To set up a custom expense category, create an expense account type in the Chart of Accounts.
Go to the Gear icon > Chart of Accounts > New Account.
From there, select Expenses as the Account Type and the Detail Type, give it a name, and Save. This new account will then appear as a selectable category when recording expenses.
Also, since you need to create an account. It is a good idea to consult your accountant to ensure the account is set up correctly.
You can also use this article as a reference. Although it focuses on QuickBooks Online (QBO), the steps can still serve as a helpful guide for you:
If you have further questions, please reply to this post.
