Categorize Sales Transactions from payments apps in QuickBooks Online

Learn how to categorize Money-in transactions synced from Payment apps.

Review categories for automatically downloaded transactions when you connect Payment apps to QuickBooks Online. QuickBooks suggests categories based on how you categorize similar transactions.

How to categorize Sales transactions

Payments apps use Products and Services to assign categories to sales transactions. Each product and service has an assigned income category or Income Account. When you select a product or service, the income category it's assigned to increases by the amount of the sale. 

To categorize a transaction, 

1. Go to Transactions then select App Transactions.
2. Select PayPal then For review.
3. Select the transaction to categorize to expand it.
4. Select appropriate Products or Services in the Products and Services section of the transaction.

Once you save the transaction, QuickBooks increases the income accounts(categories) you assigned to those products and services. If the intended Product or Service does not exist, Add a new one with the correct Income Account (Category).

In the above example, PayPal sales item represents the product you sold in QuickBooks.

If you want to view or edit the income account/category of a particular product, go to Sales on the left menu and then Products and Services to look up details about this product, including the income account/category it affects.

When you click on Sales on the left menu and select Products & services, you will see the list of all Products and services created. Select a product to see which category it affects when you sell it.

In this example, you can see that the product named PayPal sales item is linked to PayPal sales income account. So, when you select the PayPal sales item on your sales transactions, QuickBooks increases  your PayPal sales account on your financial reports.

How to assign a transaction to multiple accounts

If you want to split the total of a Payment transaction between multiple categories, select different  products and services in each line item. Because each product and service has an income account assignment, if you select multiple products and services, you’ll affect the income accounts for each product and service you use.

In the below example, the PayPal transaction uses four different products in QuickBooks. Because each product or service has to affect an account, this transaction can affect up to four different accounts.