Account Category

An Account Category is an optional tag on accounts that lets you group them in your own way for custom financial statements, beyond the fixed root types. For example, tag Office Rent, Utilities and Printing and Stationery as Operating Expenses and Interest Expense as Finance Costs, then build a Financial Report Template that totals by category. It has no ledger effect; a GL Entry never carries the category, the report looks it up from the account. The Nepal income tax return groups expenses in its own way, and categories are the cleanest way to produce that grouping without rebuilding the chart.

1. 01Go to Invoicing > Account Category > New and type the name, for example Operating Expenses.
2. 02Save. Then go to Accounts Setup > Chart of Accounts and open each expense ledger.
3. 03Set Account Category on the account and Save.
4. 04Build a Financial Report Template that groups rows by category.
5. 05Run the report from Financial Reports to see totals per category.

Create under Accounts > Account Category and tag accounts with it.

Category Operating Expenses for all office cost accounts.