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QuickBooks Online Sync Error: Items that are used on invoices cannot have sub-items; Categories cannot be used in transactions, or Invoice is using an item that has sub-items. Such items are called categories in QBO and are not allowed on invoices.

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Janelle L.
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Error

Invalid Reference Id : Categories cannot be used in transactions.

May also say:

Invoice is using an item that has sub-items. Such items are called categories in QBO and are not allowed on invoices.

Items that are used on invoices cannot have sub-items

Explanation 

This error occurs when a bill or invoice 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/invoice is a "category" type item in QBO.

Solution

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