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smomin
September 13, 2021
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How to categorize 3 different sub companies in quickbooks online

  • September 13, 2021
  • 2 replies
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Hi,

I have 3 sub-companies under my parent company that each sale different products.

Example:

Company A sells Herbal Tea

Company B sells Pink Salt

Company C sells Spices

How do I set it up that when I run Profit/Loss Reports I know how much money each company is making.

I have setup the Companies in the Category under the Products/Services.  

Example: I put Company A in the Category for each Tea product.

Do I have to have a separate COGS for each company?

How do I categorize the company that designed my Tea Boxes? Is that COGS-Company A?

Then I have a company that made the Boxes?  And a company that filled the boxes.  Are they all considered COGS-Company A.

I know these are a lot of questions but I just got Quickbooks online and have about a year worth of date to input.

 

Thank you 

Best answer by JasroV

I appreciate you for using QuickBooks Online (QBO) as your partner in running your business, @smomin.

 

I'd be glad to impart some insights on how you can categorize your sub-companies. You can utilize the Class Tracking or the Location Tracking features in QBO to keep track of your sub-companies sales and expenses.

 

You can use classes to track your transactions by department or product lines. This way, you stay informed of the profit of your sub-companies. Or, you can use location tracking to categorize your data from different locations, offices, and departments. To learn more about this, feel free to check out these links: 

 

 

Also, in setting up your Profit & Loss report, you'll want to ensure you filter the date of your report and your transaction correctly. This way, we can guarantee it'll show accurate data.

 

Moreover, I'd suggest reaching out to your accountant or visit our ProAdvisor page if you don't have one. They'll be able to share with you other ways of categorizing your products and ensure the accuracy of your accounts. They can also guide you whether or not you will be using the same Costs Of Goods Sold (COGS) account or create a different one.

 

In addition, check out this article for guidance in ensuring your accounts and books are a match: Reconcile an account in QuickBooks Online.

 

Whenever you need help managing your sub-accounts or with your QBO, you're always welcome to leave a reply in this thread. I'll be more than happy to back you up! Keep safe and have a good one!

2 replies

JasroV
JasroVAnswer
September 13, 2021

I appreciate you for using QuickBooks Online (QBO) as your partner in running your business, @smomin.

 

I'd be glad to impart some insights on how you can categorize your sub-companies. You can utilize the Class Tracking or the Location Tracking features in QBO to keep track of your sub-companies sales and expenses.

 

You can use classes to track your transactions by department or product lines. This way, you stay informed of the profit of your sub-companies. Or, you can use location tracking to categorize your data from different locations, offices, and departments. To learn more about this, feel free to check out these links: 

 

 

Also, in setting up your Profit & Loss report, you'll want to ensure you filter the date of your report and your transaction correctly. This way, we can guarantee it'll show accurate data.

 

Moreover, I'd suggest reaching out to your accountant or visit our ProAdvisor page if you don't have one. They'll be able to share with you other ways of categorizing your products and ensure the accuracy of your accounts. They can also guide you whether or not you will be using the same Costs Of Goods Sold (COGS) account or create a different one.

 

In addition, check out this article for guidance in ensuring your accounts and books are a match: Reconcile an account in QuickBooks Online.

 

Whenever you need help managing your sub-accounts or with your QBO, you're always welcome to leave a reply in this thread. I'll be more than happy to back you up! Keep safe and have a good one!

    S
    smominAuthor
    September 14, 2021

    Hi,

    I appreciate your response.  I have QBO Advance so I will look into the Class features.

    Thank you 

    Fiat Lux - ASIA
    Fiat Lux - ASIA
    September 14, 2021
    @smomin wrote:

    I know these are a lot of questions but I just got Quickbooks online and have about a year worth of date to input.

     

    @smomin 

    You should utilize the Class feature available on QBO Plus and Advanced. If you are using QBO Simple Start or Essentials, you may cancel it and open a new blank QBO account to get the discounted rate. The discounted rate is not applicable when upgrading your plan.

    https://quickbooks.grsm.io/us-promo-6months

    https://quickbooks.grsm.io/us-promo

     

    If you are using QBO Plus, you may also utilize the trial version of a backup restore app. You can restore your account at a certain point other than purge your account and restart from scratch.

    https://rewindio.grsm.io/quickbooks

     

      S
      smominAuthor
      September 14, 2021

      Hi,

      Good thing I have QBO Advance.  Thank you for the suggestions.  I will look into the Class features.

      Thanks

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