P&L Unclassified or Balance Sheet by Class Unclassified

@JessT Thanks for your reply, yet I did classify my transactions on item level too, I classified everything I possibly could, but somehow I still have unclassified transactions in the Balance Sheet  by Class, when clicking into the transaction it shows a class. 

Hi there, @Khmusazai. I'll explain why the built assembly items goes to unclassified class. 

What you’re seeing is a known behavior in QuickBooks Desktop. Build Assembly and other inventory-side transactions don’t support classes, so those cost movements show as Unclassified on Balance Sheet by Class. The good news is that this doesn’t stop you from getting a clean P&L by Class.

Here’s how the flow works: the build just moves cost inside Inventory Asset and never touches the P&L. COGS only hits the P&L when you sell the item. At that point, QuickBooks uses the class on your sales form (invoice or sales receipt) to classify COGS. 

To fix Unclassified on the P&L, edit the sales transactions that created the Unclassified COGS, add the correct class to the item lines, and save. This way, your P&L by Class will update immediately.
 

Here's how:
 

 1. Go to the P&L report.

 2. Click the amount of the item.

 3. Double-click the transaction to expand its details.

 4. Assign a class in the sales transaction (example: Sales Receipt).

Feel free to reach out if you need additional assistance.