Category types in PocketSmith
The category type determines how income and expense transactions within a category are reported in PocketSmith. Learn how to set the category type so that your transactions are displayed accurately.
Category type overview
When creating or editing a category, you can set a category type to determine how any income and expense transactions assigned to this category are reflected in your reporting and budgets.
By default, for any unbudgeted categories, PocketSmith will treat any credit transactions as income, and any debit transaction as an expense.
This works well in most cases; however, what happens with credit transactions that aren't technically income, for example, when you receive a refund for returning a purchased item or your friend reimburses you for buying dinner?
This is where category types come in handy! By changing the category type, you can tell PocketSmith how you want income and expense transactions for a particular category to be treated in your reports and budgets.
The available options for category type are as follows:
Would you like income and expense to be treated separately in reporting?
- Yes, this category can include both income and expenses
- No, this is an expense category (any income is a refund)
- No, this is an income category (any expenses are deductions)
You can learn more about each of these options below.
The category type affects how the transactions assigned to a particular category are calculated and displayed in different areas of PocketSmith, such as within a budget, on the Cashflows page, the Income & Expense statement, your Dashboard Earning and Spending graph and the Income and Expense pie on the transactions page.
As soon as you create an expense budget for one of your categories, PocketSmith will adjust the category type for that category for you, to: No, this is an expense category (any income is a refund).
Likewise, if you create an income budget for a category, PocketSmith will adjust the category type for you to: No, this is an income category (any expenses are deductions)
Let's take a closer look at each of the category types and see what happens when they are applied:
Yes, this category can include both income and expenses
This is the default option that PocketSmith applies to your categories. It means that income and expense transactions that are assigned to your categories are treated separately - so they will each be displayed as income or expense respectively.
No, this is an expense category (any income is a refund)
When this option is selected, the category and its transactions will only show in expense sections in PocketSmith. Any credit transactions assigned to this category will be treated as a refund and subtracted from the expense total.
Use this option for categories you would consider expense-only categories, eg. Rent, Groceries
No, this is an income category (any expenses are deductions)
When choosing this option, the category and its transactions will only show in income sections of PocketSmith. Any debit transactions that are assigned to this category will be subtracted from the income total.
Use this option for categories that you would consider as income only, eg. Salary/Wages
Changing the category type
- Head to Categories ( Manage > Categories)
Navigate to the category you'd like to edit, hover over the end of the row, and click on the three-dot menu
- Select Edit
Under 'Category type', choose from one of the three options provided and click Save
Does category type affect how transfer categories are displayed?
It's best to set the category type for transfer categories to: 'Yes, this category can include income and expenses'. This is because transfer categories will include both income and expense transactions.
Why is one of my expense categories showing in the income section?
If you assign a refund transaction is to a category with the default category type, then the transaction will be treated as income. The category and transaction will then be displayed in any income areas in PocketSmith. You'll just need to change the category type to: ' No, this is an expense category (any income is a refund)'