How categories work
Every item has a Category. That choice decides which section of the invoice it sits in, whether tax starts on or off, and which reports include it.
The categories are:
- Goods. Products or materials you sell to the client. Taxable starts on. Markup is available.
- Reimbursable Purchases. Things you buy for the client and pass on at cost. They are not taxed, and there is no markup.
- Expenses. Your costs of doing the work, such as mileage or travel. Taxable starts off. You can turn it on. There is no markup. Turn Billable off if you only want to track the cost.
- Professional Services. A fee for a service, such as a flat design fee. Taxable starts off. Markup is available.
You choose the category on New Item, and again if you add a custom line on an invoice or quote.
Subcategory appears after you pick a category. The choices come from the Industry on Settings, then Company. Mileage is a subcategory. When you pick it, the item asks for miles and a rate per mile.
What your client sees
Your client sees the category as the section name on the invoice: Professional Services, Goods, Reimbursable Purchases, or Expenses. Subcategory is not printed on the invoice.
Common questions
Item sales & profit, Expense by category, and Reimbursable summary group items by category and subcategory. Time reports, such as Billable vs non-billable, use hours. They do not use item categories.
Yes, while the item is still editable. The invoice section follows the category saved on that line.
A shorter label inside the category, for your own reports. The list depends on your industry. It is optional, and your client does not see it.
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