Configuring Categories

Categories imply the different types of accounting entries.

Categories in Pleo = Chart of Accounts in an ERP/Accounting software

So, Pleo represents the different accounts from chart of accounts as Categories. For example, meals and drinks, IT hardware equipment, and other office supplies. Each expense is incurred for a specific purpose and the purposes are classified and represented as Categories.

A few important characteristics of Categories:

• When you are creating a new category, you can mention a specific tax code for the category.
• Most accounting entries must have a category assigned. This helps in understanding why the expense is incurred and is useful in categorisation of entries. For example, an out of pocket expense recorded in Pleo is related with Meals & drinks - Lunch allowance; only exceptions are Wallet Top Ups and Wallet Unloads where assignment of categories is not mandatory.
• A Category Group is like an umbrella term that includes individual categories. For example, a category group is Meals & drinks that includes Lunch allowance, Meals & drinks while traveling, and Meals & drinks with customers; each additional value is an individual category.