Use a "class" to classify transactions. Classes can apply to all
transactions, so they are not tied to any particular customer.
Use a "type" to classify customers, jobs, and vendors.
For example, you might have "wholesale" and "retail"
customer types. You can then get financial reports focused by type of customer.
But maybe you need a third classification that spans any type of customer. In
this case, you can use QuickBooks classes. For example, if you have separate
departments, you can create a class for each department, such as
"children's" and "women's." Or if you have two
stores, you can set up a class for each store.
Each time you enter a sale in QuickBooks, enter the class associated with
that sale. Then you can get reports on income and expenses by class regardless
of which types of customers are involved.