Thank you so much for your help. I understand the difference but I also see that the Item is assigned the Expense account of Cost of Goods Sold (COGS). The Bill expense for the items are showing on the P&L Budget vs Actual report, but it is not showing under the correct Class (even thought the class is assigned in the bill)?
Also, I have a few items that are showing under the correct Class, but most are not?
Thank you for your help.