Class tracking is now available through SellerZen! Once enabled in QuickBooks Online and configured, sellers can track all income and fees for classes. While there are several uses for this new feature, we’ll go over two ways you can use this new feature to get better reporting in QuickBooks Online. You can also view our Help Guide on how to configure custom SKU mapping on SellerZen.
- Enabling Class Tracking in QuickBooks Online
- Creating Classes in QuickBooks Online
- Assigning Classes to Products on SellerZen
- Viewing Sample Profit and Loss Reports With Class Tracking Enabled in QuickBooks Online
- Class Tracking Use Cases or How You Can Use Class Tracking for Your Business
To use class tracking, you’ll first have to enable the feature in QuickBooks Online. You can do so via the Gear Icon > Company Settings > Advanced > Track classes. If it’s not there, the option may be in the Company link instead. See below for both locations. Click on the pencil icon to edit and turn on class tracking and/or location tracking.
Setting under the Advanced link:
Setting under the Company tab:
Once you’ve enabled classes under your Company settings, you’ll have to create and edit classes. You can do so under the Gear icon > All lists > Classes.
Once you click on New, type the name of the class. You can also set your new class as a sub-class of another class. This may be useful for sellers who want even finer detail for their reporting. For instance, if you sell a broad range of categories, you might have Kitchenware as the main class. Then you’d have Utensils, Small Appliances, and Cleaning Supplies as sub-classes.
Breaking up your classes in this way allows you to see total sales and expenses related to categories of your products.
Consignment sellers may want to use the names of their clients instead to track all income and expenses related to the sale of the product. For example, if you’re a consignment shop, you might set up a class called “Client A” and assign that class to all of Client A’s products.
A quick report on the classes will tell you the total income and expenses related to the class. Using class tracking in this way helps you with calculating payments.
Once you’ve configured your classes, you can map your Amazon SKUs to classes, including all income and expenses associated with the transaction. To map SKUs to classes, go to the SKU Mapping tab under Integration.
Even if you have a class assigned on the inventory item in QuickBooks Online, you’ll still need to assign the class and apply fees and income on SellerZen.
Click on the Add New button in order to start mapping classes.
If you only have a few products, you can manually map them using the fields. If your QuickBooks Online Inventory Name is the same as your Amazon Seller SKU, then simply fill out the Amazon Seller SKU field, select the class, and check the Apply to item fees and income box if applicable.
Applying item fees and income box allows you to track all income and expenses associated with the mapped inventory item. This is useful if you want to see how much profit you’re earning per class after all income and expenses, or if you’re selling items on consignment.
If you don’t check the box, then we’ll only assign the class to the SKU on transactions. While you won’t be able to see associated income and expenses, you’ll be able to see total sales of product income for the class. See our next section on the reporting for examples.
If your Amazon Seller SKU is different from your QuickBooks Online inventory name, then fill out the Iten Name field. When an Amazon transaction occurs with that particular Amazon SKU, we’ll use the Inventory Name specified in the QuickBooks Item Name field on the QuickBooks Online documents.
If you don’t want class tracking, you can leave those options alone. You can also use SKU mapping with class tracking. Simply select the class and check the box if you want to apply item fees and income.
If you have a lot of items to map, then click on the “Have many? Upload a file” link to submit a CSV file for us to process. A sample CSV file is provided for you to fill out, or you can create your own.
We ignore the first row, so don’t use any mapping there.
Need help exporting to a CSV file? See our visual guide using Google Sheets for more help. Most spreadsheet apps will have a similar process.
Once you upload the file, we’ll send you an email when we’re done processing the mappings. The email will include any issues you need to address. We recommend that you complete all necessary SKU and class mappings before you start the sync.
You can review all mapped SKUs and classes below.
In the image above, Garden_Rocks_FBA is mapped to the inventory Garden Rocks in QuickBooks Online, with no class tracking enabled.
Amazon Seller SKU ABC-DEF-GHI also exists in QuickBooks Online with the same Inventory Name, and we’ve assigned a class and checked the “Also apply to item fees and income” box to track other income and fees with the transaction.
Review all assigned mappings and make any necessary changes.
Once you’ve configured class tracking on QuickBooks Online and SellerZen, you’ll be able to run profit and loss reports that can give you more detail about your income and expenses.
Take a look below a sample Profit and Loss report in QuickBooks Online with class tracking enabled on some inventory.
In this report, we have the “Also apply to item fees and income” box checked for all items. As a result, all the fees are tracked along with the Sales of Product Income.
Under the “Pants” class, we see a Sales of Product Income of $3,263.18. Because we’ve specified during the mapping that we also wanted to track item fees and income, all other Amazon fees are also tracked. Commission, Fulfillment, Other Fee, and Return Fee total $670.05. That gives us a total of $2593.13 before subtracting Cost of Goods Sold.
Note that with class tracking enabled, SellerZen also processed the return, ensuring that income and expenses are correctly recorded. This is important for consignment sales.
Sub-classes also show up, along with the total for the main class.
Without the “Also apply to item fees and income” box checked, your report would just show the sales of product income for that item. You can see this in the “Extra” class in the image above.
If you’re diligently adding your Purchase Orders in QuickBooks Online and receiving inventory, using SellerZen to automate your Amazon to QuickBooks Online transactions will give you very detailed reports. You’ll know exactly how much your income and expenses are for every item, class, and account.
Read through our accounting series linked at the end of this article to learn how to receive inventory in QuickBooks Online using Purchase Orders.
Not sure how you can use class tracking for your business? Class tracking allows sellers to group or categorize products. Here are some popular reasons why sellers may want to enable and use class tracking.
If you’re a consignment store, you can easily group your products by clients using classes. If you also track fees and income with the item, you’ll be able to see exactly how much the net profit is per sale for each product. For example, in our image above, you might have a class with “Client A” and all products belonging to Client A tracked instead of “Jackets.”
Class tracking for consignment sales streamlines the process for computing disbursements to clients.
Better Organization of Products
Think about classes as categories or groups. In our consignment example above, we’ve used classes as clients. But you’re not limited to just clients. You can also use classes to represent the following:
- Market Type (Mass Market, Luxury, etc.)
- FBA and FBM
- …and much more!
Don’t forget that you can also split up classes into sub-classes, allowing for even more detailed reporting!
When you run class reports in QuickBooks Online, you’ll quickly see the relevant numbers for each class you’ve created and assigned in SellerZen.
More Detailed Reporting
By using class tracking, you’ll be able to get more detailed reporting for your business. No matter how you group your products, you’ll be able to see income and expenses for every class that you’ve created and assigned.
This allows you to make better decisions for your business, like dropping low-performing products/classes to focus on more profitable products/classes. You may even discover products or classes that are losing money!
Have questions? Don’t hesitate to contact us at email@example.com or start a chat with us through the chat icon on anywhere on our website. We’ll be more than happy to help.
Want to learn more about how to use SellerZen? Check out these articles: