank text or maybe just the description the description picking up just this information and then add another one which could be the bank text the second one has to be bank text the first one you could just say the description with a major name and then say it contains that number component 240 the distinguishing factor between the two locations and then we can test it to see if it picks it up so four items are picked up so that looks good then down below it's a deposit type of form that's correct category is looks good and the test and then we've got a class tracking on location number one so that looks good and then I'm not going to add it yet I'm going to turn it off so I can check it first so I'm going to save it and then I can scroll up and say okay let's go ahead and sort it by the recognized items and so there's the new rule that we put in place these three so from here I'm holding down shift down to here I'm going to add those so let's accept and add those and then I'm going to go into my balance sheet on the balance sheet of course we're going to have a deposit in the checking account so that's not really where our focus is on the income statement that's our focus let's go there I'm going to run it to refresh it we now have the test account and then we broke out the location with a sub account then that's one way we can break out the location now let's see it also broken out by the new thing we added which is the classes I'm going to right click on the tab up top to do that and duplicate it and then go down to the reports on the left hand side I'm going to type in umptop the profit and loss and I want to look at the P&L by class profit and loss by class picking that one up closing the hamburger notice that all it really did is a normal profit and loss but it changed this drop down which now has a classes field at the bottom so if you wanted to make your normal profit and loss into a class breakout back and forth you can choose your classes here but I want to show both tabs so we can go back and forth let's change the range we're going to go from 010122 tab 123122 tab run it so now we've got our two classes there's this item broken out by class which is nice notice that all of the other stuff that's not assigned to class everything else is into not specified you could go into each of these transactions and now assign them a class because every form that's related to the income statement should now have the option of assigning a class so you could do that I'm going to close this back out close this back out also note when using class tracking you might say look if I have my main location over here and then everything that's in the other location maybe that's what I assign a class to or department or whatever you're doing and then everything else is not specified goes into the main department that might be a little bit faster but normally I would think that you would want to assign a class to every transaction on the income statement so that every transaction will be assigned one or the other class and if anything then is not specified as a class you can go into that item and assign it to a class so that gives you like an internal control a double check a lot of times people are kind of scared to assign classes because then you might miss a transaction and whatnot but remember like it's not really messing anything up to assign the class if you're not using them because you still have the standard income statement it just gives you that other dimension and you can always then go into these non-specified areas and assign them a class and that shouldn't mess up your income statement really in general because you're not assigning it to a different account you're just putting it into another line item or column of class when making a profit and loss by class all right let's do the other one I'm going to go to the tab and go to the second customer and so this one again I could make it the same name for the customer but I'm going to make a different customer name so I can search each of those customer's information with their with the specific location I'm going to put the class is now location two if you don't have location two you can add a class and type in a location two and then we'll set the rule down below let's put in a rule and I'm going to say it's test two money in again I could say description or bank text I'm going to say description with the test customer add another one this one has to be the bank text which is more descriptive which has the number 153 in it and then test the rule six have been applied that looks right so here's the information down below there's our class location looks good movie B to the end so let's save it B to the end let's add it now so the rules I'm holding down shift let's just add those rules and accept so now if I go back on over to my profit and loss and run it run the profit and loss it didn't show up let's see what happened to it what happened I put it into the same location well that's just great that's just great so I wanted it to go to location two so notice if I break this out in my profit and loss by class and run it because I did this kind of double checking thing meaning I broke this out by class and I broke it out by account when there's an error I can kind of see it because the classes are correct but the account is wrong this one is in location two correctly by class but I assigned it to the location one account so I can go in here and I could adjust all of them so I can go all right I'm going to fix all of these and reassign them to the proper account the class is correct but the account I should have put it to the the test two account test two so I'll just adjust these fairly quickly hopefully so I'm going to go into each of them and say this should have gone to test two and just in case you were wondering whether or not this was done on purpose for example purposes so you can see that double checking factor it it was this was the purpose full test so you can see the the linkage of the class tracking and how you can kind of double check it was an internal control it's a demonstration of the internal controls so that's what we're doing this for so let's just do the last one here and then we'll wrap this up so we're going to go into this one k passo k passo all right so then I can go back to my reports and boom shaka locker go back all right so now we've got it broken out so now we've got it broken out by location and we've also got it broken out we split it by the items down here now note there's pros and cons to whenever you're trying to break out your your detail by location or department and whatnot you could do both of these things and you can see one of the pros it's kind of an overkill to have both two different classes and two different accounts but you get that kind of added benefit of of being able to find an error and go in and kind of fix it that way which is kind of nice uh the it's kind of nice if you if you have different sub accounts then you could you could add you know that you can collapse them and have them on one line item and then you can expand them which is kind of nice if you have the two different locations then of course you can run reports by location or you can run a report that that's just in terms of the total and once again it would be nice if you're running class locations to have everything assigned to one of one of your classes so that the the non-specified area would be something that has not is an error that you can drill down and fix all right then just note that of course if i go to my rule over here and i realized my rule was wrong you have a wrong rule again then i can go in i could go into here and fix my rule so i can edit my rule if i needed to i'm not sure if i'm exactly in the one that was messed up but this one if it was going to location that's the class location the category this one should have been two then it should be good going forward and i fixed the rule and so there is that so we'll go into some more a little bit more in-depth rules again and in more depth in future presentations