QuickBooks 2011 – New Balance Sheet by Class Report – Part 9

The Balance Sheet by Class Report was new in QuickBooks 2011, however, it is also available in QuickBooks 2012, 2013, and 2014; has specific requirements for handling many or our normal day-to-day transactions. and it gives users the option of selecting “Classes” (fund, location, profit center, or other category) as their column/class grouping.

QuickBooks 2011Over the last several days, I’ve been discussing and sharing some information about how we all will need to change our data entry procedures in order to utilize the Balance Sheet by Class Report available in QuickBooks 2011; little did I realize when I started delving into the specifics of this report, that making it work would be so complex.

Previous QuickBooks 2011 – New Balance Sheet by Class Report  Parts 18 include:

  • Part 1, we touched briefly on the fact that transactions will have to be entered in a very specific manner and there are many data entry transactions that are not supported by the Balance Sheet by Class Report
  • Part 2, we discussed how accounting professionals and end users would need to change their procedures when creating journal entries so that they were balanced
  • Part 3, we discussed how users and accounting professionals would no longer be able to assign multiple classes to a single paycheck.
  • Part 4, we discussed how you would need to classify Payroll Liability Payments in order for them to be appropriately recognized on the final report.
  • Part 5, we discussed how you need to classify Sales Tax Liability Payments using a Journal Entry AFTER you actually make the payment.
  • Part 6, we discussed the effect of handling customer prepayments when using the Receive Payments window.
  • Part 7 – we talk about invoices with multiple classes and how offering customer discounts in the Receive Payments window would cause discrepancies between the Profit & Loss by Class and the Balance Sheet by Class reports.
  • Part 8 – we talked about how entering a single Vendor bill with multiple classes and taking advantage of vendor discounts in the Pay Bills window causes discrepancies between the Profit & Loss by Class and the Balance Sheet by Class reports and how to correct this.

In this article, we’ll talk about using Multiple Currencies and it’s effect on the Balance Sheet by Class Report.

I’ll be honest here and say that I’m not familiar at all with using Multiple Currencies in QuickBooks; nor do I have any customers/clients who use the Multicurrency feature.  The only thing that I do know about Multicurrency in QuickBooks is that once you turn it on —- you can’t turn it off; and that was enough for me!

The QuickBooks Help file says that the Balance Sheet by Class Report doesn’t support multiple currencies, and that you shouldn’t attempt to run or use this report if you use multicurrency in QuickBooks.

Apparently, when you have enabled Multiple Currencies in QuickBooks, any transaction that you enter create unbalanced balanced clases because of how QuickBooks actually calculates the balanced for the report and the Balance Sheet by Class report shows exchange rate gains and losses in the Unclassified column of the report.

how to complete a certified payroll report Request our FREE 142-page “What’s New in QuickBooks 2011? eBook, by completing a simple request form.

This eBook will provide you with with all the information I’ve posted here in our blog, plus MORE!

Once you’ve completed our simple request form, you’ll have instant access to this 142-page .pdf eBook, designed to be duplex printed and put in a binder for future reference.

3 thoughts on “QuickBooks 2011 – New Balance Sheet by Class Report – Part 9

  • Thanks Mike, glad you like all these articles! I always review the new stuff in QuickBooks every year, our customers expect me to know everything 🙂 , but this is the first year that I’ve blogged about new features & functions extensively.

    I agree, it’s not quite ready for prime time. But a lot of people are going to see that it’s available and want it; perhaps even mistakenly thinking that there aren’t any limitations.

    I know that even if I wanted a Balance Sheet by Class for our business that I wouldn’t want to undertake all the steps involved.

  • Mike Barca

    Nancy, all these articles and research you have done are great. Usually, I have to do my own research and experimentation to figure it all out. Thanks for doing it for me!

    I think the bottom line here is that the Balance Sheet by Class is not really ready for implementation, except in the simplest of scenarios. None of my clients would waste the time and money it would take to pay an accountant to enter all the journal entries required to get the report in balance. And frankly, I would be surprised if many accountants would even get it right without hours of work.

    If a company just wants to see some of their fixed assets by class, great. Otherwise the complications with payroll, discounts, pre-payments (vendors & customers) liability checks, sales tax, etc etc, make the feature way more trouble than it is worth.

    Just my opinion! Hope they improve it soon. In the meantime, I’m not telling my clients about it, because none of them have a scenario simple enough for it to be effective.

Comments are closed.