Creating a new Expense Category allows you to break down the structure of your costs easier, and improves your financial control abilities. Each new category you create can be accessed by users, if its permission is not set to Forbidden.
In order to create a new Expense Category, please follow the steps below:
Log in as Company Administrator
Go to the Company Profile tab
Go to the Accounting Rules section
Note: Our example will address the creation of a new expense category that deals with gifts made to customers. This category can be used to keep accurate track of costs associated with gifts.
Use the Customer Category field to set the name for your new category
In the Category drop-down menu, choose and ID for your category. We advise that you search for a good match. In the example below, every gift category (60, 61, 1061, 59, 87 etc.) would be a good match.
Click on Add
In the pop-up window that appears, set the Cost Account (GL account) of the expense category.
Click on Add again
After this step, your new Expense Category is created. At this point, it contains only basic details, such as the name and GL. You can check out this article about How to Edit an Accounting Rule.