Thank you for posting here in the Community. I can provide some clarification about the categories in QuickBooks Online.
Currently, the option to set up an expense account for a product category is unavailable. However, you can add it to the purchasing information of the service item.
Here's how:
On the left navigation bar, click Sales.
Search for the service item.
Press Edit under the Action column.
Put a checkmark to the box next to I purchase the product/service from a supplier.
Add the expense account.
Hit Save and close.
The categories groups your products and services when you run sales or stock reports. You can use the Sales by Product/Service Detail report to track the profitability.
Please follow these steps to run the report:
On the left navigation bar, click Reports.
Select Sales by Product/Service Detail under Sales and customers.
I appreciate you performing the recommended steps provided by one of my colleagues. This time, let me help you figure out where you can check put a checkmark in the box.
If you are referring to the I purchase this product/service from a vendor or supplier, it is located at the bottom under Purchasing information. See the screenshot below.
Please let me know how it goes or if you have any follow-up questions. I'll be here if you need further assistance. Just leave a comment below.
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