Choosing an account for an invoice or bill line item
In an invoice
When you create an invoice line item, you will want to choose an account where you'd like revenue to be categorized. This is often an Income account, such as Sales. That's where your income will be shown in your Profit & Loss statement.
You can create your own accounts in your Chart of Accounts to match your business needs.
In a bill
When you create a bill line item, you will want to choose an account where you'd like the expense to be categorized, or, in the case of goods, an inventory account such as Inventory Asset.
You can create your own expense or inventory accounts in your Chart of Accounts.