more-arw search

QuickBooks Online Job Costing via Class Tracking

Print This Post

QuickBooks Online Job Costing via Class Tracking

July 31, 2013 | By Stacy Kildal | Reply More

While technically, QuickBooks Online doesn’t do Job Costing, there are a couple of ways to make it work. My last article covered QuickBooks Online Job Costing using the sub-customer method, now

we’ll look at using Classes to track customer jobs.

Setting Up QuickBooks Online Job Costing

To begin, you’ll need to have a QuickBooks Online Plus subscription – Class tracking is not available in Simple Start or Essentials, and there are a couple preferences that need to be set before you can proceed. The first thing you need to do is to turn class tracking on, by going to the Company Tab, then Preferences, and choosing Categories – check the Class tracking box.

QuickBooks Online Job Costing Preferences

The second preference is to assign expenses to customers in Company/Preferences/Vendors & Purchases, check the Expenses and product/service tracking by customer box.

QuickBooks Online Job Costing expense preference

Most jobs will begin with an Estimate. You can read about how to deal with estimates and progress invoicing here, as well as receiving partial purchase orders. Once the client accepts the terms of the Estimate,

we can add the Class directly from within the Estimate by choosing Add New from the drop down menu in the Class column:

QuickBooks Online Job Costing create estimate

Adding the Class:

QuickBooks Online Job Costing add Class

You can also set up the Class prior to creating the estimate, but my choice is to wait until after the client accepts; this way you can keep your Class list cleaner, or avoid having to delete a class if the client

doesn’t choose to accept. I find it easier to assign the Class after, because I scan the signed Estimate and attach it to the transaction in QuickBooks Online, so I have to return to it anyway. You can add the

Class as shown above, or do it from the Class List, as seen below. Find Lists in the Home tab:

QuickBooks Online Job Costing Lists menu

Select Class List from the Lists screen.

QuickBooks Online Job Costing class list

Click the New button to add a new Class.

QuickBooks Online Job Costing new class

Then add the Class, and save it.

QuickBooks Online Job Costing add and save class

The last bit of setup I do is to create the budget for the job as we saw in the earlier article; only this time we’ll divide the budget by class. This is in the Company tab, under Budgets:

QuickBooks Online Job Costing, setting up the budget

Select Subdivide by Classes.

QuickBooks Online Job Costing, budget by classes

Specify a budget name:

QuickBooks Online Job Costing, budget name

Select the Class to use for this Budget.

QuickBooks Online Job Costing, budget setup

Working with Classes

You’ll be invoicing the client for the project and posting related expenses. Below is the invoice created from the Estimate, with a payment posted against it:

QuickBooks Online Job Costing, invoice from estimate

And below is a check recording the expense – just a smidgen more than what we budgeted for in this case.

QuickBooks Online Job Costing, check for expenses

Now you can create reports. Below is the Budget vs. Actual (i.e. – Estimate vs. Actual) report:

QuickBooks Online Job Costing, Budget vs. Actual report

Here is a Profit & Loss by Class report:

QuickBooks Online Job Costing, Profit & Loss by Class report

When the job is completed, you can delete the Class from the class list, so that it doesn’t show up in lists anymore. Don’t worry, this doesn’t actually delete it, it just makes it inactive. It will continue to

show up in reporting if there is any activity in the period to which the reports are set. To “undelete” any list item, you can go to that list, select the Related Reports button, view the deleted item, and

click on that item from the report

QuickBooks Online Job Costing, Related reports

Click on the Class you’d like to “undelete” in the report:

QuickBooks Online Job Costing, undelete Class

Then just uncheck the Deleted box and then click Save:

QuickBooks Online Job Costing, undelete Class

So now you have two options for Job Costing: The Class tracking method as shown here, or the Sub-Customer method that I described in my previous article.

Next up? Handling change orders!


Tags: Class, Job Costing, QuickBooks Online

Category: Cloud Accounting, Expert's Corner, QuickBooks Online, QuickBooks Tips/Tricks, Stacy's Online Solutions


Products and Companies: