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Thanks for visiting the QuickBooks Community, vgwgreen.
If you remove categories on the Profit and Loss report will affect your income and expenses. The accounts displayed there are sourced from the Chart of Accounts (Income and Expense categories).
If you want to discard one, you have to remove them entirely from the COA. This is done by removing or replacing the accounts used on the transactions, or unlinking them from the items used on sales or expenditures. Then, making the account inactive after.
On the Profit and Loss report, you can click the amount beside the category to see the transactions under it. You can also open the chart of accounts and then look for the category. Review the transaction line items and update them if necessary. Go to the item list and update the Income Account and Expense account used for the items used there.
If you need further assistance with your reports in QBO, please let me know in the comment below. I'll be more than happy to share some more insights with you at any time. Have a lovely day, and thanks for reaching out to the QuickBooks Community.
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