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QuickBooks Online Sync Error: Invalid Reference Id : Categories cannot be used in transactions.

Error

Invalid Reference Id : Categories cannot be used in transactions.

Explanation 

This error occurs when a bill with items on it in Bill.com is trying to sync to QuickBooks Online (QBO), but one or more of the items on the bill is type "category" in QBO.

Solution

Edit the bill in Bill.com to have items that are not of the category type, save and sync.