{"id":19955,"date":"2023-07-24T21:54:42","date_gmt":"2023-07-24T21:54:42","guid":{"rendered":"https:\/\/synder.com\/help\/?p=19955"},"modified":"2026-09-17T19:44:48","modified_gmt":"2026-09-17T19:44:48","slug":"how-to-classify-expenses-based-on-products-in-invoices-sales-receipts-using-synder","status":"publish","type":"post","link":"https:\/\/synder.com\/help\/how-to-classify-expenses-based-on-products-in-invoices-sales-receipts-using-synder\/","title":{"rendered":"How to Classify Expenses Based on Products in Invoices\/Sales Receipts Using Synder"},"content":{"rendered":"\n
\nSync mode note:<\/strong> Smart Rules run in Per-Transaction sync only<\/strong>. They are not available in Summary Sync (Daily Summary)<\/strong> on any platform. If your organization syncs in Summary mode, use Mapping \/ Grouping<\/a> instead — it is the Summary-mode substitute for Smart Rules.

New to sync modes? See How Smart Rules Work in Synder<\/a>.\n<\/div>\n\n\nImplementing class-based expense tracking in your accounting system can be an effective way to track fees associated with various products at a granular level. This strategy involves not only tagging the sales part of a transaction but also the associated expenses. By doing so, you can track the charges incurred by your payment processor or ecommerce platform for each product category. This technique provides greater transparency over your business\u2019s cash flow and better equips you to optimize your operations and financial strategy.\nLet\u2019s now unpack a method to achieve this by using Synder.\n\nUsing Xero?<\/strong> Synder creates a Bill<\/strong> instead of an Expense for processing fees, and Xero uses Tracking Categories<\/strong> instead of Classes. The steps below are the same in principle \u2014 trigger on Bill \u2192 Created<\/strong> instead of Expense, and choose the Tracking Category<\/strong> action instead of Class. See How to Automatically Assign Xero Tracking Categories Using Smart Rules<\/a> for the Xero-specific setup.\n\nOverview:<\/strong>\n
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    Adding product names to the processing fees description<\/a><\/p>\n<\/li>\n \t

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    Create a rule to assign classes to processing fees<\/a><\/p>\n<\/li>\n \t

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    Enjoy payment processing fees with classes based on products<\/a><\/p>\n<\/li>\n<\/ol>\n

    Adding product names to the processing fees description<\/strong><\/h2>\nWhen you create a rule within Synder, you need to specify conditions that will prompt Synder to apply a specific class to an expense. However, the product name might not initially be part of the expense section of a transaction, but it can be found in the sales receipt\/invoice.\nTo fix this, please get in touch with our Support team at help@synder.com. They can assist you in modifying the Expense transaction to include the product name in the \u2018Description\u2019 field. This can be done on our end solely.\n\nThis is the end result that you will get in QuickBooks:\n
    \"\"<\/figure>\n

    Create a rule to assign classes to processing fees<\/strong><\/h2>\nHaving modified your expenses to include product information, it\u2019s now time to create a rule that utilizes this data:\na. Go to \u2018Smart Rules\u2019 \u2192 \u2018Rules\u2019 \u2192 \u2018Create Rule\u2019.\n
    \"\"<\/figure>\nb. Select the trigger for your rule: \u2018Expense \u2192 Created\u2019. This means the rule will be activated each time Synder creates an expense in your QuickBooks. Click on \u2018Condition\u2019 in the START WHEN box and hit the nearest Box.\n\nFor Xero:<\/strong> select Bill \u2192 Created<\/strong> instead of Expense.\n
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    \"\"<\/figure>\nc. Define the condition that differentiates your expenses. For instance, if \u2018Line: Description \u2192 Contains \u2192 Juice <\/em>OR Wine\u2019<\/em>, this instruction tells Synder to apply the rule when the condition is met. Click on \u2018Yes\u2019 in the IF box and click on the nearest box.\nNote:<\/strong> Depending on your needs, you can define other conditions.\n
    \"\"<\/figure>\nd. Click on \u2018Action\u2019\n
    \"\"<\/figure>\ne. Next, select the action to be performed: \u2018QuickBooks action \u2192 Expense \u2192 Update line \u2192 Set QuickBooks Entity data\u2019. This instructs Synder to update the relevant expense line,<\/em> which includes the specified product name.\n\nFor Xero:<\/strong> select the Tracking Category<\/strong> action instead of Class.\n
    \"\"<\/figure>\ne. A pop-up window will appear, allowing you to select the necessary class. After selecting the necessary option, click on \u2018Submit\u2019.\n
    \"\"<\/figure>\nf. Repeat the action for cases when the condition is not met if you wish Synder to update expenses that do not align with the condition.\n
    \"\"<\/figure>\ng. Finally, click on \u2018Save & Close rule\u2019.\n
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    Enjoy payment processing fees with classes based on products<\/strong><\/h2>\nAfter creating and applying your rule, it\u2019s important to verify if it\u2019s functioning:\na. Navigate to the \u2018Platform transactions\u2019 tab \u2192 find a transaction that should be classified under the rule and sync it.\n
    \"\"<\/figure>\nb. Click on \u2018Show in QB\u2019 to review the results.\n
    \"\"<\/figure>\nc. Verify the class that has been applied.\n
    \"\"<\/figure>\nReach out to the Synder team<\/em><\/a>\u00a0via online support chat, phone, or email with any questions you have \u2013 we\u2019re always happy to help you!\n\n