Classes vs groups vs categories

Tracking vehicle expenses is a very good example of where it can be advantages to use classes. Using a class for each vehicle may let you greatly reduce the number of categories in you list. Say you have three vehicles; you can track maintence, fuel and registration fees with just three categories [or subcategories] and three classes. It would take nine categories to do this without classes. Down the road you trade the Dodge for a Hummer - you can add one single class for the Hummer or you would need to add three new categories - in time your category list gets quite lengthly.

The same reasoning holds for tracking expenses for individual family members if desired. Say there are 5 family members. Set up a class for each rather than an extensive array of category:subcategory for each. You can use the classes for any categorye.g., Medical, Dental, Personal Care, etc.

You can do category reports and subtotal by class to get your total expenses for a given category broken down by class - e.g. Total expense for Fuel broken down by vehicle.

JM - very interesting - that puts a different slant on classes than I've been using for a while. And you're right, I have a lot of the category:subcategory lists for family members and specific autos. I think indeed I'll change to your methodology.

One question - I HAVE been using classes as a means of excluding transactions in reports that don't affect me personally. For example, if I deposit cash in my checking account that I collected on behalf of a charity event, then write a check to the charity for the total sum of the charity deposits, I have a 'class' defined as 'charity' to exclude, since those transactions aren't really mine, and shouldn't be counted in reports such as cash flows, etc. I have many of these in fact. Different charities, hobbies, holding onto the money that kids collect for fundraisers, etc.

So I'm think of renaming all of the to 'xSomething', like 'xCharity' (as in 'exclude') to still give me flexibility to do this, as well as having classes set up for the family members and autos above for my tranactions that are mine.

Does this methodology make sense to you to use classes in this manner (both to categorize real expenses and excludable expenses)? Do you do such a thing? I'd be interested in hearing opinions from others before I go wholesale crazy this weekend!

This is an interesting use of classes - had not occurred to me but then do not have your requirement.

I do have other uses of classes including:

I tracked both pre-tax and after-tax contributions to a 401k by assigning a class '/PT' or '/AT' to the transfer from checking.

Track '_IntInc' from individual FI's by assigning classes. This makes it easier to match up with year-end tax documents and enter info into TTax.

Owned multiple rental properties - use of classes essential here for preparation of Sched E for each property. This function is integrated very well with TTax.

Have done some consulting work and use a unique class for each employer

- provides good breakdown of Sched C info for tax prep.

Have used classes to provide breakdown of costs for extensive home remodeling projects; e.g., used classes for electricl, plumbing, contract labor, doors & windows, etc.

The list goes on - might say the use of categories/classes is limited only by your imagination :

"Russ" wrote in news:1163127643.198595.119890 @m7g2000cwm.googlegroups.com:

Classes can be used for tailoring reports, but are about the only real way to segregate business activities that are reported on Federal Income Tax sked C and sked E, if you import into TTax.

scott s. .

What I have done for this is set up an actual account, a liability account, which functions as a clearing account. I have named it "Cash Collected for Others" If, say, my mother gives me $20 to go to a walkathon at my kids school, the entry is Dr. Cash $20; Cr. Cash Collected for Others $20. When I forward all the cash collected to the school (or whatever) Dr. Cash Collected for others; Cr. Cash.

Peter V Fall River, Nova Scotia

Thanks Peter for the post. What do you do if the income you get is in the form of a check, however, and that goes into your checking account? I know one might consider setting up a separate checking account for that sort of thing, but that sounds pretty heavy handed. I think your idea works if all the transactions are in cash, but might present some challenges if one commingles checking accounts with this.

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------------------------------------------------------------- Regards -

- Andrew

Hi Andrew,

Depends on who the cheque is made out to. If the cheque is made out to the organization, can't you just hold on to the cheque until you forward any cash received? That's what I would do. Now, if the cheque is made out to you with the intention that you pay the charity, you deposit the cheque and assign it to you cash collected for others account. When it comes time to pay your charity the pledges you collected, you write one cheque to them and then also include any cheques you received made payable to the actual charity.

Peter V Fall River, Nova Scotia

Andrew wrote: