In Accounting, segregation of general ledger data is a very powerful concept and allows visualization of various reports in a departmental/groups/profit center perspective. Most mid-size law firms may create classes in several ways (or combinations): Matter Names, Office Locations, Departments/Practice Groups, Individual Partners, with subclasses.
Think of class as an attribute or property or metadata put on top of Chart Of Accounts. So, anytime a Chart Of Accounts is used, Class(es) can be used.
Another use of Class is the ability to produce income statement by Attorney. Cost is easy to track by Attorney as each expense can be allocated to a class. This allows them to monitor profitability per attorney.
To Create a Class:
Go to Setup > List Items > Click Classes Tab > Click Add
In the Add Class window:
Name: Type in a Class Name. Some examples can be an attorney name, Firm Name, or Area of Law.
Sub-Class Of: You have an option to associate a sub class for the class your creating. An example would be Law office of Gordon Hall as the Class and the subclass can be an area of law such as Family or Criminal.
Description: You can type in a description for the class.
Active: You can make the class active or Inactive.
When ready, Click Save.