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

Why the Sync Error occurs

This error occurs when a bill with items in PayMaker is attempting to sync to QuickBooks Online, but one or more of the items on the bill is type "Category" in QuickBooks Online.

How to Fix the Sync Error

Edit the bill in PayMaker and select a product or service item for each line item, and sync again.