Welcome to the Community, @plumbingsolution,
If you mean adding categories to your invoice, you can utilize the Class Tracking feature. You'll need to turn on this feature in your QuickBooks Online Account first to be able to use this feature. Here's how:
- Click the Gear icon in the top right corner of QBO.
- Select Account and Settings.
- Choose the Advanced tab from the left menu.
- Make sure Track Classes is turned on in the Categories section and choose how you'd like for them to appear on transactions.
Once done, you're now ready to create an invoice and add categories. Please refer to this article for further information: Create and Manage classes in QuickBooks Online.
On the other hand, if you mean it as accounts in the Chart of Accounts, we can create a Material and Labor account and assign it to an item.
Here's how:
1. Go to the Accounting tab, and select Chart of Accounts.
2. Click New to create a new account.
3. To assign the account to an item, you can go to the Sales tab.
4. Select Products and Services. (Tip: You can edit an existing item and then assign the newly created account to it.)
5. Click New to add a new product. Make sure to select the right account in the Income Account section.
6. Then select Save.
You can now create an Invoice using the product/service that's linked to the newly created account.
I’m also adding this reference in case you want to group your items in QuickBooks Online: Group your products and services into different categories.
Should you need further assistance with your QuickBooks transactions, feel free to leave a reply. Enjoy your day.
