The Balance Sheet by Class report is only available in QuickBooks Premier and &qb_enterprise_solutions;.
The balance sheet uses the standard accounting equation "Assets = Liabilities + Equity."
The balance sheet in total (across all classes) follows the equation and always balances. However, it's possible that the balance sheet doesn't balance for an individual class. When this happens, the report shows "Unbalanced Classes." This happens if:
You enter an unbalanced transaction.
You enter a journal entry that changes only one side of the balance sheet for a specific class. Here's an example:
In the example, TOTAL ASSETS equal TOTAL LIABILITIES & EQUITY for each class. The balance sheet "balances."
However, you might enter a journal entry that's not balanced by class. For example:
This entry debits and credits the same account (Computers). The entry is balanced in total. However, from the class perspective, the entry doesn't balance. It increases assets in Class 1 and decreases assets in Class 2. Here's the report after the entry:
Computers-Class 1 1000
Computers-Class 2 1000
The TOTAL ASSETS do not equal TOTAL LIABILITIES & EQUITY for either class. This causes the Unbalanced Classes.
To avoid this, you must enter journal entries with debits for a specific class equal to credits for that same class. Learn more about unsupported transactions and their solutions.
You enter a transaction that the report doesn't support.
There are several transactions that the Balance Sheet by Class report doesn't support. Some of these transactions create Unbalanced Classes. For example, if you enter an early payment discount in the Receive Payments window, the report will show unbalanced classes.
See more unsupported transactions and their solutions.
Balance Sheet by Class report
Guidelines to enter transactions on the Balance Sheet by Class report
Troubleshoot problems on the Balance Sheet by Class report