There are 2 Tracking Categories being used in both accounting systems QuickBooks and Xero.

So, DataQlick uses 2 Tracking Category and names them Class and Location.

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Set up tracking categories to see how different areas of your business are performing (such as departments, cost centers, locations or even by projects or sales people). This way, your reports help you make proactive business decisions.

In QBO – tracking categories have specific names: Classes and Locations
In Xero – they are Tracking Category 1 and Tracking Category 2.

Why use classes?

Classes provide a system for categorizing transactions that goes beyond the basic ways of assigning transactions to expense or income accounts.
For example, suppose you have a consulting business and an installation business. Class tracking is ideal for you if it is typical to have purchases and sales that include both types of work. By specifying the appropriate class, you can run a Profit and loss by class report that will tell you if your consulting business is more or less profitable than the installation business.

Examples of classes

Examples of how people use classes are:

Departments
Enterprises
Properties
Construction industry standard categories (General, Site Work, Concrete, Masonry, and so on)
Manufacturers
Partners
Product lines
For example, a farmer might create a class for each enterprise: “Corn,” “Hogs,” and “Soybeans.” At the end of an accounting period, the farmer could create reports for each farm enterprise.

QuickBooks: How to use classes and locations?

Attention: To use tracking categories in QBO and with DataQlick – they have to be turned on provided that user has appropriate account (Plus).

To use classes in QuickBooks online requires Plus account. By default they are set “Off”. Here is how to turn this functionality On:
Turn on class tracking (in Company Settings)

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Select Track classes and Track locations.
Note: DataQlick assigns classes to entire transaction

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Add classes that are meaningful to your business.
When you enter invoices, cheques, credit card charges, or other transactions, assign a class to the transaction (or detail lines of the transaction), if it makes sense.
Create reports by class.

More info you can find about QBO classes and locations here:
https://support.qbo.intuit.com/help/ssf/help_company_class_about.html

Xero: How to use Tracking Categories

Attention: To use tracking categories in Xero and with DataQlick – they have to be setup upfront in Xero account.

Xero uses tracking categories and options instead of department codes or cost centers. This keeps your chart of accounts manageable.
You can have two active tracking categories.
You can have up to 100 tracking options for each tracking category.
A tracking category needs at least one tracking option to assign tracking to a transaction.

You can set up a tracking category with tracking options any way you want. See an example below.
In Xero General Settings -> Organization -> Tracking
Click + Add Tracking Category.
Name the tracking category and options.
Click Save.

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More info you can find about Xero tracking categories here:
http://help.xero.com/us/Settings_Tracking

 

 

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