Hello there, @rabezold.

I'll gladly share some insights about the information displayed in the Sales by Ship To Address report so you can manage your data in QuickBooks Desktop (QBDT) accordingly.

The Sales by Ship To Address report shares details related to your customers and sales items. The subcategories information are being pulled from the accounts linked to your items. If you wish to update them, you'll have to visit the Item List window and edit the item's account. 

On the other hand, the cities showing in the Sales by Ship To Address report is related to your customers' address info. To correct misspelled cities, you'll need to edit your customer's data from the Customer Center.

You can refer to this article for the complete details how QuickBooks generates reports: Understand reports.

Also, you may want to check out this article as your reference to learn the different ways you can track customer transactions in QBDT: Get started with customer transaction workflows in QuickBooks Desktop.

If you have any other concerns about reports or questions about managing data and transaction in QBDT, I'm always ready to help. Take care, and I wish you continued success, @rabezold.