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When creating bills and invoices I have the option to enter things under Category details or Item Details. What is the difference and which is better to use?

I'm trying to figure out whether it's better to use Category details or Item details when creating invoices and bills. Could someone please explain to me what the difference is between these and when it would be appropriate to use each? Thanks in advance.
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Best answer 05-06-2019

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Established Community Backer ***

Re: When creating bills and invoices I have the option to enter things under Category details or Item Details. What is the difference and which is better to use?

The category detail is an account that you select from your chart of accounts; while the item detail is an item from the products and services that you purchase and sell.

 

If your bill or invoice is for a products and services item; use the item detail so that you properly track your sales income and cost of goods sold by item.

3 Comments
Established Community Backer ***

Re: When creating bills and invoices I have the option to enter things under Category details or Item Details. What is the difference and which is better to use?

The category detail is an account that you select from your chart of accounts; while the item detail is an item from the products and services that you purchase and sell.

 

If your bill or invoice is for a products and services item; use the item detail so that you properly track your sales income and cost of goods sold by item.

Frequent Explorer *

Re: When creating bills and invoices I have the option to enter things under Category details or Item Details. What is the difference and which is better to use?

Can you give an example of when you would use Category Detail.

 

Its clear to me if the bill is for an inventory item I would list it under Item Detail. Just not sure when or why i would list something in Category Detail.

 

Thx

QuickBooks Team

Re: When creating bills and invoices I have the option to enter things under Category details or ...

Hello there, @aesco48.

 

I'm here to help provide some additional information about the category details section when creating bills and invoice in QuickBooks Online (QBO). 


If the products or services that are being purchased haven't been entered as product or service in QuickBooks (in the Products & Services section), you can use the Category Details section to enter the information.

 

For example, once you enter a bill transaction for "Rent" and it's not available as a product or service, you can use the "Category Details" section to enter the account of the item. When the transaction is saved, the account entered will be debited.

 

For additional reference, you may want check these articles:

Please know that you're always welcome to post if you have any other questions about the category details section. Have a good one. 

 

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