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MichelleMM1
January 7, 2021
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How to set up Divisions under one company in QuickBooks desktop? Need insight ASAP

  • January 7, 2021
  • 1 reply
  • 0 views

We have been using QB for several years and now need to setup divisions within our company as we grow.

Divisions are as follows:

  • General and Administrative
  • Maintenance
  • Fertilizer
  • Enhancement
  • Construction
  • Snow

 

I need to set a chart of accounts specific to each division so that we can track "everything" per division and report per division.  I see the online QB version has locations which may work but we are using desktop and I am not seeing how class tracking will work in this application.  All accounts on our COA will be specifically allocated to a division.  I do not see how I can tag an account to a class.  My first try I added the class "Maintenance" and went to my COA Bed Maintenance income account.  There are no options under edit to tag a class to it. 

 

We sync QuickBooks with our CRM Service Autopilot so I do not see me manually adjusting classes on invoices and such only to sync with Service Autopilot and it is reverted.  Our invoices are generated in Service Autopilot and synced to QuickBooks so this may come into play also.

 

Thank you for any suggestions or insight.

Best answer by Jessica_young

Welcome to the Community, @MichelleMM1.

 

Within one company file, you can only have one chart of accounts. A solution that may work well for you, would be to create sub-accounts under each "division" to give you more details of account transactions.  In order to keep your account organized and make reports easy, QuickBooks offers you the option to set up sub-accounts under various account headings, so that you can track multiple kinds of expenses within an account. A great example would be creating an account for "travel", but also the types of things you may need to purchase while traveling, like meals, car rental, hotels, etc. This way, all of these sub-accounts show up under the travel heading, making reports easier to consolidate and read. You can add sub-accounts to any parent account in your chart of accounts.

 

Here's how:

  1. Go to Lists at the top menu, then select Chart of Accounts.
  2. Select the Account drop-down at the bottom, then choose New to create a new account.
  3. Select an account type, then Continue.
  4. Enter the account details.
    1. Select the Subaccount checkbox if it's a child account.
    2. From the drop-down, choose the parent account.
  5. Select Save & Close.

 

Keep me posted if this solution works for you, I'm here to help! Have a great day.

1 reply

Jessica_young
Jessica_youngAnswer
January 7, 2021

Welcome to the Community, @MichelleMM1.

 

Within one company file, you can only have one chart of accounts. A solution that may work well for you, would be to create sub-accounts under each "division" to give you more details of account transactions.  In order to keep your account organized and make reports easy, QuickBooks offers you the option to set up sub-accounts under various account headings, so that you can track multiple kinds of expenses within an account. A great example would be creating an account for "travel", but also the types of things you may need to purchase while traveling, like meals, car rental, hotels, etc. This way, all of these sub-accounts show up under the travel heading, making reports easier to consolidate and read. You can add sub-accounts to any parent account in your chart of accounts.

 

Here's how:

  1. Go to Lists at the top menu, then select Chart of Accounts.
  2. Select the Account drop-down at the bottom, then choose New to create a new account.
  3. Select an account type, then Continue.
  4. Enter the account details.
    1. Select the Subaccount checkbox if it's a child account.
    2. From the drop-down, choose the parent account.
  5. Select Save & Close.

 

Keep me posted if this solution works for you, I'm here to help! Have a great day.

    M
    MichelleMM1Author
    January 7, 2021

    Ok thank you for the info.  I understand there can only be one COA which I have set up already with sub accounts.  So within my current COA I need to be able "auto-allocate" certain accounts to certain classes.  I assume the only way for me to divisionalize in QB Desktop is through classes, is that correct?  I was looking for a way to permanently assign a class to an account in my COA.  I am not seeing that option so the only way to utilize classes it to manually choose it when you post anything?

    JasroV
    JasroV
    January 7, 2021

    Thanks for sharing additional details, @MichelleMM1.

     

    Yes, you’re correct. You can use classes to organize your Chart of Accounts (COA).

     

    In QuickBooks Desktop (QBDT), you can track your account balances by departments, divisions, and locations. To achieve this, let’s turn on the class tracking feature. Let me guide you how: 

     

    1. Go to the Edit menu, 
    2. Select Preferences.
    3. Click Accounting, 
    4. Go to the Company Preferences tab.
    5. Select the Use class tracking for transactions checkbox and the Assign classes to checkbox. 
    6. Then click OK.

    You can also check this link for more details: Set up and use class tracking in QuickBooks Desktop.

     

    To assign the classes :

     

    1. Go to the List menu, 
    2. Click Chart of Accounts.
    3. Locate the income or expense account.
    4. Right-click on your mouse and select Edit Account. 
    5. Choose the Class from the drop-down. 
    6. Then click Save & Close.

    To be guided in managing your classes, you can run reports by class. Feel free to check out this article for the complete guidelines: Filter, sort, or total reports by Class.

     

    Let me know if you have other follow-up questions supervising your accounts, you’re always welcome to get back to me. Keep safe and more success in your business!

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