How to Add Classes in QuickBooks and Automatically Apply Them to Sales with Synder

How to Add Classes in QuickBooks and Automatically Apply Them to Sales with Synder

Accounting is extremely important but can be quite challenging for an online business. It’s always good to have an accurate, clear, and easy to read P&L report that can show not only the total of all your sales, but tell you what product groups generate more profit and what you can improve. It’s also crucial for an online business to automate repeated tasks to save time for more important business matters. Synder can be of great help in these two things any online business needs. 

In this guide, you’ll learn how to add classes in QuickBooks in order to have a detailed P&L report and find out how you can automate the flow with Synder software. Let’s get started!

Contents:

1. Problem Introduction: Automatic Class Tracking in QuickBooks Online

2. How to Create New Classes in QuickBooks Online

3. How to Automatically Add Classes to Sales with Synder’s Categorization Rules

4. Checking Results in QuickBooks

Problem Introduction: Automatic Class Tracking in QuickBooks Online

Let’s say, you sell different types of products online – earrings, rings, and necklaces. You want to be aware of the sums of money you receive not for each product/ the whole total, but for each product group in order to understand which group sells better. This way, you’ll know what your business needs to focus on and which group needs to be paid more attention to. Plus, you want to make your P&L report in QuickBooks clear and easy to read, as well as automate the flow in your business to save time on manual tasks. 

The easiest way to do this is to classify your products in your P&L report in QuickBooks automatically with smart software. For this purpose, we recommend class tracking in QuickBooks that can be automatically done by Synder for all your sales coming from the sales channels and payment platforms.

For now, your QuickBooks P&L has one “Total Sales” account with no classes so you can’t see any details about which group sells better or worse.

We’re going to create 3 classes for product types in QuickBooks: Earrings, Rings, and Necklaces, and automatically apply the classes to your sales synced from the sales channels/payment platforms to QuickBooks through the Synder software. Let’s see Synder in action!

How to Create New Classes in QuickBooks Online

In this part of the article you’ll learn how to add a new class in QuickBooks Online with the help of Synder.

Note: Classes are available in QuickBooks Online starting from the “Plus” subscription level.

First of all, to be able to use the class tracking feature and add classes to sales automatically with Synder, you’ll need to turn this feature on in QuickBooks Online and create classes needed for your business flow.

Note: If you already have classes turned on and created, just skip this part of the article.

Here are the steps you need to take to enable class tracking in QuickBooks Online:

  1. Go to Settings Account and Settings;

2. Advanced section → Click on “Track classes” → Turn it on;

3. Decide how you want to assign classes and select  either “One to entire transaction” or “One to each row in transaction”;

4. Click “Save” → Click the “Done” button at the right bottom of the page.

Now we’re going to create classes needed in QuickBooks Online.

Here are the class tracking steps in QuickBooks Online: 

1. Go to Settings in the top right corner → Click “All lists”;

2. Select “Classes”;

3. Click “New” → Provide the name of the class → Click “Save”;

4. Repeat step 2 to create all the classes needed for your business flow.

Congrats! Now you have classes in QuickBooks!

How to Automatically Add Classes to Sales with Synder’s Categorization Rules

Synder software brings all your sales and expenses along with all the details needed into QuickBooks automatically. You just need to have QuickBooks and all your sales channels and payment platforms connected to the app. 

Now we’re going to create a categorization rule to automatically add all the classes created in the previous section to the sales synced into QuickBooks. Automatic categorization rule will help you automate this repetitive task and get access to a more informative P&L. The rule is based on simple “if-then” conditions.

Here are the steps you need to follow in Synder:

1. Go to the “Categorization Rules tab” in Synder’s left menu → Rules → Click “Create Rule”.

2. Add the trigger that starts your rule: “Sales Receipt → Created”. It means that each time Synder creates a sales receipt in your QuickBooks, this Rule will fire.

3. Add the condition to differentiate between the sales receipts: “If Line: Product or Service → Name → Contains → earring”. This is how you tell Synder to check if this condition is met and apply the rule according to it. 

4. Add the second and third conditions “If No: If Line:Product or Service → Name → Contains → ring”; “If No: If Line:Product or Service → Name → Contains → Necklace”.

Note: You can use any other condition that makes sense for your business flow (amount, description, etc.).

5. Finally, choose the action for each of the conditions: “QuickBooks action → Sales Receipt → Update current”. This will tell Synder that it should update the exact expense which has triggered the rule.

6. You’ll be provided with a sales receipt template where you’ll be able to select the class from QuickBooks needed for each product group. In our case these classes are “Earrings”, “Rings”, and “Necklaces”.

7. Save the rule.

Congrats! From now on, when you sync new transactions into QuickBooks, new classes will be applied to them based on your conditions.

NB: If you’d like to apply changes to the already synced transactions, you need to rollback the transactions from QuickBooks and sync them with a new categorization rule. We recommend testing this first with 1-2 transactions to make sure everything goes as expected and you don’t need to apply changes, and then sync everything in QuickBooks in bulk. 

Checking Results in QuickBooks

Now you’ve got it! Here’s your P&L report in QuickBooks Online with the sales part divided into three classes based on product types: “Earrings”, “Rings”, and “Necklaces”. Now we can see that the “Earrings” are doing good but the “Necklaces” might need closer attention. Additionally, your P&L became well-organized and clear. 

Wrapping up 

QuickBooks P&L report doesn’t have to be a place where you can see the numbers of your total sales for a specific period that actually don’t tell you much. It can be clear, accurate, easy to read, and give you details about what is sold, what performs good and what is better to focus on and improve. 

By adding classes to your sales, you get a clear picture of your product groups and their performance. Additionally, with Synder’s smart automation of applying classes, you get more time to focus on your business performance and upgrade your strategy to get extraordinary results.

Try Synder and get rid of manual work!

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Ann Lamon

Ann Lamon

Ann has 3+ years of experience working in a fintech company helping Saas and e-commerce businesses and accountants automate their books. With a background in Customer Success and a keen interest in psychology, she belives that human approach is the main thing driving the success of any business.

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