- No, items can only have one categorisation. However, products in a sub-category are also part of the parent category.
Learn how to set up categories and sub-categories in Products and Services.
A category is a way of classifying the products and services you sell to customers to make accounting for stock easier. Categorising what you sell can help you better understand sales volume and track who is buying what from you.
You can also search for items by category, saving you time when completing transaction forms.
You can set up categories and designate sub-categories under the parent category. For example, a category called Design could contain sub-categories for Garden, Fountain, and Lighting to further characterise the specific type of design work.
In this article, we'll show you how to set up categories.
To set up a new category or sub-category:
Select the Gear icon on the Toolbar.
Under Lists, select Products and Services.
Select Manage Categories from the More button drop-down list.
Alternatively, you can create a new category on the fly when you set up (or edit) an item or service by selecting Add New from the Category drop-down list in the Product/Service information panel.
You can edit an existing category to change its name, or to turn an existing parent category into a sub-category, or make a sub-category into a separate category of its own.
You can also remove an entire category or sub-category. However, if you remove a sub-category, items associated with that sub-category are moved to the parent category. If you remove a category, items in that category are reclassified as Uncategorised.
To edit or delete an existing category:
Select the Gear icon on the Toolbar.
Under Lists, choose All Lists.
Select Product Categories.
From the Action column drop-down menu, select Edit.
Select Save.Alternatively, select the Remove button to delete the category.
The category is edited or removed as you specified.
The following sections provide answers to frequently asked questions about categories.
If you are migrating from QuickBooks Desktop, or have sub-items set up in QuickBooks Online, then any items or sub-items with child items will be converted into categories, and the hierarchy will be maintained. Any sub-items (with their own sub-items) that have been used in transactions will be converted into stand-alone items and we will create a Category for any lower level sub-items.
When you switch from sub-items to Categories, the word "deleted" is added to the category name for an inactive parent item. To continue using the inactive item, simply edit the category to rename it. If you don't want to use it, you can easily remove or delete it.
Transaction forms display the full name of items and services, including categories. When you add an item or service to a transaction form, you can search by that item or service name, SKU, or category to add it to the form.
No. Categories are used to categorise sellable or purchasable items, and are not intended to be used on transactions. However, when adding items to your transactions, you can still search for those items by categories.
Yes. Categories are meant to ease your processes. You can assign and reassign them however you want, to best suit your needs.
When you delete a sub-category, any items or services in it move up one level to the parent category (or higher sub-category).
When you delete a top-level category, all the products and services within it are reclassified as Uncategorised.
No. Reports are not impacted by category use.
No. While categories are great for gaining a better understanding of your sales, and make it easier for you and your employees to manage record keeping, they don’t directly impact your bottom line accounting.
We removed the indentations from the Products and Services list to make it easier to read. Additionally, QuickBooks Online now displays line items with category information.
You can also select the Filter button and filter by one or more Categories, so that only the categories you want are shown.
Yes, you can import categories the same way you import products and service items in an Excel file.
For example, you can specify an item as Men’s Clothing: Shirts in the import data file to create a category called Men’s Clothing and an item called Shirts.
We’re releasing the Category feature in stages. If you use sub-items now, you have the opportunity to opt in earlier than those who don't. After the opt-in period, we’ll turn the feature on for everyone.