Using Classes and Locations in QuickBooks Online

This post is part of a 5 part series titled SaaS Guide to Invoicing in QuickBooks Online.

Classes and locations are options within QuickBooks Online that allow you to tag transactions such as invoices with additional data.

To enable classes and/or locations go to  Gear > Company settings > Categories

Classes

Classes can either be assigned to an entire invoice or to each individual row in the invoice.

Classes can be used to track just about anything. You could use classes to track the type of revenue: New Business, Renewal, Expansion, Contraction, etc. You could also use it to track a cohort you would like to report on such as Region, Country, Company Size, Company Vertical, etc.

To manage classes go to Gear > Lists > All Lists > Classes.

 

Locations

Locations are very similar to classes, with a few differences:

  • You can only assign one Location to an invoice
  • You can change the terminology for Locations
    • Business
    • Department
    • Division
    • Location
    • Property
    • Store
    • Territory

Reporting

QuickBooks also allows you to run certain reports by both Location and Class. To view the available reports, go to Reports > All Reports > Search.

ProRata

ProRata handles classes on transaction in two ways:

  • Classes and locations are tagged in ProRata, allowing you to run revenue reports and filter by location or classes
  • Deferred revenue journal entries created by ProRata will inherit classes and locations that were on the original invoice when imported into ProRata