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.
Over 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.
- 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.
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