 QuickBooks Online 2024. Bank feeds, ad rule with splits, assigning two or more accounts. Get ready and some coffee because we're getting the books on track 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 CPA six pack shirts, a must have for any pool or beach time mixing money with muscle, always sure to attract attention. Even if you're not a CPA you need this shirt so you can like pull in that iconic CPA six pack stomach muscle vibe man. You know, that CPA six pack everyone envisions in their mind when they think CPA. As a CPA I actually and unusually don't have tremendous abs. However, I was blessed with a whole lot of belly hair. Yeah, allowing me to sculpt the hair into a nice CPA six pack like shape, which is highly attractive. Yeah, maybe the shirt will help you generate some belly hair too. And if it does make sure to let me know. Maybe I'll try wearing it on my head. And yes, I know six pack isn't spelled right, but three letters is more efficient than four. So I trimmed it down a bit, okay? It's an improvement. 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 as we do every time the reports 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. Right click the P&L profit and loss to open a link in a new tab doing the same with the trustee TB. If you don't have the trial balance in the favorites, you can search for it tapping to the right closing up the hamburger. Let's change that range going from 010124 tab 033124 tab selecting the drop down months and run it. Let's tab to the right. Close up the hamburger and then change the range 010124 tab 033124 tab drop down for the months and run it again. Tabbing to the right one more time. Uno vase mas por favor changing the range. We're going from 010124 tab 033124 tab for the months. Run it to refresh it. Let's go back to the balance sheet. We have of course been working on the bank feed information primarily with relation to the checking account. Now we're looking at some more advanced rules where we're going to have an impact on the checking account. In this case decreases, although you can think of a similar process for increases or deposits, which will have an impact on two accounts for the income statement to expense accounts over here on the income statement. This is something that might happen oftentimes. If you're trying to allocate expenses out by department or by location or possibly if you're in a job cost. I'm sorry for a nonprofit organization. You might use an allocation method such as this to allocate to different funds. For example, let's go to the first tab and check it out in the transactions on the left hand side. We've been in the bank transactions making rules. Let's take a quick look at where those rules go. They go to over here. The easiest rules. I'm going to close the hamburger are typically those like the utility bills. For example, this being the electric bill where we just have a money out rule. We only need one condition. It's an electronic transfer. We need to copy the information from the bank data that we can create a vendor from and then we just assign it to one account. That's kind of the easiest rule. It's going to be something that happens repetitively. I don't have to worry about what we purchase from this vendor changing from period to period. For example, however, what if this utility bill I wanted to assign out to two different departments? Because I'm trying to track the bill as it's being allocated to different departments. Well, then I might be using a split type of thing here. That's what we'll get into this time. So let's close this out and let's make up some new transactions. We're going to go to the bank feeds over here and I'm going to open up our Excel and just upload some new transactions we can play with. We have the date and let's say we have the amount and the description. So let's make it in 32424. Let's say the amount is going to be 374. Let's say and the description is going to be, I'm going to say test expense number two and then there's bank jargon after that. So, and I know this is a generic name. It could be basically any kind of utility bill, for example, or telephone bill is what I'm thinking and then we'll apply it out to department. But I'll put it to its own test expense account so we can check it out. And then on 32424. Let's say we had another 173 and this once again is going to be for test expense number two and then bank jargon. And let's do one on three. Let's make this one on another date up and let's make this one 32724. Let's make this one 42 and this is going to be test expense. I'm going to make this number four. So it's another test expense and then the bank jargon. It'll be a little bit longer bank jargon and then we'll make this one on 32924. And let's make this 36 test expense number four and then bank jargon to do something like that. So I'm going to I'm going to imagine that we take these amounts and allocate them out and I'm going to use a couple different allocation methods. That's why we have two of them one by percent and one by a dollar amount allocation. So I'll show you what I mean. Let's save it and let's go file save as a CSV file so we can then import it or upload it. I'm going to save it as a CSV comma deliminated. I have a bunch of them here. I think they all work but it's a it's 680. If you're if you have access to this folder of files and you just want to upload it instead of creating it yourself. So we can go then over here we're in the checking account. I'm going to then upload these transactions from the file that we just set up and that file is here. OK. And then it's going to be the 680. That is the one you're the one. All right. So then we're going to say continue and drop down. This needs to go into the checking account. And so then we're going to say continue. And then yes one column date format M M D D Y Y Y Y. OK. Date date description description amount amount looks good. Let's continue. Now this should be money going out instead of in so I put the I didn't put the negative sign in there again. But I can always reverse it. Boom. And now they're negatives the way they should be so no problem. And then I'll add them all and continue. So they should be negatives. And let's see if it works to do. Oh done. All right. We've done it. So now I'm going to say this is going to be a money out item. OK. So here's our here's our transactions. So let's go into it and say that I want to assign this out to two expense accounts. And I'm going to call it test expense. Let's imagine that's the vendor. And that's also the expense account that we want to assign them to. So what I would like to do is do the similar thing we did before. And that I would like to imagine we have two different locations or departments that we're dealing with. And then I'll also set up two different accounts for those two different locations. I'll show you what I mean. I'm going to right click on this tab up top and duplicate it. And then we'll go down to the transactions chart of accounts. And then I'm going to close the hand bogey. I'm going to make a test account. So we'll say new. And this will be an expense account. This is a parent account. And I'm just going to say it's going to be other business expense. It's going to be test account test expense to that will be the parent account. And then I'm going to say save. And then another one which will be an expense account other expense account. And this will be I'm going to call it L one test expense account making it subordinate to test expense account. Number two. Okay. So we'll save that and then we'll make another one. I'll make another one which is going to be then an expense account. And it's going to be other. And then it's going to be location L two test expense account. I'm going to make it subordinate to the test expense account. That one. So if I go down, let's see what the structure looks like. We've seen this process before. So all the way down don't. So this is a test expense account number two. And then there's our two line items. I'm going to be doing one more for test expense account number four. I think we called it same thing new. I'm going to make a parent account which will be an expense account. It's going to be an other expense test expense account four is what we called it for the generic name. That's the parent. And then new expense account and other expense test expense account four for location number one. Making it subordinate to the test expense account number four. All right. And then one more time. So base mass plus this is going to be an expense account. It's going to be a other expense. And this will be location two for test expense for subordinate to the test expense for account. All right. Let's take a look at the structure of that one. We're going to take a look at the structure of it. So now we have test expense to test expense for with these two subordinate accounts to it, which will populate on the income statement as a parent with a triangle that we can collapse or expand. Now also we're going to be using class tracking. So if you go to the cog up top, we already have it turned on. But just so you remember where it's at, it's under your account and settings. And this is one of those advanced moves. This is a level. This is this is a level up move because it's in the advanced levels. So we're playing on on high ground here. So category. So class tracking is on and class tracking is similar to location tracking, but a little bit more flexible. We want to get into details on the differences between class tracking location tracking tags. We have another course or section focused in on that. But class tracking is kind of the most flexible one. All right. So then we're going to go to the transactions again. And let's go back and filter this one by the money out. And we're going to go into the test expense account number two. And we said, actually, I already started this one over here, didn't I? Let's just do it again. I'll just say this is going to be test expense to which we set up now. And now it's not going into inventory. I'm not going to make that mistake again. It's going into the test expense. This needs to go into the test expense location. Let's say test expense location one. The twos and ones are getting confusing. But I need to assign it to a class. Now I need two accounts that it's actually going to be going to. So I'd like to split the transactions. So when I do the data input, the splits are located here. So I can say split the transaction. So now I've got, we paid it to the test expense account. We're imagining that's the vendor. And then we're going to put part of it into this category for location one. And then we can also assign it to the class for location one. That is redundant because now we assigned it to a specific account by location and class by location. But that'll help us to see two methods that we can break out the locations. And it could be used as a double check as we've seen in the past. So then I could say that if I'm going to split this out, let's say we were to split it out like evenly or something 50-50 or let's say 60-40 just to make it a little bit. I could say, okay, this 374 needs to be split out 0.6 to location number one. So that's going to be 2 to 4.4. And then this one is going to be test expense 2 for location 2. I think I have that right. And then this one's going to be location 2. And then that's going to be the difference. And it shows me down here what I need, which is going to be the 149.6 because it has to tie out to 0. In other words, the checking account's going to go down by the 374. And then we're going to be allocating 60% of it to 24-40 to this first category or location and then the 40% or the rest of it to the second category or location. So that's going to be the idea. Again, this might happen if you're trying to allocate like you have two departments in one building or something like that. And you're trying to say, here's my utility bill for the building and I'm going to try to allocate it out based on some cost basis analysis that it should be broken out in terms of 60-40 between the two locations would be the general idea. So we can say, apply, boom. So now we've added that one. And so now when I go into my profit and loss, if I was to run it, I could scroll down and say, okay, there's my test expense number two and it is allocated between these two items. Now I want to also see it by class. So this allocated by the two accounts, if I change it up top and say I want to see it by class, then I'm going to change the top bit to break it out in columns of class. So then I can scroll down and we can say, okay, here's test account test expense number two and I have location one indicated by the account, location two indicated by the account as well as the columns of the classes, location one and location two. So that's redundant. If you use classes, you could just have one here, which would be similar to collapsing it, breaking it properly out into the two locations. And if you don't have classes, then of course you can use this method, which can give you more detail without the two separate columns. It might be useful to do both, however, because that gives you the double check that if you have something that's in location like one, but it's also down here in the location two account, then something's wrong and you can drill down on the data and make a change to it. So now we'd like to do a similar thing, but do it with a rule. So now I'm going to say, okay, if I go into this expense number two, and instead of just doing the split within here, I want to make a rule with splits in it. So I'm going to create a rule and say this is going to be test expense number two rule. It's a money out rule and we want all the conditions to be met. And I want it to be in the bank text to contain just the test expense without the jargon, test expense number two. If I apply that, then we can see that applies out to one of them and not to the other two that have a four instead of a two with them. And then we're going to assign it to an expense account, test expense account here. Here's where we have the split in the rules. So I'm going to say I want to split the rules. We have the options of the split to split on a percentage basis or an amount basis. So if we split on the percent basis, then we can do what we did. We can say this is going to be 60% going here to the class number one. And then we want to have 40% going here to class number two. That's not class, that's the category class number two. And this will be test expense to location two. I think I have that right, right? Yeah. And then if you had more than two, then you can add another line. So maybe you have three locations that you're splitting it three. Obviously the split percentages are going to need to add up to 100 if you're going to be using a percent method. If you're using a dollar amount method, which we'll do next time, then the remainder will just go to the next bit, right? So we'll talk about that next time. But let's close this one out and just say we have the two classes. We're going to split it and it'll do it automatically, which is great. That could save a lot of time if you're doing this kind of allocation process so that you don't have to manually calculate the 60-40 split of each transaction. So this is actually quite nice. So then you can say who you paid. I'll just leave it there. So let's confirm and then check it out. So now I'm going to say this one is good. So let's open it up and let's confirm, boom, bringing it in. So let's go to our bank feed again and we will run it. So that's going to be an impact on the balance sheet. Our major focus right now, however, on the income statement. So let's just go over to the income statement side of things and look at that one. So if I go down to test expense number two and drill down on it, we have the two that have been allocated here, one with the rule, the other one without the rule. We just use the split in the bank feeds. And then of course, if I go back, we can see the other one, just like the other one, except it's a little, you know, it's different, but just like the other one. Let's do another one, just like the other one. Let's tab to the left. And this time though, we're going to use the split rules that are by dollar amount. So similar process, except we're going to go to the expense account for and let's create a rule, create a rule. This is going to be the expense account for rule, money out rule in the bank text. It's going to contain test expense for number four. Get rid of the bank jargon and test that rule out. Two of them are applied to it. That looks good. It's going to go to an expense account, but I want to split the categories again. This time, let's just imagine you might have a situation where you're like, I know the dollar amount that should be applied to one category and then the rest of it will go somewhere else. Let's say you have a utility bill, for example, and you know one department is open and steady. It uses the utility bill at a steady pace. So you know exactly what the dollar amount is or you have a pretty good estimate. They're going to use $20 of it pretty consistently. But the other department might fluctuate. So now I'm going to say whatever the utility bill is, I want you to apply $20 of it to this department, to part location one, let's say, and then the rest of it to location number two. That means number two is going to be the remainder, which is what you have to have in the rule because the categories that you're adding have to add up to the dollar amount, which is going to change from the bank feeds. So instead of having a percent that adds up to 100%, we're going to say I'm going to allocate out to however many classes I want to and then have a remainder that's going to go to the final class. So in this case, we'll say, okay, this one's going to test expense, we'll call this test expense for location one. Class will be location one and then the remainder is going to test expense, test expense for location two. That's right, test expense for location two. Man, I'm getting confused by my thing here. So there it is, number two. Now, of course, we could add, if I add another one, then the second one would no longer be the remainder. I'd have to add a dollar amount here and then the remainder would be in the final one. So let's see if I can stop that. I want to delete the last one that we did here. Or let's just delete this one and this is the remainder that's going into test account four, location two, class location two. Okay, let's see if I did that right. Let's save it. We've got these two applied. Let's check both of them off and confirm, confirm. Okay, so then I can go into the balance sheet. We would have an impact on the balance sheet, of course, but let's also go into the good old profit and loss and chain or run it and then scroll on down so that we can see the new stuff that happened. I went right past it, right past it. So here we have it. So here we have test expense number form, same format, where we broke it out by class, location one and two, as well as have two separate accounts. But this time, we had it apply out a dollar amount to location one and the remainder of those transactions then went into location number two. So those are some ways that you can use that split, which again can come up to be quite useful. Oftentimes, like I say, if you have like a not-for-profit organizations might need to use that in some cases, which can help you to automate transactions a lot faster if you need to do that or like if you're allocating out between departments in some type of way so that you're trying to track performance by department for those kind of expenses that have an impact on multiple departments. So you're trying to allocate them using some kind of activity-based percentage type allocation between them. So this is where we stand. This is where we are at on the balance sheet. This is where we are at on the profit and loss. Now we're going to do some bank reconciliation, some basic bank reconciliation. So if you're following along, you can check those out. But even if you don't follow along, you can see like the general idea of the bank reconciliation, which I still think we should want to do, even if we're constructing our books directly from the bank feeds because if something goes wrong, such as we entered two transactions or we missed a transaction, the bank feeds are how we fix it. So if you're following along, this is where we stand at this point in time. If your numbers tie out to these numbers, MUI, B to the N, two letters for you, B to the N, that's good. But if not, then you can try changing the date range and then possibly drill down on the numbers. And if it's a date issue, you can change the date, which is great to do in a practice problem, but be careful doing that in practice.