“Elain, did I tell you to change the Location for the motor expense? Why does the bank ledger still show the incorrect Location?”
If you’ve ever been on the receiving end of that question, this post is for you. We’ll cover what Location is, how it compares to Class, and — most importantly — what to do when QBO doesn’t update the Location after you’ve already edited a transaction.
Location is a feature available in QuickBooks Online (QBO) Plus and Advanced. If you’ve recently migrated from QuickBooks Desktop, it may be new to you.
Location works like a departmental account — you can use it to categorise data from different branches, offices, regions, outlets, or departments within the same company. It also lets you view all payments for a location and consolidate them, which is especially useful if you’re tracking a retail shop or F&B outlet.
Before you can use Location, you need to turn it on:
Once enabled, a Location field will appear on transactions such as invoices, bills, expenses, and journal entries.
Is this the same as the Class feature?
They’re similar, but not identical. Here’s a quick comparison:
| Location | Class | |
|---|---|---|
| Tracks by transaction | ✓ | ✓ |
| Tracks by line item | ✗ | ✓ |
| One per transaction | ✓ | ✓ |
| Best for | Branches, outlets, regions | Product lines, departments, projects |
Note: You have the option to assign classes to one transaction or to each row in a transaction.

Class offers more flexibility — it lets you track by transaction or by individual line item, whereas Location can only be applied at the transaction level. In other words, you can assign a Location to an invoice or bill, but not to each item or ledger account within it.
Not at all — they work best together. Say you run two cafes, Cafe A and Cafe B, and you also want to track dine-in versus takeaway. You could use Location to track which cafe, and Class to track the dining mode. Each feature covers what the other can’t.
Location is a powerful tool for categorising revenue and expenses, but there’s a catch: QBO does not include a Location field in Pay Bill or Receive Payment transactions. This becomes a problem when you need to correct a location after the fact.
Here’s an example. Elain enters a bill for motor expenses under Location 1 and pays it. She checks the Profit and Loss by Location Report — the expense appears under Location 1. She prints the Bank Transaction List report — the payment is also tagged to Location 1. Everything looks correct.

Profit & Loss by Location Report
(Location 1)

Weeks later, her manager informs her that the motor expense actually belongs to Location 2. Naturally, Elain finds the Bill, updates the Location from 1 to 2, and saves it.
She reprints the reports. The Profit and Loss by Location Report now correctly shows the expense under Location 2 — but the Bill Payment in the Bank Transaction Report still shows Location 1.

Profit & Loss by Location Report
(Location 2)

The same issue applies to Receive Payment. If Elain raises an invoice under Location 1, receives payment, and later changes the invoice to Location 2, the Receive Payment transaction will still reflect Location 1 in the Bank Transaction Report — even though the invoice has been updated.
The root cause is the same: the payment transaction captures the Location at the point of saving and doesn’t automatically refresh when the linked transaction is updated.
Honestly, I can’t say for certain — I’m not a QBO developer. But here’s my best guess: when a Bill Payment or Receive Payment is saved, it captures the Location from the linked transaction and stores it in its own record. When you later update the Bill or Invoice Location, that change doesn’t automatically flow back to the payment. The payment’s Location field simply isn’t refreshed.
The solution follows the same logic: since the payment transaction captures the Location at the point of saving, we need to force it to save again.
After updating the Bill, Elain should:
On saving, QBO will re-read the linked Bill data and update all relevant fields — including the Location.

The same approach applies:
QBO will refresh the data, and the Location will update accordingly.
Note: If you’ve already reconciled the bank account, review your bank reconciliation report after making either of these changes to ensure nothing has been displaced.
Does this issue affect all QBO versions? It affects QBO Plus and Advanced, since these are the only versions that include the Location feature.
Will changing the Location affect my bank reconciliation? The transaction amounts don’t change, so your reconciliation totals should remain the same. However, it’s good practice to review the reconciliation report after editing any past transaction, just to be sure.
Can I use Location and Class at the same time? Yes — and in many cases, you should. Location and Class are designed to complement each other. Use Location for physical or organisational groupings (e.g., branches, outlets), and Class for operational categories (e.g., product lines, departments, projects).
What if I can’t find the Pay Bill or Receive Payment transaction? Search by the vendor or customer name, or filter by date range in the relevant register. You can also find it via the linked Bill or Invoice — open the transaction and look for the payment link below the “PAID” payment status stamp.
Is this a bug? Not quite — I’d call it a quirk rather than a bug. The feature works as intended; it just requires one extra step when correcting past transactions. Now that you know the fix, it shouldn’t catch you off guard again.
The Location feature in QBO is a useful way to segment your financials by branch, outlet, or department. But because Pay Bill and Receive Payment don’t carry a Location field of their own, updating the Location on a Bill or Invoice won’t automatically update the related payment transaction.
The fix is straightforward: open the payment transaction, untick and retick the linked bill or invoice, and save. QBO will do the rest.
If you’re using Location alongside Class, just remember to apply the same refresh process to both transaction types whenever corrections are needed.