Hi there, rosmith0669. 

Thanks for stopping by this afternoon, while I'm not able to tell you exactly how to categorize your items and expenses I can show you how to add, edit and delete them. as well as provide you with an article you can use to help differentiate between bills, checks and expense. 

Create an expense

1. Select + New.
2. Select Expense.
3. In the Payee field, specify a vendor. You can specify the name of a person or a business. If your transaction covers multiple petty cash expenses, leave this field empty.
4. Select the Payment account to which to credit this expense.
5. Enter the date of purchase in the Payment date field and specify the Payment method for the expense.
6. (Optional) You can use the Ref no. field to enter an identifying number from the purchase receipt. (Note: QuickBooks Online Plus users: When location or class tracking are turned on, additional fields for Location or Class appear. You can turn on location or class tracking features in Account and Settings on the Advanced tab).
7. (Optional) Enter a description of the expense.
8. Enter the amount of the purchase and any Tax paid (if applicable).
9. Select Save and close or Save and new.

Before you Save and close, you have some options to consider that could help track the expense:

• If you are billing this expense to a specific customer, select the Billable checkbox and enter the name of the Customer. Billable expense tracking must be turned on to see the Billable column. You can turn it on in Account and Settings on the Expenses tab. Note: If you later receive a credit for an expense that was previously billed to a customer, be sure to specify that customer on the credit and select the Billable checkbox or the customer will be billed for the expense on the next invoice, and the credit will not appear.
• To see a report of income vs. expenses for each customer, you can run an Income by Customer Summary report.
• Enter any note or Memo you want to appear in the Register, on printed checks, and on reports that include this purchase.
• Use the fields in the Item Details section to enter information about the product or service purchased.

You can find these steps as well as a tutorial video at the following link: Enter, Edit or Delete expenses. 

For assistance on figuring out how to categorize items, refer to this article: What is the difference between bills, checks, and expenses? 

If there's anything else I can help with, feel free to post down below, thank you for your time and have a nice afternoon.