Article Photo QuickBooks: Using the Customer/Jobs and Classes Utilities Configuring the Customer/Jobs and Classes utilities for use in a nonprofit Mark McCallick - March 05, 2018 Welcome to the third article of the series on configuring QuickBooks for nonprofits. It covers the next two critical steps in both tracking your funding sources and creating the right reports by using the Customer/Jobs and the Classes utilities. In the first article, I mentioned that the very first step in configuring QuickBooks is to have a QuickBooks implementation meeting. I recommended using a questionnaire to facilitate the meeting and act as a centerpiece.The second article dealt with setting up the chart of accounts in a nonprofit environment. This article will cover the next two critical steps in both tracking your funding sources and creating the right reports by using the Customer/Jobs utility and the Classes utility. GET QUICKBOOKSThe QuickBooks Customer/Jobs UtilityThe "Customer/Jobs" utility should be used to keep track of your nonprofit's funding sources. Let's say that the XYZ Foundation awards your nonprofit a grant for 2018. In QuickBooks, you will set up a customer called "XYZ Foundation." Next, you will set up a job underneath the XYZ Foundation called "2018 XYZ Foundation Grant."In database vernacular, the customer is a "parent" record and the job is a "child" or subordinate record. They are related to one another, but they are separate records in the database. By using this hierarchical setup, you will be able to keep track of all the grants that were awarded to your nonprofit by the XYZ Foundation. And you can keep track of each individual grant simultaneously.A common error that many nonprofits make is to create a customer record for each grant even if it is from the same funding source. Using the setup recommended here will allow you to see the history of all grants from the same funding source. An implementation questionnaire (described in the second article in this series) will assist you. You will need to make a list of your funding sources (customers) and the individual grants (jobs) awarded by those funding sources to your nonprofit.Evaluate your current funding sources and put them in this hierarchical order. Your list should look something like this:AT&T Foundation (this is a QuickBooks "customer") 2017 AT&T Foundation Grant (this is a QuickBooks "job")2018 AT&T Foundation GrantNational Endowment for the Humanities 2017 NEH Grant2018 NEH GrantXYZ Foundation 2018 XYZ Foundation Grant This setup allows you to go to your "customer" (funding source) record in QuickBooks and see all activity for that funding source at a glance.The QuickBooks Classes UtilityThe QuickBooks Classes utility should be used to manage and report on your nonprofit's programs. If you read the first two articles, you will remember that a nonprofit's programs are defined as "what the nonprofit does" (and not who funds the nonprofit). You and all the stakeholders involved with setting up QuickBooks should have come to a consensus on what your programs are, and you should have a list of these programs.Using the list of programs from your implementation meeting, go to the Lists option in the QuickBooks database, and then click on Class List. Add each program as a QuickBooks class. If you need help doing this, just click on the help button or the F1 key while you are in the Class List screen, and relevant help will pop up on your screen.A sample listing of programs for a nonprofit might look something like this:GeneralElder Day CareSoup KitchenYouth Program2018 5K Run2018 Gala For an explanation of the concepts in this article that shows you how to set up customer/jobs (your funding sources) and classes (your programs), see this short video. Tying It All TogetherThe next article will show you how to tie together the chart of accounts, funding sources, and programs in transactions within QuickBooks. After these relationships are built for each transaction (accounts receivable, cash receipts, accounts payable, cash disbursements, and journal entries), you will be able to use standard reports in QuickBooks (Profit & Loss, Profit & Loss by Job, and Profit & Loss by Class) to run reports by grant (funding source or Customer/Job) and by program (Class). GET QUICKBOOKSAdditional Resources: QuickBooks for NonprofitsStart configuring QuickBooks for your nonprofit by learning about planning and implementationContinue configuring QuickBooks by setting up the chart of accountsFinish configuring QuickBooks for a nonprofit: coding and reportingSee which versions of QuickBooks are available at TechSoup Mark McCallick, CPA, CGMA is a professor of accounting at Santa Ana College, where he created a QuickBooks course to prepare students to successfully pass the Intuit QuickBooks Certified User exam. He has a B.S. in accounting from Loyola Marymount University and began his career as a CPA at Ernst & Young. Prior to becoming a professor, he ran a CPA firm where he served nonprofit organizations in the areas of software implementation, audit, and tax for over 25 years. Mr. McCallick is a Certified QuickBooks Pro Advisor. These articles were updated by Mr. McCallick in November 2017 for our readers. This work is published under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 International License.