The setup of income and expense categories is done in Settings > Income and Expense categories. For the accurate generation of financial reports, it is necessary to specify how each income/expense category is associated with the chart of accounts and which line of the Cash Flow report it corresponds to.

For example, if the company incurs employee travel expenses, the corresponding expense category needs to be created in the system. In the Settings > Expense categories section, there is an +Add new button.

In the modal window, the following fields must be filled in:

Each category can have subcategories, so it’s necessary to configure the level of nesting by creating a hierarchy of expenses. For example, under the category Other business trip expenses, you can include hotel and ticket expenses. To do this, two new expense categories, Hotel, and Tickets, should be added to the system, and their hierarchy should be structured so that ticket expenses belong to the appropriate section of expenses.

Next, to create the expense hierarchy, hover over “Hotel” until the following icon appears:

Then, right-click and drag the Hotel expense into the main expense category Business trip expenses, where you want to include Hotel, to create the nested structure.

Only after this will you achieve the correct hierarchy of expenses.