Set up tracking categories to monitor different areas of your business
Set up tracking categories to see how different areas of your business are performing (such as departments, cost centres, or locations). This way, your reports help you make proactive business decisions.
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 two active 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.
Set up a tracking category with tracking options
You can set up a tracking category with tracking options however you want, so we'll use an example to show you how it works.
Let's say you're a business with seven work locations. You can track sales at each location by setting up a tracking category with tracking options for each location.
- In the Settings menu, select General Settings.
- Under Reports, select Tracking.
- Click + Add Tracking Category.
- Under Tracking category name, enter the name of the tracking category. Enter your tracking option names under Category options.
Assign a tracking option to a transaction
Track new transactions
Assign a tracking option to new transactions such as invoices, bills, quotes, purchase orders, spend money and receive money transactions, and transfer money transactions.
Track previous transactions
Assign a tracking option to previously-entered transactions such as invoices, bills, quotes, purchase orders, spend money and receive money transactions, and transfer money transactions to run reports about previous business performance.
Track bank transfers
Assign a tracking option to transfers you make between bank accounts.
Track fixed assets
Assign a tracking option when you create a new fixed asset.
You can also add tracking options to the import file when you import fixed assets into Xero.
Track a budget
Assign a tracking option to a budget you've created in Budget Manager.
Track a contact
You can set up default tracking options for contacts. Just select the tracking category when creating new transactions for the contact.
Review reports by tracking category
Review and filter reports by tracking category and category option to see the performance of different areas of your business.
View specific data from a tracking perspective. You can customise specific groups of accounts.
Filter the following reports by tracking category and category option:
New financial reports
Add a tracking column to any of these new reports using the report layout editor:
You can filter the following reports by tracking category:
- All new reports (except inventory reports)
- Account Summary
- Account Transactions report
- Profit and Loss report
- Balance Sheet report
- Journal report