Create and manage expense categories

Overview

Expense categories are the labels assigned to expenses within your organization to ensure accurate expense tracking and simplify reconciliation. Users can pre-code expense categories on virtual cards and assign categories to cleared transactions.

This article covers how to create, edit, and manage expense categories and labels for your organization.

How to create expense categories

Owners, Admins, and Bookkeepers can manually set up and manage expense categories.

1. Select Settings from the main navigation and open Expense Categories.
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4. Select the New Category button.
   
   
5. You will be prompted to enter the Code and Expense Category Name. Click Save to create the category.
   
   Note: The category code must be unique and cannot be changed after creation. Be sure to double-check before saving.
   
   
6. Once you’ve created your expense category you can add your labels. Labels are the actual values coded to your transactions.
   

To create a label, click the New Label button and enter the Code and Label Name. Hit Enter on your keyboard to save the label.
Note: The label code must be unique and cannot be changed after creation. Be sure to double-check before saving.

5. After creating your expense categories and labels, you can manage your expense category settings from the module on the left.
   

Here are the different settings you can manage for each expense category:

1. Active: Toggling this option On will activate this expense category for everyone in the organization. If turned Off, the category will be hidden from view.
   
   
2. Requiring expense categories: Toggling this option On will ensure that all virtual cards and transactions are assigned a label and a code. Users in your org will not be able to create a virtual card unless the required expense categories are applied. Any transaction missing a required expense category will be flagged and displayed as missing.
   
   Note: In order to require an expense category, you must have at least one active label. If your organization is connected to Quickbooks Online or Netsuite, the Account Expense Category will automatically be required.
   
   
3. Free Text: Toggling this option On will allow users to enter their own label for an expense category at the time of creating a virtual card, updating a virtual card, or coding a transaction.
   
   
4. Send to Bank: Toggling this option On will pass expense category information into user-defined fields with your bank any time a virtual card is created or a transaction is coded. 

Note: This functionality is only available through certain banks.

How to update existing expense categories

Owners, Admins, and Bookkeepers can update expense categories and labels at any time.

1. To update an existing expense category name, simply click on the expense category you wish to edit. You will be able to update the expense category name and the label name.
   
   Note: You cannot update an expense category code or label code, you will need to disable the expense category or label and create a new one.
   
   
2. To disable an expense category or label that is no longer needed, you can use the Active toggle. Once an expense category or label has been made inactive, it will no longer appear when creating virtual cards, updating virtual cards, or coding transactions. 

Any historical transactions that were previously coded with the expense category or label will remain.