QB Issue Resolution:

“I guess I should list all my items under inventory.”

You do that because you factually are managing Products that you buy, stock, reorder, and sell. Otherwise, you don’t use Inventory for a nonivnentory operation.

“If you wanted to see which one of your expenses was costing the most money, what report would you run and what filters would you use?”

The P&L Detail for the expense account(s) in question, and Purchase reports, if you are using Items, even for Noninventory and Service items. You can set those up as something you buy and sell, and you can run reports by those names.

Resolution for Issue 'Under reports-Purchase, It should list Purchase Orders, not Purchases by Item Detail. You can purchase items without using a PO. It’s very misleading.' available: Yes (Solved).
Source: Intuit Community forum.

Under reports-Purchase, It should list Purchase Orders, not Purchases by Item Detail. You can purchase items without using a PO. It’s very misleading.: 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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