QB Issue Resolution:

pv is right but that does not apply to QBSE

Intuit left out a couple of things in QBSE that should be there, those things are on the schedule C.

inventory is one of them, and being able to create more expense accounts (categories) – you can not do that either.

You have to use the materials account in QBSE even though the form says not to – no other options

Resolution for Issue 'How do I categorize inventory transactions? The automatic option is Materials & Supplies, but that specifically says “do not use for inventory.”' available: Yes (Solved).
Source: Intuit Community forum.

How do I categorize inventory transactions? The automatic option is Materials & Supplies, but that specifically says “do not use for inventory.”: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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