In the Advanced section of each expense transaction, there is a drop-down for Expense Type. Among the options listed is one called “Other Expenses”. Other expenses are expenses not directly related to your business and/or non-deductible expenses.
Some examples include:
Non-deductible Interest expenses (not to be confused with deductible Interest Expenses)
Tax Penalties
Please consult your bookkeeper if you are unsure whether an expense should be categorized as an Other Expense.