For example, the sales department of a car dealership could use categories to help them track the profitability of the car models they sell: say, model A, model B and model C.
When entering a transaction, you need to allocate the appropriate category to it. You can then prepare a profit and loss statement for each category.
There are certain transactions to which you cannot allocate a category. These are:
Pay Suppliers,
Receive Payments,
Prepare Bank Deposit,
Settle Returns and Credits/Debits and
Pay/Receive Refunds. When entering these transactions, the categories assigned to the original transactions will be used. For example, the categories assigned to purchases appearing in the
Pay Suppliers window will also be assigned to the payment.
