Software: QuickBooks Online Singapore ( QBO )
You can use either Class or Location feature in QBO (QuickBooks Online Singapore) to segregate your financial report. Although both class and location looks similar, they are different. You should consider carefully before using them.
When Classes are used, they get attached to the detail portion of transactions. They do not get associated with the header accounts. Therefore, since a P&L pulls information from the transaction detail, it can be customized by Class and be correct. However, a Balance Sheet by Class report will never be correct, since it pulls data from headers. (Remember, the Class data does not get saved with the header—actually, no where can a bank account, loan account, etc., all headers, cannot be linked to a Class.)
QBO assumes that all data pertains to just one company, so it will always provide just a single Balance Sheet, and not one split in Classes.
Accounts Payable, Accounts Receivable and Payroll transactions may have amounts in “Unspecified” because Bill Payment, Receive Payment and Paycheck transactions can’t be split by locations.
If you have either Bill Payment, Receive Payment or Payroll transactions that involve multiple locations, the transaction will reflect “Unspecified” and will either need to be split into transactions that only involve one location or correct the location with a journal entry.
If you just need to segregate based on a per transaction basis, then you may consider using location. However, if you require to tag the detail lines of a transaction, then Class will be a better choice. That is, multiple classes per transaction (Do check the limitation in using either class or location).
Usually, I tend to use Class for project tracking, type of products/services, or region, etc. As I can tag different line items or account with a different class. The Location is more about tracking the multiple stores or departments. In some cases, both Class and Location are being used in a QBO company file.
Get a QuickBooks consultant if you are not sure which is a better solution for your business.