Can I add a new category for "purchased inventory"?

Currently, the option to create custom categories in QuickBooks Self-Employed (QBSE) is unavailable, @interstate. However, we can utilize the existing categories that best suit your inventory tracking needs. Let me clarify this for you.

The available categories align with IRS guidelines for Schedule C, ensuring that your business expenses are reported accurately and consistently. For additional details, please refer to the article: Schedule C and expense categories in QuickBooks Solopreneur and QuickBooks Self-Employed.

If you’re unsure which category to select for your purchased inventory, I recommend consulting an accountant for assistance. They can provide tailored guidance based on your specific business circumstances.

Additionally, you can generate financial reports such as Profit and loss, Tax summary, and Tax details to see how each category is reflected in your reports.

Please don't hesitate to click the Reply button below if you have further questions about categories in QBSE. I'll be here to lend a hand.