GOTW | Xero Tip: Tracking Categories
"Setup tracking categories to see how different areas of your business are performing."
Setup tracking categories to see how different areas of your business are performing (such as departments, cost centres, or locations). Tracking categories can make your reports more informative to help you make proactive business decisions.
Geek Tip 1: Tracking categories are not designed to use for job costing. If you require job costing it would be recommended to use one of Xero’s recommended add on solutions. Feel free to discuss with the BWR team if required.
About tracking categories and options
- Xero uses tracking categories and options instead of department codes or cost centres. This keeps your chart of accounts manageable
- You can have up to two tracking categories
- You can have up to 100 tracking options for each tracking category
- A tracking category needs at least one tracking option to assign tracking to a transaction
Setting up new tracking categories:
1. In the Settings menu, select General Settings
2. Under the Reports heading, select Tracking
3. Click + Add Tracking Category
4. Under Tracking category name, enter the name of the tracking category i.e. Locations
5. Enter your tracking category options names under Category Options i.e. Hawke’s Bay, Manawatu etc
6. Click Save
7. Once a tracking category has been setup, you can add new tracking options when creating transactions. To do this, click into the tracking field, then click on the arrow and select +add new tracking option
Assign a tracking option to a transaction
Track transactions in Invoices/Bills
1. Go to Accounts, then click Sales
2. Click + New, then click Invoice
3. Fill out the invoice as you are used to
4. Then select the category option for the transaction from the tracking category
5. If you have two tracking categories setup then you can assign both here i.e. location and sales rep
6. Click Approve
Track transactions from the bank reconciliation screen
1. In the Bank Recondition screen
2. Enter the who, what, why as you are used to
3. Then select the category option for the transaction from the tracking category
4. If you have two tracking categories setup then you can assign both here i.e. location and sales rep
5. Click OK to reconcile the transaction
Review reports by tracking category
Most reports will give you the option to filter by tracking category.
Profit & Loss Report
1. In the Profit & Loss report select Report Settings
6. Select the tracking category you would like to report on for the selected period
3. Select Update
4. This will show the profit and loss for the selected tracking category for the selected period
Geek Tip 2: If you would like reports setup to show tracking category options side by side etc, please contact the BWR team to assist you in customising reporting options.
If you require any further assistance….
Please contact our in-house tech hub expert, Kate.
http://www.bwr.co.nz/contact-us#itdept
06 873 8037
